Are you thinking about signing up to a holiday letting agency, but aren’t sure of the commission fees?
There are so many costs to take into consideration when running a holiday let, so commission fees on top of everything else can seem off-putting – however, they are for the most part a necessary evil when signing up with a letting agency.
As a letting agent myself, many new clients come to me feeling very unsure of what they can expect to pay in terms of commission – because hardly anyone mentions these rates on their websites – which is why I thought there was a real call for this blog post.
Below, I’m going to tell you the average commission costs you can expect to pay, how commission costs are worked out, and ways you can save on your budget.
How is commission worked out?
Commission fees via holiday letting agencies are usually worked out based on a percentage of the booking cost. Most agencies work out their costs this way, although some larger holiday letting websites (such as holiday lettings and owners direct) have a paid listing amount starting at around £300+.
Of course, if you’re also paying for services such as property management (cleaning, laundry and maintenance) then these costs can be charged on top of your booking commission.
The average commission fees
For an average holiday let, the fees you can expect to pay are roughly 20% – 25% for bookings only. However, some of the smaller agencies may offer more competitive rates – for instance, we charge 15%, which is highly competitive for the market.
Unfortunately, for most holiday letting agencies, the only way to really know how much commission you can expect to pay is to actually call them up and ask. This is because, like I said above, not many agencies will display these costs up front on their website.
Determining your costs
To figure out your costs, the best thing to do is to call up a few different agencies and work out exactly how much commission each will charge – as well as everything that’s included for that fee, such as:
- Property management
- Professional photos
Once you have an idea of all you can expect to pay, you can factor this into your weekly costs and figure out your overall budget – I always recommend to only choose an agency that a) you’re happy with and b) makes financial sense. A balance of the two is usually the safest bet.
Ways to save on budget
Some agencies are able to offer holiday let owners a bespoke service tailored to fit their needs, and this can be a great way to save on costs if you don’t want to pay for a full property management service. So, all you need to do is pick the services you need, and do the rest yourself!
The trick here is to pick a holiday letting agency that is happy to let you do that, but also be around to offer support and advice if and when you need it. I used to be with an agency before I started my own, and I was so put off by how little they seemed to care, that I was prompted to create Lowland Lettings!
I’ve since heard many stories from holiday let owners who have been in the same boat, and have felt they’ve gotten very poor value from previous agencies, so please take your time when choosing and ensure you’re 100% confident it’s the right agency for you.
If you’re in the market for a holiday letting agency, one of the first things you’re going to want to learn is how much commission you can expect to pay, and exactly what you’re getting for your money – yet hardly any agencies actually display detailed costs on their website!
It’s usually worked out as a percentage of the overall booking cost, and the average you can expect to pay is around 20 – 25%. However, for full property management services, fees can be even higher, so I’d recommend talking to a few different agencies and getting some quotes to give you a rough idea.
You can save on your budget by choosing a bespoke service, and taking on some of the responsibilities yourself – however, I’d recommend finding an agency who will be there to offer support and advice when needed. An agency like that is worth its weight in gold!
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