Letting agent fees are one of those things the industry prefers to keep vague. Prices vary from agent to agent, the service behind the headline number varies even more, and plenty of firms will only tell you the full picture on the phone. This guide explains how the charges usually work so you can compare properly.
Percentage of the rent, or a fixed fee
Most agents charge for full management as a percentage of the monthly rent, collected each month. Ours is a flat 12%. Some agents charge a lower headline percentage and then add fees for things you assumed were included, such as inspections, renewals or arranging repairs, so the true cost only becomes clear a year in.
Tenant find services are usually either a fixed fee or a share of the first month’s rent. We charge a fixed £550, with referencing at £28 per tenant and deposit registration at £15 on top.
The questions worth asking before you sign
Before comparing two agents on price, check what each one actually includes. The questions that matter: Are routine inspections included, and how often? Is there a renewal fee when the tenancy rolls over? Is there a markup on contractor invoices for repairs? Is there a fee to serve notices or handle a deposit dispute? What does it cost to leave if you are unhappy?
An agent who cannot answer those questions in writing is telling you something useful.
If an agent is offering guaranteed rent instead of a percentage fee, read our guide to what that actually trades away before comparing it to a standard fee.
Why the landlord pays these days
Since the Tenant Fees Act 2019, agents in England cannot charge tenants for referencing, inventories or admin. Those costs did not disappear; they moved to the landlord side of the ledger. That is worth knowing when a fee looks surprisingly low, because the money has to come from somewhere.
What we charge
Every fee we charge is published on our fees page: management at 12% monthly, tenant find at a fixed £550, inventories from £120, annual safety inspections at £30 each plus the contractor’s invoice. Quarterly inspections are included in full management at no charge. If a charge is not on that page, we do not make it.
Whether any agent’s fee is worth paying depends on the property, the tenant and how much of your own time you want to spend. If you want a straight comparison for your situation, get in touch and we will put our numbers against whatever you are paying now.
If you are comparing agents rather than just fees, our guide to what a property management company actually does covers regulation, redress schemes, and what is worth asking before you choose one.
Owner of HTG Property Group and HTG Mortgages, based in Winchester.
Free rental appraisal across Southampton, Portsmouth, Winchester and the New Forest, with straight answers and our whole price list published.