After years of increased legislation, taxes and liabilities it is becoming more of a challenge for landlords to justify the financial benefit that comes with the complex management of a rental portfolio. Added to this, there is another element that is squeezing landlords even further and it is often lost or misread in the fine print.
Many corporate estate agents include clauses in their management Terms of Business that allow them to add up to 20% or more onto contractor invoices for works carried out on a client’s property. 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.
Some firms view their property management department simply as another profit generator, engaged in maximising income for their company, with some setting clear targets for ‘extra charges’, which is counterproductive to their key role of protecting their clients’ assets.
Times like these not only highlight the need for effective and worthwhile property management, but it also exposes a crucial truth: the ways of those who stand on the side of the landlord, compared with those who do not. Ultimately, the squeeze on cash flow and reduced investment capital could compel landlords to defer essential maintenance, repairs and necessary property upgrades, which would then directly impact tenants.
At Maskells, we take a holistic approach and believe that a well-served and well-compensated landlord will result in greater levels of rental stock quality, which in turn positively impacts the market as a whole.
Across the £500m+ worth of property assets under our management, we do not charge arrangement fees or add commissions to third-party invoices, and we never accept referral fees or incentives from contractors.
Our priority is simple: protect your investment, not profit from your maintenance bills. Our fees are competitive, transparent and structured to protect your yield — not erode it.
Below is a genuine like for like quote comparison and example of the additional fees and charges a large corporate firm would charge for what should be considered basic property management that a landlord would expect to be covered within their monthly retainer.
Example: Replacement Boiler
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 the Maskells 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 gained by Maskells: £0
In this one single example, Maskells saves the landlord £967.50.
Why This Matters
Transparent management isn’t just about good and honest practice, it directly impacts a landlord’s bottom line.
At Maskells, our ethos is straightforward: your property is an asset, not a revenue stream for unnecessary fees. By removing hidden commissions and inflated charges, we ensure that every penny you spend on maintenance goes where it should, into preserving the value of your investment. With us, you can trust that your property is being managed with integrity, clarity and genuine care. We believe that fellow estate agents should follow in the same vein but for those that don’t then landlords can rest assured that there is a better way.