How much do letting agents charge landlords?

Most agents charge in one of two ways. Let only is a one-off fee to find you a tenant. Managed is a set-up fee, then a percentage of the rent each month for looking after the tenancy. Every agent has to publish its fees, so you can compare them before you sign.

Can letting agents charge tenants fees?

Not usually. In England almost all fees to tenants are banned, so agents can't charge tenants for referencing, viewings or setting up a tenancy. The landlord pays the agent's costs instead.

Is a managed service worth it?

It depends how much time you've got and how near you live to the property. With managed, the agent collects the rent, arranges repairs and keeps your paperwork up to date when the rules change. If you don't want to keep track of new rules yourself, managed usually suits you better.

What extra fees should I ask about?

Ask what you'll pay at the start and end of each tenancy, whether inspections are included, how repairs get approved, and what licensing, deposit and certificate work costs. All of it should be on the agent's published fee list.

Where can I see all of Greengates' fees?

On our fees page. It lists every fee we charge landlords and the few payments we're allowed to ask tenants for, and there's a PDF you can download.

How much do letting agents charge in Birmingham?

The two ways agents charge

Let only (tenant find). The agent markets the property, finds and references a tenant and sets up the tenancy. You pay once for each new tenancy. From move-in day you run it yourself, so the rent, repairs, certificates and paperwork are all down to you.

Managed. The agent does all of that and then looks after the tenancy for you. They collect the rent, arrange repairs, keep track of when certificates are due and keep the paperwork up to date as the rules change. You usually pay a set-up fee for each new tenancy, then a percentage of the rent every month.

Since 2019, agents in England can't charge tenants for things like referencing or setting up a tenancy, so these costs sit with the landlord. The law also says every agent has to publish its fees on its website, along with what each one covers.

What we charge, in full

These are our two lettings services, word for word from our fee schedule.

Managed (our recommendation)75% of the first month's rent up front (minimum £395) for each new tenancy, then 12% of the monthly rent (minimum £85 a month)

Advertising and finding the tenant; referencing; setting up the tenancy; collecting the rent every month; arranging repairs with our contractors, up to £250 per item without needing to ask you; tracking certificates and deadlines, with reminders; keeping the paperwork right as the rules change; your landlord portal for statements, documents and maintenance.

Let onlyFirst month's rent (minimum £699.95) for each new tenancy

Advertising and finding the tenant; referencing; setting up the tenancy. After move-in, the tenancy and the paperwork are yours to handle. Utility and council tax changeover is not included and can be added from the list below.

Everything else we charge for is on our fees page, with a PDF you can download and compare.

A worked example: a £1,000 a month rental

Say your property lets for £1,000 a month. With our prices:

Managed: £750 up front when the tenancy starts, then £120 a month while we look after it.
Let only: £1,000 when the tenancy starts. You pay us nothing after that, but you run the tenancy yourself.

So managed costs less to start with, and the monthly fee pays for us to deal with the rent, repairs and paperwork. On cheaper lets the minimums kick in. Managed is never less than £395 up front and £85 a month, and let only is never less than £699.95.

The extras to ask about

The headline fee is rarely the whole cost. When you're comparing agents, ask each one about:

how often they inspect during the tenancy, and whether that's included
the end of the tenancy, including the check-out report and dealing with the deposit
how much they can spend on a repair without asking you, and whether they add anything to contractors' invoices
whether licensing, deposit registration and safety certificates are included or charged separately
whether they still charge any renewal or extension fee, now that tenancies no longer have fixed terms to renew

As an example, here are two of our own extras:

Mid-tenancy inspection£120 per inspection

Visiting the property during the tenancy and sending you a written report. Managed properties get one every six months unless you opt out in writing (email is fine). If you opt out, you send us your own detailed report every six months to our inspection specification, which you can ask us for at any time.

Check-out inspection£99.50

Inspecting the property at the end of the tenancy against the inventory, with a written report.

How to choose an agent in Birmingham

As well as the price, check what happens if something goes wrong. Make sure any agent you're considering:

belongs to a redress scheme (we're members of The Property Ombudsman)
has client money protection, so any rent they hold for you is covered (ours is with UKALA)
knows Birmingham's licensing scheme, which covers 25 wards
publishes every fee and can tell you what each one covers

If you already have an agent and you're thinking of moving, you don't have to wait for the tenancy to end. We can take over a running tenancy for £397 per property, plus £75 for each compliance problem we fix. Our guide on changing letting agent without losing your tenant goes through each step.

If you're not sure which service you need, a free Tenancy Health Check goes through your properties and your rent with you before you make up your mind.