The rental market is booming, increasing the importance for landlords to know what the average letting agent fees are across the country.

With changes in legislation around tenant fee bans & the renters reform, keeping on top of fees is critical to maintaining a profitable property portfolio.

If letting agent costs are too high, profits from a rental property can be quickly eaten up

The letting agent fees you pay will depend on how hands you want to be with your rental property.

Some landlords just want their agent to find them tenants. Whereas other landlords want agents to take on inspections, maintenance, inventories and a whole lot more.

Below are some examples of what letting agents charge. For a detailed view of what agents charge in your area, use our free comparison tool.

1. TYPES OF LETTING AGENT FEES

There are many types of fees rental agents charge landlords. This will be dictated by the services the landlord is looking for. The fees are generally broken down into the following groups

LETTING AGENT TENANT FIND FEES

This fee is for the cost of:

• advertising your property
• answering tenant queries
• conducting property viewings
• processing tenant references
• creating the tenancy agreement

Depending on the agents terms and your agreement with them, this service can also include the ongoing rent collection for that tenant.

In addition, the agent may process or guide you on tenancy deposit requirements

 

LETTING AGENT FULLY MANAGEMENT FEES

This services goes over an above finding the tenant and is usually taken up by landlords looking for a hands off approach. The letting agent will in addition manage

• Inspections: Ensuring the property is compliant with property regulations & laws
• Documentation: Update tenancy agreements & certificates for fire, electric & safety
• Ongoing rent collection: This includes chasing unpaid rent and issuing relevant warnings for arrears
• Maintenance: When it comes to maintenance, the fee charged by the agent does not cover the cost of repairs and upgrades. Often,the letting agent will report the issue to the landlord and provide quotes from their preferred or list of contractors. The landlord then approves this and fronts the bill, or decides to find their own contractor to fix the property.

LETTING AGENT ADD ON FEES

There are a host of other activities that the letting agent can charge additional fees for. These include, but are not restricted to:

• Premium advertising: Showcasing your property as a highlighted property on Zoopla or RightMove
• Bill payment processing: If the agent is managing bills, this processing can come with an additional fee
• Tenancy renewal fees: Once the tenancy expires, if the tenant is to remain at the property the agent may charge a fee for the additional paperwork
• Inventory fees: To ensure there are no disputes, the agent may charge a fee for documenting the property contents/state.
• Admin fees: These could be fees for missed payments, document changes or surcharges

As a landlord, you should always read the small print and understand what services are included and what you may be charged more for.

GUARANTEED RENT FEES

Guaranteed rent is type of service is for landlords looking for a risk averse approach, by securing their rental income against a policy.  In the event that a tenant cannot (or won’t) pay their rent, the policy undertaken secures the income.  After a certain amount of time of unpaid rent, the policy will kick in and a landlord gets their payment.

Every policy differs. Some require a landlord to wait a few weeks or even months. On the other hand some policies pay out as soon as a payment is missed. Landlords using this service can get a peace of mind knowing any mortgage payments or bills aren’t at risk of a tenant not paying their rent.

There is a higher cost of this service, which means a landlord’s monthly income will take a hit. During the Covid-19 pandemic, landlord searches for guaranteed rent increased by 25%. In the midst of tenant arrears & eviction bans, it’s clear landlords were keen to get coverage from themselves. However many agents pulled back their offering of guaranteed rent.

Many agents couldn’t find a provider to underwrite this type of services as arrears across the country increased.

TENANT FEES

Many tenant fees were banned under the tenant fees act 2019. This act aimed to stop agents & landlords charging what were deemed unfair and excessive fees to tenants.

Fees for admin, inventory and credit checks are a handful that were banned.

It’s not just tenants that got extra protection under this act, potential tenants also got more protection. For instance now agents & landlords cannot charge a fee when a tenant is viewing a property.

Penalties for agents & landlords can be substantial, including criminal prosection.

Examples of allowable tenant fees are:

• Utilities, TV license, communication, or Council tax
• A refundable deposit (no more than 1 weeks rent)
• Changes to the tenancy requested by the tenant
• A refundable tenancy deposit that shall not exceed 5 weeks rent (or 6 weeks if the annual rent is more than £50,000).
• Early termination fees if the tenant requests to end the agreement prematurely
• A protected fee for lost keys, security devices, or late payments
• Professional cleaning fees in the event that there’s extensive damage to the property

2. LETTING AGENT FEES – WHAT THE BIG AGENTS CHARGE

The structure of how an agent will charge a landlord differs.

Some prefer an ongoing monthly fixed fee or % of the rental income. While other charge a flat one off fee at the beginning of the tenancy.

Based on the data, there are huge variances between what fees are charged. The cheapest agent to find a tenant is Hello Neighbour. Whereas the most expensive, based on a monthly rental income of £1,000 is Foxtons & Knight Frank.

Both of these agents are large, well known brands with a strong foothold in the market. With many offices and a good hold on Google rankings, they can offer up their services at a premium level.

Hybrid agents Home-Made, Accommodation & Hello Neighbour are challenger agents, targeting landlords looking for lower cost options to let out their property.

Hello Neighbour and Accommodation in particular are performing extremely well based on the quantity and quality of their online reviews.

However if reliability and longevity are key factors in your choice of agent, Leaders are the go to. The Leaders Romans Group are a massive company with other brands such as Romans and Portico.  Although they have higher fees than other mentioned agents, they have a large high street presence, which brings substantial local knowledge of the property market.

It is worth keeping in mind that you can negotiate with letting agents on their fees. This is especially the case if you have multiple properties or properties generating high rental amounts

 

 

3. HOW DO AGENTS PERFORM?

Picking the best letting agent isn’t always simple. The cheapest doesn’t mean the best and the agent that will do the most for your property may not be cost effective enough for your aims.

Looking at how quickly an agent lets out your property and what rent they achieve, can be another good indicator to look at when picking your letting agent.

Take a look below and see which agents get the most rent and their timeframes to get your property rented out. Remember this data always fluctuates.

For a more accurate view, run a letting agent comparison on our homepage.  Metrics have been taken from publicly available data, including Right Move & Zoopla

 

4. LETTING AGENT FEES: A WORKING EXAMPLE

Example 1:

Let’s say you have a property that generates a monthly revenue of £1,500

The letting agent you have selected, charges you 10% of the monthly rent

Each month, you will pay the agent £1,500 X 10% = £150

You then keep £1,500 – £150 = £1,350

Note, letting agents state fees including VAT to the public, so there should be not add on to fees of VAT after the agreement has been made

Example 2:

Keeping the same monthly rent of £1,500, you have gone with an agent that charges a flat fee of £100 per month.

In this scenario, you keep £1,400 and pay the agent £100.

Running the management of the property yourself, without a letting agent, will save you money. However, you should consider if you’d be able to stay on top of the documentation and regulatory requirements. In addition, you will need to give up more of your time to deal with potential issues if they occur.

 

5. Expert Opinion

“As the rental market faces more regulation in 2025, more landlords will find it difficult to operate. Renters reform, EPC requirements and tax changes all add more complexity. As a result, letting agents will play a bigger role for landlords.

There are a range of services offered by letting agents but for many landlords, understanding what letting agents charge can be tricky to understand.

You have your basic services to consider, then a host of add on’s such as insurances etc.

For many landlords, its a toss up between getting more profits out of a rental property or less hassle. 

For those landlords that live near their property and have time on their hands, a low cost agent that gets your property advertised may be a good idea. However when distance and time is an issue, it may be better to pay an agent with higher fees to cover more of the services needed in the future.

Reputation, not just fee, plays a big part when picking a letting agent. No landlord wants a letting agent that has a reputation of not pulling their weight. In recent times there’s been a massive push by agents to get online reviews in check to attract more landlords.”

Raj Dosanjh, Rentround founder

 

6. Letting Agent Fees FAQ

1. What are letting agent fees, and why are they charged to landlords?

Letting agent fees are costs landlords incur for professional services related to letting out their property. These services may include marketing the property, conducting tenant referencing, drafting tenancy agreements, collecting rent, and managing day-to-day issues. The fees compensate agents for handling these responsibilities on the landlord’s behalf.

2. What is the typical cost of using a letting agent?

Fees vary depending on the level of service. For tenant-find only services, agents usually charge between 8% and 12% of the annual rent. Full property management typically falls within 10% to 15% of the monthly rent. Additional setup or administrative fees may also apply, so it’s important to review the fee structure carefully.

3. Should I choose full management or tenant-find only?

This depends on how involved you wish to be. Landlords who are comfortable managing maintenance, rent collection and tenant queries may opt for tenant-find only. Those who prefer a more hands-off approach, or live far from the property, may benefit from a full management service, even at a higher cost.

4. Are letting agent fees tax deductible?

Yes. Letting agent fees are generally considered allowable expenses for landlords. This means they can be deducted from your rental income when calculating your taxable profit.

5. Can letting agent fees be negotiated?

Often, yes. While agents typically have a standard pricing structure, there may be flexibility—especially if you are letting multiple properties or agreeing to a long-term service contract. It is advisable to request quotes from several agents and negotiate terms where possible.

6. Are there additional or hidden fees to be aware of?

Potentially, yes. Some agents charge separately for tenancy renewals, inventory preparation, compliance checks, or arranging maintenance. It is advisable to ask for a full fee schedule before signing any agreement to avoid unexpected costs.

7. Do landlords pay for tenant referencing?

Since the introduction of the Tenant Fees Act 2019, letting agents can no longer charge tenants for referencing. As a result, this cost is typically passed on to landlords, either as part of the setup fee or as a separate charge.

8. If a tenant stops paying rent, do I still owe the agent their fee?

In most cases, yes. For landlords using a fully managed service, the management fee is often due regardless of rent collection status. Some agents offer rent protection insurance for an additional cost, which may help mitigate this risk.