By Samantha Knight
It is important for Landlords to understand what they are paying for and to do that you need to understand the jargon!
Just some of the charges you may come across:
A renewal fee is referring to a fee which the agent will charge when the tenancy comes to and end and a new contract is entered into with the existing tenant. For this fee you should expect the agent to take control of negotiating the terms of the renewal with both parties and drawing up the new tenancy agreement.
A Check in / Check Out fee can be charged to cover the cost of the agent /inventory clerk meeting with the tenant at the property, checking through the inventory either before, or after the tenancy (or both), signing the documentation and taking meter readings
Inventory Fee – a vitally important document to have prepared for you, especially since Deposit Protection Legislation has come into force. Check if you own the rights to this document i.e.- will they email you a copy that you can edit at a later date should you change agents, to save paying out for a brand new document to be produced again.
Document Fee – this may be referring to the preparing of your tenancy agreement and or inventory. Check exactly what documents you are getting for your money.
Tenant Find Fee – a fee charged when the agent is finding the tenant but will not be handling the management of the property thereafter. This fee really will vary drastically from agent to agent. Check exactly what the fee includes. Will you be getting all of your legal documentation drawn up inclusive in the fee or will the agent charge you extra for this.
Management Fee – a monthly charge to manage your property throughout your tenancy which is normally based on a percentage of the rent collected. 8%-15% is considered to be industry norm, moving up or down the scale dependant on the area of the UK
A clear fee structure should always be presented
Whatever the fee an agent intends to charge you, they should be laid out clearly for you to see and agree before you enter into business with them. Look out for all inclusive packages; these can work out cheaper than a fee structure which charges for each item individually. But always consider, a cheap price does not always mean a good price! Whatever fees you agree, it is the standard of the service that matters the most!
Keep ’em coming… you all do such a great job at such Concepts… can’t tell you how much I, for one appreciate all you do!
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