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I have set up My company to do Managagement of my Personal BTL properties
The Company also carrys out full repairs
My question is this what is a fair rate to charge
My plans are basically this: when a repair comes up lets say I need a front door replace
My Company arranges a Purchase of the door and the fitting and My Company will then charge a Management fee for the repair
How do I work out a fair management charge for works completed?
Learn Change and Adapt ?????
All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.
How long is a piece of string? Each job is going to need to be individually appraised and you are going to need to do it with one eye on the Inland Revenue which could question fees which are deemed too healthy .Unless you go the route of charging a monthly management fee which covers general maintenance repairs and running costs, thereby leaving you only to deal with bigger items to calculate on a case by case issue.
I charge now for collecting rent 15%
and I was thinking of charging maybe 25%
But I do find this a little low I can run-around getting prices meeting builders and 25% hardly covers my time and expenses
Maybe a flat fee and then a percentage could work better ??
25% for collecting rent? Blimey, what's wrong with monitoring bank account to check the amounts are coming in? Given I pay 6% fully managed for one property I suspect HMRC might not view 25% for just rent collect as valid...
Prices & meeting builders? Tell me about it!
I use 15% when I collect rent
But its not a lot when I am arranging repairs for all the time I take meeting tradesmen and supplying martials
I am currently in the process of setting up a Property Management Company to collect rents and look after the admin for my properties. I am looking at a 15% management fee, with additional tenant find and associated fees on that side of things.
I've not yet considered the options for outsourcing the repairs and maintenance aspect for dealing with builders & trades. It's certainly something to consider as their costs soon add up over the year - so it would be in my interest to get the Ltd Company to administer this aspect too.
Food for thought & more research required ! Thanks for asking the question DL
How big a role (in HMRC's assessment of what you're doing) does the management of other people's properties play? Maybe one for RITA.
I take your point and yes I am managing a fiends Property
I charge ourselves 15% as we do all the call outs, all decorating and repairs and all banking and accounts ready for accountant. I change 10% to other landlords as we do much less for them.
I'd like to consider this route as I already have a limited co etc. However I don't really know anyone who would also want the service so would concerned whether HMRC would allow it if just my properties etc
You would be better doing management for another Landlord