In the past, the way that we have dealt with maintenance contractors and invoices has been a little unsatisfactory and that is becoming an increasing problem the more we do. As a result of that we need to alter how we deal with processing invoices going forward.
The contractors that we use have always worked directly for us and have always billed us as their client. They do not work for each landlord and look to us to pay them. As a result of that close relationship they have always paid us commission and have been expected to provide us with very good rates. Some of that will continue as there is no reason to change it and any change would become administratively burdensome. It is important to note that ALL letting agents receive commission on maintenance and we all negotiate good prices with the contractors to allow for that. Commissions are allowed for in our terms but we always want to be transparent.
What we are going to change is the way commission is handled. The VAT component and invoicing systems employed by different contractors are all very different and this is causing a lot of confusion with potential for errors. We have decided to instruct contractors to invoice WITHOUT commission added and we will add that at our end. The rate of commission will not change (10% of the invoice amount with a ceiling of £250 including VAT) but it will be added by us when we charge the invoice to you.
We do not expect costs to rise (anymore than costs are rising everywhere anyway!); merely for the way that we administer these invoices to change so that it is more straightforward. The only important thing to note is that invoices for any works carried out, whilst available, will not match the amount charged to you. These invoices are really for our financial records rather than yours as a landlord. The rental statements that we provide should suffice for bookkeeping purposes.
IMPORTANT NOTE:
Many of our landlord clients instruct their own contractors and we merely liaise for access with the tenants. Where that happens and the landlord pays their own contractor directly we will NOT be adding commission. Only where we have completely dealt with the repair from start to finish will we add charges for the extra work incurred in that process. That said, if we are expected to receive and pay the contractors' invoice then our commission will be applied to that before the final bill is deducted from the rent and the contractor paid what they are due.
As always, should you have any queries, please do not hesitate to contact us either via email to info@rogers-partners.co.uk or WhatsApp to 07968542735.