Letting Agents Fees

Hi,

I am looking to rent out my apartment in the next month.

I had one of the main letting agents out to give a valuation this morning and to discuss fees.

I’d prefer a management service, I think. The let only service is 8% and management fees are 17%. I think they are too high and would like to negotiate. In addition to this if the lease is renewed there are no reductions in fees and there is a cost of €350 to just draw up a new lease agreement.

How negotiable are the agents on the fees? Also is it worth getting the property managed? The property is only 3 years old and would not expect a lot of maintenance issues.

Would really welcome thoughts / advice.

thanks

17% sounds steep. I was in the same boat a year ago when I thought about renting out the family home. I was quoted 3 different rates of 8%, 10% or 15% depending on the level of involvement of the letting agents in maintaining it. I live overseas, so I had to go with them taking care of it 100% at the higher rate of 15%. So if a pipe burst, or the oven stopped working the tenant would call the letting agent, not me. The letting agent would send out one of their plummers/electricians etc that they have on their payroll to fix what was broken. I would not be charged labour for the work, but if any new appliances or parts had to be bought, they would take care of that, and deduct the price from my next rent check.

Given my circumstances, having the property managed was a necessity for me. It may not be for you. Do you live close to the apt? If not, do you know someone trustworthy & qualified who could handle any maintenance issues as they arise, how handy are you at fixing things yourself, are you ok with getting a phone call at 2am saying the pipes have burst or the heating is not working? If the answer is Yes to all of these, then go with the lower rate, save yourself some money and take care of it yourself. If not, you may want to have them do it. Tell them you have gotten lowers quotes of 17% and see what they say, as to me that does seem expensive. Have you shopped around and gotten any other quotes? You could get that info online or over the phone. Good luck.

What a greedy letting agent ! On the properties I let via agents I pay between 10- 12% p.a. mngt fee -and as for letting fees 8% is O.K. but agent can't charge again if tenant leaves before a certain period -its up to agent to get new tenant.the certain period is 6 mths with one agent and a whole year with another, but i had to negotiate that.

Thanks for the advice. I live in Dublin and the apartment is in Dublin so wouldn't be too much hassle to manage. I have shopped around though and found another quote for 4% letting and 7% management !! Note sure what their level of service would be like but 4% for letting is half of what I quoted for earlier today !! Think they quoting boom prices to me !

I have three and do them myself - so far no issues. I get a chance to meet with the people and because they are my houses I select who I feel best suits.

There will no doubt be some issues but not too many.. toilet seat breaking / washing machine is a big one / micro wave / new matress. I have had periods of up to a year where I haven't had any issues in the houses.

Most of the phone calls are small - like kettle - well I say buy one and take it out of the next rent.

Don't put very cheap stuff into the appartment as cheap usually has a short shelf life in a rented appartment / house....

10% of the fee would buy alot of skilled labour - I have never actually had to call out a tradesman but I can do a few bits myself.....

I have just let out a place in Dublin and it cost me €28 for an ad on Daft

Consider painting the place before you rent as it is far easier to do this when vacant..

Best of luck whatever you decide....

Forgot to mention that whatever you wind up paying to the letting agent, you can claim them as expenses on your taxes.

Check out the very first thread in this forum. I got the following from it:

WHAT EXPENSES CAN I CLAIM?

In calculating your taxable profit, you will be allowed deduct any expense incurred wholly, exclusively and necessarily in the letting of the property:

• interest paid
• depreciation of furniture and equipment (12.5% p.a. over 8 years - previously 20% p.a. over 5 years - see [broken link removed]).
• insurance
• maintenance
• payments to a letting agency
• refuse charges
• maintenance
• legal fees in drawing up leases

WHAT EXPENSES CAN I NOT CLAIM?

The following expenses are not allowed:
Costs of buying the premises e.g. legal costs, stamp duty
Cost of furniture and equipment
Pre letting expenses: e.g. decorating the house prior to the first tenant.( decoration between tenants is allowed)

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