If you’re new to buy-to-let, or are thinking of renting out a property you own in Brighton and Hove, you might be wondering about letting agent fees – how much they will set you back, what you’ll get for your cash and whether estate agent services are worth the money.
The answers to these questions very much depend on your approach to renting out property – whether you have the time to devote to your rental business and how hands-on you want to be when it comes to things like screening tenants or collecting the rent.
Before you decide, it’s worth finding out more about letting fees for landlords – how much you’re likely to be paying and what’s included. The best way to do this is to talk to a number of local estate agents and compare their letting fees.
If you decide to use an agent, don’t make the decision on price alone. Look at recommendations and reviews and their track-record at finding tenants. Trust your own instincts too, especially if you will be asking them to manage the property for you. It’s also important to understand what exactly is included in each package in return for the letting agent fees.
To help you, we’ve pulled together this insider guide to letting fees for landlords.
Different agents will have different services to offer, but mostly they fall into three areas:
Also called let only, this basic service may involve:
This involves collecting the monthly rent and chasing up any arrears.
Here the letting agent will also take care of maintenance and repairs, and act as the tenant’s first point of contact.
Letting agent fees for landlords vary depending up on the level of service you choose and your location. If you’re looking in an area where there are lots of letting agents, competition may drive down prices.
Fees can either be fixed or a percentage of the rent. Some letting agents charge a one-off fee to find a tenant, then an annual percentage fee to manage the property.
The 2019 Tenant Fees Act made it illegal to charge tenants letting agent fees and most other costs. Letting agents can still charge landlords for their services.
You aren’t obliged to use a letting agent for any of the elements of renting out property. Whether you do will depend on how interested you are in your property project and how confident you feel about marketing the rental, screening tenants, collecting rent and dealing with arears. It will also depend on how much time you have – whether you work full time or not and whether you live close enough to the property to be on hand if urgent repairs are needed.
Holiday lettings can be a a good way of renting out property in popular destinations such as Brighton and Hove. If you use a bespoke holiday lettings agency, they will usually charge commission on each booking made through them – often between 15 and 25%.
If you are thinking of renting out property in Brighton or Hove, talk to us about the range of services we offer. We can discuss your particular situation and help you decide the level of fees that’s right for you.
Do you have any questions about the topic above? Our team of experts is here to help in answering any query you may have.
Fueled by his desire to be the best, most reputable estate and lettings agent in town, Steve has spent his career cultivating The Property Shop. Steve prides himself on his authenticity, honesty, and knowledge-base which is emulated by The Property Shop and his team.
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