Letting Agent % fee - what's a good deal?

[BjornMorg]

Hi there,

I am going to look after 5 one bed flats for my Dad who is unwell.
As I am a hour away by car, I want to get a letting agent to take them on as a fully manged service.
The flats, which are in the Romford, are all close to each other; so a nice little management package.
The current rents vary from £500 to £650. I think they should all be about £675 based on some Rightmove research, but that's another story.

What % fee (or flat fee) would you say is a good deal?

Furthermore, is it normal for the fee to include the creation of new contracts when tenants change?
I have been quoted £50 per tenant change.

Hoping the board can help.

[d000hg]

Ours charges 10% for a managed service, inclusive of finding tenants and doing minor repairs on our behalf.

That's 10% on which they then add VAT though.

They charge tenants a fee for a new tenancy contract on top of rent and deposit so charging you too seems greedy to me.

[northernladuk]

My agent is on 10% but that doesn't include rent guarantee. They do lesser option but less service. 50 quid seems extremely cheap to so check out, advertise and vet tenants. I would be looking at what you get for that. Ask some of the bigger national letting agents in your area what their rates are and do some comparisons yourself!

[d000hg]

What's "rent guarantee"? Guaranteeing rent when it's vacant like unemployment insurance, or guaranteeing you get rent even if the tenant doesn't pay? I could do with either/both of those!

[northernladuk]

What's "rent guarantee"? Guaranteeing rent when it's vacant like unemployment insurance, or guaranteeing you get rent even if the tenant doesn't pay? I could do with either/both of those!

It guarantees you get paid if a tenant doesn't up to the point it's vacant or something. I have just had a check and it appears it's all in the hands of insurance companies now so my original advice might be woefully out of date. When I first starting letting there was an increased percentage that came with a payment guarantee. It appears the agents have shifted this risk on to insurance offerings. My fault...

Rent guarantee insurance: Should landlords protect their buy-to-let investment | This is Money