Landlords are being stung with hidden charges and inflated costs by estate agents that arrange property servicing and maintenance work through contractors, according to industry insiders.
Buy-to-let investors who use an estate agent to manage their properties typically pay a monthly fee of around 15pc of their rental income. This buys a service which includes finding tenants, drawing up rental agreements and maintaining the property.
However on top of this charge, estate agents are adding markups of up to 20pc to contractors’ bills to boost their profits, plus demanding a cut of up to 60pc from contractors for the work they do. These charges are not clearly disclosed to landlords, who ultimately foot the bill.
This practise is becoming ever more popular with agents but I am pleased to inform all of our clients that we at Property Rentals have always disagreed with this practise and would only ever want to be 100% transparent with what we charge our clients.
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