Landlord guide
Management fees are quoted in different ways, and the percentage on its own tells you very little. This guide explains how landlord property management fees are structured, what a full-management fee should cover, which charges to ask about before you instruct anyone, and what East Valley charges.
Most residential agents charge ongoing management as a percentage of the monthly rent. The fee is deducted from the rent before it is paid to you, and it covers the ongoing running of the tenancy rather than the initial letting.
Two details change what that percentage actually costs you. The first is whether it is calculated on rent due or rent received - those differ during a void or an arrears period. The second is whether VAT is added; a fee quoted excluding VAT is a fifth higher than it first appears once VAT applies.
Alongside the percentage, agents usually charge separately when a tenancy is set up. Some also charge for renewals, inspections, check-outs, certificate administration or contractor coordination. A full comparison has to include those charges, not just the headline rate.
We have deliberately not quoted a national average management fee here. Published averages vary widely by source and region, and a figure we cannot stand behind would not help you compare a real quote.
When you compare quotes, compare the work behind them. A full-management service would normally be expected to cover:
A lower percentage with charges attached to every action can cost more over a year than a higher percentage that includes them. It is worth writing down, for each quote, what is included, what is billed separately, and what happens in the situations that actually generate work: a repair, a late payment, an inspection, a certificate renewal, a renewal or a check-out.
Service structure matters as much as price. Who receives the tenant's repair report, and how? Who decides whether a contractor is instructed, and up to what value without asking you? Who tracks the gas safety and EICR renewal dates? Who contacts the tenant on day two of an arrear? If the answers are vague, the fee comparison is not really a comparison.
Practice varies between agents, so ask directly whether any of the following are charged on top of the management percentage:
None of that implies any particular agent charges these fees. It simply means the answer should be in writing before you instruct.
9%
of monthly rent
Full management
£745
per new tenancy
New Tenancy Fee
The £745 New Tenancy Fee applies each time a new tenancy is arranged for a property under our full-management service. It is charged in addition to the ongoing 9% management fee, and it applies to replacement tenancies as well as the first one - if a tenant leaves and we arrange the next tenancy, the fee applies again.
We do not offer that service separately as a tenant-find-only instruction. Our service is built around properties we manage on an ongoing basis.
East Valley does not currently charge VAT. Portfolio landlords: bespoke pricing is available and agreed individually.
9% × £1,500
£135 a month
No VAT currently charged.
9% × £2,000
£180 a month
No VAT currently charged.
These are illustrative examples based on the rent figures shown. Separately, when a new tenancy needs to be arranged for a managed property, the New Tenancy Fee of £745 applies in addition to the ongoing management fee. It is not an annual charge - it applies when a new tenancy is arranged, which for a settled tenancy may be several years apart.
Not for everyone. A landlord living near the property, with time during the working day, a reliable plumber and an electrician, and a system for tracking certificate dates and deposit rules, can self-manage perfectly well and keep the fee.
Full management tends to earn its fee where:
Renting out a property in Romford or the surrounding RM postcodes? Our Romford landlord page covers how we manage locally.