There is a common misconception amongst landlords that paying for a managing agent reduces the profitability of your portfolio. With many landlords realising the true value of a managing agent when it’s too late.
One of the most commonly overlooked benefits is that managing agent’s fees are a tax deductible, allowable expense meaning the cost difference between a let only service and fully managed is often a lot less than you think.
Typically let only fees are paid upfront and so fall into one tax year whereas management fees are paid monthly and so are spread across two tax years softening the blow.
When you consider how much time you can save by delegating the management of your property to a professional and the added bonus of the tax break, the extra monthly cost is negligible! When looking at the below table you can see that for just £21 more a month, you get access to a whole host of additional services each designed to protect your property and your profits!
Could you have a fully-managed service for less than you think?
| Bronze Service – Let only | Silver Service – Rent Collect | Gold Service – Fully Managed | Platinum Service | |
| Commission Monthly Fee | £15 | £33 | £50 | £84 |
| Net Cost with tax deduction | £9 | £20 | £30 | £50 |
| Cost of upgrade | £11 | £21 | £41 | |
| Paid upfront | £180 | £0 | £0 | £0 |
*This example is based on people with a higher tax rate at 40%
** This example is based on a single property with a rental income of £700PCM.
Littlefairs Managing Director, Scott Littlefair comments; “With the penalties for non-compliance getting harsher and the legislation growing in complexity, more and more landlords are opting for our fully managed service.
When factoring in the tax saving and the peace of mind that your let is covered by our experienced team, the extra £21 a month is money well spent.”
If you would like to find out more about upgrading to our Gold, fully managed, service, please call 01904 393989.