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Is this the going rate for Letting Agent fees?

4 replies

EColi · 13/04/2010 21:54

My dmum is going to be renting out her house (I had a lot of good advice from MNers about the general principles ). She has been to see 2 letting agents. One didn't impress her, the other is offering a service to find tenants and do the relevant reference/credit checks, collect the rent and ring Mum if repairs are required, and has some sort of policy where the rent will be paid on an agreed day each month for 6 months even if the tenants default. This will cost 60% of a month's rent plus 13% each month. Plus £100 for an inventory, £150 for gas and electric checks and £100 for environmental check.
Is this a normal type of rate? Should I try to encourage her to shop around for other agents? Could she shop around to get insurance to cover late payment of rent rather than go with the agent's plan?
(She and dsis think the 6 month cover is a great idea - I'm not so convinced.)
TIA.

OP posts:
Amandoh · 14/04/2010 00:15

We rent out a few houses and use the same letting agent for each house. We pay the letting agents 10% of the monthly rental income. They do everything! Find tenants, reference checks, tenancy agreements, regular property checks and manage any breakdown/repairs. This doesn't include any rental insurance though. The prospective tenant pays for the inventory. The costs for the utilitly services and environmental checks seems reasonable and must be done every time a tenant changes or annually and the landlord pays for these.

We've looked into separate Landlords Income Insurance but the cost is very high. The checks that our letting agents do cover the first six months against tenant default and usually by then the lettings agents are able to decide whether or not to continue the tenancy.

DP has been renting out properties for over ten years now and has never lost any rent (Touch wood!).

I don't know what area your Mum is in but if she's in the SE then we can recommend Turnill and Co.

EColi · 14/04/2010 14:12

Thanks Amandoh.

OP posts:
Pixelvixenuk · 15/04/2010 12:39

I'll be renting a prop out soon, have chosen the agent well in advance, the checks quoted are same. I'll be paying 10% pcm which when you have never had it, you won't miss it!

EColi · 15/04/2010 22:30

Is the initial fee about the same Pixel (60% of a month's rent on top of the 13% for that month?)
How did you choose your agent?

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