- Landlords – how much do you pay your agents?
I used to pay similar, about 12% but like everyone, haggle with them in an open market, they’ll want the business. Get recommendations though, I have had a couple of crap ones who failed to collect rent for months. I don’t bother using agents now for full management, just use for tenant finding, initial money and carrying out references, do anything else myself. They charge about £400 around my way for doing this initial service. CheersPosted 4 years agouponthedownsMember
I’d recommend managing yourself if at all possible. Otherwise make sure you separate the tenant finding part from the property management part then you can negotiate both with separate companies. If you go for a combined tenant finding and property management package the % you’ll pay for the property management will be higher.Posted 4 years agojambalayaSubscriber
£500 upfront to find tennets, prepare rental agreement then zero as we self managed. Unless the property is some way from your home and/or you are rarely around I cannot understand the logic of paying an agent close to 20% for calling a plumber / electrician / handyman which you the landlord then has to pay for.Posted 4 years agoJulianAMember
Finder’s fee only – we manage the rest ourselves. Getting an agent to find the tenant works because they do all the references (landlords, credit etc) and handle the escrow thing for the deposit and all that stuff.
It does help that the property is half a mile from where we live and everything’s pretty new in the house so there isn’t much to manage, really. If it were miles away it might be different.
Agreed on all points, Jambalaya. You speak good sense.Posted 4 years agoz1ppyMember
I would recommend, if you go the way of management, agreeing a cut off point (in writing). So that if the tenant turn out to be good and not need managing, you can get rid of the letting agency without hassle, say after a year. My letting agency turned out to be a nightmare, doing bugger all but still charging 10%, but my tenants are great. Got rid now, but they still owe us money.Posted 4 years ago
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