Letting agents typically charge landlords 10% to 15% of monthly rent plus VAT for full management, 8% to 12% of the first year’s rent (or about £500 to £1,500) to find a tenant, and roughly 3% to 12% of monthly rent for rent collection only. In England, tenants can only be charged a short list of permitted payments under the Tenant Fees Act 2019, so letting agent fees fall on landlords. There is no official national survey of what landlords pay, so these are market ranges, and your real cost is often higher than the headline percentage once add-on charges are included.
What are letting agent fees?
Letting agent fees are the payments an agent charges for marketing a rental property, finding and referencing tenants, setting up the tenancy and, if you choose, managing it. Most of these fees are paid by the landlord. Tenants can only be charged for a small number of permitted payments, which are covered below.
The fees you pay depend on the level of service. Agents commonly offer three:
- Tenant find (let only): the agent finds and references a tenant and sets up the tenancy, then you manage it yourself.
- Rent collection: the agent also collects rent and chases arrears.
- Full management: the agent handles rent, repairs, inspections and day-to-day tenant contact, as well as compliance tasks.
How much do letting agents charge landlords?
Most UK letting agents charge landlords between 8% and 15% of rent depending on the service, plus VAT at 20% where the agent is VAT registered. Ranges vary by source, and these are typical market figures, not official statistics.
| Service | Typical fee | What it usually covers |
|---|---|---|
| Tenant find only | 8% to 12% of the first year’s rent, or a one-off £500 to £1,500 | Marketing, viewings, referencing, tenancy set-up |
| Rent collection | Around 3% to 12% of monthly rent | Collecting rent, chasing arrears, statements |
| Full management | 10% to 15% of monthly rent | Rent, repairs, inspections, compliance and tenant contact |
| Prime central London | Often 15% to 20% of monthly rent | The same services at higher rates |
Tenant find is normally charged on the first year’s rent because it is a one-off job, while collection and management are charged on each month’s rent because they are ongoing.
What this looks like on £1,000 a month rent
- Full management at 10% plus VAT is £120 a month, or £1,440 a year.
- Full management at 15% plus VAT is £180 a month, or £2,160 a year.
- Tenant find at 8% to 12% of the first year’s rent, plus VAT, is a one-off £1,152 to £1,728.
- Rent collection at 3% to 12% plus VAT is £432 to £1,728 a year.
Quotes that look cheap can end up expensive. An 8% to 10% headline rate can reach 14% or 15% once you add set-up, renewal and mark-up charges, so always compare the total cost, not the percentage alone.
What extra fees can letting agents charge landlords?
Beyond the main fee, agents may charge for extra services if your agreement allows it. Ask for the full fee schedule before you sign. Common extras include:
- Set-up or administration fees when you start a management agreement.
- Inventory and check-in fees, and check-out fees where charged to the landlord.
- Tenancy renewal or rent review fees.
- Inspection fees if routine visits are not included.
- Statement fees for quarterly or annual accounts.
- Maintenance mark-ups or commission on contractor invoices.
- Compliance fees for gas and electrical checks and safety certificates.
- Rent guarantee or insurance products, sometimes added as paid-for extras.
- Legal and eviction support, which is usually separate.
- Exit or early termination fees if you leave the agent.
The British Landlords Association has warned landlords to check agreements after reports of agents adding charges such as automatic enrolment in rent guarantee schemes, fees for statements and new compliance or administration charges. A small fee adds up: a £25 quarterly charge is £100 per property a year, or £1,000 across ten properties.
High street, online and fixed-fee letting agents: what is the difference?
High street agents typically charge more but offer local presence and in-person service, while online and fixed-fee agents usually charge less and expect you to do more yourself. Typical figures are:
- High street agents: about 10% to 15% of monthly rent for full management.
- Online agents: often 8% to 12%.
- Fixed-fee services: around £100 to £200 a month, depending on what is included.
Cheaper models can suit hands-on landlords with straightforward properties. If you want someone local to handle repairs and tenants, a full-service agent may be worth paying more for.
Are letting agent fees tax deductible?
Letting agent fees are generally an allowable expense, which means you can deduct them from your rental income when working out your taxable profit. Keep invoices and statements, and check the treatment of any one-off or unusual charges with an accountant or HMRC.
What fees can letting agents charge tenants in England?
In England, letting agents and landlords can only charge tenants permitted payments under the Tenant Fees Act 2019. Any other charge is a prohibited payment. The permitted payments are:
- Rent.
- A tenancy deposit capped at five weeks’ rent where annual rent is under £50,000, or six weeks’ rent where it is £50,000 or more.
- A holding deposit capped at one week’s rent, to reserve a property while checks are carried out. It must be refunded in most circumstances.
- Default fees for things such as lost keys or late rent, which must be reasonable.
- Changes to the tenancy at the tenant’s request, capped at £50 or reasonable costs if higher.
- Utilities, council tax and communication services where they are in the tenancy agreement.
Banned fees include administration fees, credit check fees, renewal fees, guarantor fees, end of tenancy fees and charges for permitted occupiers or professional cleaning.
Letting agent fees in England, Wales and Scotland. The Tenant Fees Act applies in England. Wales has the Renting Homes (Fees etc.) (Wales) Act 2019, which gives similar protections, and in Scotland most tenant fees have been banned since 2012, so that only rent and a deposit can be charged. If you are a tenant who has paid a banned fee, contact your local council’s trading standards team.
How does the Renters’ Rights Act affect letting agent fees?
The Renters’ Rights Act 2025 changed how private renting works in England from 1 May 2026, and letting agents acting for landlords must follow the new rules. Phase 1 includes the end of Section 21 ‘no fault’ evictions, a switch from fixed-term to periodic tenancies, a ban on rental bidding and limits on rent in advance. Later phases are still to come, including a landlord database and a private rented sector ombudsman.
The Act does not set what agents can charge landlords, but it affects agents’ costs and the services they sell. Some landlords report agents introducing new charges, sometimes explained by the new rules. Increased costs do not automatically change an existing contract, so check your management agreement for the clause that allows any new fee, and ask whether a new product is optional. Because fixed-term tenancies are replaced by rolling periodic tenancies, also ask what any ‘renewal’ or ‘rent review’ fee now covers.
Landlords remain responsible for compliance even if an agent acts for them. Councils can impose financial penalties of up to £40,000 in serious cases, which is one reason many landlords choose a managing agent.
How much do estate agents charge to sell a house?
Estate agents who sell homes charge sellers a different set of fees from letting agents. The HomeOwners Alliance puts the average estate agent fee in 2026 at 1.42% of the sale price including VAT, which is around £3,900 on a £275,000 home. Multi-agency agreements, where more than one agent can sell the property, average about 3% to 3.6%, and some online agents offer fixed fees, for example around £1,499.
Always check whether a quoted percentage includes VAT, because 1.5% plus VAT is 1.8%. Fees also vary by area and property value. If you are a landlord thinking of selling, ask the agent for their sales fee as well as any lettings charges.
Is it worth using a letting agent?
Using a letting agent can save time and reduce risk, but it costs money. You are not legally required to use one, and many landlords manage their own properties.
Reasons to use an agent:
- Tenant finding, referencing and tenancy paperwork are handled for you.
- Rent collection and arrears chasing are done by someone else.
- They keep up with compliance, including safety checks and rules that change.
- You do not have to be local or available for repairs.
Reasons to manage yourself:
- You keep the fees, which can be significant on a single property.
- You have direct contact with tenants.
- You decide on repairs and contractors.
A tenant-find-only service is a middle option if you are happy to manage the property but not to market it.
How can you compare and negotiate letting agent fees?
Compare the total annual cost, not the headline percentage. Before you instruct an agent:
- Ask for the full fee schedule and a written list of everything included in the management fee.
- Add up year-one costs, including tenant find, set-up, renewals, inspections, statements and any mark-ups.
- Check what happens at the end. Ask about notice periods, minimum terms and exit fees.
- Check membership of a client money protection scheme and a redress scheme. Property agents must belong to an approved redress scheme, and you can ask to see their certificates.
- Check the fees are displayed. Agents must publish their fees, and you can ask which fees apply to you.
- Ask about optional products such as rent guarantee and insurance, and whether you can decline them.
- Get several quotes, including online and fixed-fee agents, and negotiate if you have more than one property or a high rent.
Key takeaways
- Letting agent fees for landlords typically run 10% to 15% of monthly rent plus VAT for full management, 8% to 12% of first-year rent for tenant find and about 3% to 12% for rent collection.
- There is no official national survey, so treat these as market ranges and confirm quotes in writing.
- Add-on charges can push the real cost well above the headline percentage.
- In England, tenants can only be charged permitted payments under the Tenant Fees Act 2019, including a deposit capped at five or six weeks’ rent and a holding deposit capped at one week’s rent.
- The Renters’ Rights Act came into force in phases from 1 May 2026, and agents acting for landlords must follow it.
- Check your management agreement before accepting any new fee, and ask for the clause that allows it.
- Letting agent fees are generally deductible from rental income, but check with an accountant.
- Estate agent fees for selling a home are separate, with a 2026 average of 1.42% including VAT according to the HomeOwners Alliance.
Frequently asked questions
Typically 10% to 15% of monthly rent plus VAT for full management, 8% to 12% of the first year’s rent for tenant find, and about 3% to 12% of monthly rent for rent collection.
Full management usually costs 10% to 15% of the monthly rent plus VAT, with prime central London sometimes higher. Fixed-fee services are often around £100 to £200 a month.
No, not in the way they used to. Under the Tenant Fees Act 2019, tenants can only be charged rent, a capped deposit, a capped holding deposit, reasonable default fees and a capped fee for changes they request.
Administration fees, credit check fees, renewal fees, guarantor fees, end of tenancy fees and similar charges are banned.
Yes, if the agent is VAT registered, VAT at 20% is added to the fee, so always check whether a quoted figure includes it.
No. Landlords can let and manage their own properties, but they remain responsible for legal compliance.
For selling a home, the HomeOwners Alliance puts the 2026 average at 1.42% including VAT. This is separate from letting agent fees.