|WHAT WE CHARGE PRIVATE LANDLORDS|
LET ONLY SERVICE WE CHARGE THE LANDLORD MAXIMUM 2 WEEKS RENT COMMISSION INCLUSIVE OF VAT.
Minimum charge is free. If you feel the landlord is not going to agree to any commission, offer them the free lettings service. If the landlord asks how do we make our money, you will simply reply that the tenants will pay AH estates a finders fee.
eg if the weekly rent of the room is £120 per week. we will charge the landlord £240
If the landlord agrees to the commission, then does this mean that AH gets the commission plus finders fee? Yes correct
What do you offer to the telesales agent? 5-50% of the deal amount
Q: I just wondered what is the computation why we get 240 for the 120 weekly rent? A: when you will see the ads on gumtree, you will see many double rooms advertised, which mainly the landlord fixes the price for their rooms. whatever price they are seeking, we will have to try and achieve for them. the above figure I gave was just an example for you to understand the commission/charging structure to the landlord.
Q: so basically whatever the price of the property we charge 10/7/5% right? depends on which level of service they require
Q: I mean let’s say for example the price of the house is 500 per month, our commission or deduction is 10/7/5% a month right?? yes, if you can agree on a management contract with the landlord. we are aiming for more managements for the company. But most landlords will normally opt-in for the let-only service which is the most common.
Q: Can I ask a formula of computation? here is mine correct me if I’m wrong
formula: TO CONVERT WEEKLY RENT TO MONTHLY RENT(weekly amount x no.of weeks / 12 = monthly rent)
when we find the tenant and the landlord is happy with the tenant, the tenant will pay us 1 month rent and 1 months deposit:£120 x 52 / 12 = monthly rent = £5201 months rent = 5201 month deposit = £520Total received from tenant = £1040we take 2 weeks for our commission = £240transfer the rest of the monies to landlord = £1040 – £240 = £800.thereafter the tenant will pay continuously to the landlord of £520 every month thereafter. the landlord has to pay back the deposit to the tenant at the end of the contract.
FOR LET ONLY SERVICEMINIMUM WE CHARGE IS FREE SERVICEif the landlord refutes and asks how do we get our money. we simply answer him and say that the tenant will pay AH estates a finders fee for helping them find accommodation.
MANAGEMENT SERVICE: MAXIMUM IS 10% OF THE MONTHLY RENTEg: if we collect £500 a month rent from the tenant, out of which will deduct 10% which equals to £50. therefor we will forward £450 to the landlord every month, also you can negotiate down such as 5% per month or 7% per month, whatever you can do best.
the minimum deal we can do for this is free service meaning £0.but if they ask how much is our service we can say free? yes, the minimum deal is free that is if they refute the 1st offer and is not interested at all to pay any commission.
Does AH also get 10, 7 or 5% of the price property per month? Yes correct for management service.
applicants we deal with we have a high number of applicants with occupations such as:
high-level doctors, lawyers, engineers, software developers, city bankers and traders, heart surgeon, IT technician, please note, do not propose these sort of applicants to landlords for flatshares/houseshares. these applicants will be looking more towards stage 2 – stage 4 properties.
medium level nurses, teachers, bus drivers, London underground staff, shop owner, students with guarantors, fashion designers, graphic designers, waiters in established restaurants, you can propose this level of applicants to flatshare/houseshare landlords.