Letting agent fees

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Cozee letting agent with fees

If you’re a landlord looking to rent out a property, chances are you’ll need to work with a letting agent.

Letting agents can take a lot of the hassle out of finding and vetting tenants, but their services come at a cost. In this article, we’ll cover the average letting agent fees in the UK, what those fees cover, and when it makes sense to hire a professional agent.

What are letting agent fees?

Letting agent fees refer to the charges landlords pay to agents for their services in managing rental properties. Based on recent data from Property industry eye, the average letting agent fee in the UK is around £297. With an average rent in London being £2,121 per month. It is predicted letting agents have an average rental fee of 14%.

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For a let-only service where the agent finds a tenant but the landlord manages the property, fees are typically 10% of the first year’s rent.

It’s important for landlords to understand these fees can add up quickly, especially for higher-rent properties. For example, if you rent out a property for £1,200 per month (£14,400 annually), a full management fee at 14% would be £2,016 per year.

The services included in a letting agent’s fee structure can vary, but generally cover things like:

  • Marketing the property
  • Conducting viewings
  • Tenant referencing/vetting
  • Drawing up tenancy agreements
  • Collecting rent payments
  • Managing repairs/maintenance
  • Conducting property inspections

Here is the extensive list of services offered by Cozee:

Service Service type Price (exc.VAT)
Let & Manage Core 14%
Let only Core 10%
Property management Core 7%
Change of Ownership set up Core £200
References fee per person Core £20
Mail forwarding and scanning Core £20
Payments (service charges, utilities) Core £15
Deposit registration (per tenancy) Core £30
Property visit Core £60
Annual license holding (per year) Core £100
Onboarding fee Core £150
Tenancy agreement fee Core £100
Cancelling a let before the tenant moves in Other £200
Section 21 Notice (solicitor’s fees might apply) Other £50
Section 13 Notice (solicitor’s fees might apply) Other £50
Quarterly return to HMRC Other £100
Land Registry & Head lease from Land Registry Other £10
Mandatory & Additional HMO Property certificates £600
Legionella Risk Assessment fee Property certificates Quotes
Selective Licence Property certificates £300
Energy Performance Certificate (EPC) Property certificates £125
Electrical Installation Condition Report (EICR) Property certificates from £180
Portable Electrical Inspection fee Property certificates Quote
Gas Safety Record fee Property certificates £110
Installation of smoke & CO2 detectors Property certificates £50

No, it’s not legally mandatory for landlords to use a letting agent when renting out a property in the UK. You can choose to self-manage and find tenants yourself. However, there are several benefits to using a professional letting agent service that are especially true when using Cozee:

Access to Tenant Database: Reputable agents have databases of prospective tenants actively looking to rent. This can help fill vacancies much faster than marketing a property yourself.

Outsourcing the Entire Process: Letting agents handle everything from advertising the property and conducting viewings to referencing tenants and drafting legal contracts. This saves landlords significant time and effort.

Expertise in Landlord-Tenant Law: Experienced agents have in-depth knowledge of landlord-tenant regulations to ensure you stay compliant and avoid legal troubles.

Working out if a letting agent is qualified

To ensure you’re dealing with a legitimate and qualified letting agent, there are several accreditations and memberships to look for:

Property Redress Scheme – All letting agents in England must be a member of a government-approved redress scheme

A cozee letting agent

The Property Ombudsman – one of two independent government-approved redress schemes, comprising two branches: one for sales and the other for lettings. Agents must be members for the public to file a complaint against them.

The Ombudsman services – This scheme can grant awards of up to £25,000 if the agent has caused financial loss or distress. In 2011, the average award was £900. Membership for agents is mandatory.

Additionally, since letting agents handle tenant deposits, they must be part of a government-approved tenancy deposit scheme like:

  • Deposit Protection Service (DPS)
  • MyDeposits
  • Tenancy Deposit Scheme (TDS)

When does a letting agent take their fee?

Letting agent fee structures and payment timelines can vary between companies. Some may charge the full fee upfront once they find a tenant, while others may take a portion upfront and the remainder once the tenant moves in or on an ongoing basis.

It’s crucial to carefully review an agent’s fee terms before agreeing to use their service. Be wary of any upfront fees before they successfully rent out your property.

For example, at Cozee lettings we only charge our fee once a tenant has moved into your rental property and begun paying rent – not before.

Cozee don’t charge until your tenant is renting your property

Get in touch with the Cozee team today

This ensures you don’t pay anything until our service is complete.

What are the average letting agent fees?

Letting agent fees in the UK have fluctuated over the years but on average in London are just above 14% for a full let and manage service. Here’s a look at the average fees landlords have paid for full property management service.

The fee charged to let and manage a property in London on average is £397 including a holding deposit that is charged by most agents to show that a tenant is serious about being referenced for a property.

What companies have the lowest letting agent fees?

When comparing letting agents, fees are just one factor to consider. You’ll also want to look at their marketing reach to let your property quickly, their expertise in achieving maximum rental values, and their overall customer service.

The cheapest letting agent isn’t always the best value if they can’t find you a quality long-term tenant who will care for your property.

Want a premium property management service?

Get in touch with the Cozee team today

At Cozee, our premium marketing and highly-trained staff ensure we let properties at the right price while providing excellent service – allowing us to keep quality tenants for longer.

How do letting agent fees vary throughout the UK?

Letting agent fees can fluctuate across different regions of the UK based on average local rental prices and other market factors. You’ll generally find the highest fees in London and the surrounding Southeast, where rents and real estate values are also highest.

Average letting agent fees UK

However, it’s still important to shop around in any area, as fees can vary significantly even in the same city. Don’t simply assume higher rents mean higher costs – agencies like Cozee provide premium London letting services at very competitive rates.

No matter where your rental property is located, always be sure to compare letting agents’ fees against the full services and track record they provide. At Cozee, we believe in complete fee transparency and offering exceptional value in any market.

Work out your 14% let and manage fee
To fully understand the costs of using a letting agent, it’s helpful to calculate what their fees translate to in actual monetary terms based on your rental income.
Cozee’s fee: £0
Lock in your fee

To see how our calculator works, we’ll break down example fee calculations below.

Example of a calculation using Cozee’s fee

Here’s the calculation for a 14% let and manage fee…

For a property renting at £1,500 per month (£18,000 annually):

Annual Rent: £18,000

Letting Agent Fee at 14%: £2,520

So on a £18,000 annual rental income, you’d pay £2,520 in management fees over the course of a year at a 14% fee rate.

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