Just a quick one.
Although i really hate to have to use letting agents i have one of my properties is far enough away, that i cant get to it myself regularly enough to run it by myself. For this i have employed an agent to run the property at a charge of 10% of the monthly rent.
Even though i have to keep a close eye on them and follow up everything they do. It is a necessary evil.
Back to the point though.
Recently the tenant changed in that property and the market rate is down by 10% where it is. The letting agent was charging 10% to let and manage this property before. I had a chat with them and they agreed to 7.5% to keep the property under their management, which i am happy with. It was either they reduce the fee, or i do my best to manage it myself, or i went to someone else. So i guess they had no choice really.
There is now a new tenant and the shortfall in rent received is partly made up by the lower fee to the agent. Its a win/win for us both. Really they dont have a lot of work to do for their fee and they are still making 7.5%.
Just letting people know that there is room to negotiate now with letting agents if you need to.
Although i really hate to have to use letting agents i have one of my properties is far enough away, that i cant get to it myself regularly enough to run it by myself. For this i have employed an agent to run the property at a charge of 10% of the monthly rent.
Even though i have to keep a close eye on them and follow up everything they do. It is a necessary evil.
Back to the point though.
Recently the tenant changed in that property and the market rate is down by 10% where it is. The letting agent was charging 10% to let and manage this property before. I had a chat with them and they agreed to 7.5% to keep the property under their management, which i am happy with. It was either they reduce the fee, or i do my best to manage it myself, or i went to someone else. So i guess they had no choice really.
There is now a new tenant and the shortfall in rent received is partly made up by the lower fee to the agent. Its a win/win for us both. Really they dont have a lot of work to do for their fee and they are still making 7.5%.
Just letting people know that there is room to negotiate now with letting agents if you need to.