Letting Agent "administration" fees

  • Filter
  • Time
  • Show
Clear All
new posts

    Letting Agent "administration" fees

    Hi All,

    i just wanted get some general feedback on the appropriate cost for letting agent "administration" fees and what these are actually suppose to include?

    I have just come to relist my property after my last tenant left, and i have been advised that the letting agent's "fees" are charged to the landlord (i was aware there had been a recent ban on tenant fees, but these costs appear to have just been transferred to the landlord on top of what you already pay them).

    So as well as a 9% a month charge for finding a tenant (not managing the property - just collecting the rent), this letting agent also wants to charge £400 for administration fees. When i queried what this is for, he seemed unable to answer other than - reference checks. other things such as 'inventory check' are all additional extras, so personally i think this charge is totally ridiculous.

    Would be interested to get others thoughts.

    I've got to ask, why are you paying 9% for someone to have the rent transferred into their account, it costs nothing to have it transferred into your own account.
    I use an agent to find the tenants, but that's all, normally just a flat fee that includes the relevant checks etc.
    But as you say, someone has to pay now that tenants don't have to.
    I do know landlords that have just factored these costs into an increase rental charge.


      I have a number of properties, so it's hard to compare rates, but I pay less than that (with VAT added) for full management.
      Which, most of the time is simply collecting the rent.

      For tenant find I pay an additional half month's rent (which would be about £350-400).

      I find the notion of paying a potentially inlimited amount of money simply for tenant find an odd way of doing business.
      When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
      Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).



        because that is their minimum fee. their full management fee is 14%+VAT.

        my property is based in London, where letting agent fees seem to be much more inflated.



          fully agree, but its the same for all letting agents in London. they all charge a monthly % fee - even for just finding a tenant. obscene, particularly now with a further 'administration' charge as well.


            The London property market is simply irrational.
            Not living or doing business there is one of the things I should remember to give thanks for daily.
            When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
            Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).


              But you said that they charge you 9% per month just to collect the rent, why don't you let them find the tenant and then have the rent paid directly to you?


                Get rid of the agent, they are just ripping you off.

                Use OpenRent to find your next tenant. They have a rent collection service that's free (if you feel you need that), although I have never used this myself, so have no experience of it. They will chase unpaid rent, but I imagine this service won't be free for the long term.

                If more landlords (who were able to) found their own tenants and self-managed, rip-off agents would either be forced to change or go out of business.


                  I would suggest carefully selecting a new letting agent for tenant-find (including referencing, R2R, etc) for a one-off fee.
                  Do the rounds, tell them what you want, if they say no, then walk away, if they say yes, then get price and terms, then compare offerings, get a preferred offering, negotiate on terms/offerings if necessary (ensure that you have right to assess and approve an applicant before a tenancy can be granted).

                  I use tenant-find service for less than 1 month rent (inc VAT) and the agent does not have authority to agree a tenancy without my consent, nor to sign the tenancy agreement.


                  Latest Activity