Over the years, this question comes up time and time again. There are different services you pay for when renting your property. One is the ongoing management fee, which is a percentage of your monthly rent. The other is the letting fee, which is payable at the time you rent your property to a new tenant.
The letting fee come in different forms. Some agents prefer to charge a percentage, especially in areas where the rent is quite high. Others charge based on weeks, for example, a 2-week letting fee. This means that the equal amount of 2 weeks rent will be deducted from your first month’s rental income, which is payable prior to the tenant moving in.
The only other expenditure you will have to pay is for the advertising. It is usually an inexpensive process, but depending on the area your property is in, this fee may fluctuate. This is paid whether you rent your property or not, whereas the letting fee is paid upon the tenant being placed.
Rest assured, in many cases tenants stay put for long periods of time. This means that you will only have to pay for a letting fee, once in so often. Through this time, you should still receive rental increases which aren’t charged by the agent. The only ongoing fee will be your management.
The following advice is of a general nature and intended as an opinion and broad guide. For all legal, financial or real estate advice you should obtain independent professional advice to do with the specific nature of your circumstances before making any legal, financial or real estate decisions.