Working for estate agents

FireAnt · Post by **FireAnt** » Tue May 24, 2022 10:15 pm

Hello all

Sometimes I do the odd bit of work for estate agents and the like. However sometimes, I have to get someone else in, especially if I'm on a bigger job. So he quotes for the job and I'd add a percentage. But, my agent also knocks 20% off for themselves.

I was wondering what you would recommend as way of pricing if say we quote for a job, and then when we invoice, the agent takes off 20% as a profit for themselves before paying us.

For example, we would invoice £100
The agent would then take 20% off and charge vat on that. Then pay us the remainder. Does this happen with any of you on here, and if so, what markup percentage would you charge to make a decent profit?

Someone-Else · Post by **Someone-Else** » Tue May 24, 2022 10:39 pm

My mate Tim adds on 37% where as my mate Dave adds on 29% and my mate Roger, well he adds on 63%
My point being it doesn't matter who adds on what, as you have no idea who they are and how much they need to make, you are the only one who can answer your question, as you are the only one who knows how much you need to make, knowing the EA will still take off 20%

Gadget · Post by **Gadget** » Tue May 24, 2022 10:44 pm

Blimey, Roger's expensive....

Neelix · Post by **Neelix** » Wed May 25, 2022 6:49 am

Don't get involved with estate or lettings agents is my advice .........and as for knocking off 20% for themselves - so you are saying you invoice £100 but only receive £80?

wine~o · Post by **wine~o** » Wed May 25, 2022 7:36 am

Add 25% to your invoice. The estate agent will deduct 20% leaving you with amount that you would have received in the first place.

Example you want to get paid £200, so 25% of 200 = 50, therefore you invoice for £250.

The estate agent will deduct 20%, 20% of 250 is 50. 250 - 50 = £200. Works for any amount I just chose £200 as the maths is easier.

arco_iris · Post by **arco_iris** » Wed May 25, 2022 7:43 am

No Neelix, he's saying he receives £76. 100 - (20 + vat)

Wine~o, you're missing the agent's VAT and we assume the OP isn't vat registered.

S-E makes a fair point* but at it's simplest straightforward calculation, OP has to add at least 32%

100 + 32% = £132

EA takes 20% (£26.40) plus vat totals £31.68

OP nets £100.32 which is what he wanted. Add it on before EA takes their cut.

* EA is ripping off their client, you might as well have a slice too. Add on 50%

Chippo1 · Post by **Chippo1** » Wed May 25, 2022 8:05 am

So are we saying estate agents are hiding from thier clients that they take a fat chunk for doing zip!

Typical , I bet most clients don’t realise this , and get shown invoices from tradesmen and think the cost is all for the tradesman , this practice seems to me to at best unethical .

If I worked for the parasites I would only issue invoices for payment in full or not work for them. And this means you need to almost double book, keep one invoice for the agent and another for HMRC, tricky lol. All seems like a loose loose for the tradesman.

wes56 · Post by **wes56** » Wed May 25, 2022 11:37 am

fireant,
Even presuming that your not VAT registered, your post doesn't make a lot of sense?
Are you registered with an Agency that finds work for you? If youare then why? Theres tons of work out there. theres no need for anyone to be dipping into your money.

Never start a job without a watertight knowing how you will be paid and how much, by who, when.
If you dont know what or how to charge for your work then charge more. Never go low Never work for free.
Estate agents/rental agencies are salesmen who lie for a living and it sounds like they are skimming you.

Someone-Else · Post by **Someone-Else** » Fri May 27, 2022 12:42 pm

I know it is easy to say "Don't work for Estate agents" but if you are starting out and work is offered you are going to take it.
It is true that EA are not always the best to work for since most of the time they are just the "Middleman" and if you charge "too much" they will drop you like a stone and get my names' sake in. Or they will say the old one "If you do this one cheaper, I can get you loads more work" NEVER fall for that one as the next line is "Well you did the last job cheaper, so you can do this one cheaper" If you go on that route, it is only a race to the bottom.
Another thing to consider, is NEVER work in an occupied premises. If something goes missing or gets broken YOU will get the blame.

I would suggest if you must work for an EA get a fixed price before you start and get paid in full before you work for them again.

big-all · Post by **big-all** » Fri May 27, 2022 12:49 pm

had a mate install an interconnected smoke alarm and had to go back and rip it out as they wouldnt pay the full invoice

Someone-Else · Post by **Someone-Else** » Fri May 27, 2022 1:29 pm

Thats EA for you. Everything must be cheap.

Rorschach · Post by **Rorschach** » Mon Jun 06, 2022 5:58 am

Chippo1 wrote: ↑Wed May 25, 2022 8:05 am So are we saying estate agents are hiding from thier clients that they take a fat chunk for doing zip!

Typical , I bet most clients don’t realise this , and get shown invoices from tradesmen and think the cost is all for the tradesman , this practice seems to me to at best unethical .

If I worked for the parasites I would only issue invoices for payment in full or not work for them. And this means you need to almost double book, keep one invoice for the agent and another for HMRC, tricky lol. All seems like a loose loose for the tradesman.

Well it's not for doing zip is it. The EA is arranging for the work to be done and communicating between the parties, then sorting out paperwork for the landlord and invoicing etc. If work is done badly they will be expected to pick up the tab sorting it out so the money is for their time and efforts and a bit of insurance.
The EA though shouldn't be taking it from the tradesman, they should be charging the landlord for this service and invoicing them, unless they are doing both, which is probably illegal.

Regardless if you know the the EA is going to take 20%, bump your price by 25% as wine-o says, you charge for what you want to receive.

Chippo1 · Post by **Chippo1** » Mon Jun 06, 2022 7:36 am

I realise that the EA do handle the process , or should. I can see a small job the percentage might struggle to cover their costs , but larger jobs where they take the same percentage could mean significant profit for doing very little.

I still don’t see how it’s practical to pay the agent a percentage from your invoice value with out them invoicing you ! An invoice issued should be paid in full and any fee the EA wants collected from their client ! Trouble is that might open eyes and make some landlords review what they ask agents to do !

I have seen EA ,s get sacked for these very reasons in the past where the residents of mansion blocks realised they were paying an awful lot for little return resulting in the blocks setting up their own management companies.

FireAnt · Post by **FireAnt** » Sat Sep 07, 2024 11:08 pm

Late response to this thread. I'd lost access to my old email account until now.

Better late than never eh.

Well, it turns out the EA charges 20% plus vat off each invoice. Whilst also charging the landlord too.
Then some jobs were approved without the landlords say so apparently (EA had approved the job without getting the funds upfront). Then when I'd carried out the work, they wouldn't pay and said it's up to me to chase the landlord for the invoice.

My question is, am I legally allowed to revisit the property and 'undo' the works carried out?

Thanks for all your replies. Luckily I only work for the one agent. Most of my work is word of mouth.

Someone-Else · Post by **Someone-Else** » Sun Sep 08, 2024 12:25 am

FireAnt wrote: ↑Sat Sep 07, 2024 11:08 pmam I legally allowed to revisit the property and 'undo' the works carried out?

This being a DIY forum, I should say that you really need legal advice, not the say so of any one here.
That said, it has been known for trades people to remove / destroy their work due to non payment, but you can be considered a trespasser for going in uninvited, and as it's 2 years since you last posted, why are you still working for an EA, when you know full well they will not pay?