The Kinds of Fees Letting Agents Charge

Landlords and tenants alike usually turn to letting agents to help them find the best deal possible. Since letting agents are knowledgeable about the laws and regulations that apply to any particular location, we need their expertise to wend our way through the complicated legalese of these transactions. To provide us with that help, letting agents have fees we have to cover. There have been some instances of people being overcharged so it is always wise to know just what fees you'll have to pay.

The first fee you'll have to pay is the introductory fee, which includes the letting agent bringing a potential tenant to the property. For this, they do charge a fee. This fee is usually paid up-front by the landlord, and it is a percentage of the total rent. You need to make sure this fee stays between seven percent and twelve percent. If it is higher, then you should definitely inquire from the letting agent why this is so. Check out this website for more information about a rental property.

In the same scenario, a tenant is also charged a fee, up-front, that is called an administration fee. Since the letting agent has to perform background and credit checks, this fee will cover all the paperwork. The price range depends on the letting agent and can be a hundred pounds or anywhere to three hundred pounds. Any more, however, is not in the norm, so you should also ask why it is so much higher. The only time these fees can be refunded is if the landlord backs out of the deal. For tenants who wish to extend their tenancy in a particular property, they will also be charged a renewal fee which is a bit lower than the original introductory fee. This fee can be as little as fifty pounds or as much as a hundred.

For a landlord, an additional inventory fee can also be requested. This fee will cover most of the property inspections, which is crucial to protect you and your property. If you are concerned about the amount this fee will be, ask your letting agent before you sign the contract. If you'd also like to have the letting agent collect the rent from tenants for you, which is always a convenient idea, he or she will also charge you a small fee, usually between two or three percent. Get to know more the best letting agent.

For most landlords and tenants, these fees are the common ones. If a letting agent charges you more or if they ask for further fees, then he or she needs to provide valid reasons why this is so. By asking your letting agent to tell you about all the expected fees, you will not have any surprises. Hopefully, this basic outline of the fee process will help you make the right decisions and have the right expectations.