Establishing standard practice

Our Experts Answer:

Credit checks can incur costs that can be on-charged to you because they were done as part of the service to you in selecting a tenant. Some agents do not on-charge credit checks if they can be recouped via a letting fee. Your contract with your property manager will specify what charges you have agreed to pay and which ones the property manager has agreed to carry.

As a property owner you are required to pay all rates (including water rates) to your local authority. You cannot present the whole water invoice to your tenant and ask them to pay it, because a tenant is responsible only for the charges related to their consumption. They cannot be charged the fixed charges portion of the water invoice. When a property manager undertakes an invoicing and collection activity for you, there is a reasonable expectation that the property manager can charge you for that service. Whether you are charged a flat fee for the invoicing or a percentage of the tenant’s invoice will depend on the management agreement that you have with your property manager.