The rental market is booming, increasing the importance for landlords to know what the average letting agent fees are across the country.

With changes in legislation concerning tenant fee bans & offsetting mortgage costs and the BREXIT doom and gloom, keeping on top of fees is critical to maintaining a profitable property portfolio.

If letting agent costs are too high, profits from a rental property can be quickly eaten up

The letting agent fees you pay will depend on how hands you want to be with your rental property.

Some landlords just want their agent to find them tenants. Whereas other landlords want agents to take on inspections, maintenance, inventories and a whole lot more.

Analysis of the Average Letting Agent Fees

If you have a property in England, the below analysis will be useful for understanding average fees letting agents are charging. Furthermore, you can see precise fees agents are charging in your area. Included in the article is:

  1. A tool to find the best letting agent near you
  2. The letting agent fee calculator
  3. Types of letting agent fees
  4. Average letting agent fees in East London
  5. Average letting agent fees in West London
  6. Average letting agent fees in Central London

 

The best letting agent near you

Every town is different and so are the letting agent fees landlords will face, so finding the best letting agent is always simple. Rent Round allows landlords to compare letting fees of agents near a landlords rental property. 

A quick comparison shows % letting agents charge for tenant find, full management & guaranteed rent services.

Type in your post code to see letting agents near you. We will also show you letting agent ratings and distance from your property.

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marta wonder

I got the best priced agent in my area with all the services I wanted. Using Rent Round I could see all the local agents in my area after just putting in my postcode.

Marta Wonder

I got the best agent in my area with all the services I wanted. Using Rent Round I could agent fees, ratings and best of all how far the agent is from my rental property, plus it’s free to use!

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Average letting agent fee calculator

Wherever your property is in the country, the below calculator will give you an idea of the average letting agent fees in your city. Simply enter the city your property has and the number of rooms. The calculator will work out the expected rent you should expect based on national averages. You’re also able to see an estimation of your take home profit after letting agent fees, tax & bills.

Types of Letting Agent Fees

There are many types of fees rental agents charge landlords. This will be dictated by the services the landlord is looking for. The fees are generally broken down into the following groups

Letting agent tenant find fees

This fee is for the cost of advertising your property, answering tenant queries, conducting property viewings and creating the tenancy agreement. Depending on the agents terms and your agreement with them, this service can also include the ongoing rent collection for that tenant.

Letting agent fully management fees

This services goes over an above finding the tenant and is usually taken up by landlords looking for a hands off approach. The letting agent will in addition manage the property inspections, documentation, maintenance and for sure the ongoing rent collection.

Letting agent add on fees

There are a host of other activities that the letting agent can charge additional fees for. These include, but are not restricted to:

  • Premium advertising
  • Guaranteed rent policies
  • Bill payment processing
  • Tenancy renewal fees

As a landlord, you should always read the small print and understand what services are included and what you may be charged more for.

happy tenant

Letting agent fees in London for finding a tenant

Finding a tenant, essentially involves posting a property on one of the leading portal sites. From there, tenant leads are generated as interest in the property is created.

Depending on the agent, a tenant find fee includes answering inquiries and conducting viewings. Following which, again depending on the agent, the service will include the drawing up of tenancy agreements, collecting the first rent & handover the keys to the property.

However online rental agents usually differ to the above offering. With an online rental agent, landlords can expect lower fees.

With the lower fees landlords are expected to do more work, the most time intensive of which is conducting viewing themselves. For rental agent fees in London, we have broken the firms and fees down by East, West & Central.

Tenant find fee – East London

Taking a sample of 6 letting agents in East London, the average tenant find fee is 10%.

Agent Name Tenant find fee Tenant Find Type
Carter Mills 6% Per Calendar Month
Ewemove Sales and lettings Ilford 8% Per Calendar Month
Look Property 12% Per Calendar Month
Century 21 Estate Agents 8% Per Calendar Month
Century 21 Fieldcrest 10% Per Calendar Month
Base Property Specialists 10% Per Calendar Month
Marybow Property 10% Per Calendar Month

The average rent in outer East London is £476 per week and therefore landlords in this area of London can expect £1,904 a month.

To find a tenant, landlords can therefore expect to pay 10% of that, which is £190.4 per month.

As the fees above are per calendar month, the fees will accrue to £2,284.8 a year.

Tenant find fee – West London

In West London, the best performing agents on Rent Round offer a wider variety of tenant find fees.

Agent Name Tenant find fee Tenant Find Type
Knight Young 7% Per Calendar Month
Barratt Lettings Ltd £400 Fixed Fee
Enviro Estates 10% Per Calendar Month
Prestige Guaranteed Rentals 5% Per Calendar Month
EweMove Staines-upon-Thames £250 Fixed Fee

The average per calendar month fees across those agents with that fee structure, equate to 7.3%.

Using the £1,904 benchmark, that’s a total of £139 a month and £1,668 per year.

Sticking to the best rated agents on Rent Round, fixed fee alternatives are also available to landlords.

EweMove and Barratt Lettings offer tenant find services under a fixed one off fee.

Tenant find fee – Central London

The best agents on Rent Round in Central London stick to a monthly % of rent.

Agent Name Tenant find fee Tenant Find Type
Greater London Properties 5% Per Calendar Month
Emma’s Estate Agents Ltd 7% Per Calendar Month
Peter James 13% Per Calendar Month
Conran 10% Per Calendar Month
Sho International Property Management Ltd 5% Per Calendar Month

The average rental agent fee across the best rated agents is 8%.

Rents are significantly higher in Central London, with the average being £2,150.

Therefore rental agent fees in this location will be around £172 a month, £2,064 a year.

Online agent tenant find fees

LettingaProperty & 99home offer the best tenant find fees for landlords looking for an online agent.

Both agents are nationwide and offer fixed fees, under £149 to find a tenant, without ongoing monthly charges.

Fully managed rental agent fees – London

Rental agent fees for fully managed properties in London For the busier landlords, full managed services may be a suitable option.

The rental agent will find tenants, as well as undertake rent collection, maintenance, inspections, tenancy agreements etc.

This leaves the landlord very much hands off on the rental property. Of course with the additional services, the rental agent will charge a higher fee.

Agent Name Full management fee Fully managed type
Central Housing Group Ltd 5% Per Calendar Month
Sho International Property Management Ltd 5% Per Calendar Month
PRESTIGE GUARANTEED RENTALS 5% Per Calendar Month
Enviro Estates 8% Per Calendar Month
Barratt Lettings Ltd 9% Per Calendar Month
Knight Young 10% Per Calendar Month
Look Property 12% Per Calendar Month
Century 21 Estate Agents 12% Per Calendar Month
EweMove Staines-upon-Thames 12% Per Calendar Month
Emma’s Estate Agents Ltd 12% Per Calendar Month
Carter Mills 12% Per Calendar Month
Ewemove Sales and lettings Ilford 12% Per Calendar Month
Marybow Property 12% Per Calendar Month
Conran 13% Per Calendar Month
Peter James 15% Per Calendar Month
Century 21 Fieldcrest 15% Per Calendar Month
Base Property Specialists 15% Per Calendar Month
Greater London Properties 15% Per Calendar Month
LettingaProperty.com £59 Monthly Fixed Fee
99home £85 Monthly Fixed Fee

It’s important to note, that landlords can offset rental agent fees as an expense. Therefore when it comes to paying capital gains or income tax, the rental agent fees can be deducted first.

Compare Agent Fees Near You

Helping Landlords Save On Rental Costs

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marta wonder

I got the best priced agent in my area with all the services I wanted. Using Rent Round I could see all the local agents in my area after just putting in my postcode.