Why are some letting agents so keen on getting landlords to go for 12 months tenancy agreements?
Following on from yesterday's post, some people have asked me, "Why are some letting agents so keen on getting landlords to go for 12 months fixed term tenancy agreements?"
Well, a few less scrupulous agents do it because their commission may be based on the 12 month term – i.e. they may get double what they would get on a 6 month term – and as they usually get the commission up front out of the first moths rent and deposit there is a strong incentive here!
Indeed, in the recent BBC documentary that went behind the scenes at a few up-market London agents, one agent was trying to do just this, even though the landlord and tenant’s circumstances clearly meant both would have preferred a 6 month term.
I think most agents play fair and dont do this, but some do, so watch out for it.
Well, a few less scrupulous agents do it because their commission may be based on the 12 month term – i.e. they may get double what they would get on a 6 month term – and as they usually get the commission up front out of the first moths rent and deposit there is a strong incentive here!
Indeed, in the recent BBC documentary that went behind the scenes at a few up-market London agents, one agent was trying to do just this, even though the landlord and tenant’s circumstances clearly meant both would have preferred a 6 month term.
I think most agents play fair and dont do this, but some do, so watch out for it.
This entry was posted by lettingfocus, on
Wednesday, December 20, 2006.
