How much is a reasonable amount for a letting agent to charge as a fee to the tenants who want to rent a flat from them?
I need an agent for four flats that are sitting empty as I am too busy to get them rented and no one wanted to buy them. I can pay 9% plus vat for a fairly small agent who I have used before and he did an alright job.
Thing is he charges £150 fee to the tenant. Seems steep to me. Do other letting agents charge this much and do they find they have longer void periods because of it. I also have to pay £60 for marketing as a one off (I assume per flat) and I have to pay about £60ish for an inventory clerk (the tenant pays the same for that.) and I pay the clerk again at end.
The tenant is therefore paying about £200 up front before they have even stumped up the deposit and first months rent. Also I put the deposit in the tds myself so I assume that is because he doesn't want any liability if he forgets to put it in by the deadline. This is a bit of a concern because he has to give it to me in time for me to get it in the tds by the deadline and if I miss it because of his slowness I can't use an s21.
I would be grateful for any thoughts from other letting agents, particularly on if you think his fees to the tenants are too high.