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Letting
Agents' Fees
Agent's
Commission
If
a Letting Agent is instructed then the landlord pays commission for
services for 'Tenant Finding' and if necessary for 'Property
Management' as well. This will be based on a percentage of the rental income
over the agreed period. Typical rates for this are in the region of 10%
for 'tenant finding' and 15% for 'full management'. Agents may add a small
charge, say 3%, if they are required to collect rent for the landlord
with the 'tenant finding' service.
 Tip
- Agents may require payment of their commission in different ways,
sometimes you will be expected to pay this as a lump sum at the start of
the tenancy and sometimes as the rent is collected. Remember,
in either case this figure is also subject to VAT at 17.5%.
Tip - Even if the tenant leaves the property earlier than the expiry of
the tenancy, the landlord is still liable to pay the full tenancy period's
commission to the agent.
The
Inventory
This
is normally completed at the landlord's expense, by an independent service
or by the agency themselves. It
is really essential to make an inventory of your property's contents
before the beginning of the tenancy, this can then be agreed at the outset
and referred to later in the event of any disagreement. You may do this
yourself, through the appointed agent or by using an independent
specialist. N.B.
Legislation requires that landlord's furnishings must be fire resistant
under the Furnishings (Fire and Safety) Regulations and that
gas appliances are checked and certified safe prior to the tenancy
commencing.
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Letting
