Letting Agent Renting Fees

Categories: Fees Letting Agent Renting Property

Do you want to rent out your house or flat and are looking for an estate agent who will charge you a reasonable renting free? There are a large number of estate agents out there. Therefore, it is quite complicated to choose an estate agent who is honest, experienced and highly professional. A lot of research is needed to find a good estate agent because good estate agents charge you proper rental fees while other may be less than above board. You need to find an estate agent who will advertise your house in a professional manner and get you a trustworthy tenant to obtain the best possible amount of rent. This is possible only if you find out what type of estate agents are available  and what are their renting / management fees.

There are many ways by which you can get this information. You may discuss this with your friends, relatives or you can go directly to estate agents’ offices and ask them directly. If you have access to the internet, visit their websites. Almost, all estate agents have their own websites on which they give all such information. This is the easiest way of comparing their services and rates. You can also check on comparison sites and read independent reviews to get the complete picture.

Fees

Typically, estate agents charge you a percentage of the rental income during the letting period. Normally, it starts from 10% of the price achieved as rent. For example, the tenant paid £1000 as rent. Now, the 10% fee becomes £100.  This hundred pounds would be the fee to your estate agent. £100 (in this example) might seem a large amount to you because the percentage is higher as compared to the commission the estate agents charge for selling your property. But in fact the actual amount that estate agents use as their fee is not £100 at all. Let us discuss this further.

This £100 covers many costs paid by the estate agent during the process of renting the house. For instance, expenses occur when the estate agent searches for a potential and reliable tenant. And to obtain references and prepare a tenancy agreement, he has to pay some expenses. For all these services, rental fees can start from 15% of the price decided to be charged as rent to the tenant. Now, this percentage will suffice to cover many activities such as organization of credit checks, collection of rent money, regular inspection of the rented house, payment of bills, essential maintenance of the house and some other related tasks. There is another way of managing these things. You may hire a property management agent and this is suitable only if you have contracts with many letting estate agents. Also, you can negotiate other services with the property management agent. Or the property management side, simply run yourself. Lots of choices and best of luck.

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