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What are you going to charge my tenant?

Posted on Wednesday, May 24, 2017

What are you going to charge my tenant?

I am sure I'm not the only estate agent in the land that is regularly asked by landlords and vendors what I charge.

Fortunately I am one of the cheapest agents in town so I always get a positive response when I give my answer, but to me the more important issue should be VALUE. 

What are you getting for your money? Do you want the cheapest agent or the best value agent? But that is a conversion for another day.

With the changes in legislation in late 2016 regarding tenant "admin" fees and the ban in the near future after Government consultation, I did some research in to local companies and what they charge their clients, and by clients I mean landlords, vendors, and tenants!

And it got me thinking. Do you know how many times I have been asked by a landlord what I charge a tenant? .... Never. Not once, in 11 years.

But why is that important? Well, if you were a landlord, you would want to know your prospective tenant was getting good value too wouldn't you? You would like to think that every tenant interested in your property was going to want to take it and not be put off by sky high agency fees left, right and centre. If your prospective tenant was considering either your place or another, you would want them to pick yours right? and you wouldn't want a £50 charge here and a £100 charge there a barrier.

I've rented myself in recent years, and the staggering difference in charges made by agents in the local area, some justified, some trivial, is nothing short of a scandal, and the very reason why the tenant fee ban is likely to come in. My partner and I rented a three bedroom house a few years ago, and the charges on the way in, all inclusive, were near £600, and another £100 or so on the way out. It's enough to make you not want to move.

I'm pleased to say that we are very transparent with our fees, and they are low because whilst we are a business, ripping people off is not sensible for me as a business owner.

And if you are a homeowner or a landlord, look at things from both sides of the fence. Place yourself in the shoes of your potential buyer or tenant, and ask those questions too....

What do you charge? Is a big question.

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