Letting Agent Fees

paudgenator

Baby01032012 wrote: »

paudgenator wrote: »

Thanks for the useful info in this thread.

Been quoted 550 +vat to let, and 50 + vat per month management fee ....is this the normal rate now in Dublin?

Any recommendations from experience?...new to this so all feedback welcome.

Pretty much

Fee to let is normally a % normally 5% but I got for 4.25% on a place I'm about to let. I wouldn't bother with management.

Thanks..good to know. I will be overseas a lot...can't call on family so need management.

dev_ire

Do the letting agency take % off of the total rent, lets say 1800 a month or do they take it off of the rent after tax (40% rate)?

The_Conductor

dev_ire wrote: »

Do the letting agency take % off of the total rent, lets say 1800 a month or do they take it off of the rent after tax (40% rate)?

Its normally deducted as a set percentage (typically 10%) from the gross rental income (and the balance lodged to the landlord's account). The landlord obviously has to make the relevant tax return and pay any tax or other bills that come due.

dev_ire

So if 1000 was gross net would be 600 so they take 10% of 600 or 1000?

Thanks.

Samuel T. Cogley

dev_ire wrote: »

So if 1000 was gross net would be 600 so they take 10% of 600 or 1000?

Thanks.

10% of 1000

They don't do the tax for you, you'll also need an accountant mine was €365 last year.

dev_ire

Thanks.

pasquale83

Folks, I got a quote from two different agencies.

- 5% + VAT letting (on a 12 month basis) + 8% + VAT management (per month), with a current offer to lower letting fee to 2% + VAT
- 7% + VAT letting (on a 12 month basis) or 6% + 6% + VAT if I go for the letting+management option

Are these reasonable fees? I don't think so to be honest, especially the management one.

Can people please PM me with the name of the agent with lower fees?

Thank you in advance!

pasquale83

paudgenator wrote: »

Thanks for the useful info in this thread.

Been quoted 550 +vat to let, and 50 + vat per month management fee ....is this the normal rate now in Dublin?

Any recommendations from experience?...new to this so all feedback welcome.

hi, did they quote absolute figures or as percentage of rent? I think they're pretty good, could you PM me the agency contacts please?

Baby01032012

Can I ask you why you need to use a letting agent. I used 2 within the last year and would never use one again. I’ve now repeat both places myself with far better tenants than any letting agent would put in there.

For one apartment no references were checked and it has taken me nearly a year to get them out and 10k losses and damages and I’m suing them for breach of contract.

The other apartment the tenants caused so much hassle and left after 6 months after falling out and getting me involved in their personal dispute.

Seriously think about doing it yourself. €46 to advertise on daft. Get all refs in advance meet a few and go with your gut.

Letting agents don’t care who goes in there. Just getting them in and take the fee.

pasquale83

Baby01032012 wrote: »

Can I ask you why you need to use a letting agent. I used 2 within the last year and would never use one again. I’ve now repeat both places myself with far better tenants than any letting agent would put in there.

For one apartment no references were checked and it has taken me nearly a year to get them out and 10k losses and damages and I’m suing them for breach of contract.

The other apartment the tenants caused so much hassle and left after 6 months after falling out and getting me involved in their personal dispute.

Seriously think about doing it yourself. €46 to advertise on daft. Get all refs in advance meet a few and go with your gut.

Letting agents don’t care who goes in there. Just getting them in and take the fee.

sure. I have the same feeling and used to be landlord abroad myself as well for 15 years. so I know how to deal with tenants. problem is that I relocate out of the country and need someone to physically replace myself. hope to find a good estate agent, there should be one at least out there!

Whispered

Interesting idea to let yourself - do you or I have the same access to info as an agent does when doing background checks? What checks should a letting agent be doing? Does the use of an agent give any more security?

I'm about to let my house, perfectly happy to manage it myself but am strongly considering using an agent to set the house up for rental. We have had offers already on the house, and letting won't be an issue. I'm worried about setting up contracts, charging correct rent etc.

However the fact we will have to hire an accountant too, we could do without the finders fee. Is there anything an agent does that I couldn't do with some further research?

Samuel T. Cogley

Whispered wrote: »

Interesting idea to let yourself - do you or I have the same access to info as an agent does when doing background checks? What checks should a letting agent be doing? Does the use of an agent give any more security?

I'm about to let my house, perfectly happy to manage it myself but am strongly considering using an agent to set the house up for rental. We have had offers already on the house, and letting won't be an issue. I'm worried about setting up contracts, charging correct rent etc.

However the fact we will have to hire an accountant too, we could do without the finders fee. Is there anything an agent does that I couldn't do with some further research?

The agent is likely to be less careful then you not more, although they will be more experienced. I'm very much a believer in checking the paperwork thoroughly but also going with my gut.

Get an employee and LL reference and cross check it with bank statements. As of today credit reports are available to the individual so I'd be asking for that too personally. Note this information can only be asked for once your reference checking your preferred candidate; best to just have sight of it rather than keeping any of it.

Whispered

Samuel T. Cogley wrote: »

The agent is likely to be less careful then you not more, although they will be more experienced. I'm very much a believer in checking the paperwork thoroughly but also going with my gut.

Get an employee and LL reference and cross check it with bank statements. As of today credit reports are available to the individual so I'd be asking for that too personally. Note this information can only be asked for once your reference checking your preferred candidate; best to just have sight of it rather than keeping any of it.

Thank you, that makes sense.

Okay so to be clear, once we have our preferred candidate, we should ask for bank statements, employer and LL references. Follow up on employer and LL ref with a phone call? And also request their credit report?

Are proper rental contracts available online to print? I have looked and they seem fine to me, but then I don't know what I'm looking at do I!

I know that all other info such as standards required for house, notice terms etc are readily available online.

Also, we will have a new rent only account, would the statements from that account count as a receipt for the tenant?

Samuel T. Cogley

Whispered wrote: »

Thank you, that makes sense.

Okay so to be clear, once we have our preferred candidate, we should ask for bank statements, employer and LL references. Follow up on employer and LL ref with a phone call? And also request their credit report?

Are proper rental contracts available online to print? I have looked and they seem fine to me, but then I don't know what I'm looking at do I!

I know that all other info such as standards required for house, notice terms etc are readily available online.

Also, we will have a new rent only account, would the statements from that account count as a receipt for the tenant?

So bank statements and credit reports are totally optional, you'll see the feed back on asking for that in a second on another thread :pac: (So are references tbh) I'd just use everything as a cross check. Credit reports only went live today so you might skip that.

Just get a standard lease that complies with the Part IV conditions. DO NOT enter into fixed term leases with no break clause, all you're doing is giving the tenants more rights. The Part IV system pretty much covers you and the tenant, a verbal agreement is fine.

I'd say statements or an email would be fine as a receipt.

Samuel T. Cogley

http://www.citizensinformation.ie/en/housing/renting_a_home/types_of_tenancy.html

Whispered

Thank you very much, I appreciate it!

Samuel T. Cogley

People do tend to prefer agents in my experience and will be more willing to hand over sensitive information to them. Realistically though they don't do a huge amount for LL's local to their property (IMHO). Don't forget though that the agent's fee will be somewhat deferred against tax, as will the accountant. Get an accountant that will also review your entire tax situation for the year, they always find something and the fee is offset against tax on the property - although given they're also doing your personal tax perhaps it shouldn't. Mine was fine with it.

Whispered

Samuel T. Cogley wrote: »

People do tend to prefer agents in my experience and will be more willing to hand over sensitive information to them. Realistically though they don't do a huge amount for LL's local to their property (IMHO). Don't forget though that the agent's fee will be somewhat deferred against tax, as will the accountant. Get an accountant that will also review your entire tax situation for the year, they always find something and the fee is offset against tax on the property - although given they're also doing your personal tax perhaps it shouldn't. Mine was fine with it.

Yes finding an accountant has been another learning curve for me. I've been speaking to someone about doing my tax returns for last year (first year and I am not confident enough to do it myself), dealing with the tax on the house and looking at our overall taxable income and how best to split our credits etc. So it would be a one stop shop really. And yes I hadn't considered that the letting agents fees could be offset a bit. The person I'm considering using has come very highly recommended. Might be the best way to go for our first time renting the house out!