Landlords - has anyone managed to get estate agent to waive continued commission?

[maggiethecat]

One of the reasons for considering renting property myself is the continued commission. I would only be using the introductory service but have a problem with agents wanting to charge commission (reduced from 10 to 7.5%) for yrs2,3 etc that the tenant stays in property.

Has anyone got the agent to waive this fee?

I think you would only get them to waive it if you stipulated it was a one-off fee from the off, it would be pretty tough (and illegal) to do this once the tenants had been living with you. Some agencies will only charge a finding fee but I got fed up with the commission issue and now find my own tenants - it's really easy so, if you live within reach of your rental property, I'd go the DIY route.

The agent we use has a fixed price introduction fee (that includes credit checks, references and putting the deposit in a protection scheme) so it shouldn't be too hard to find an agent that will do that. You should also make sure you cross out the clause in most agreements that allows the agent to charge you if the tenant buys the property.

I am aware of the Foxtons's case and that although it was ruled that they could not charge the continued fee that was only because it was not made very clear in the contract. So of course, agents now flag this up for you.

I've asked a couple of agents about waiving and one agreed to go from 10-8% (yr 1) and from 6- 2.5% (subsequent yrs).

Sooz, sounds like you really negotiate hard. Do yours expect subsequent fees = % of the first year fee or is it % of the actual rent, even if you increase it in subsequent years?

I am really against the continued fee - how do they justify it - on nuisance value?

I know what you say about diy requiring time but I've had such a difficult time with 3 professional sharers (no one wanting to take responsibility for things) that I think that I need to vet my tenants myself.

I've actually put property on Upad (thanks again Sooz) but need back up plan if I don't get it rented after a few weeks. In which case I would certainly be trying your hard negotiations.

Yep. Haggle haggle haggle.