Why Letting Agents Worth the Fee

Landlords usually have a couple of options when it comes to either finding tenants or managing the properties they rent out to those tenants. They can either take care of everything themselves or they can utilise the services of a letting agent.

For a new buy-to-let investor, choosing which to go for can be a dilemma, especially if they have the means to take of everything themselves but could possibly do with a more experienced head taking care of certain matters.

The Two Options Provided by Letting Agents

Within the letting agent option there are usually another couple of options depending on exactly how much of the burden the landlord wants them to take, with most letting agents offering a two-tiered service.

The first tier is a 'let only' service where they take care of finding a tenant for the property. They will identify or advertise for potential tenants, then interview them and check their references. If successful, the letting agent would then take care of the tenancy agreement and secure the deposit and first month's rent from the tenant, for which their fee is likely to be somewhere around the 10 to 15% mark of the monthly rent. This option can be ideal for new buy-to-let investors who need that experienced head to get them rolling but would then prefer to take full control of the reins thereafter.

The second tier would be a 'full management' service, which would be ideal for anyone who might be too busy to be on stand by for any issues your tenants might have, or who doesn't want the stress and bother of chasing up rent payments or arranging for plumbers to go and fix a broken boiler.

When a letting agency takes full management of the process, they take care of everything in the 'let only' service but will then remain in charge of maintenance of the property as well as securing the monthly rent payments. This full management service can cost upwards of 15 to 20% of the monthly rent, and is of course an ongoing payment rather than a one-off as it is for the 'let only' fee.

When using a letting agency, it's important that you only use an agent that is registered with one of the professional estate agent organisations such as those listed below.

  • ARLA (Association of Residential Letting Agents)
  • NAEA (National Association of Estate Agents)
  • UKALA (United Kingdom Association of Letting Agents)

The reason for only using an agency registered with one of these national organisations was explained by Ian Potter, Managing Director of ARLA, to the Telegraph newspaper. Mr Potter said:

"There are no restrictions on who becomes a lettings agent, so seeking advice from an agent affiliated to a professional organisation is highly recommended. They are trained, offer client money protection and there is a redress scheme in place if things go wrong."

Letting agents are certainly worth the money if the time you have to spend on looking after your tenants is severely limited as occasionally they will need you to be there for them which will intrude on your other endeavours. Paying a letting agency to take care of everything for you will repay you in time and reduced stress, so they are certainly worthwhile in many cases.


Property Valuations
We offer a free, no obligation valuation service. We prepare and research thoroughly before we visit your property - always by appointment. We know the correct valuation for your property because we are local experts and, in any case, the more valuations we do, the better our guide will be. Please contact us to see how we can help you.
Quality Marketing
Marketing your property starts with appealing visual imagery. Our main goal is to add a personal touch to our property photos. We have our own in-house photographer who does all our photoshoots and allows us to truly represent our vision. We make sure you get the highest possible quality so that your property stands out from the crowd.
Property Management
Let us take the strain and anxiety out of managing your property with our hands-on approach. Our landlords can be assured that we will act on their behalf and with their best interests at heart. To ensure a fast, efficient and informative service for our landlords, we have installed the latest computer technology so that clients' payments can be made by electronic transfer, followed up with a detailed statement of accounts.
Legal and financial advice
Moving house can be one of the most stressful times of your life. However we know that by using our friendly, recommended law firm, Curry Popeck, that your conveyancing work will be dealt with speedily and efficiently. Stonehouse Financial is our recommended partner for mortgages & Enra Group for second charges, investment funding or bridging.
Find out more
Relocation Assistance
We are proud to be affiliated with Aussie Man & Van removals who are a market leading relocation firm covering the whole of the UK. They provide reliable relocation services and are fully insured by the BAR to give you the utmost peace of mind while your belongings are being moved.
Find out more
Our maintenance partner is APS Maintenance Ltd (APS) who have many years’ experience in residential property maintenance and building. With fully certified employees on call 24 hours a day, they provide an unparalleled service and speedy response to all maintenance issues.
Find out more