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How much commission do you pay to your agent to manage your property if you let it?

(14 Posts)
TroutQuintet Wed 13-May-15 13:06:24

We are paying 10% to estate agents to manage two flats in the NW, which my DH thinks is too high, so I would be very grateful for some advice on what the going rate is. Thank you.

TroutQuintet Wed 13-May-15 13:07:04

I meant to say 10% of rent received in case it wasn't clear!

specialsubject Wed 13-May-15 13:24:45

if that is fully managed, and they are actually doing the job - you'll struggle to do better.

Drinkstoomuchcoffee Wed 13-May-15 13:30:04

I pay 13% in London. They initially wanted 16%. But they also find an endless list of stuff to repair and use their own incompetent workers so I suspect they make money on that too. But as we are abroad it makes sense to have an agency sorting everything out.

ReallyTired Wed 13-May-15 13:33:12

10% for fully managed is about right. It has to be remembered that it quite a lot of work finding a "suitable" tenant. If you have an easy tenant then the agency has very little work to do. A good agency will help you when a letting arrangements get into trouble.

We have an agency for rent collection and manage maintanence issues ourselves. It cost us 5% of the rent. However the back up of a good agency is support when you have legal issues. For example if your tenant gets into problems with arrears. In my experience any maintaince issues get referred to the landlord, so I felt I might as well deal with maintaince issues myself.

Often its better to pick a good agency, rather than necessarily the cheapest. I would pick an agency which belongs to the ARLA. ARLA makes its letting agencies sit exams so that they know the landlord's responsiblities and the tenants rights.

specialsubject Wed 13-May-15 13:44:03

doesn't mean they will do any work...but you have financial comebacks and protection, and if they do get off their backsides then their advice should be reasonably accurate.

remember it ALL comes down to you as the landlord.

Spickle Wed 13-May-15 15:42:35

I pay 10% + vat but it is fully managed and although it does seem high for what they're doing now, I did have problems with a tenant so it was reassuring to let them deal with it.

NotCitrus Wed 13-May-15 16:19:25

Been quoted 10 to 14% in London recently, 5% or more just for finding a tenant.
As it's next door and MrNC is on hand to do repairs, we just found tenants who had advertised on Gumtree and I checked them out myself.

dailyfix Wed 13-May-15 19:40:07

8% plus VAT, fully managed, but there were significant costs upfront.
A friend negotiated 6% but they live nearby & sort out all the problems themselves.

TroutQuintet Thu 14-May-15 07:05:45

Thanks everybody, it sounds as though I am getting a fair deal. Sometimes it seems like a lot for not very much work, but at least I don't get calls in the middle of the night saying that the heating has broken or the fridge isn't working!

TheDrugsWorkABitTooWellThanks Thu 14-May-15 11:29:46

Message withdrawn at poster's request.

Seafooddiet Fri 15-May-15 10:28:59

We run an agency in Notts and charge between 8-10%, depending on how many properties the landlord has with us. That is net of VAT.

scarlets Mon 08-Jun-15 10:30:54

The standard here is 10% ex vat. However, there are far more tenants than stock in this area, so agents are often prepared to do it for less so that they get the instruction. Play off a few against each other.

Agents are valuable IMO. I wouldn't want to deal with tenants and tradespeople directly, too much hassle.

felkov Mon 08-Jun-15 13:06:49

We pay 9% for fully managed, we're in Scotland. its worth it for peace of mind and having legal backup etc if anything goes wrong.

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