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Residential Lettings agency adding costs to benefit

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Hi all,


I have been contacted recently, as I am a landlord by a contractor who did some work for me

to let me know that the company managing my property is getting them to sign a contract of almost non-disclosure about their practices.


Let me explain.

I pay a monthly maintenance fee to this company and when the tenant has an issue

this company gets in touch with me asking if I am happy for them to contact a contractor who is 'on their book' as a preferred contractor to do the job.


Unwittingly I say yes of course as it is easier and I am paying them to manage it for me.


However, this contractor has been told to add £12-£15 to the price if it is under £100 and add 10% if it is over £100.

I then pay this bill and the management company keeps the difference as they have an invoice for the correct amount

e.g. work is £50 add £12 I pay £62 contractor gets £50 management company get £12.


I am waiting to see if I can get a copy of this contract as the contractor no longer wants to be associated as their practices are a disgrace.


Has anyone else got any knowledge of this and what is my legal stance i.e what info should i try to establish before bringing court action?

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suggest you try posting on the Lanlordzone web site as they may have better knowledge of this sort of thing.

does not sound roight to me.

I would of thought if you are paying a management fee for this sort of thing that would cover there costs or a set fee each time they act for you.

depends on what is in the contract with your agent to cover these events.

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Doesn't sound right to me either. If such fees apply then morally they should be in the contract and you should pay them explicitly.


That said, I just found some stories about estate agents charging undisclosed commissions when arranging HIP surveys for sellers, and the view seemed to be that it was not in itself illegal.


Probably you should look closely at what your contract with the agent says, and also see whether the agency is a member of a trade group to which you could complain.

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Sorry to be cynical, either this contractor is a Prince amongst men or he may have an underlying dispute with LA.

He no longer wishes to work for LA, so why did he not just submit invoices at his normal rate? By submitting inflated invoices, he appears less competetive than others pitching for non-LA work.

My MA charges a 10% arrangement fee for appointing non-MA contractors.I don't like it and can only assume the C invoice has not been inflated, so where possible I have my own list of reputable contractors that I engage when required (no arrangement fee)

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