For landlords looking to harness the expertise and experience of a letting agent for property management, the associated fees are an important consideration.
With different models and significant fluctuation in charges across the UK, research is vital to ensure the right level of service at the right price.
This blog looks at the main considerations of letting agent fees. For a more detailed overview of property rental, take a look at our Landlords’ Guide.
What are letting agent fees for landlords?
Letting agent fees are charges for the services involved in property rental, including marketing, tenant vetting, contracts and management. The costs depend on the location, type and standard of property, alongside the level of service agreed with the agent.
In the past, tenants were charged these fees, but recent legislation under the Tenant Fees Act 2019 has largely banned this practice.
In areas across the Midlands and Birmingham, demand can fluctuate. Letting agent fees will reflect local competition and service expectations.
How much are letting agent fees?
Fees are charged in different ways depending on the agent. Some offer fixed fees, whereas others charge a percentage of the rental value.
Fixed fees can be set by area. So, whilst not directly affected by rental values, the more desirable the area, the higher the fees. In Birmingham, for example, the city centre and regeneration areas like the Jewellery Quarter may incur a higher fixed fee whilst suburban areas like Kingstanding or Perry Barr are more likely to sit in the mid-range.
Percentage-based fees in and around the city can vary from anywhere between 8-15% of the monthly rental value.
For information about competitive letting agent fee structures for Birmingham and the surrounding areas, please speak to one of our experts.
Types of letting agent services and what do letting agent fees cover?
Tenant finding only
Tenant-find-only options usually include:
- Marketing of the property
- Conducting viewings
- Vetting and references
- Tenancy agreements
- Right to Rent checks
- Deposit collection and registration
Rent collection
This typically includes everything involved in tenant-find-only contracts, plus:
- Monthly rent collection
- Statements and payment processing
- Chasing arrears
- Renewals administration
Full management
A full property management service from a letting agent will usually include everything in the above sections, plus:
- Day-to-day maintenance handling
- Regular property inspections
- Coordinating repairs
- Tenant communication
- Compliance with safety standards
- Managing check-in and check-out
What are letting agents responsible for?
Letting agents’ responsibilities include, but are not limited to:
- Handling rent collection
- Communication with tenants
- Managing repairs
- Ensuring legal compliance
- Records and documentation
- Renewals and tenancy changes
Who needs a letting agent?
Any landlord with time constraints, multiple properties, who is new to letting or who lives outside the area, is likely to benefit from employing a letting agent. From handling contracts and tenant issues through to day-to-day management and maintenance, a letting agent can remove the stress of renting out a property.
If you’re thinking of employing a letting agent for your property management, Henley Charles has the experience and local knowledge you need to make your rental a success. Contact us for more information.
Can I claim back letting agent fees?
Letting agent fees are an allowable expense for landlords, which means you can deduct them from your rental income when completing your tax return. This applies to tenant find fees, management fees and renewal charges.
How to choose the right letting agent?
To choose the right letting agent for you and your property, you will need to do your research. Compare what each agent includes in their fee, not just the headline cost, and look for local experience in the location of your property, alongside good online reviews.
At Henley Charles, our local knowledge and experience make us the number one choice for landlords across the Midlands. Read testimonials from satisfied clients here.