What Are The Costs Of Letting My Property?

When preparing to let your property, it is useful to know what costs landlords and tenants have to pay. In general, the costs for both landlord and tenant include the tenancy agreement and inventory check in or out. Additionally, there are the following costs for landlords:

  • Lettings management and renewal fees
  • Service charges and ground rent
  • Maintenance and repairs of property
  • Building and contents insurance
  • Annual gas and electrical checks
  • Energy Performance Certificates
  • Deposit Registration
  • Tax

One Off Administration Cost – £250

Full Management – 14.4% (inc VAT)

Let Only – 12% (inc VAT)

Summary of Service OptionsFull
Management
Let
Only
Establish Property Particulars and Construct Marketing Materials
Professional Photographs & Floorplans
Advertise Property
Receive and Maintain Tenant Enquiries
Qualify initial enquiry against landlord requirements
Arrange and conduct accompanied viewing
Receive Tenant Application
Conduct References on all Applicants
Provide landlord with tenant details for approval of tenancy
Arrange for completion of all statutory safety checks on prop-erty (Gas Safety etc)
Provide information on Insurances as Necessary
Draw up Inventory and Schedule of Condition including digital photographs
Draw up Tenancy Agreement
Completion of Tenancy Agreement, collection of initial rent and deposit and check in
Notify utility providers and local council of new tenants details
Lodge Deposit into Statutory Protection Scheme
Collect ongoing rental payments and issue Quarterly statement of account to landlord
Provide first point of contact for tenant for any maintenance issues
Deal with property maintenance issues as per landlord instruc-tions
Conduct Periodic property inspections and issue landlord report
Monitor and Maintain Statutory Safety Checks
Deal with Statutory Notices and Tenancy Extensions
Conduct Check Out Inspection at end of tenancy
Agree dilapidations and any resultant deposit deductions
Re-advertise property

Lettings Charges in Further Detail

We believe in being completely upfront regarding our fees – so you can manage the cost effectively and don’t have to worry about any hidden charges along the way

The percentages below are applied in each case to the monthly rent payable by the tenant under the tenancy agreement, and are all inclusive of VAT.

The percentages below are applied in each case to the monthly rent payable by the tenant under the tenancy agreement, and are all inclusive of VAT.

1. Full Management Service – 14.4%

2. Let Only Service – 12%

3. All of the above are subject to a set up fee of £250

This charge covers the following; Photographs and Marketing, Negotiating of tenancy offer, Accompany viewings, Arranging of tenant referencing, Advise of Landlord compliance and letting consents required, Drawing up of Tenancy Agreements.

4. Full Management and Let only services charges are applicable for any extension whether a fixed term or on a periodic basis

5. In the event of renewal, Smuts & Taylor will prepare and draft a Memorandum of Renewal, which will be charged at £80.00. Should there be any changes to the agreed terms save for the alteration to the value of the letting, either by nego-tiation or through change in legislation, Smuts & Taylor will prepare a Renewal Tenancy Agreement charged at £125.00

6. If Smuts & Taylor prepares the Inventory and Schedule of Condition, inventory for check in and check out, costs are usually met by the Landlord.

Check In and check out Inventory and Schedule of Condition costs

Number of BedroomsCost
1-3£175
4£200

If the Property contains any extra areas, the Landlord and Tenant will be charged at £12.00 per unfurnished/£18.00 per furnished area. Extra areas include hall-ways/landings (one included as standard), lofts, garages, gardens, sheds, extra receptions, conservatories, studies, basements and additional bathrooms.

7. Services relating to any Court or Tribunal proceedings or any protracted correspondence between Smuts and Taylor and the Tenant where Smuts and Taylor is instructed to act on the Landlords behalf – £300 for up to a half day’s work or £60 for a whole days work.

8. Any involvement by Smuts and Taylor/ time spent in arranging basic maintenance, enhancement and /or refurbishment of the Property by Smuts and Taylor or its subcontractors, in monitor-ing, inspecting, examining and maintaining the Property when it is unoccupied, in purchasing any replacement appliances or equipment for the Property , making arrangements for major repairs to the Property or its fixtures, fittings, appliances or equipment, dealing with Insurance claims, obtaining alternative quotations from other contractors by special arrangement with the Landlord, meeting contractors at the Property – an hourly charge of £60.

9. Non Resident Landlord’s – an Annual charge of 240 for remitting tax payments to HMRC and for processing a Non-Resident Landlord Return.

10. UK Resident Landlord’s – an Annual charge of £18 for providing financial information from the Letting of the Property to HMRC.

11. Providing Financial Information to the Landlord or their accountant for completing tax returns an hourly charge of £60.

12. Additional inspections of the Property (over and above any number included in a specific service level) – £60 for each additional inspection.

13. For the provision and delivery / collection of temporary heaters to the Property – £60.

14. Posting out of statements rather than receipt by email £6 per statement.

15. Interest of 2% above the base rate of the Bank of England on any sums due to Smuts and Taylor for commission or additional fees if not paid within 30 days from the date upon which the payment was due.

16. If at any time you become resident overseas you must inform us immediately, so we can ensure that the necessary approval number is obtained or deduction made for tax. You must also let your Tenant know. If Smuts & Taylor is required to retain tax, an administration fee of £60.00 will be levied each quarter and no interest will be paid on monies retained for tax purposes.

Smuts and Taylor are members of the Property Redress scheme.