January 24, 2019 at 12:23 #66281
How are you intending to counter the Tenant Fee Ban?
We only charge a modest £125 per Tenancy (as an Admin Fee for setting up Tenancy Agreement, Inventory, Referencing and Deposit Protection) half that £62.50 for an existing tenant moving from one of our properties to another.
We have never charged a Landlord Setup Fee, just simply 10% of rental income for full management.
Other agents around us have been charging from £195 – £474 just as a Landlord Setup Fee plus considerably higher fees per Tenant per Tenancy.
From 1st June 2019 we will have to pass this onto Landlords and I wondered how others were intending to structure this?April 17, 2019 at 09:36 #69440
Have you thought about changing your management offering and reducing what is involved in your standard 10% service but creating a ‘premier’ management service that includes the aspects that are removed from the standard service?
For example your 10% service could no longer include the cost of inspections, no rent guarantee policy etc but your 13% service could include quarterly inspections and include rent guarantee. You can then work on up-selling your 10% landlords to the 13% service. Providing you communicate to your landlords about the changes that you are being faced with I would be surprised if they didn’t understand and will more than likely be expecting some form of landlord fee to be added from the outset to cover the costs of the administration process.
You could also consider mark ups on contractor works if you are not already doing this.
Hope that helps!April 17, 2019 at 13:51 #69463
Other options out there fall under commission earned from the likes of Deposit Replacement Schemes and tenants insurance sold, along with the upsell to landlords of rent guarantee policies 👍
Some rent guarantee policies will often include free referencing reports. An upsell on the policy, along with commission from the deposit replacement scheme and possible tenants insurance can provide a source of income per tenancy.
It may not equate to the referencing fee’s some agents are charging, but the options are out there to look at.
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