We previously compared online letting agent fees for Upad and OpenRent. Our installment of comparing letting agent fees is between Letting A Property and Howsy, we’ve also produced a fee calculator for these two letting agents.
The usual focus of landlords when looking for an online letting agent are the fees. But as previously explained, there can be a lot of jargon, confusion and hidden costs when comparing certain online letting agents.
So we are comparing fees of these two letting agents, minus all the marketing and sales talk.
There are really two key packages a landlord needs to consider when selecting between these two agents, do you want a tenant find only solution, or would you also like in addition a guaranteed rent service (if your tenant does’t pay, your rent is covered by insurance).
Now, for the purpose of comparison, we are not comparing any services that just involve finding a tenant. When we refer to a finding tenant service, we are only considering services that find you a tenant and on board the tenant (i.e. draw up the paper work, complete referencing, collect rent etc).
Letting A Property calls these two services Guaranteed Rent and Rent On Time (which is the real guaranteed rent option).
Now this is confusing, but we will come back to this. Howsy calls the same services Howsy Standard (tenant finding services) and Howsy Protect (guaranteed rent).
So if we consider tenant finding services first (remember this includes finding the tenant, on boarding them and collecting rent): Howsy charges £65 for a property in London. This totals £780 a year.
Letting A Property charges £49 a month. But there is a £249 fee for the paper work.
So over the year this results in £837 Howsy does give you the opportunity of 2 months free if you pay upfront, which brings the yearly fees of Howsy down to £650. In addition if your property is not in London, your fees if you paid upfront for the year would reduce to £350.
In conclusion, Howsy is cheaper
Reading through the fine print, Letting A Property does have an additional benefit when comparing these two packages.
As their package is called ‘Guaranteed Rent’, they do cover any rent not paid.
The catch is you may have to wait 8-12 weeks for back payments. Therefore although you do eventually get your rent, you must have a buffer in your finances to cover 3 months worth of rent not being paid, while you await the pay out (while still paying the letting agent fees).
Letting Agent Fee Calculator: Letting A Property vs Howsy
Now lets compare fees of the two letting agents when it comes to guaranteed rent.
The criteria we have set is that guaranteed rent is only considered guaranteed if the rent owed is paid with a week, which both the Letting A Property and Howsy packages comply with.
Howsy charges £115 a month with no added fees. Again if you pay your letting agent fees upfront, you get 2 months free, which would result in you paying on average £95.80 per month in fees.
Letting A Property charges for the same service £79 + a £249 paperwork fee. Therefore you’ll be paying an average of £99.75.
You can see, the fees work out relatively the same.
So in conclusion, if you’re basing your choice of letting agent based on price and you’re looking for tenant find packages, Howsy is your best bet, but you don’t get the advantage of the guaranteed rent policy (paid 3 months later).
However if you are looking for a rental guaranteed scheme, then based on price it really doesn’t matter which provider you choose as the prices are relatively the same. If a landlord is looking for rock bottom prices and a more hands on approach, some agents like OpenRent charge nothing at all or fees as little as £29
If you’re looking for a wider, more comprehensive letting agent fee comparison, then that’s at the heart of what we are doing at Rent Round.
If you enter your property postcode, we will provide you with a breakdown of letting agents in your area, showcasing their letting agent fees and ratings the have achieved.
This gives you a better view on which letting agent to choose.
You should avoid getting the cheapest agent you can find if the service is rated poor.
Eventually due to the poor services your costs will increase elsewhere (late rent, more maintenance, property left vacant for longer periods). You can compare traditional & online letting agent fees below, free of charge and best of all it only takes 30 seconds.