Rental costs charged by the agency.

[Tieman]

I hope I can benefit from the Forums combined wisdom?

We are looking at renting out our home in Vendee via a well established local property sales/rental agency and see the following clause in their contract:

Honoraires de gestion.

Les honoraires se rapportant à votre gestion s'élèveront à 7.48% T.T.C. et seront prélevés sur chaque relevé de compte.

To us, charging 7.48% (over and above their 30% cut/fee on rental receipts) to pay rental money into our French bank account sounds a lot for not a lot of work. Are we simply misunderstanding this deduction or is it just a standard charge/fee in the rental sector that we have to accept?

Thanks in advance for all the words of wisdom.

David

[Sunday Driver]

They are saying that your management fees will amount to 7.48 % inclusive of tax and will be applied to every statement of account you receive from them.

 

[Panda]

[quote user="Tieman"]I hope I can benefit from the Forums combined wisdom? We are looking at renting out our home in Vendee via a well established local property sales/rental agency and see the following clause in their contract: Honoraires de gestion. Les honoraires se rapportant à votre gestion s'élèveront à 7.48% T.T.C. et seront prélevés sur chaque relevé de compte. To us, charging 7.48% (over and above their 30% cut/fee on rental receipts) to pay rental money into our French bank account sounds a lot for not a lot of work. Are we simply misunderstanding this deduction or is it just a standard charge/fee in the rental sector that we have to accept? Thanks in advance for all the words of wisdom. David[/quote]

The renters pays a fee up front to the agent when they take the property, you pay in this case, 7.48% for the management of the rental which for me includes things like insurance for non payment, the rest is for the collection of and likely chasing down the rent on a monthly basis, it's about standard if it includes insurance, high if not.  You need to say what it includes to make a comparison.

[Pickles]

[quote user="Tieman"]To us, charging 7.48% (over and above their 30% cut/fee on rental receipts) to pay rental money into our French bank account sounds a lot for not a lot of work. Are we simply misunderstanding this deduction or is it just a standard charge/fee in the rental sector that we have to accept?[/quote]

What makes you think that they will be creaming off 30% of the rental receipts? I think that the 7.48% (plus tva?) will be the whole amount of their deduction: if so, it would be in line with others.

Regards

Pickles

[bubbles]

That's what I thought.

Sounds ok to me if it is true.

[Tieman]

Thanks to all who have replied and we’ve now sorted out our confusion and the 7.48% fee is all they deduct.... We’d seen a draft rental contract which hadn't had the correct rental price details put in, hence us thinking we were being charged 30% of the rental price that they'd given us verbally!

Looking forward to our next hit of Vendee in late September as it has to be warmer than here in England at the moment.