How much are agency fees?

[Johnny J]

Hi guys

I'm thinking of putting my flat on the market to rent. Grateful for anyone who can share their experiences on letting agency fees (this would be a fully-managed basis).

Set-up costs
- how much to photograph and market the house?
- how much to do the inventory?
- how much to draw up a contract?
- anything else I should be expecting?

Ongoing fees
- how much payable as a % of monthly rent, once a tenant is found?

thanks!

[jeffrey]

Above all else: read/understand Agent's Terms and Conditions, to make certain that you agree (and are prepared to commit yourself) to them.

[Johnny J]

Thanks Jeffrey - I quite agree. And of course, I can pay my money and take my choice.

Most of the high street agents are quoting 12-15% +VAT for full management, does this sound like the going rate (for London)?

[bassanclan]

Prices of letting agents will vary deping on your area, but in warwickshire this is my experience:

If you are letting on the ongoing management basis there are no costs before a rental is agreed.
Once someone moves in my agent charged me 10%+VAT pcm for every month for management plus they charged £75+VAT taken from the first months rent for setting up the tennancy.
They arrange the annual gas safety check and tradesmen to do repairs etc.

If you have a modern/recently refurbished house and/or live nearby you might want to just get the agent to "find a tenant" which would have cost me about £300+VAT I think.

[Poppy35]

for a fully managed service you would be looking at paying a set-up fee which covers advertising, photo, preparation of schedule of condition, protection of deposit monies etc. This can range anywhere from £100 upwards Then you will be paying an ongoing % each month.

You will also need to pay for an Energy performance Certificate as you need this by law when you are advertising a property. Our clients pay £85 for this. Some are more , some are less.

[craigfer]

What area in the country are you?

[Johnny J]

London town

[MustHavePads]

Great question!

The fees for letting agents vary greatly from region to region but also even in the same town. There is however seemingly far more similarity in agent fees to landlords than in agent fees to tenants it would appear.

In my own area the ongoing management fees start at around 5% and can approach 16% with a higher end agent letting more substantial properties.

The set up fee should be between £100 and £200 for a first letting contract for the property and then be either free or heavily reduced for subsequent lets (£50 to £100). Generally all services to let the property should be included in this, however it is not unreasonable for an agent to charge for an inventory separately if it is for a large furnished property (several hours work).

I think that if you can negotiate £150 + VAT and 10% ongoing and via a reputable established local agent, then you should feel relatively confident that you are on the right track