Lettings agents cheat rental sector out of £3bn

Lettings agents will typically charge 12% of rent, year-in, year-out, just to market a property to prospective tenants. This means landlords are paying lettings agents £1550 a year for a service available for just £100 on the web.

Lettings agents will also charge £200 to produce a tenancy agreement contract – which can be downloaded for free on the
internet. Across the country, £3billion is wasted on lettings agents every year.

Keshav Thukaram, managing director of smartlandlord.co.uk, said: “There are more landlords in the UK than ever before, as people who can’t sell their properties try to rent them out. But they’re being taken to the cleaners by greedy lettings agents who are milking them for everything they’re worth. In an economic environment like this one – where landlords face stagnant or falling rents, there’s a rapidly growing number of landlords who can’t afford to sit back and let their investments be managed by other people.

“They need to seize control of their property investments if they want to optimise their returns.”

Over 20 months, the length of an average tenancy, the average landlord wastes £2685 on every property – or £5681 across his or her average portfolio.

Have your say on this story using the comment section below

4 thoughts on “Lettings agents cheat rental sector out of £3bn

  1. Andrew Vos

    What a load of rubbish! Estate Agents charge considerably less than 12% just to market a property. On average a letting only fee is between 6% – 8%. For this we provide a professional service which includes all the marketing, showing of property, reference checking, legal work and compliance with recent legislation such as Gas Safety, EPC, Tenant Deposit Shemes etc. We check tenant in and continue our interest in the property during the whole rental period and are happy to liase between Landlord and Tenants if any disputes. For Management there is an addiitonal charge of 4% and for that we are on call 24 hours a day 365 days a year. I bet Mr Thukaram doesnt provide this service for his fee?

  2. Jamie Turnbull

    Keshav Thukaram is massively over simplifying the service provided by letting agents and assumes that landlords have the time, skill, legal knowledge and inclination to manage their own properties. Of course, anyone can go it alone if they so choose but this is no different from any other service provided by a third party. I could mend my own car insted of taking it to a garage, but I’d rather pay someone else to do it. That way I know it’s done professionaly, it’s usually quicker, I haven’t had to get my hands dirty and I have someone else to hold accountable if it all goes wrong.

  3. Petet

    What a little greedy man you are Thukaram you try to make yourself look like a saviour when you are trying to monopalise
    the idustry! Sorry i don’t buy it and it is sad to see your type in this world trying to worsen the job front by taking business away
    from proffessional companies. You are a joke a comidian and people need to be aware of you frail business idea as it will fall over
    as soon as things go wrong and gets all legal what will you do then!? I bet you will do nothing in the hope that you will earn loads
    of money without doing much. Sorry people go to a proffessional company and haggle i did and got 5% full Management!

  4. Andy Smith

    I wish I was earning that kind of money per property per year. Unfortunately I am earning nowhere near what this Mr Thukaram is quoting.

    Judging by the information I have gathered from his website he is basically taking money for nothing which is exactly what he says we letting agents are doing. He is charging £40 for the minimum package to put property details on websites that are free to upload to and there is a free property portal manager on-line that does that for you. An extra £35 will put your property on the major portals which he has no doubt struck a deal with or using one of those 3rd party companies that puts them on all the major portals for a set fee which he will cover after taking on a couple of properties. A further £25 for a letting sign.

    It would appear that he is charging high amounts for all the extra’s in a bid to cream off more money for things like EPC’s, mortgages, rent guarantee scheme’s etc. His website proudly advertises EPC’s £10 discounted to £70. I pay £40 to get an EPC and charge the landlord £40.

    This guy is simply out to make lots of money and fast. No doubt things will go wrong and he will be gone seeking out another new venture.

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