When looking into whether or not to hire a letting agent, one of the main questions on your mind will be how much you’re likely to spend. In this handy guide, we will run you through what letting agent fees are, your expected costs, where they are likely to vary and whether or not there is room for negotiation. Let’s get into it!
What are letting agent fees?
Letting agent fees are the charges that letting agents give to landlords in exchange for the services they offer. These fees typically cover various responsibilities, including advertising the property, identifying suitable tenants, conducting property viewings, managing legal and administrative tasks, and overseeing the property itself. Letting agents may also introduce additional fees for specific services, such as tenant reference checks, inventory inspections, and the renewal of tenancy agreements.
What should you expect to spend?
The costs associated with using a letting agent can vary significantly, depending on the property’s location and the extent of service required. Typically, agents determine their charges as a percentage of the monthly rent, as opposed to imposing a fixed fee spanning the entire contract duration.
Agent fees usually range from around 10% of the rent to 20%, depending on the level of service chosen.
Tenant-find Only Service Fees
The lowest level of letting agent service is the tenant-find only service. In this level, the letting agent’s primary responsibility is to locate suitable tenants, and facilitate the initial administrative tasks.
As this is the lowest level of service, the fees reflect this. You can expect to be charged a percentage of the tenant’s first month’s rent, typically 50-100%.
Rent Collection Service Fees
The rent-collection service extends the agent’s responsibilities to include collecting monthly rent payments from tenants and chasing any overdue payments.
The fee for rent collection is usually charged as a percentage of the monthly rent payments, and tends to be between 5 and 10%.
Full Property Management Service Fees
The full property management option provides landlords with a comprehensive solution that takes care of every step of the letting process from start to finish. In addition to finding tenants and handling rent collection, the letting agent assumes full responsibility for the property’s daily operations, and the landlord has a hands-off approach.
For comprehensive property management services, the charges may fluctuate between 12% and 20% of the total rent, influenced by geographic factors and the specific managing agent engaged.
You will also be charged an initial setup fee. Certain agents give landlords the option to add additional services for a monthly or one off fee, such as grounds maintenance and end-of-tenancy cleaning.
Is there room for fee negotiation?
Given the competitive nature of the market, we advise that you obtain multiple quotes, and be prepared to engage in negotiations to secure the most advantageous terms.
Some agents might include additional services like deposit registration and conducting Right to Rent checks as part of their offering, while others may charge extra for these services.
To make an informed decision, compile a list of your specific requirements from the agent and meticulously review the fine print before committing to any agreement.
In terms of whether it is possible to negotiate fees with letting agents, the answer is yes. Some agents would rather lower their fees instead of seeing you go to another agent. If this isn’t the case, you could propose the idea of handling certain aspects of the service , such as rent collection, yourself, even if you requested a full property management service. This could lead to reduced fees.
As well as this, if you have multiple rental properties, letting agents are often more inclined to give you better rates rather than risk losing your entire portfolio to a competitor.
How Aspire to Move can help
Aspire To Move offer our specialised landlord services to landlords in the Bath and Bristol areas. We are dedicated to excellence and an unwavering commitment to staying on top of ever-changing legislation, enabling us to offer our clients the most informed and up-to-date advice.
We tailor our services to meet your individual requirements, whether you need tenant-find only, rent collection or the full shebang!
Contact us today to discuss your needs and discover how Aspire to Move can help you.
