As a letting agent that is dedicated to our craft and passionate about our local community, we strive to offer tips, help and advice to landlords and tenants wherever possible. And this fresh instalment of Property Patter is no exception.
When you're a busy landlord, working with a letting agent has nothing but advantages - but, only if they know what they are doing and are truly on your side.
What do we mean by this? Well, it all boils down to fees and figures, and we're going to show you the reason.
Mant letting agents will add commission to...
Basically, any contractor-based work with regards to maintenance, and this can prove to be a double whammy. Why? Well, say the work costs £100 - some letting agents will request an invoice for £130, charge the landlord £130 and pay the contractor £100.
On top of that, certain agents will add a further markup of anything from 10% upwards; there have even been instances where markups of six times the initial cost have been tacked onto the bill - scandalous!
Other common areas where estates or letting agent at costly markups include:
Frequently, you will find that these kinds of agents will only work with contractors that agree to a commission fee to be added to their jobs which is, in turn, passed onto the landlord.
This double charging mentality will only increase and hidden costs will rise perhaps ten-fold when the tenant fee ban takes hold - which is something that's lurking just around the corner.
These dishonest backhanders essentially make a profit out of thin air, all at the hard working landlord's expense - and of course, this is something we wholeheartedly disagree with - it's a disgrace.
Here at Rockett HQ, we value every single person that walks through our doors, whether they’re a landlord, tenant, contractor or partner.
We support contractors to allow them to be competitive as they can by charging a fair market rate; we're transparent about our prices and as a result, don't even have to consider charging hidden fees. Also, we always check with an independent contractor that the price they charge is the market rate and there is no additional cost added to the bill - not in a million years.