Once the paperwork has been sorted out, you are on your way to becoming a BTL investor – and perhaps even a successful one, if you play your cards right.
2 types of commission schemes
The initial commission
The initial commission is payable if the tenant who enters into tenancy in your property was introduced by City Docklands Limited – which means it is payable even if the tenancy wasn’t finalised by us.
This commission is charged as a percentage of the total rental value of the agreed term as specified in the tenancy agreement. If the tenancy is terminated prior to the agreed term, we will refund part of the commission to you.
The amount refunded varies according to how far before the agreed term the tenancy was terminated, as well as whether it was terminated in accordance to a break clause.
The renewal commission
The renewal commission is payable when the original tenant renews, extends, holds over, or enters into a new agreement in the same property, whether or not this renewal was negotiated by City Docklands Limited.
If there were more than one tenant in the property, the full renewal commission is due even if just one of them renews. This commission is charged as a percentage of the total rental value of the agreed renewal term.
If there is no agreed renewal term, the amount charged would be a percentage of the total rent value of the initial agreed term. If the tenancy is terminated before the end of the agreed renewal term, we will refund the pro-rated commission for the remaining term to you.
As a client of City Docklands Limited, know that you can always come to us for impartial advice and professional help in your property investing journey. After all, your success is ours too.
Article contributed by City Docklands Limited.