There is another agent offering me a cheaper deal, why should I not choose them?04 Sep 2016
Property management is a competitive business so often agents try to compete on fees. At Fineholm we don’t. Our fees are competitive but they aren’t the lowest around, and they never will be. Remember the saying “why’s it so cheap ? Sounds too good to be true”… well that is probably the case.
Sometimes we may offer a low introductory management fee to encourage new business but reduced fees mean reduced service and that is not how we like to work. Proper, robust property management means just that, it’s not just about finding you a tenant quickly, nor getting you the highest possible rent it’s about making sure your asset works for you; after all your property is an investment and you need an overall solid return; we try to encourage our landlords to look at the bigger picture, not just look at the management fee or the initial marketing fee but what service they are receiving for the fee they are being charged.
Be 100% clear about fees…
Agents can sometimes be a little evasive about the actual property management fees they are charging over the full span of the tenancies , so for example, a property management fee of only 9% sounds great but what they don’t tell you is that every time the tenant signs a new lease there is a lease preparation fee, a fee to deal with deposit return or if you want an inspection done its £50. It’s really important to be 100% clear what you are getting, what is in the management agreement ?
Fees PLUS Inherent costs
It might be the case that your agent is charging 9% and that is it. The first thing to ask is in my mind is How? How can he/she do that, provide you with a good service level and sustain a properly run letting agency? What short cuts are being taken? What type of tenant are they going to find for you? Is that the right type of tenant for your property or is it a short term view that they are taking? You might get a tenant in there quickly but how long will they stay and how will they treat the property? My concern would be the overall costs at the end of the tenancy
Low fees = low service levels
Some landlords are very fee driven, we understand that. If that is the case, it will involve more work, there is a higher risk. The majority of landlords are looking for something far more comprehensive. For one of your biggest assets, would you choose a medicocre service level? I know I wouldn’t.
We take a SLICE of your management fees, what do you get with Fineholm?