For the most up-to-date guide on letting agency fees, click here to read our 2020 report.
Finding out the cost of tenant-find services requires contacting multiple agencies, and can be a long, daunting process. For this reason, we have created a guide to letting agent fees for Landlords looking to rent out their London properties in 2019. There are three types of agencies and fee structures:
Local Lettings Agencies Fees
London's local agencies charge between 6% - 9% of the total agreed contract amount. This cost covers for marketing, contracting, and tenancy progression . They will also charge renewal costs (cost of updating documentation if the tenants wish to extend their contract) amounting to 50% to 80% of the initial Tenant-find fee.
To translate the fee into nominal terms, for the average London two-bedroom flat priced at £1,750 pcm, with a tenancy duration of 2 years (the average contract duration in Central London) the average local agency fees would amount to the following:
- 1 year contract: £1,450
- 1 year renewal: £900
Additionally, some agencies would charge a Tenancy Set-up fee, as well as for individual references, admin fees, and deposit handling fees.
National High Street Agents Fees
Traditional high street agents charge between 8% - 12% of the total agreed contract amount for tenant-find only. Again, this cost covers for marketing, contracting and tenancy progression . They, too, will charge renewal costs priced anywhere between 50%-100% of the full initial fee paid.
For comparison purposes, filling the average London two-bedroom flat priced at £1,750 pcm will cost landlords the following:
- 1 year contract: £2,100
- 1 year renewal: £1,575
Before instructing a high street agency, ask the lettings manager about administration or extra tenant fees recently added onto the landlord fee structure.
Hybrid Agencies Fees
Home Made is London's largest hybrid agency, with thousands of tenanted properties per year. Thanks to its centralised and unique operating model, we are able to offer landlords a premium, full tenant-find service for a fixed fee of £948+VAT* with no renewal fees, nor any administration or hidden charges.
If you were looking to let the average two bedroom flat, you are looking at the following cost:
- 1 year contract: £948+VAT equal to 5.3% of the first year’s cost
- 1 year renewal: £0
*For properties priced over £3,000 pcm, our fee is 3%+VAT of the first year rent
Below is a comparison of letting agency fees on properties priced at £1,750 pcm & £2,500 pcm.
If you are looking to rent a property, would like to find out more about letting fees in London, or discuss other property needs, you can reach us here.