Landlords are currently being warned to keep an eye out for
lettings agents who are adding numerous hidden fees to their maintenance
invoices, without outlining exactly what they are doing. At the moment, many
agents are increasing their bills by charging a commission on maintenance work
that they book with their property management service.
Essentially, this means that letting agents are charging
clients a fee for maintaining the property, as well as taking commission from
the maintenance companies they use. This means that the client could end up
paying a lot more than they should.
It is required for agents to mention such “extra fees” in
their Terms of Business. However, many letting agents will hide the information
away in confusing terms in the very small print, so most landlords are
completely unaware. Also, many agents have been increasing the amount of
commission that they charge.
Other Extra Hidden Fees
Many other letting agents have added on a range of extra
fees, including for deposit protection, gas safety checks and tenant
referencing. According to a recent mystery shopping investigation, some agents
were charging landlords up to six times the cost price for these basic
services.
Landlords often expect to find an agent who has their best
interests in mind. However, some agents are not concerned about quality and
they are only concerned with signing up the contractor who will pay the very
best commission. The fact that the agents are not notifying the landlords about
these commissions and fees is considered to be fraudulent, as they should have
a duty to act in the best interests of landlords.
How to Avoid This?
If you are a landlord and you are worried about being hit
with hidden fees, there are a few things that you can do to avoid this
happening to you. First of all, when you are employing an agent you should ask
for a full list of fees and a detailed explanation of what each fee covers.
Also, you should ask about whether or not the agent takes any fees or
commissions from contractors.
You can also ask to see the original invoice from the
contractor after any repair or maintenance work is done. Make sure that they
provide you with a breakdown of the total cost. Asking questions is totally
acceptable and necessary – you need to know what you are being charged for!
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