What You Should Know About Letting Agent Fees
As a landlord, you want to make the most money on your property. Which is why understanding letting fees is so important. What are letting agent fees for landlords? What do they cover, and are they worth it?
This guide answers these questions and covers other topics, like tax treatment, what fees are allowed under the law, and how to compare agents.
Letting Agent Fees – A Quick View
Quick summary
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Letting agents charge different fees depending on the service you want.
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Tenant find services typically cost around 6%–13% of the monthly rent and cover things like marketing the property, tenant checks, and tenancy agreements.
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Rent collection services usually cost 5%–10% of the monthly rent and include collecting payments and chasing arrears.
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Full management is the most comprehensive service and normally costs 12%–20% of the monthly rent, but the agent handles maintenance, inspections, and tenant issues.
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Some landlords choose DIY platforms where they pay a small one-off fee to list the property on portals and manage the tenancy themselves.
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The best option depends on how involved you want to be — cheaper services mean more work for the landlord, while full management costs more but removes most of the hassle.
Common Letting Agent Fees & Services
Tenant Find
Finding qualified tenants is one of the hardest and most important steps in the letting process. Letting agent fees range from 6% to 13% of the monthly rent.
Tenant finding usually includes
- Marketing
- Performing tenant checks
- Drafting the tenancy agreement
These fees may also cover viewings and collecting the first month’s rent and any applicable deposits.
Rent Collection
Many landlords need help both in finding tenants and in collecting rent. Now, your letting agent can chase down late payments so you don’t have to. Rent collection letting fees range from 5% to 10% of the monthly rental amount.
Many agencies combine tenant finding fees with rent collection. Other services under this umbrella may include reminders for missed payments, communication with the tenant to resolve late payments, drafting rent statements, transferring rent payments to the landlord, and handling arrears.
Full Management
Full management services can cost between 12% – 20% of your monthly payments, but for those who need extra support, it’s well worth it. Not only do you receive tenant finding and rent collection, but your agent also handles all the property’s maintenance and repair issues. Other benefits include property inspections, fielding tenant phone calls, managing renewals and rent increases, and dealing with potential legal issues like eviction.
Guaranteed Rent
Different from rent collection, guaranteed rent means you get paid even if your tenant fails to pay. These letting agent fees range from £160 to £300 and cover rent arrears, as long as you qualify.
Other Letting Agent Fees to Consider
While some agents charge a flat letting fee, others price their services individually. Be sure to ask the agent or agency you choose before signing a contract.
Administration Fees
There’s a lot of paperwork involved with letting properties. You can pay administration fees, and a letting agent will process and manage all the essential paperwork. These letting agent fees range from £100 to £300.
Renewal Fee
After the initial letting term has ended, tenants can renew their agreement. Letting agent fees for renewals range from 8% to 15% of the monthly rent.
Check-In and Out Fee
Check-in and check-out fees range from £100 to £200 and cover meeting with the tenant on moving day, conducting inventory checks, and discussing housekeeping and any other particulars.
Tenant Fee Ban
The Tenant Fees Act of 2019 banned most charges for tenants. This was done to make letting more fair and affordable. Letting agent fees are also approved expenses for tax purposes, as long as they are incurred “wholly and exclusively.”
All of these guidelines make letting more accessible.
The Tenant Fees Act of 2019 bans most routine, upfront, or admin charges to tenants. These include admin fees, referencing, and inventories. Rent, deposits, and other limited costs aren’t included in this ban. Breaches of these laws can lead to legal action and/or penalties.
How to Compare Letting Agent Fees and Types of Letting Agents
Comparing letting agent fees is a must when finding the more affordable and comprehensive option. Here are the 3 most common types of letting agents, plus tips for comparing their fees and services.
Types of Agents & Sample Charges
Local High-Street Agent
Often more expensive, high-street agents offer local market knowledge and a more hands-on experience.
Online Agent
Online agents take a more hands-off approach and are a more affordable option if you’re willing to shoulder some of the work. Some online agents are deemed “DIY agents”. These provide a mechanism for landlords to create a post on the large property portals only.
Hybrid Agent
Hybrid agents offer online services but may also have a local representation (with no office). You can often create a bespoke experience.
Below are a mix of agents and what they charge (as of 21st Feb 2026):
Brand | Tenant find fee | Management fee | Guaranteed rent fee |
 | 9% per month | 12% per month | 3.5% per month |
 | £39 one off | £72 per month | £129 one off |
 | £1,440 one off | £90 per month | £240 one off |
How to Compare Agents
Read Reviews
Online reviews are a great source of information when comparing letting agents and letting agent fees. Don’t just check the agent’s website, where chances are, you’ll find mostly positive feedback. Search reputable review platforms to see what past and current clients are saying about the agent’s services and performance.
Check Credentials
All letting agents are required to possess certain credentials. Check the website to see if they are members of NAEA, ARLA, and/or Propertymark. Also, see what client-money protection scheme they’re enrolled in.
Use a Comparison Tool
The fastest way to compare letting agent fees is to use a comparison tool like Rentround. Here, you’ll see a side-by-side view of different local agents, including their fees and services, so you can make an informed decision.
Do I Need a Letting Agent?
The short answer is no – you don’t have to hire a letting agent. But unless you plan to fully manage your properties yourself, including tenant referencing, rent collection, inventory, and repairs, paying letting agent fees is usually worth the investment.
Pros of Hiring a Letting Agent
- Listings on popular property portals, including Zoopla and Rightmove
- Market insight and experience
- Handling all necessary paperwork and documentation to ensure you remain compliant
- Deposit protection in a government-approved scheme
- Rent collection and inventory checks to help you maintain a positive tenant/landlord relationship
Cons of Hiring a Letting Agent
- Paying letting agent fees cuts into your bottom line
- Letting agent fees in larger cities like London can be more expensive
Letting Agent Fees 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.
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
Frequently Asked Questions
What tenant fees can agents still charge?
Agents can only charge permitted fees under the Tenant Fees Act 2019. These include rent, security deposits (within statutory caps), and certain default charges. Most other upfront tenant admin fees are prohibited. While inventory and check-in fees for tenants are prohibited, some agents may include these services and fees in a package paid for by the landlord.
Is guaranteed rent worth it?
Guaranteed rent offers predictable income, but with a high price tag. It’s best to compare the premium you pay with the guarantee of receiving monthly rent. Reduced management time is another perk, but be sure to read the fine print.
Are letting agent fees deductible?
Yes! You can deduct most letting agent fees from your rental income when calculating taxable profit.
What hidden fees should I look for?
Certain agents charge additional fees for things like inventory preparation, maintenance and repairs, compliance checks, and tenancy renewals. When applicable, ask for a full breakdown of fees and a fee schedule to avoid unforeseen costs. Whether you’re considering a high-street or online agent, understanding letting agent services and the associated fees is an important step in the process. Let us help you make an informed decision!
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