How Do You Compare Letting Agents Property Management Services?
All letting agents will advertise that they will actively carry out property management services. However, fees for this service can range from 5% of your monthly rental income to over 15%. So what do you get for your money and how do you know how to choose between the agents? What we tend to find is that some agents will charge a very high set up fee, such as £350 and then a low management fee and when you add the two together, you realise that the company with the cheaper set up fee and more expensive management fee is actually the cheaper company in the longer term. For example:- On a property which rents out at £600 per month:- Letting Agent One Set up Charge = £350 Inventory Fee = £ 75 Lettings Agreement = £ 75 Referencing Fees = £ 90 8% Management Fee x £600 per month rental = £576 or £48 per month Total cost over the year: = £1,166 per annum Letting Agent Two Set up Charge = £250* 12.5% Management Fee x £600 = £900 Total cost over the year: = £1,150 per annum *Includes inventory
