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What management fees landlords usually pay in UK?
Letting agent fees are payments that landlords make to letting agents for the services they provide.
The letting agent fees and the services included differ from one letting agent to another, but typically landlords are paying the letting agent for things like tenant-finding, reference checks and property management.
The fees you pay will depend on the services you choose, and you may pay them as a flat fee or as a percentage of your rent. If you're thinking of using a letting agent, our how to choose a letting agent guide is a great place to start.
So, how much are estate agent fees for landlords? For a let-only service, letting agents tend to charge a one-off fee (equivalent to around four week's rent), while full property management fees may be equivalent to 12 to 20 per cent of monthly rent. Letting agent fees in London are often higher. On top of this, you may have to pay a setup or administration fee.
Different letting agent fees for different services
You can choose different levels of service from your letting agent depending on how much you’re willing to spend and whether you have the time to manage some of the details yourself.
Finding tenants (let only): the most basic level simply involves finding tenants and completing the referencing process, along with collecting a deposit and drawing up the tenancy agreement. The agent may also arrange the inventory.
Rent collection: this level involves the agent collecting rent every month, and following up with any arrears. Some landlords choose to outsource this to avoid the hassle of chasing late payment.
Full management: as well as the services listed above, with full management the agent will take care of maintenance and repairs, and will act as the point of contact for your tenants.
What hidden fees usually landlords pay in UK?
1. The Letting Agency fees
2. Landlord Insurance
3. Safety checks and property maintenance
4. Cleaning costs
5. Legal fees
6. Landlord income tax
7. Vacant properties
For a more basic service, charges for High Street Letting Agency starts at around 8% of the monthly rental price. For a full management service, you should expect to pay around 15% of the monthly rent – whilst this may seem like a big chunk of your profit, you will be saving your time. If you don’t want to be caught out on any hidden costs, you have the option to pick an agency that offers a ‘No let, no fee’ policy, ensuring that you don’t get charged if they fail to find someone.
What is the average void period in UK?
The average void time is now 20 days, compared with 25 days this time last year.