“From 27 May 2015, letting agents must publish full details of their fees and charges on their websites and prominently display them in all their offices where they deal face to face with customers.
The description of what each fee covers and how it is calculated must be clear so you can understand the service and costs covered.
The published amount must include VAT. If the amount of a fee isn't known in advance, the agent's list must say how the fee is calculated say as a percentage of the rent. “ Taken from Thisismoney.co.uk.
This is massively dependant on the tenant, the type of property you have and most importantly the time you have to invest in the property, the tenant and maintenance upkeep.
Do you want to check every month that the rent has come in, do you want to chase up any potential non payment of rent, do you have time to get quotes and arrange repairs, if your answer is no you should look at a full management property agent.
Fees range from as little as 7% but could be as much as 17% for some agents in London for instance. Fees vary dependant on the location, most agents in and around Bournemouth, Christchurch area charge between 10 – 15%, but watch out for the additional charges, is everything included or will they charge an additional fee for things like;
- Rental assessment or guide to how much you could rent the property out for.
- Advert submission to Rightmove or a similar site.
- Carry out viewings
- Tenant referencing and tenant checks
- Providing a legally binding tenancy agreements
- Taking the payments
- In and out inventories
- Regular home checks of the property.
- Arranging maintenance repairs and quotes
Ensure you know what you are signing up to and make sure you read the small print. Ask other Landlords whom they use; there is nothing better than personal recommendation.
However if you do have time, but simply don’t know where to find a tenant, most agents will offer a tenant find or let only option. You would initially pay more upfront, but there would be no on-going fees or charges.
The agent fees will vary again with this option, do your research and again read the small print.