Moving to a letting agent with a sitting tenant

[SimonMac]

Anyone moved to managed letting agent when the property already has a sitting tenant? I assume most agencies make a good whack on tenant application fees, but anyone got experience of moving from managing it themselves to getting someone else to?

[northernladuk]

Are you sure you are cut out to be a landlord?

[Pondlife]

I thought letting agent fees were to be banned. Or did this not happen?

[BrilloPad]

I thought letting agent fees were to be banned. Or did this not happen?

Queen's Speech 2017: Lettings fees to be banned - BBC News

A government spokesperson said a draft bill will be published "later this year".

[SimonMac]

I thought letting agent fees were to be banned. Or did this not happen?

Yep, the application fees for new tenants are being scraped, or more likely pushed onto the landlord, the only fees allowed will be a security deposit.

A letting agent can still charge the landlord a fixed fee for managing the property

[SimonMac]

Are you sure you are cut out to be a landlord?

I know I am not, which is why I want to outsource it

[northernladuk]

Anyone moved to managed letting agent when the property already has a sitting tenant? I assume most agencies make a good whack on tenant application fees, but anyone got experience of moving from managing it themselves to getting someone else to?

I'd speak to a number of letting agencies. I know round here Pearson Ferrier are the big boys but not helping themselves by using their size to make every penny and play the letter of the law. I am sure if I went to them with this question they'd want to put the tenant through normal checks as a new tenant or something as they will be taking the risk on. There are three or four independent local ones popping up and I have a feeling they would be a lot more relaxed just to get the business. Maybe a small initial charge to cover some diligence and time to get the tenant to sign new documentation etc.

I'd have a chat to see if different sized outfits would have a different approach.

I'm all for the managed offering as I don't want to get involved in it all. If I was in your position I'd be quite happy to take a hit to get the tenant on with an agent and then forget the whole thing.

[FrontEnder]

I would guess it's straightforward. The tenancy agreement is between you and the tenant, so surely should be simple to arrange a separate agreement with the agent.

I'd look to negotiate a lower price though. When I let my propery out it was:

Tennant find only - 1 month rent (8% ish)
managed service - 12%

So surely the managed service only costs them about 4%