Vashti Sperring, the agency’s operations director, says the detail buried in management contracts is revealing. She argues that some large firms include Terms of Business clauses allowing them to add “20% or more” on top of contractor invoices for work done on a landlord’s property.
She claims:” This not only inflates maintenance costs for landlords but also creates a clear conflict of interest: the higher the contractor’s cost, the more the agent earns – and this is in addition to the agreed monthly management fee.”
Sperring argues that certain agencies treat their property management arms primarily as revenue-driving units, focused on boosting company income rather than safeguarding landlords’ assets. She says some even set explicit targets for “extra charges”, a practice she believes runs counter to the core purpose of management services.
According to her, the added costs can tighten landlords’ cash flow and erode the funds available for investment. That pressure, she warns, may lead some owners to postpone vital repairs, maintenance and improvement works — consequences that ultimately fall on tenants.
She also provides what she describes as “a genuine like-for-like quote comparison”, setting out an example of the extra fees and add-on charges that a major corporate agency would apply for routine management tasks — costs she argues should already be included within a landlord’s monthly retainer.
Corporate Estate Agent (CEA)
A fully managed property needs a replacement combination boiler. The CEA obtains a quote of £2,875 + VAT (£3,450) from a preferred contractor. The landlord agrees and the boiler is replaced. The final bill, however, comes to £3,306.25 + VAT (£3,967.50) – significantly higher than the true cost of the work.
Breakdown of cost:
Actual contractor cost to replace boiler: £2,500 + VAT
CEA contractor kickback (15%), inflating the quote to: £2,875 + VAT
CEA arrangement fee for works above £350 (15%): £431.25
Total charged to landlord: £3,306.25 + VAT (£3,967.50)
Total additional fees gained by CEA: £806.25 + VAT (£967.50
Below are the equivalent fees and charges for the same work completed by her Property Management team:
Third-party invoice to replace boiler: £2,500 + VAT
Incentives received: £0
Arrangement/administration fees: £0
Total charged to landlord: £2,500 + VAT (£3,000)
Total additional fees for the team: £0
She states that a landlord could have saved £9,67.50 on the job.
And she finishes by saying: “Transparent management isn’t just about good and honest practice, it directly impacts a landlord’s bottom line.”