Tenancy Set-Up Fee & Monthly Managment Fee

[louf]

Hi
I would be grateful for people's view on this. I have just started to rent my property out and this is being managed through an agent. I have just received my first month's rent and my agent has dedcuted their fees. However, I was surprised at the amount they had taken. The contract states as follows:

Fees

Tenancy Set Up Fee - 70% of the commencing monthly rental plus VAT

Monthly management fee - 10% of the continuing monthly rental plus VAT.

Based on the above, and on the verbal explanation I was given, I was expecting a deduction of 70% in the first month but they have taken 80%.

Do these seem correct? Is this what all agents do?

Thanks in advance

[cymro123]

I take it you never read the contract then. These figures are not a million miles from what agents in my area charge - one I just checked charges 75% for initial set-up. Monthly management fees typically vary between 8% and 18% with the average being around 12.5-13%.

[squarefoot]

personally i think 70% is quite high for a tenancy set up fee.
however i would certainly charge the extra management fee as we would be managing the property from day 1.

i know its too late but you probably could have negotiated this tenancy fee, make your feelings known to the agency and perhaps when you have new tenants they will discount the rate.

[mind the gap]

It seems pretty high to me...especially as they have probably extracted a large wodge of money from the tenant as well, just for the privilege of walking through their door and asking if they have any properties to let :rolleyes:

[louf]

I take it you never read the contract then. These figures are not a million miles from what agents in my area charge - one I just checked charges 75% for initial set-up. Monthly management fees typically vary between 8% and 18% with the average being around 12.5-13%.

Thank you for your reply. I did read the contract before I signed it, but my reading of it and their verbal explanation was that there would be a 70% deduction in month 1 and a 10% deduction thereafter.

[louf]

Thank you for your replies.

[Poppy35]

it is rather high

most let only fees are approx 70% of the first monts rent

most managed fees are approx £100 - £300 and then the % from day 1

i would ceertainly negotiate on the next let.

[Paul_f]

Based on the above, and on the verbal explanation I was given, I was expecting a deduction of 70% in the first month but they have taken 80%. Your agent has taken 70% introduction fee and 10% management fee at the same time. Always get a written terms of business before you instruct any agent. If you used a regulated one (which you always should do) then it's compulsory on the agent to provide you with one, and you are insured against misdemeanours if you lost any money up to £5,000.