Posts with tag: agents fees

Flat fees to become norm in online letting industry

Published On: August 17, 2015 at 11:51 am

Tags: agents fees,buy to let market,online letting agent

A number of online letting and sales agents are offering flat fees to their customers. Now, the head of a leading online agent has suggested that these type of fees will soon become the norm.

Rob Ellice, head of easyProperty, who recently announced an expansion into the sales market, said in an interview that he believes the agency model will evolve, possibly within the next six months.

Rethink

‘As online agents become the new norm, we could see many of our competitors offer our flat fees to keep their customers, and a radical rethink from high street agents on their commission rates,’ commented Ellice. He feels that agents will, ‘shift towards a customised experience,’ with technological innovations, ‘creating the impetus for more transparent and efficient ways of letting and selling a property, enabling customers to tailor their approach and take control of the process.’[1]

Flat fees to become norm in online letting industry

Undoubtedly, the market will change in the long term, with greater technological advances changing its face in the next decade, Ellice noted. He went on to suggest that innovations in the way people view and sell a property will also change. Concluding, Ellice said he is convinced that any agent looking to enter the current market will not consider a high-street office as a priority. Instead, he feels that most are now looking to set up online as a first move.

[1] https://www.lettingagenttoday.co.uk/breaking-news/2015/8/flat-fees-will-be-industry-norm-says-online-lettings-chief

Foreign investors unhappy with agents fees

Published On: June 22, 2015 at 3:59 pm

Author: Em Morley

Categories: Finance News

Tags: agents fees,foreign investors,letting agents

Concerns over letting agent fees are growing, with a leading buying agent claiming that overseas investors are left surprised with the perceived high costs.

Henry Sherwood is managing director of The Buying Agents, an agency which helps wealthy overseas purchasers find property, says that many are put off by high fees.

Add-ons

‘Foreign clients are delighted for a buying agent to find a property and negotiate a good price in return for a 1.5% fee,’ said Sherwood. However, he went on to say that, ‘they then let it out and can’t believe the 10 or 20 per cent charges they receive from letting agents.’[1]

In comparison, Sherwood believes that the majority of UK landlords take these fees as mandatory. ‘Most don’t even look at what the charges are for,’ he said. ‘Smaller items of a few hundred pounds are often lost amongst bigger costs of 10 per cent for this and 6 per cent for that.’[1]

As a result of these fees, Mr Sherwood says that he prefers agents of property management services that offer alternatives.

Foreign investors unhappy with agents fees

Happy Tenant

An example of a company that does things differently is Happy Tenant. Founded by media lawyer Jonathan Monjack, the organisation levies an annual fee, with a one-off charge when a new tenant moves into a home. Next, the company flexes its bulk purchasing muscles to secure cut priced services from mainstream agents to find tenants, alongside a variety of services to handle EPCs and everyday maintenance.

Sherwood believes that the result is a membership-style agency that charges less than a traditional agent for very similar services.

‘We have also heard of situations where landlords actually think agents are inventing jobs during quiet periods to increase their revenue,’ he stated, before going on to say in many cases, ‘the landlords does not even know it is happening, they simply think they have bought a dud or are abroad so have no way of checking.’[1]

[1] http://www.lettingagenttoday.co.uk/breaking-news/2015/6/agent-says-foreign-investors-cannot-believe-uk-letting-agent-fees

High rents of upmost concern to tenants

Published On: May 6, 2015 at 3:46 pm

Author: Em Morley

Categories: Landlord News

Tags: agents fees,high rents,Upad

A recent survey of 500 tenants from online letting agent Upad has revealed that spiralling rents are a bigger concern than agent fees.

On the eve of the election, interesting results from the investigation also indicate that 40% of respondents had no clear view on which party were best placed to solve tenants’ problems.[1]

Rents

When questioned on what their largest concerns were, 50% of tenants replied that it was the cost of renting. The quality of accommodation and agents’ fees were in equal second position with 12%.[2]

High deposits (7.3%) and the fear of future rent hikes (3.1%) were the next most common responses.[3]

Concerns over revenge evictions and the regulation of the rental sector were minimal, despite being prominent in the press over recent months.

High rents of upmost concern to tenants

Policies

Turning to the next government, respondents felt that cost of a home, more assistance to get onto the property ladder and the provision of more affordable homes were all high in importance. These three issues combined were important for 56% of people questioned. However, 20% felt that abolishing letting agent fees was of upmost concern.[4]

CEO of Upad, James Davis, said that, ‘what was most obvious from our research was how financially squeezed many tenants feel.’ He continued by saying that, ‘time and again, their answers showed that it was the high costs of renting and the even higher costs of buying their first home, which most worries them.’[5]

[1-5] http://www.propertyindustryeye.com/high-rents-a-far-bigger-concern-for-tenants-than-agents-fees/?utm_content=buffercaa60&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer