How much are letting agents’ fees for landlords?
So, how much are estate agent fees for landlords? For a let-only service, letting agents tend to charge a one-off fee (equivalent to around four week’s rent), while full property management fees may be equivalent to 12 to 20 per cent of monthly rent. Letting agent fees in London are often higher. On top of this, you may have to pay a setup or administration fee.
Different letting agent fees for different services
You can choose different levels of service from your letting agent depending on how much you’re willing to spend and whether you have the time to manage some of the details yourself.
Finding tenants (let only): the most basic level simply involves finding tenants and completing the referencing process, along with collecting a deposit and drawing up the tenancy agreement. The agent may also arrange the inventory.
Our fees would be: a one time, 4 weeks of the agreed monthly rent.
Rent collection: this level involves the agent collecting rent every month, and following up with any arrears. Some landlords choose to outsource this to avoid the hassle of chasing late payment.
Our fees would be: 0% and £ 0 as the payment should come straight away to your bank account as a standing order.
Full management: as well as the services listed above, with full management the agent will take care of maintenance and repairs, and will act as the point of contact for your tenants.
Our fees would be 10%/month of the agreed monthly rent.
Different letting agent fees for different services
You can choose different levels of service from your letting agent depending on how much you’re willing to spend and whether you have the time to manage some of the details yourself.
Finding tenants (let only): the most basic level simply involves finding tenants and completing the referencing process, along with collecting a deposit and drawing up the tenancy agreement. The agent may also arrange the inventory.
Our fees would be: a one time, 4 weeks of the agreed monthly rent.
Rent collection: this level involves the agent collecting rent every month, and following up with any arrears. Some landlords choose to outsource this to avoid the hassle of chasing late payment.
Our fees would be: 0% and £ 0 as the payment should come straight away to your bank account as a standing order.
Full management: as well as the services listed above, with full management the agent will take care of maintenance and repairs, and will act as the point of contact for your tenants.
Our fees would be 10%/month of the agreed monthly rent.
Average estate agent fees for landlords
Clearly, the amount you pay will depend on the level of service you’re getting, but this is a rough guide to the estate agent letting fees for landlords:
finding a tenant and arranging referencing will typically attract a one-off fee, but this can be as high as one month’s rent
rent collection will usually be charged as a percentage of the rent, and will generally be between five and 10 per cent
full management is also a proportion of the rent, but this service can attract a fee of up to 20 per cent of the monthly sum
As an example, lets have a look at the fees you have to pay if you would like to go with us:
let only: 10 per cent of the total rent (Avg UK letting fee:10-14%)
rent collection: 0% of the total rent (Avg UK fee collection rate :10-12%)
full management: 10 per cent of the total rent (Avg UK management fee:15-18%)
You’ll also pay an initial setup fee and can add additional services for a monthly fee. But remember, specific fees will vary depending on the level of service you’re looking for.
Average estate agent fees for landlords
Clearly, the amount you pay will depend on the level of service you’re getting, but this is a rough guide to the estate agent letting fees for landlords:
finding a tenant and arranging referencing will typically attract a one-off fee, but this can be as high as one month’s rent
rent collection will usually be charged as a percentage of the rent, and will generally be between five and 10 per cent
full management is also a proportion of the rent, but this service can attract a fee of up to 20 per cent of the monthly sum
As an example, we’ve looked at the prices of a large letting agent in the UK, Andrews:
let only: 12 per cent of the total rent
rent collection: 15 per cent of the total rent
full management: 18 per cent of the total rent
You’ll also pay an initial setup fee and can add additional services for a monthly fee. But remember, specific fees will vary depending on the level of service you’re looking for.
Do I have to pay a letting agent, or can I do it myself?
Of course, there’s no requirement for you to have a letting agent at all. Many landlords choose to complete the entire lettings process themselves. Your choice here will depend on a range of factors, including your proximity to the property, and the level of service that you would otherwise need from an agent.
For example, if you simply don’t have the time to take on the management side, or you not living in the area of the property then you might need to work with an agent to keep up with general maintenance. However, if you just need someone to help you find tenants, you might well be able to do this yourself.
What extras you need to look for prior renting your property:
Gas certificate ~£170
Electric safety certificate ~£300
Building insurance ~£40/month but depend of choice
Potential tenant background check £40/each (recommended)
Inventory + Inventory check in / out / £165/each
Extra fees you can calculate in the beginning:
If we have to go to the property before any tenant signed the contract for viewing/builders management or any other reason £1.5/mile petrol/diesel + £10/visit. These fee`s comes to £0 afterwards the let agreed with the tenant
Contract renewal drawing for the tenant annually £90
Deposit protection scheme management £40
Do I have to pay a letting agent, or can I do it myself?
Of course, there’s no requirement for you to have a letting agent at all. Many landlords choose to complete the entire lettings process themselves. Your choice here will depend on a range of factors, including your proximity to the property, and the level of service that you would otherwise need from an agent.
For example, if you simply don’t have the time to take on the management side, or you not living in the area of the property then you might need to work with an agent to keep up with general maintenance. However, if you just need someone to help you find tenants, you might well be able to do this yourself.
What you need to look for when you’re choosing a property finder:
Gas certificate ~£170
Electric safety certificate ~£300
Building insurance ~£40/month but depend of choice
Potential tenant background check £40/each (recommended)
Inventory + Inventory check in / out / £165/each
Extra fees you can calculate in the beginning:
If I have to go to the property before any tenant signed the contract for viewing/builders management or any other reason £1.5/mile petrol/diesel + £10/visit. These fee`s comes to £0 afterwards the let agreed with the tenant
Contract renewal drawing for the tenant annually £90
Deposit protection scheme management £40
LANDLORDS
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