Understanding estate agency fees is vital when renting out your property, whether landlord or tenant. Estate agents offer excellent service, but their fees vary depending on the required service and level of support. In this article, we will look at the typical fees charged by estate agents for rental properties in the UK, the various services, and the factors that affect the cost.

 

Estate Agency Services

 

Full Management

 

For complete management services, the estate agent will manage the entire rental property on behalf of the landlord. This includes finding tenants, collecting rent, managing maintenance and repairs and dealing with tenant issues or disputes.

 

Tenant Find Only

 

Tenants find only services the estate agent will find suitable tenants for the landlord’s property. Once the tenant is found and the tenancy agreement is signed, the estate agent’s involvement usually ends, and the landlord takes over the management of the property.

 

Rent Collection

 

Rent collection services: the estate agent will collect the rent from the tenant on behalf of the landlord. The landlord will still be responsible for the property and any maintenance or tenant issues.

 

Extra Services

In addition to the services listed above, estate agents may offer extra services such as property inspections, inventory management and legal advice. These services may incur extra fees or be part of a complete management package.

 

Fees

 

Location

 

Estate agency fees can vary depending on the location of the property. Agents may charge more in areas with high demand and high rental yields to reflect the market conditions.

 

Property Type and Size

 

The type and size of the property can also impact estate agency fees. More significant properties or bedrooms will require more marketing and, therefore, higher fees.

 

Level of Service

 

The level of service required from the estate agent will also affect the fees. Complete management services will usually cost more than tenant-find-only or rent collection services.

 

Market Conditions

 

Market conditions such as supply, demand, and rental trends can affect estate agency fees. Agents may adjust their fees to attract landlords or tenants in a busy rental market.

 

Reputation and Experience

 

Established and experienced estate agents may charge more because of their reputation and service. Landlords and tenants may be prepared to pay more for the security of working with a well-known agent.

 

Fees

 

Tenant Find

 

For tenant-find-only services, estate agents will usually charge a one-off fee based on a percentage of the annual rental income. This fee can be between 8% and 12% of the first year’s rent but will vary depending on the agent and location.

 

Full Management

 

Complete management services will cost more than tenant-find-only services. Estate agents may charge a percentage of the monthly rent, usually between 10% and 15%. Some agents may charge extra for specific services like property inspections or maintenance coordination.

 

Rent Collection

 

Rent collection services usually cost less than complete management as the estate agent’s involvement is limited to collecting the rent. Fees for rent collection services can be between 5% and 8% of the monthly rent.

 

Extra Services

 

Extra services offered by estate agents, such as property inspections, inventory management and legal advice, may incur extra fees. These fees will vary depending on the service.

 

Negotiating Fees

 

When dealing with estate agents, landlords and tenants can negotiate fees based on their circumstances and requirements. Factors such as the number of properties the agent manages, the length of the tenancy agreement and the level of service required can all be considered during negotiations.

 

Summary

 

Estate agency fees for rental properties in the UK will vary depending on the service required, location and size of the property and market conditions. Knowing the services offered by estate agents and the factors that affect fees will help landlords and tenants make the right choice. By reviewing the services and negotiating fees, landlords and tenants will get value for money and service from their chosen agent.

 

 

At Argant Estates, our expert agents across London offer tailored services to get your property tenanted in less than a week. Don’t miss our exclusive 7% full management deal—call us today for a free valuation!