Updating post from Reddit.
Hi I am a new landlord and have called 2 estate agents both asking 7 percent fees. Is this something I can do on my own. I have seen open rent as an option too. Any suggestions would help please. Any points to keep in mind.
Yes it can be done on your own, join the NRLA and do a course or two to understand things and yes use Open Rent. I am sure others will have advice too.
Use OpenRent to advertise for free. Don't use any of their services except for credit checks.
Create your own application form or download one from the internet that asks essential questions you need to know; job, salary, income, references, pets, etc.
This will give you the info on if they pass affordability (2.5x salary) before you even allow a viewing.
However if they are close to affordability I still allow a viewing so I can meet them. There's more to a good tenant than strictly the affordability.
Docs:
It's a piece of piss if it's your only property, don't give your business to agencies they are worthless.
Yes, you can do it yourself; however, it's very easy to make an expensive mistake. With the rules changing in a few months, it's a complicated time to DIY.
7% is a decent price, it's often between 10-15%.
The point of an agent is that you "can" do it yourself, but they know how to do it correctly. It saves you from learning the processes, keeping up to date with your knowledge, and doing the actual landlord tasks.
Landlords often take the view that they can spend X hours on landlord training/activities, saving £Y. Or spend those X hours doing a job, earning more money than it would be to have the agent do it.
depends on what service package is being taken up by OP, fully managed service is 10-15% while tenant finding only is 7% which i suspect is what OP is being offered.
From my experience, the estate agent was not worth it for what they provided. I still would've had to approve all contractors or source my own if I didn't like the rates they were suggesting,the people they were trying to put in my property were... best way to describe them was 'dodgy AF', and they really provided very little assurance for much else. I could see the value of you have multiple properties or live a long distance, but for me it made way more sense to use openrent. Been fine with it for past 3 years now so must work somehow.
Hi
We are in west London and there is a lot of demand in the area. We have had 2 viewings without putting it on market just from neighbours friends who are interested. Whole point to get an agent is to make sure we don’t make any mistakes. The agent did point out that your energy rating done earlier this year was C so you are good there. This is from there email
We can provide the Tenant Find service for 6% plus VAT. we will carry out viewings and discuss all offers, collect five weeks deposit and one months rent upfront, create the first years tenancy agreement, serve pre-docs and transfer all the utility bills to the tenants names. Fees will be taken upfront for the year and your details will be given to the tenant for any issues. Tenant will pay you directly thereafter.
Rent collection service will cover the above however, we will collect the rent on your behalf and fees will be taken on a monthly basis. This is charged at 7% plus VAT and is ongoing until tenants vacate property.
Management service for 8% plus VAT. In this service we will collect the rent, make sure your property is compliant and meets all safety regulation changes, report any issues to you, send contractors for any works needed however, will always confirm price of works and only carry out works with your consent. Fee will be taken monthly once we collect rent from tenants and is ongoing until tenants vacate property.
We also provide a Management Plus service which includes the above and also has an insurance policy in place to cover twelve months of rent payments and legal costs if the tenants fail to pay rent. We can provide this service for 11% plus VAT.
There is a set up cost of £250 plus VAT for referencing etc but only if our tenants move in, £50 plus VAT if you would like us to protect the deposit and serve the prescribed information guide on your behalf and £170 for a check in inventory report processed by a third party independent company
Just isn't worth it.
On top of the courses from NRLA they have template documents for tenancy agreements you can use and you can also ask for their advice on things so well worth the subscription to be a part of them. Things to note for a tenancy you will need; EPC,EICR,Gas safety cert(if property has gas), most up to date how to rent booklet, right to rent checks, deed of guarantee(if they have a guarantor), privacy notice, tenancy agreement. Protect the deposit within a deposit scheme like TDS or DPS.
You are able to do this all yourself and as said before the NRLA can help with some.
Visit the agents, sort of interview/question them to make sure they are right for your needs and values. As long as no hidden costs 7% is good
7% is cheap. Watch out for hidden costs. When I fully priced out quotes I got in SW London it was closer to 20% assuming a 1 year tenancy. And anecdotes from friends/colleagues is agents aren’t there for you in the bad times.
Open rent is certainly an option.
Weird as this was on email I don’t k ow if there are any hidden costs I am not aware of.
7% is what I pay. Reliable and has good advice and finds decent tenants most of the time but not perfect. I'm okay to pay 7% if it means I don't have to deal with the admin and legal stuff. I want this to be a hands off investment as much as possible, have enough on my plate with life and work. I put it down to cost of doing business.