How much do letting agents charge landlords?
The amount you pay depends mainly on the level of service you choose.
A letting agent may charge a one-off fee for finding a tenant, an ongoing fee for rent collection or a percentage of the rent for full property management.
The exact cost varies between agents and can depend on the property, rent and services included.
Compare the total service rather than the headline fee. A cheaper package may include little more than advertising, while another may include viewings, referencing, tenancy paperwork or management.
What are the main types of letting agent fees?
Most landlord services fall into three broad categories, with additional charges sometimes added separately.
Tenant-find fees
A tenant-find service is designed to help the landlord market the property and secure a new tenant.
Depending on the agent and package, this may include advertising, dealing with enquiries, arranging viewings, negotiating offers, referencing and preparing the tenancy agreement.
Some agents bundle these services into one fee while others charge separately for particular stages.
Rent collection fees
Some letting agents offer a service where they collect the rent from the tenant and pass it on to the landlord.
This service generally involves an ongoing charge and sits between a basic tenant-find service and full property management.
Full management fees
Full management is usually the most comprehensive service available from a letting agent.
It may include collecting rent, dealing with tenant communication, arranging repairs, organising inspections and providing support throughout the tenancy.
This can make sense for landlords who want the property handled on their behalf, but it may be more service than a self-managing landlord actually needs.
Extra fees and add-ons
Always check whether important services are included within the quoted fee or charged separately.
The important figure is the total amount you will pay for the services you actually need - not simply the price used to advertise the package.
What should landlords compare?
Look carefully at what is included, what is optional and which parts of the process remain your responsibility.
Is a traditional letting agent worth the cost?
It can be, depending on the level of involvement you want.
A traditional agent may suit you if you live some distance from the property, do not have time to deal with tenants or want someone else to manage the property after move-in.
If you are happy to self-manage and mainly need help with advertising or setting up a tenancy, paying for ongoing management may offer little additional value to you.
How can landlords reduce letting agent fees?
One of the simplest ways is to handle the parts of the letting process you are comfortable managing yourself.
Why fixed-fee online letting can offer better value
With fixed-fee pricing, you know the cost at the start rather than paying an ongoing percentage simply because the monthly rent is higher.
This can particularly suit landlords who are happy to conduct viewings and manage the property themselves but still need access to online advertising and tenancy setup tools.
FIXED-FEE ONLINE LETTING
Pay for the support you need.
Not the support you don't.
Rightmove Advertising
For self-managing landlords who mainly need access to Rightmove.
Full Tenancy Setup
For landlords who want support progressing the tenancy after finding an applicant.
