When choosing a letting agent, most landlords focus on experience, local knowledge, and results. Pricing often comes later – and that’s usually where confusion can creep in.
One of the most common frustrations landlords mention is being quoted one fee at the outset, only to see a different figure on the invoice. This often isn’t because anything has gone wrong, but because fees are presented in different ways.
Inclusive vs Exclusive Pricing
In the lettings industry, some agents quote fees excluding VAT, while others quote inclusive of VAT. Both approaches are legal, but they can lead to very different expectations.
A fee that looks competitive at first glance can increase by 20% once VAT is added. If this isn’t made clear upfront, it can leave landlords feeling caught out – even when the service itself is perfectly adequate.
Transparent pricing simply removes that uncertainty. Knowing the full cost from the start makes it easier to budget, compare services fairly, and avoid surprises later.
The Importance of Clear Invoices
Transparency doesn’t stop at management fees. Contractor invoices are another area where clarity matters.
Some agents apply an additional percentage to maintenance invoices for arranging works. Again, this isn’t necessarily wrong – but it should always be clearly explained.
*At Proceed Property, we do not add a percentage onto maintenance invoices!*
When landlords understand exactly what they are paying for, trust is stronger and relationships tend to last longer.
Why This Matters for Landlords
Property is a long-term investment. Small misunderstandings around fees can build into frustration over time, especially when costs don’t match expectations.
Clear pricing helps landlords:
- Budget accurately
- Compare agents fairly
- Avoid unexpected increases
- Feel confident in their management arrangements
It also encourages better communication and accountability on both sides.
A More Straightforward Approach
The best letting relationships are built on clarity, consistency, and trust – not just at the start of the agreement, but throughout the life of a tenancy.
Whether you’re reviewing your current agent or considering a change, it’s always worth asking:
- Are fees quoted inclusive of VAT?
- Are there additional charges for managing maintenance?
- Will invoices match what was originally discussed?
Clear answers to these questions can save time, money, and unnecessary frustration later on.
If you’d like to understand how different pricing structures work, or what to look out for when comparing letting agents, a simple conversation can often bring clarity.
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