If you’re thinking of renting out property in the east London areas of Romford, Dagenham or Upminster, letting agent fees are a cost you need to consider when working out your potential income. You don’t have to use a letting agent to manage your rental property. But it is worth considering how much time you want to devote to being a landlord and how confident you feel about certain aspects of the role – from finding the right tenants to managing maintenance and making sure the rent is paid on time. To help you work out which letting agent services are right for you, we look at letting agent fees for landlords – how much you’re likely to pay and what you should expect in return.
What are letting agent fees for landlords?
Letting agent fees for landlords means the money you will pay to your agent in return for their services. These might be a flat fee for a one-off job, such as finding tenants for you, or a percentage of the rent you receive, paid monthly for on-going property management. How much you pay will depend on the level of service you opt for, but it can also vary according to which agency you choose.
Which services attract letting agent fees for landlords?
Finding tenants
Many landlords only use a letting agent to help them find tenants for their rental property. Letting agents have plenty of expertise in marketing rental properties via their websites and the property portals as well as through their networks of prospective tenants. They will help you find the most reliable tenant for your rental home by carrying out credit and referencing checks. They may also advise you about making the best of your property and collect your first rental payment. For these services you may pay a flat fee agreed with the agent or a percentage of the first month’s rent.
Rent collection
If you don’t like the idea of rent collection – and chasing up non-payment – you may choose to avoid this awkward area of tenant relations by outsourcing it to a letting agent.
Full management
Full management means handing over the keys to the property, so your agent can look after the day to day running on your behalf. This includes liaising with tenants, organising any repairs and maintenance and ensuring important tasks such as gas safety checks and inspections are carried out – as well as tenant finding and rent collection. You’ll pay more for this level of service. However, the business of being a landlord won’t impinge on your time so much and, assuming you choose your agent well, you won’t need to worry about your landlord responsibilities.
Guaranteed rent
An agent offering a guaranteed rent service will take over the full management of your property for a set period. In return, you will receive an agreed amount of rent every month. Letting agent fees will be deducted from the rent you receive. While you may pay more in fees than for a standard service, your income is guaranteed, even if the property is without tenants or they fail to pay their rent.
How much are average letting fees for landlords?
Letting fees for landlords vary enormously depending on which agent you use, your location and other factors. For a basic tenant finding fee you could pay less than 10% or as much as a full month’s rent. Full management fees typically cost between 12 and 20% of your monthly rental income.
Online letting agent fees
Online only letting agents are another option. They are likely to be cheaper than high street letting agents, however, you will need to do more of the leg work yourself.
Letting agents’ add-on fees
While some letting agents charge fees for landlords that are all-inclusive, others will charge you extra for certain services such as:
- Administration fees
- Renewal fee
- Check-in and out fee
- End of tenancy cleaning fee.
It’s important to understand exactly what you’re paying for when you sign up with an agent to avoid extra costs later on.
Do I have to pay a letting agent?
You don’t have to us a letting agent. But, as we said earlier, you really need to weigh up the cost v how much time having an agent will save you. Most landlords use a letting agent of some sort – even if just to find tenants for the property. Without a letting agent, you won’t be able to advertise the home on the property portals, which is pretty much essential these days.
If you’re looking for a letting agent in east London, contact ABC Gone. We offer both a guaranteed rent and full management service and would love to discuss how each option might work for your property. Contact us now.
