So when is a cheap fee not a cheap fee?
A little while ago I lost a potential instruction on Managed Service to a large corporate estate agency as they undercut my fee by 1%+VAT (1.2%) which saved the landlord £8.10 a month.
I respect that all landlords need to maximise their returns and a potential saving of nearly a £100 a year is respectable.
Five months later and the landlord is sat with me telling me how it wasn’t all it seemed, I won’t say about the service issues, however what had really frustrated my landlord were the additional fee’s and particularly the agents’ renewal fees of £95+VAT (£114) after six months, which were also due again in either six months or a years’ time, not only was the landlord now anywhere from £14 to £128 a year worse off than by choosing my service, but the agency also charge the tenant the same again. Nice earner for some.
Now we all charge administration fee’s, indeed we charge an admin fee of £60 (incl.VAT) where we arrange a fixed term tenancy renewal, however we only invoice the party who makes the choice of a fixed term, if both tenant and landlord agree to continue on a Statutory Periodic Tenancy (also known as a rolling tenancy) there is no charge to either party.
Having spoken to my landlord I tried to find the other agents fee’s which are supposed to be listed on their website and surprisingly, as it has been a legal requirement to display fees since June last year, there is a sign saying ‘our table of fee’s will be published shortly’, compare this to our webpage Landlord Costs where our fees are clearly stated for all to see.
I subsequently visited several other agents sites to check on fee’s and in the main they are clearly stated, if sometimes a little tricky to find.
I would suggest that any potential landlord check not only what the agents up front fee’s are, as I have found initial set up fee’s reaching £300 (ours are £150) and the monthly management fee’s, but also double check the ongoing fee’s.
