How much do letting agents charge landlords?

Letting agents usually charge 8–12% of the first year’s rent for tenant-find only, 3–12% of the monthly rent for rent collection, and 10–15% of the monthly rent for full management. VAT at 20% is normally added on top, so a 12% management fee costs 14.4% of the rent. London agents and large national chains are often higher.

Typical letting agent fees by service

Fees are before VAT unless stated. These are typical ranges from landlord guides and published agent fee lists, not quotes.

What the percentage means in pounds

For a property let at £1,200 a month:

Extra fees to check

The headline percentage is not always the full cost. Ask for the full fee list, and look out for:

• Set-up or tenancy fees at the start of each new tenancy.
• Referencing and Right to Rent checks, if not included. See our tenant referencing cost guide for typical prices.
• Inventory, check-in and check-out reports.
• Arranging safety certificates. Some agents add a fee on top of the gas safety check or EICR price.
• Maintenance mark-ups on contractor invoices.
• Rent increase notices and other admin fees.
• Ending the agreement. Some contracts charge a fee if you stop using the agent but keep a tenant they found. Check the notice period and any ongoing commission before you sign.

In England, tenancies started or continuing from 1 May 2026 are periodic under the Renters’ Rights Act, so there are no fixed-term renewals. Check whether an agent’s contract still includes renewal or extension fees, and what they now apply to.

The Tenant Fees Act: tenants don’t pay

In England, the Tenant Fees Act 2019 (statutory guidance, as amended by the Renters’ Rights Act 2025) bans landlords and agents from charging tenants fees for things like referencing, admin, inventories, check-outs and contracts. Only permitted payments are allowed, such as rent, a capped tenancy deposit, a holding deposit of up to one week’s rent and certain default fees. Wales and Scotland have similar bans.

This means the costs of letting fall on the landlord. Agents can’t recover them from tenants, which is one reason landlord fees have risen since 2019.

Rules agents must follow

• Publish their fees. Under Part 3, Chapter 3 of the Consumer Rights Act 2015, agents in England and Wales must display a full list of their fees, including VAT, in their offices and on their website.
• Redress scheme. Agents in England must belong to a government-approved redress scheme, so you have somewhere to complain.
• Client money protection. Agents who hold client money, such as rent, must belong to an approved client money protection scheme and display the certificate.
• Wales: agents doing letting or management work must have a Rent Smart Wales licence.
• Scotland: letting agents must be on the Scottish Letting Agent Register and follow the letting agent Code of Practice.

Even with a fully managing agent, the landlord is usually still legally responsible for compliance. Check that your agent books the gas safety check, EICR and EPC on time, and keep your own copies.

Ways to keep the cost down

• Choose the level of service you need. If you live nearby and can handle repairs, tenant-find at 8–12% once per tenancy, or rent collection, may cost far less than full management charged every month.
• Compare fixed-fee and percentage agents on the full cost over a year, including VAT, referencing, inventory and certificate-arranging charges.
• Ask how a tenant-find fee works on a periodic tenancy. In England tenancies no longer have fixed terms, so check whether a fee based on “the first year’s rent” is charged up front, and whether any of it is refunded if the tenant leaves early.
• Read the contract before you sign, particularly notice periods and any continuing commission if you stop using the agent but keep a tenant they found.
• Track your own deadlines. Use our free certificate reminders and the landlord certificate checker so you know what is due, whoever books it.