Full letting and management fees in London can vary, but they typically fall within a specific range that landlords should be aware of when budgeting for property management services. Here’s a detailed overview:
What is Full Letting and Management?
Full management services include comprehensive handling of rental properties, from finding and vetting tenants to managing day-to-day maintenance and ensuring compliance with legal requirements. This service is ideal for landlords who prefer a hands-off approach.
Typical Fee Range
Full Letting and Management Fees: Generally, full letting and management fees range from 12% to 20% of the monthly rental income. However, we believe a fair fee for excellent service should be 10% to 12% plus VAT per month. This fee structure covers all aspects of property management, ensuring that landlords do not need to deal with the complexities of tenant interactions and property upkeep.
Why 10% to 12% Plus VAT is Fair for Full Letting and Management
- Market Knowledge: Experienced agents provide accurate valuations and spot market opportunities.
- Transparent Communication: Regular updates and clear communication build trust and keep landlords informed.
- Professional Marketing: High-quality marketing attracts the best tenants and maximizes rental income.
- Negotiation Skills: Effective negotiation ensures the best terms and prices for landlords.
- Client-Centric Approach: Personalized service addresses specific landlord needs and fosters long-term relationships.
Breakdown of Services Included
- Tenant Management
- Maintenance and Repairs
- Rent Collection
- Legal Compliance
- Financial Reporting
Additional Costs
While the primary fee covers most services, there might be additional charges for specific tasks, particularly when setting up a new tenancy. These extra administrative costs can add up, sometimes reaching as high as £1,000. They can include:
- Tenancy Deposit Scheme Fees
- Referencing Fees
- Tenancy Preparation
- Inventory Reports
- Check-In Fees
These additional costs are normally applicable for each new tenancy and ensure that all legal and administrative aspects are properly handled. These additional administration charges, in our opinion are costly for London Landlords and there are more cost effective fee structures available to you.
Example Calculation
If the average rent in London is £2,200 per month, at a full management fee of 12%, you would pay your letting agent £264 per month, or £3,168 annually. Additional setup costs for a new tenancy could add another £1,000, bringing your first-year total to £4,168.
Conclusion: Fair Fee for Full Letting and Management services
Understanding the average full letting and management fees in London helps landlords make informed decisions about their property investments. By choosing the right management service, landlords can ensure their properties are well-maintained and their tenants are satisfied, all while maximizing rental income with minimal personal involvement. We have previously written an article on what we believe to be excellent services in UK Real Estate. Contact us at Walpole and Partners to inquire about our services at +65 84688303.
