How much do letting agents charge landlords?
Typical fees for each level of service, the extra charges to look out for, and how to compare quotes.
Letting agents usually charge a percentage of the rent, and the percentage depends on how much they do. Since the Tenant Fees Act 2019 agents can't charge tenants for things like referencing or admin, so those costs now sit with landlords. The figures below are typical ranges in London and the South East; every agent sets its own.
Typical fees by service
| Service | Typical fee | What you get |
|---|---|---|
| Tenant find | 6% to 10% of the first year's rent, or a fixed fee of around one month's rent | Marketing, viewings, referencing and the tenancy set-up |
| Rent collection | 8% to 12% of the rent | Tenant find, plus collecting rent and chasing arrears |
| Full management | 10% to 15% of the rent, sometimes more in central London | Everything: tenants, rent, repairs, safety checks and inspections |
Most agents quote fees before VAT. Add 20% to compare like with like: a 12% fee is really 14.4% of your rent.
Extra charges to ask about
- Tenancy set-up or agreement fees
- Inventory and check-out reports
- Arranging gas safety checks, EICRs and EPCs (the certificate itself is charged separately)
- Deposit registration
- A mark-up on contractors' invoices for repairs
- Fees for ending the agreement early
A worked example
For a flat let at £1,500 a month on full management at 12% plus VAT, the fee is £216 a month, or £2,592 a year, before any extra charges. Over a year that's the equivalent of almost two months' rent.
How to compare agents
- Ask for the total yearly cost, including VAT and the extras above, for your property.
- Check exactly what's included at each level of service.
- Read the notice period for ending the agreement.
- Check they belong to a government-approved redress scheme and a client money protection scheme. Letting agents are legally required to have both.
What about guaranteed rent?
With guaranteed rent you usually pay no fees at all. Instead the agency pays you a fixed rent that is a little below the market figure, and takes on the risk of empty months and arrears. Comparing the guaranteed figure with what you'd keep under full management after fees and a month or so of voids shows which works out better for you.
More landlord guides
- Guaranteed rent explained: how it works and who it suits
- Full management, part management or tenant find?
- How much rent can I charge for my property?
- Renters' Rights Act: what landlords in England need to know
- Common landlord questions, answered
Want figures for your own property? Get a free rent valuation, a guaranteed rent offer or both.
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