How much do EA's charge to rent out your property?

[Ohnonotnow]

Exactly that really. Will be moving in with OH when he buys somewhere meaning I can rent my house out through an EA. Before I start asking around, does anyone have a rough idea of what they charge?

Is it too risky to rent it out myself

Before I start asking around, does anyone have a rough idea of what they charge?

I have no idea why you would ask people who have no idea where you are or who your local agents are rather than just asking the actual people who can give you the actual figures you need.

If this is how you’re starting then setting up business as a landlord isn’t for you.

I mean what is your objection to ringing those people directly?

Generally about two weeks rent plus vat as a finders fee and then 10% plus vat monthly as management fee or if you are going to manage it yourself but market it through an agent about one months rent plus vat finders fee.

What’s the “sillybitch” brigade?

Because @MrsOfBebbanburg we have only just started looking for somewhere for us to live so it could be months before I'm even close to renting mine out. If you don't know the answer why bother replying to me?!

Much more helpful replies, thank you @BlackHillsofDakota and @mencken. Definitely lots to consider.

we have only just started looking for somewhere for us to live so it could be months before I'm even close to renting mine out.

So what do you gain from asking here months ahead when you can get the actual answers from the relevant people when you’re ready to let?

If you don't know the answer why bother replying to me?!

No one here knows! That’s my point! Only the agents in your area know. That’s who you need to ask.

@MrsOfBebbanburg well clearly some people do have a ROUGH idea which is all I asked for

And what is that? No one willing to explain what that is? Happy enough to sling the misogynistic slur but not happy when asked to explain themselves?

@CayrolBaaaskin 👍🏻😆

I do tax returns for a few folk with properties let out. The cheapest monthly management fee I've seen is 9% plus VAT and most expensive 15% plus VAT. Agents will differ widely in what they'll do. Some property manage the place, you know, arrange repairs etc. Others just collect the rent.

8% + VAT

Start up costs were 2 weeks rent.

The posts on here 🙄.

Mine is just collection.

Fully managed was 18% + VAT I think.

Mine is 8% plus VAT which I think is on the cheaper end. They normally charge a finder's fee instead if you only want them to find the tenants and plan to manage the tenancy yourself, but not if they are doing a full management service for you.

Please spend £99 on membership of the National Landlords Association - there are lots of legal obligations in being a landlord and just remember the buck stops with you, not the Agent, should anything go wrong.

Ours is a flat 10%, and I think £250 which covered advertising, amd financial checks etc. She’s totally on the ball

About £500 for finding a tenant and 10. - 15% monthly for fully managed. I’ve often found it’s not worth paying for management tho as all they do is call me to sort.

I've let out several properties in London. One estate agent I'm a regular with gives me a letting-only rate of 8%, which is pretty good. For letting and management 12-15% or more is normal. I always use an agent for letting as they deal with inventory, background checks, deposit scheme, contract etc, and are there to step in and help deal with any minor disputes. I prefer to manage the properties myself, which is fine as long as you have a good plumber, handyman, etc. I don't think the management fee is worth it.

The agents fee is really low down in the list of things to weigh up in deciding whether to rent out your property OP. Have you researched what is required in order to legally operate as a landlord? The tax implications for you? Can you afford to pay mortgage without having a tenant in,? can you afford legal fees if a tenant does not leave when asked? It’s not a great money spinner (I have a small portfolio of rental flats so speak from a position of knowledge!) and unless you can guarantee good capital gain in the property may not be the best choice for your long term financial security.

Thanks everyone, really useful information

And to answer your question my agents charge an average of 9% for fully managed properties plus fees for renewing tenancy agreements etc and of course the costs of maintenance and fixing stuff as we go along (some of which is tax deductible bit this is being reduced now)

@VanCleefArpels it's not something I had planned to do but as I have a small mortgage and my OH has money and income to buy his own it seems to make sense to rent mine out.
My mortgage payment would be less than a quarter of the gross rental income.
We don't need the money from mine to buy another as we only want something a little bit bigger and we want to move to a different area. I'm reluctant to give my house up as it's mine and makes me financially secure and independent.

Make sure you are aware of the tax implications and any regulations for landlords in your area.

@Ohnonotnow a property may not be the best way to ensure your financial independence and security vs for example a good pension pot and/or other investments which can be set up in a more tax efficient way by a good financial adviser. Being an “accidental landlord” (meaning not setting out to do it as a business) can be expensive, a massive hassle and not give greater returns after all expenses than a good investment portfolio.