Letting agent fees in Scotland can vary depending on the type of service you require and the property’s location. Here’s an overview of some typical fees you might encounter:

• Tenant Fees: In Scotland, tenant fees were banned in 2012, so you shouldn’t have to pay any fees as a tenant.
• Landlord Fees: If you’re a landlord looking to rent out your property, your letting agent may charge you a fee for finding and vetting tenants and for ongoing property management services. These fees can vary, but they typically range from 8% to 15% of the monthly rent.
• Tenant Find Service: If you only require a letting agent to find tenants for your property, you can expect to pay a one-off fee, which typically ranges from one month’s rent to two month’s rent.
• Full Management Service: If you want a letting agent to manage your property on an ongoing basis, you can expect to pay a higher fee. This type of service typically includes finding tenants, dealing with maintenance issues, collecting rent, and handling all other aspects of the tenancy. Fees for this type of service can range from 10% to 15% of the monthly rent.
• Renewal Fees: Some letting agents charge a renewal fee each time a tenant renews their tenancy agreement. These fees can range from £50 to £150.

It’s important to note that with the introduction of the Letting Agent Code of Practice in 2018, letting agents in Scotland are required by law to display their fees without VAT prominently in their offices and on their websites, so you should be able to easily find out what fees you can expect to pay before you engage their services. 

In addition to the fees we mentioned earlier, here are some other common fees that a letting agent in Scotland may charge a landlord or tenant:

• Inventory fee: A fee for preparing an inventory of the contents and condition of the property at the start of the tenancy. This fee can range from £50 to £150.
• Check-in fee: A fee for meeting with the tenant at the start of the tenancy to go over the inventory and hand over the keys. This fee can range from £50 to £150.
• Check-out fee: A fee for checking the condition of the property at the end of the tenancy and comparing it to the inventory. This fee can range from £50 to £150.
• Renewal fee: Some letting agents may charge a fee for renewing a tenancy agreement. This fee can range from £50 to £150.
• Early termination fee: If a tenant wants to end their tenancy before the agreed-upon end date, they may be charged an early termination fee. This fee can vary, but is typically the equivalent of one or two month’s rent.

It’s worth noting that some of these fees, such as the inventory and check-in fees, are often included in the overall management fee for the property, while others may be charged separately. Additionally, the Scottish Government has introduced regulations that limit the amount and type of fees that can be charged by letting agents in Scotland, so it’s important to check what fees are allowed under these regulations before engaging the services of a letting agent.

What are the types of services you can expect to pay as a landlord from your letting agent?

As a landlord, you can expect to pay for a range of services from your letting agent, depending on your needs and preferences. Here are some of the types of services you can typically expect to pay for:

Tenant Find Service

This service involves the letting agent advertising your property, finding potential tenants, and carrying out checks on them to ensure they are suitable. They will also draw up the tenancy agreement and collect the first month’s rent and deposit. Once the tenant is in place, you will take over the management of the property. You can expect to pay a one-off fee for this service, which is usually equivalent to one or two month’s rent.

Full Management Service

This service includes everything involved in the Tenant Find Service, as well as ongoing management of your property. This can include dealing with repairs and maintenance, collecting rent, renewing tenancy agreements, and handling disputes between you and the tenant. You can expect to pay a percentage of the rent each month for this service, typically around 10% to 15% of the monthly rent.

Rent Collection Service

This service involves the letting agent collecting the rent from your tenant each month and passing it on to you. They will also chase up any late payments and deal with any disputes between you and the tenant. You can expect to pay a fee for this service, typically around 5% to 10% of the monthly rent.

Property Inspection Service

This service involves the letting agent visiting your property on a regular basis to check its condition and identify any repairs or maintenance that need to be carried out. You can expect to pay a fee for this service, which is usually charged on a per-visit basis.

Maintenance Service

Some letting agents may offer a maintenance service where they handle all repairs and maintenance on your property. This can include arranging for repairs to be carried out, liaising with contractors, and overseeing the work. You can expect to pay a fee for this service, which is usually charged on a per-job basis.

It’s important to note that the fees charged by letting agents can vary depending on the services you require and the location of your property. They may also be named differently however, these are currently the most popular service names in 2024

How many landlords use letting agents in Scotland?

It’s difficult to provide an exact figure on the number of landlords who use letting agents in scotland, as there is no central database that tracks this information. However, according to a survey conducted by the UK National Landlords Association (NLA) in 2020, approximately 53% of landlords in the UK use a letting agent to manage their properties. This figure is higher for landlords with larger portfolios, with around 70% of those who own 20 or more properties using a letting agent.

There are several reasons why landlords choose to use letting agents. For some, it’s a matter of convenience – they don’t have the time or expertise to manage their properties themselves, and so they outsource this task to a letting agent. Others may choose to use a letting agent because they believe it will result in a higher quality of tenant, or because they want the added protection of a professional intermediary.

That being said, many landlords also choose to manage their properties themselves, either because they prefer to have more control over the process or because they believe it will save them money. Ultimately, the decision to use a letting agent or not will depend on a range of factors, including the landlord’s personal circumstances, the location of their property, and the services they require.

Why you should choose Southside Property Management

If your property is in the Edinburgh area, we would love it if you could consider us. Southside Property Management charges 9% +VAT for full letting and management services and 6% +VAT for full management services if the tenant is already in the property or you are willing to find your own tenant. This competitive fee structure ensures that landlords only pay for the services they need. Our fee structure is transparent, with no hidden costs. This includes clear information on what is covered under our management fees, helping landlords avoid unexpected expenses.

Please contact us if you want to know more. We would love to hear from you and visit your property.