Property manager & letting agent fees can be difficult to understand and calculate. We’re nice people at Rent Round so we’ve made you a property manager & letting agent & fee calculator.
Just enter your estimated rental income!
Better yet, you can compare letting agent fees in your area. Enter your postcode in our letting agent fee comparison tool. We then show you local agent fees. In addition, we show you ratings, location & services offered by agents in your area. The comparison tool is free and takes 30 seconds to show results.
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COMPARE letting agents NEAR YOU
To compare letting agents near you, enter your postcode below.
The comparison tool will show you letting agent fees, ratings & services in your area. This will give you a precise view on the agents in your area and what fees are on offer.
The services is completely free & results are shown within 30 seconds.
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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.
Agent fee calculator
Just browsing? If you haven’t got a property yet and just looking to gte an idea of potential letting agent fees, ply around with the below calculator.
You just need a rough idea on how much rent you’ll be charging and what services you need from a letting agent
Expected Rental Income (£)
Letting Agent Fee Calculator: THE CALCULATION MECHANISM
The costs can be daunting at first, but if you want to alleviate a lot of the stress of being a landlord, a letting/property agent is the way to go.
Remember, although the letting agent fee calculator has shown you fees on a yearly basis, you’re likely to have the same letting agent for years and years.
So effectively you can multiply your letting agent fees (and potential savings) by 4,5,6 or even 10 years!
The letting agent fee calculator is based on average letting & property agent fees, taken from various sources.
We looked at fees of the largest letting agents & property managers in the UK (agents are obliged to publically post their fees).
We also researched into numerous blogs available on the web.
Finally, we have our own properties being managed by letting agents, so are very accustomed to fees!
To work out how much Rent Round can save landlords in letting agent & property manager fees, it was quite simple.
We took 5 of the most popular postcodes for rental properties in the UK.
We then plugged these into Rent Round. Using our own database, we took the average of the 3 best priced letting agents & property managers.
This enabled us to then compare average fees in the UK vs potential saves on Rent Round.
This valuable inclusion in the letting agent fee calculator clearly demonstrates the benefit of landlords using Rent Round.
Letting agent & property manager services
Every property agent is different, including their fees and services offered.
Some agents charge for tenant finding fees and the service is exactly that, finding you a tenant!
No tenancy agreement, no referencing and no viewings.
Below are descriptions of the services included in our letting agent fee calculator. This will help you understand what services are being costed out and what potentially is being excluded.
Remember, we recommend using our letting agent and property manager fee comparison feature. This will give you a breakdown of fees & ratings personalised to your property location.
Tenant find fees
Services we have assumed under this fee include:
- Advertising the property
- Conducting property viewings with potential tenants
- The initial tenancy agreement
- Rent collection
Note: Occasionally landlords need to change a tenancy midway during the term. This usually includes an additional admin fee which will be between £30-60.
Furthermore, after 12 months, a tenancy renewal charge is usually applied to the landlord.
The tenancy renewal charge can be substantial. Some agents charge the same as finding a tenant in the first place!
How much do letting agents charge for tenant find services?
Costs depend on if you want the agent to do most of the work (therefore most likely opting for a traditional agent) or you’re willing to do some of the leg work yourself.
An online agent will charge between £80 – £200 to find you a tenant, conduct references and get the tenancy agreement in place
A traditional agent will change you between 8%-12% of monthly rent. For the higher fees you can expect more services undertaken in return.
Be sure to enter your details into the letting agent fee calculator above. This will enable you to get a better view of what fees you can expect as a landlord.
Fully managed agent fees
Fully managed services are supposed to leave the landlord pretty much hands off when it comes to managing the property.Aside from the above tenant find fees, letting agents & property managers will also cover:
- Property inspections
- Notice processing
- Maintenance of the property
- Dispute resolution
Maintenance can be a contentious issue. Landlords want to avoid being charged £1,000 for a squeaky door (that’s an exaggeration of course!).
Therefore when it comes to damages & repairs, landlords want to have an element of control.
Landlords need to be involved in finding contractors, comparing repair quotes and giving the go ahead for a repair to be done.
This reduces the risk of landlords feeling they have been priced unfairly, based on their letting agents or property managers’ costs.
How much do letting agents charge for fully managed services?
For fully managed activities, commonly a 12-18% fees of monthly rent will be charged. Use the letting agent fee calculator above to get a view based on your expected rental income.
Guaranteed rent fees
Guaranteed rent policies are created to pay out to landlords, should rent not be received.
Depending on the small print, landlords are usually covered if:
- If tenants decide to run off
- A tenant simply does not pay, or
- If the property is damaged and therefore inhabitable for a period of time
The policy can therefore be used to add a buffer for any mortgage payments the landlord needs to still make.
You’d need to vet the policy carefully. As with any insurance policy, the pay out terms can be complex. Landlords may not get paid out for 6 months under some terms.
How much do letting agents charge for guaranteed rent?
Prices range from £80 – £200 per year. The more expensive policies tent to have less restrictions and lower pay out periods.
Miscellaneous letting agent & property manager fees
As there are a high volume of letting agents & property managers on the market, there are a host of other fees that can be charged to landlords.
These fees sometimes are already wrapped up in the service agreement you have. On the other hand some property agents will charge separately.
Below are some of the fees landlords will need to look out for, should the services be required
Tenant renewal fee
If the letting agent or property manager has found you a tenant, the term for that tenant (i.e. the duration of the rental agreement) will be stated in the tenancy agreement.
Once that term ends and you want to keep the same tenant, a tenancy renewal fee could be requested.
Landlords can find this fee frustrated.
The hard part of the job, finding the tenant, is already done.
The renewal fee covers the writing up of the new agreement, included new regulatory terms and updating dates etc.
If you don’t want to pay this fee, you need to ensure it’s not included in the agreement you have with the letting agent or property manager.
The tenancy renewal fee also cannot be passed onto the tenant, due to new legislation in 2019.
How much are letting agent tenancy renewal fees?
Agents usually charge £45-£120 for renewing a tenancy agreement. Not all agents charge, so again check the small print.
Once the term in the original agreement expires, landlords can switch their tenant to become ‘periodic’. This means the tenancy becomes a ‘rolling’ contract with no end date, usually involving the original set of terms and conditions
Reserve fund fee
Accidents & damages do happen. Letting agents & property managers don’t usually want to front the bill & charge landlords after the event (they’d rather have the money first!)
Chasing landlords & transferring cash, may take time. Therefore some agents charge a reserve fund fee.
This is a pot of money taken in advance from the landlord to cover any damages.
If the pot is used, it’s then returned after the agreement between the landlord & agent.
How much are letting agent reserve fund fees?
It really depends on your property value. The more valuable and larger, the more that can go wrong. Expect fees in the £200 – £1000 range.
This service is for landlords that like that little extra luxury in life.
Mortgage, electric, gas and service bills all need to be paid. Landlords looking to get the admin of paying these bills offloaded can look to a property agent.
An agent pay the bills on your behalf, saving you the hassle of keeping track of what’s been paid and overdue.
How much are letting agent paying your bill fees?
Usually an agent will charge 1.5% – 4% of the amount billed.
These fees are probably the most annoying out of the possible fees a landlord can be charged.
The fee charged is to take care of adding your profile on a system; Things like adding your bank details on the agent’s platform, setting up direct debits, recording your contact details etc are usually a reasoning for this type of fee.
If you’re being charged this fee, it’s worthwhile pushing back on your agent and get this fee scrapped.
It’s unlikely an agent will turn away your business because of you not wanting to pay this fee
How much are letting agent admin fees?
Anywhere between £50-£200.
Unfortunately tenants need to be evicted from time to time. Whether its not looking after the property, false information given in referencing checks or rent arrears, eviction procedures need to be engaged.
When evictions take place, notice to the tenant needs to be given and sometimes the case needs to be taken to trial.
Then once all done, the tenant needs to be removed from the premises in cases where they are reluctant to leave.
This can take a lot of time and expertise is needed to ensure legislation is stuck to.
Letting agents & property managers will usually charge a fee for these types of services.
You need to look at the cost benefit of getting their experience for this procedure. If an agent can do it quicker & more effectively then you can do on your own, it will mean you can get a new tenant in quicker and start to receive rent again.
Remember, during an eviction, your mortgage provider is still going to expect & chase their payment.
How much are letting agent tenant eviction fees?
£120 – Eviction notice
£850 – Getting the Court Order
£250 – County Court Bailiff
Late Payment Fees
If your letting agent or property manager undertakes maintenance/repair work on your behalf depending on your agreement, they may invoice you after the work.
This invoice will have a due date, commonly 14 days post the invoice date.
If you delay this payment and there is no reserve fund pot, you could be charged for the late payment.
How much are letting agent late payment fees?
Landlords can expect to be charged a fixed fee of £30-100, or a 3-10% of the due payment.
You may have selected a fully managed service with your agent which includes maintenance, therefore these fees may not apply.
However if not and you require the agent to conduct maintenance work, the agent will add a mark-up on top of the contractors charges.
This is reasonable considering the agent has had to coordinate the repair work. Finding a contractor, arranging suitable times for the work to be conducted and paying the contractor on your behalf can be cumbersome.
How much are letting agent charges for ad-hoc maintenance?
Landlords can expect between 10-15% of total bill to be added to cover the agents time. Again if you have opted for a fully managed service & maintenance is included, this fee should not be charged to you.
Estate agent fees
For landlords looking to sell their property, the agent will of course take their commission.
Advertising the property, conducting viewings and dealing with negotiations are part and parcel of this service.
With the invasion of online estate agents in the property market, landlords now have financially better options when selling their property.
Instead of a commission based on % of the properties sale value, online agents offer a fixed fee system.
Regardless of how much the property sells for, the fee to the agent stays the same.
However with the lower fees, landlords may have to do more of the work themselves.
Commonly this will involve arranging & conducting viewings. Fine if you have the time. But for the busier landlord this may not be possible.
However be mindful that an agent may charge you a fee, if you decide to sell your property while still within the fixed term of an agreement.
So even if you sell the property via a different estate agent, as you’ve broken the term with your rental agent, a fee may be applied. We cover this below, see the exit fees section.
How much are estate agent fees?
On a commission based on the properties sale value, 1.5% – 3% is the general fee sellers can expect. With an online agent, fees of £99-£1000 are available.
Early exit fees
If you have signed an agreement with a property agent, within that agreement will be a term.
This term refers to how long you agree to use that agent for rental services.
If you wish to exit the agent early, an early exit fee may apply. This adds some security to the agent should landlords exit early.
This fee is reasonable, as there is an agreement in place and the agent will need some security for their own business.
If however, you are wanting to exit because of poor service, exit fees can be challenged.
If the terms of agreement haven’t been stuck to by the agent, then landlords can be well within their rights to exit the agent without incurring a fee.
Rent not being collected, the property not maintained or landlord requests not being adhered, are all possible dispute topics.
This signals ever more importance to what’s included in your agreement with the agent.
Ensure you cover all the aspects of services you are paying for in the agreement. In addition make sure early exit fees are looked at, including wording the agent has included where exit fees do not apply.
Furthermore, if your agent is adamant that early exit fees are going to be applied, then the following complaint procedures can be followed:
“One good thing about dealing with letting agents is that they have to be part of an approved redress scheme. This has been a legal requirement since 1 October 2014.
Redress schemes can help you resolve a dispute between you and your letting agent.
Both landlords and tenants can complain to these schemes, which help to mediate disputes between landlords, letting agents and tenants over letting agent failings.
If you’ve exhausted the letting agency’s internal complaints procedure and are not satisfied with its response, you can take your complaint to one of these schemes.
All letting agencies must clearly state which scheme they are members of. The government-backed schemes are:
- The Property Ombudsman (TPO)
- The Property Redress Scheme”
How much are letting agent early exit fees?
Exit fees can be up to 10% of the remainder rent that is still expected, for the remainder of the term.
So let’s say you wish to exit your agent, because of reasons excluding a dispute regarding the service. You have 6 months left and rent equates to £1,000 per calendar month.
Your early exit fee would £100, multiplied by the number of months still in the agreement = £600.
Tenant Late Payment Fees
Within the tenancy agreement, usually stipulated is how much tenants need to pay additionally, if they are late on rent.
This is used as a deterrent to the tenant failing to pay rent on time.
Letting agents can then take a piece of this late payment charge as commission. Late payments have to be tracked & chased, which is their justification for taking a piece of the fees.
Ideally, you want to negotiate this type of fee out of any agreements with the agent.
Agents making money from tenants not paying on time is not a behaviour you want to incentivise!
How much are letting agent late payment fees?
5% – 10% of the fee charged to the tenant for not paying rent on time can be expected to be paid to the agent.
Usually, tenants face appx 5% hit because of not paying on time.
Recording a detailed list of items within your property prior to letting it out is essential for dispute resolution.
Therefore, if you find items are missing or damaged, the original inventory can be referred back to as a reference.
How much are letting agent property inventory fees?
Landlords with smaller properties can expect to pay around £100. When properties with more than 3 beds are involved, prices can go up to £200. Note, we included this cost in our letting agent fee calculator at the top of the page
Compare letting & property manager fees
Now you have an idea about the letting agent & property manager fees you can expect, use Rent Round to get the best agent with fees that suit you.
Enter you postcode below with a few details about the services you need, then we will do the rest!
No need to call multiple agents and write down fees to do a comparison.
A letting agent fee calculator and the ability to compare letting agents all in one place.