Agents slam big city council for undercutting letting agencies
Jeremy Clarke of Belvoir joins fellow agents in attacking City of York's letting agency arm for offering lower fees and cash incentives to landlords.
Agents have reacted angrily to the news that City of York’s own housing arm is undercutting local letting agencies.
YorHome claims its all-in property management fee of 9% is 3% cheaper than any agency fees in York, and now it’s throwing in 12-months’ rent upfront and extra cash for home improvements.
As a loyalty bonus, landlords are also being offered the fifth year’s fees free.
Annoyed
There are other examples of council-run agencies, including Wigan and Salford, which also offers a rent guarantee scheme for a 15% fee. Salford Property Link’s standard full management service costs 10%.
But the move by YorHome to offer extra incentives has really annoyed some agents.
In comments under The Neg’s news report agents voiced their opposition.
Unfortunately we do not have council taxpayers money to throw around.”
Jeremy Clarke (main picture), Franchise Owner at Belvoir in Christchurch, Dorset, said: “If we all had the opportunity to use someone else’s money and were unaccountable for losses, we could cut our fees.
“Unfortunately we do not have council taxpayers money to throw around”, he said.
Bonkers
John Redden, Partner at Belvoir in Tynedale, Northumberland, said: “Is this really what the business people in York pay their business rates for to fund the council to undercut them.
“This is a massive loss waiting to happen you simply cannot do the job at 9% with every fifth year free that works out at 7.2%, which hardly covers salaries let alone inflation linked pensions.
“Then to give free money to upgrade properties is bonkers”, he said.
Another planet
Mick Roberts, Owner at Advance Properties in Nottingham, said: “They are on another planet. It’s been tried many times, noticeably so with failed Nottingham Council.
“They need to be doing it for free and paying us double, as they give us the crap tenants and leave the house a mess”.
Compliance has often been lacking at other, similar council-backed attempts to enter agency. If this was local to me I’d make a point of regularly checking and reporting every single compliance breach. The suggestion of FIR above is also a good one as most of these attempts have failed at great expense to the taxpayer.
I would in a Freedom of Information Request and ask to see the figures. If they are operating at a loss (ie Taxpayers are subsidising a failing business model) then I reckon someone has some explaining to do.