Four letting agent tricks .

[Harry Fisher]

Article in Telegraph.

http://www.telegraph.co.uk/finance/personalfinance/investing/buy-to-let/11272485/Four-letting-agent-tricks-that-can-shrink-buy-to-let-returns.html

[Melboy]

Yes there will always be bad agents around as there are always good agents.

I have enough experience to handle my own lettings and i have to say it was because of many bad experiences with LA's. I think the problems appear to have got worse in recent years with the massive influx of BTL's.

What can you say? If your not sure and want to learn then visit forums such as this or buy a book from a good bookshop.

[Mortitia]

Agents are fine as long as you don't want to be in control - that does not suit me.

A fellow leaseholder at a London block where I own a flat has had to pay her management fees in 2 installments as the fees of the agent were all taken upfront and left her with no income after a failed sale and she let to new tenants! Now she wants to know how to ditch the agent - can't be done until tenants leave.

A case of read the small print and absorb it all.

[Grampa]

The idea that a landlord cannot give notice to a agent comes up time and again.

I helped a landlord recently who had a similar situation where the agent said they couldn't give notice while "their" tenant was in the property. Mine and others view is all contracts have to have a facility to terminate that doesn't contradict the unfair terms guidelines.

If the T&C's between L & A are silent regarding terminating services it would be reasonable to give say 2-3 months written notice. That doesn't stop the agent threatening legal action etc etc but whether they will follow through is the question. But if you made it clear you had taken legal advice that could kill it dead.

To stop getting into this position in the first place make sure the T&C'S have a clear termination clause and you understand the financial penalty that may be included as well.

With my agents hat on I understand why these agents do it and you don't want a L giving notice 4 months into a new tenancy before you have recouped your costs for the time and effect made at the outset of the tenancy. We ask for 2 months notice and a minimum of 6 months management which is a similar cost compared to the tenant find fee.

Cant say a landlord has ever given notice like that because all my landlords know they get a good service.

[Melboy]

If I needed a letting agent......you would be my letting agent Gramps.

Myself and Mortitia are of the same though........we are control freaks.

Mind you having said that it probably applies to a huge number of experienced, hard nose, bitten too often landlord's

[Richlist]

I think its perfectly reasonable to expect an agent not only to recover their costs but to also make a profit when an landlord/agent contract is terminated. Many agents take their full fees out of the first months rent so many will not loose out financially. With others who try to persuade the landlord that the contract cannot be cancelled, I suspect its just greed on their part.

In many ways its the same for landlords when a tenant wants to terminate a tenancy agreement part way through the fixed term. It happens occasionally......people have to move for many reasons and their is no point in trying to stop them. However, a landlord can have a whole list of fixed costs to get that tenancy set up....agents fees, permission to let, solicitor, vat etc which would normally be amortised over the full term of the contract. Its entirely reasonable for the landlord to expect the tenant to pay these fixed costs in full.