Your letting agent probably sends over statements each month showing standard fees and charges. But what you don't see which is just as important are - any undisclosed commissions and kickbacks being funnelled into their pockets behind the scenes. Your agent may be profiting off your property without your knowledge, which could amount to thousands of pounds per year. Don't let your hard-earned money leak out through deceptive practices. Take control and demand full transparency from your agent now.
Letting agents have an ethical and legal duty to disclose all earnings related to managed properties. If they fail to reveal secret commissions or kickbacks, landlords have the power to recover these fees and can void their contract with the agent - but you must be proactive. Auditing your agent quickly and thoroughly is the only way to protect your finances and uphold your right to transparent dealings.
The key points are:
- Agents must disclose all earnings as part of their trusted responsibility
- Landlords can recoup undisclosed fees
- Must take action now to audit agents
- Protect finances and rights by uncovering any hidden practice
- Obtain quotes yourself to compare against agent contractor quotes.
Letting agents have an ethical and legal responsibility to act in your best interest as their client. Making undisclosed profits through kickbacks, commissions, inflated fees, etc. is a clear breach of this duty. Shockingly, over 50% of agencies engage in this practice in some form. You could be losing thousands without even knowing it.
Common schemes include:
- Padding contractor invoices and charging a mark-up - a £50 job becomes £300
- Receiving referral fees from tradespeople they recommend - up to 50% commissions
For a landlord with 10 properties under management, this could easily amount to thousands in undisclosed fees over a 6 year period. That's your hard-earned money flowing into their pockets.
You have legal recourses to recover these fees and damages:
- Reclaim any undisclosed payments
- Cancel any contracts signed under false pretenses
- Require a full account of profits from your agent
Don't wait to find out if you're being deceived - act now. Performing a full audit of your agent's invoices, fees and commissions is the only way to protect yourself. Look out for:
- Sudden spikes in maintenance costs
- Vague contractor fees
- Lack of competitive bidding
Stand up for your finances and demand transparent dealings from your agent. The longer dubious practices go unchecked, the more you stand to lose out.
Conclusion
Letting agents are legally obligated to disclose all profits, fees, and commissions to their landlord clients - but many still engage in unethical practices that cost you money. You work hard as a property owner. Don't let your agent siphon away your rightful earnings.
It's time to take control. Carefully audit your agent's invoices, statements, and contractor bids immediately. Look for evidence of inflated fees or vague additional charges. Demand full transparency on their practices and earnings related to your properties.
If discrepancies arise, consult an attorney to recover any fees made without your consent. You have legal right to these funds. With organised collective action, landlords can hold agencies accountable.
Waiting gives agents more opportunity to profit off you unethically. Don't lose another pound to deception - the thousands owed could make a big difference for your bottom line. Stand up for your finances and business by ensuring your agent deals above board today. Don't wait to find out if your agent is profiting behind your back.
At Rockett Home Rentals, we take pride in being completely transparent and ethical in our dealings with landlords. We charge no hidden fees or commissions - the management fee we quote is exactly what you pay, with no surprise markups down the line. You can trust that we will act in your best interest, not ours. We have nothing to hide and will readily provide a full accounting of all earnings related to your properties upon request. Choosing a transparent agency like Rockett Home Rentals gives you peace of mind that your hard-earned rental income stays in your pocket.