Letting agent fees can be difficult to calculate and confusing for some people to understand. Certain fees are ambiguous and the exact services aren’t always clear. Letting agent fees even change from one region to the next, only complicated matters more.
Are you curious about how much letting agents charge in your area? Tenant finders fees charged by letting agents charge vary from 100% of the first months, to just £99. The savings landlords can make on their rental costs are therefore substantial.
Navigate to what you need:
- Compare local letting agent fees
- Letting agent fees charges by popular letting agents
- Services letting agents provide
1. COMPARE LOCAL LETTING AGENT FEES
Comparing letting agent fees can be tedious, but as stated above, very rewarding.
Most letting agents publish their fees on their website, along with what exact services are included for their fee.
Landlords have a choice of selecting the most basic tenant find packages, for prices as low as £99. Under these conditions, landlords will be expected to organise and conduct viewings themselves.
On the more expensive side, landlords can expect to be more hands off. Agents that charge approximately 10% of the ongoing monthly rent will organise & conduct viewings. In addition, tenant referencing, deposit management & rent collection can also be part of the service.
Comparison sites like Rentround make it easier for landlords to compare the letting agent market. Landlords just need to enter a few details about their property and comparison sites show fees, ratings & services of letting agents in their local area.
Alternatively, to get a good deal landlords should contact a few agents before settling for an agent for their property. Fees can often be negotiated depending on the property status and especially if multiple properties are available for letting.
2. LETTING AGENT FEES CHARGES BY POPULAR LETTING AGENTS
Below you’ll see a snapshot of the letting agent fees that various agents, including online letting agents, currently charge. This chart details a healthy mix of agents including online agents, as well as local professionals and popular nationwide agents.
3. SERVICES LETTING AGENTS PROVIDE
Each property agent has its own unique services and associated fees. You have to be careful and do your research. Some agents will charge additional fees for services already within your contract. Others don’t provide viewings, references, or a tenancy agreement.
Below you’ll find descriptions of services included in Rent Round’s letting agent fee calculator. This tool lets you calculate which services and fees are included and excluded.
The letting agent and property management fee comparison tool is another useful resource. This comparison tool gives you a breakdown of ratings and fees specific to the location of your property.
Here are just a few of the services many letting agents offer:
- Conducting and scheduling property viewings
- Finding tenants (watch out for finding fees)
- Rent collection
- Initial tenancy agreement
In some cases, landlords change the tenancy agreement halfway through the term. This may result in an additional charge of £30-60.
After one year, agents will charge a renewal fee, which in some cases, can be quite steep! Some agents even charge the same price for a renewal as they do for a completely new tenancy.
How much are tenant finders fees?
Finding reliable tenants is one of the hardest parts of the letting process. The cost of tenant find services really depends on you. If you want the agent to do most of the work (which most traditional agents do), you’ll be paying for. On the other hand, if you’re willing to do some of the legwork, you can save some money.
Most online agents charge between £80 – £200 to find you a tenant, conduct background checks, and establish a tenancy agreement. A traditional agent will charge you between 8% and 12% of the collected monthly income. Basically, the higher the fees, the more work the agent does, and the less responsibility you have.
Be sure to consider these fees and enter them into the letting agent calculator above to get the most accurate few of what fees you’ll face as a landlord.
Fully managed agents perform a lot of the legwork for you. Here are just a few of the services you can expect from this type of agent:
- Maintenance and repairs to the property
- Property inspections
- Dispute resolution
- Notice processing
Maintenance is a thorn in any landlord’s side. Maintenance and repairs are often ongoing issues. When it comes to damage and repairs, landlords want to be in control of the expenses and fees. Some landlords even want to choose the contractors, compare quotes, and be the final say in approving a job. When landlords are involved in this decision-making process, they’re less likely to feel taken advantage of.
How much do fully managed services cost?
If you want full managed services, you’re facing fees as high as 12-18% of the monthly rate. The letting agent fee calculator above gives you an estimate based on your expected rental income.
Guaranteed rent fees mean that you get paid regardless of if your tenant falls behind on payments. Non-payment of rent happens for a variety of reasons including tenants who simply vacate without warning, refuse to pay, or damage the property. Any property that is inhabitable for an extended period of time is also covered by guaranteed rent fees.
This policy can be used as a buffer for any mortgage payments the landlord still owes. Be sure to read and review all policies carefully. The same as any other type of insurance policy, the payout guidelines can be confusing. Under some terms, landlords aren’t paid out for nearly six months!
How much can letting agents charge for guaranteed rent?
Prices vary and can range from £80 – £200 annually. If you want a policy that has fewer restrictions and lower pay-out periods, expect to pay higher fees upfront.