Navigating the property market as a landlord can be stressful, especially if you manage multiple properties and tenants. Working with an experienced estate agency can help to simplify the process, making it easier to find tenants and collect rent. But what fees can you expect to pay an estate agent to manage your rental property? And what do these fees cover? Read on to find out more about estate agent fees for landlords‘ rental properties. 

What are estate agent fees?

Estate agent fees are what you pay when you use the services of an estate agent to buy, sell or rent a property. Fees can vary from agency to agency and largely depend on the extent of the services you require. Some agencies charge a fixed fee, while others may work on a percentage basis of the sale or rental price. Additional services, such as property marketing, valuations, or assistance with paperwork, can also affect the cost. It’s important to understand the fee structure and what is included, ensuring you get value for your money and have clear expectations from your agency. 

Who has to pay estate agent fees for rental properties? 

Landlords are responsible for paying the estate agent fees for the property or properties that they want to rent. Rental fees are different to buyer or seller fees, as they are based on the property’s monthly rent and may be calculated as a percentage. The fees cover a variety of services, including advertising the property, conducting viewings, managing tenant applications, and preparing tenancy agreements. 

How are rental property fees calculated? 

Rental fees are calculated based on a variety of factors, depending on how much of the rental process you want the estate agents to manage. The most common factors affecting rental fee calculation include: 

Letting only fees

Letting only fees, commonly known as “tenant find” fees, are a one-off fee for finding a tenant. These fees typically range from 50% to 80% of the first month’s rent and are designed to cover the costs of advertising the property’s availability, arranging viewings and screening tenants. Landlords benefit from this service as it helps to ensure that their tenants are well-screened, hopefully ensuring that they have the financial backing to pay rent on time and are responsible enough to look after your property. 

Letting and rent collection fees 

Letting fees for rent collection fees cover the costs of both finding a tenant/tenants for your property and setting up their tenancy agreement. These fees usually range from between 5-10% of the monthly rent payment. It’s worth noting that some agents will also charge a percentage of the first month’s rent as an initial service cost. This service is well suited to landlords who rent out multiple properties, as estate agents can help you keep on top of rental payments and chase late payments for you. 

Full property management fees 

Full property management fees cover the costs of all aspects of managing a property, from interacting with tenants on the day-to-day to managing maintenance needs. These services often cost between 10% and 15% of the monthly rent, but this can vary depending on the size of the property and the number of tenants. This type of service takes significant pressure off of you as a landlord, as estate agents will handle all aspects of a property’s tenancy, only contacting you when absolutely necessary. 

Fixed fees 

On top of these fees, some agents may also have flat or fixed fees for specific optional services, such as managing deposit protection. Whilst an investment, these optional extras are ideally suited to ensure that the entire rental process is managed seamlessly, with all tenant information handled under one roof. 

Renting your property with Michael Anthony 

When you choose Michael Anthony to manage your rental property, you’ll benefit from a seamless and stress-free experience. From finding reliable tenants to securing the best possible rental price, our experienced agents will guide you through every step of the process. We’ll be available to answer all of your questions, offering expert advice on the rental market and making recommendations to help you make informed decisions. You can even access our fees schedule, which provides a comprehensive breakdown of our property management costs. With our expertise, we can ensure your rental experience is efficient and free from hassle, allowing you to focus on other priorities. 

Find out how we can help you rent your property successfully: get in touch with the team at Michael Anthony today.

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