The Real Cost of Letting Agents: Are You Getting Value for Money?

What landlords need to know before signing on the dotted line

Letting agents promise to save you time, reduce stress, and protect your investment — but not all deliver. With fees often running into thousands of pounds each year, landlords are right to ask:
“Am I actually getting value for money?”

At Sagoos, we’ve been landlords ourselves for decades. We’ve seen the good, the bad, and the overpriced. Here’s how to break down the real cost of letting agents — and how to make sure you’re not paying more than you should.

   1. The Standard Fees You’ll Pay

Letting agents typically charge for:

• Let only services (usually 75%–100% of one month’s rent)
• Fully managed services (usually 10%–15% of the monthly rent)
• Renewal fees — often charged even when nothing changes
• Setup/admin fees — for referencing and tenancy agreements
• Plus VAT — unless the agent is under the VAT threshold (like Sagoos currently is).

   Sagoos Fee Structure:

• Let Only: 75% of the first month’s rent
• Fully Managed: 9% monthly
• HMO Management: 10% monthly
• No VAT, no renewal fees, no surprises.

  ️ 2. What You Should Be Getting in Return

If you're paying 10–15% of your rent every month, you should expect:

• Proactive tenant communication
• Fast maintenance response
• Regular inspections with reports
• Detailed inventories and deposit protection
• Legally compliant tenancy documents
• Transparent statements and accounting
• If any of these are missing, you’re overpaying.

❌ 3. Where Letting Agents Often Fall Short

Here’s what many landlords tell us they’ve experienced with other agents:

• Long response times — or no response at all
• Tenants chasing them directly instead of going through the agent
• Overpriced repairs with little oversight
• No inspections during the tenancy
• Tenants leaving due to poor service
• Hidden costs added to contractor invoices
• Sound familiar?

   4. How to Tell if You're Getting Good Value

Ask yourself:

• Is my agent saving me time, or creating more admin?
• Do they treat my property as if it’s their own?
• Are issues fixed quickly and fairly priced?
• Is tenant turnover low and rent collected on time?
• Can I easily understand my monthly statements?
• If the answer is “no” to most of these, it may be time to switch.

   5. Why Some Landlords Are Paying Too Much

Many landlords stay with the same agent for years out of habit — even if they’re overpaying or receiving poor service. Others don’t realise they’re being charged for things that should be included.

Some letting agents outsource everything, so you’re paying a premium for someone else to manage subcontractors.

At Sagoos, we keep most services in-house and pass the efficiency savings back to landlords.

✅ 6. What Sagoos Offers That Others Don’t

• No VAT (we’re under the threshold)
• No renewal fees — ever
• In-house maintenance at fair, transparent prices
• Professional cleans included with our HMO service
• Fast tenant response times
• Personal landlord communication (no call centres)
• HMO expertise — we live and breathe them
• Because we’re landlords too, we understand what matters — and what doesn’t.

   Final Thoughts: Price Matters — But Value Matters More

Letting agents are not all the same. The right one protects your investment, finds you great tenants, keeps your property running smoothly, and ultimately pays for themselves.

The wrong one? Costs you money, time, and peace of mind.

   Want honest, hands-on letting management with no hidden costs?

Switch to Sagoos today. We make lettings straightforward, affordable, and landlord-friendly.