There is currently no legal requirement for a letting agent to be licensed. As such the process of opening a letting agency is easier than getting a driving license.
Never be pressured into signing a lengthy sole agency agreement. They benefit no one but the letting agent. If an agent offers you a discount fee in return for giving them exclusivity, a 2 week notice period to change this is more than reasonable.
By law, if you instruct an agent to market your property anywhere other than their business premises, you have the right to change your mind within 7 days. Most of the time you would want the contract to commence immediately and landlords often waive their right for the property to be marketed straight away. There is nothing wrong with that as long as you are making an informed decision and know your rights.
In this economic climate, it is more important than ever to protect your income. Most landlords have now realised that letting a property without a rent guarantee policy is like driving a car without insurance. Some letting agents offer rent guarantee policies free of charge, but there is often an excess or other exclusions. At Cosway Estate, we offer a £0 excess rent guarantee policy free of charge for the first 12 months. If you would like to know more, please contact us.
Many landlords ask agents about the percentage rate, but often ignore the hidden cost of letting their property. It can be misleading to only compare the percentage quoted by the agent, without enquiring about other charges such as administration fees, contract fees etc.
Every agency works differently and may offer you a very low percentage, but impose high administration charges or even charge the tenant fees as well as the landlord. Consider expected income and all costs before making your decision.
If you would like to know how much your property could be worth in the current market we will be happy to help.
Sole agency 8% plus VAT (9.6% of the annual rent inclusive of VAT)
Multi agency 10% plus VAT (12% of the annual rent inclusive of VAT)
The landlord is responsible for paying agency fees, Inventory/Inventory checkout fees and Cleaning.
Prospective tenants interested in renting a property through Cosway Estates will need to be aware of the following pre-tenancy costs due prior to the commencement of a tenancy
The equivalent of one week’s rent is to be paid to Cosway Estates in order to remove the property from the market and commence referencing. The ‘deadline for agreement’ for both parties is usually 15 days after the reservation fee has been received by a landlord or agent (unless otherwise agreed in writing). Please note, this deposit is non-refundable if you provide false or misleading information. Should the tenancy proceed, Cosway Estates can either refund the reservation fee directly to you or put it towards your rent or security deposit (subject to your consent).
Prior to the tenancy, you will be required to pay a security deposit capped at no more than five weeks’ rent where the annual rent is less than £50,000, or six weeks’ rent where the total annual rent is £50,000 or above. This money is lodged with My Deposits.
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