The Residential Landlords Association has launched a survey among its members into letting agent fees charged to landlords on repairs.
Yesterday evening, it sent around a note saying: “A London landlord has recently challenged one of the country’s biggest agents, Foxtons, over the level of fees charged for replacing a light fitting.
“The landlord was charged £550 (plus £66 VAT). However, he discovered that the maintenance company allegedly charged Foxtons £412.50 and the agency is believed to have added a 33% commission fee to the contractor’s bill.
“If you use an agent to manage your properties, do you know how much ‘commission’ you are being charged?
“How much the contractor is paid by the agent?”
The survey includes question about whether the agent seeks the landlord’s approval of costs before work is carried out, whether they inspect work after it is done, and whether landlords ever see contractors’ invoices.
Comments (3)
Ex inventory provider here. All but one of my agents either added to my invoices or paid me less than my invoice. Of course the first thing I did was to give them an inflated rate to cover this. I spoke to other contractors who had call outs from the agents that weren’t warranted, of course they charged a call-out fee which the agent then added to. I now work for the agent who never added to or subtracted from my invoices. I do hope all the agents who apply ‘stealth’ charges to the landlords are found out. Let’s see how this Foxtons case goes; it may lead to another PPI compensation run, I do hope so.
After much research, we decided to set up our agency due to comments such as this and take pride in the transparency of our offering to landlords. We negotiate on behalf of the landlord and seek agreement where necessary for works required and then inspect where necessary after work is done. The invoice value is that charged by the trade with no additions made up to the cost of landlord and that’s that, not a penny more or a penny less. We do not add a percentage and we do not charge a premium for the trades to be recommended (something I note not mentioned yet). Very simply, to do such, is tantamount to fraud, and I can only imagine there will be several more cases like this before the penny drops! Our role as agent is to assist the landlord in the management and protection of their asset, for this, we charge one fee, and any other costs are shown clearly on statement and Invoice copies.
Given that the likes of Howdens will produce fake invoices showing a lower discount that what the trades person gets. How can a landlord depend on a contractor not giving agents fakes invoices showing a higher cost?