The three main services
- Let-only (tenant find). The agent markets the property, finds and references a tenant, and sets up the tenancy. You manage everything after that. Usually a one-off fee of £500 to £1,500, or a share of the first year's rent.
- Rent collection. As let-only, plus the agent collects the rent and chases arrears. Usually 5% to 8% of the rent.
- Full management. The agent also handles repairs, inspections, safety certificates, deposits and notices. Usually 10% to 15% of the rent, and more in London or for HMOs.
Most quotes are before VAT, so a 12% fee is really 14.4%. Set-up, referencing, inventory and check-out fees are often extra, and some agents add a markup on contractors' invoices.
Worked example
A £1,300-a-month flat where tenants usually stay two and a half years. A fully managed agent at 12% plus VAT, with a £600 finding fee and £350 of set-up costs per tenancy, costs about £2,700 a year, or 17% of the rent. Let-only at £900 plus the same set-up costs is about £600 a year. The extra £2,100 a year buys you an agent who deals with repairs, inspections and paperwork.
Agent fees are an allowable expense, so a higher-rate taxpayer gets 40% of them back through lower tax, 42% from April 2027.
Is full management worth it?
It often is if you live far from the property, have several lets, or don't have the time to keep up with the Renters' Rights Act and safety rules. Self-managing saves money but you carry the compliance risk. Our compliance checklist shows what's involved, and the landlord costs guide puts agent fees alongside every other cost.
Questions landlords ask
How much do letting agents charge in the UK?
Let-only is usually a one-off £500 to £1,500. Rent collection is around 5% to 8% of the rent, and full management 10% to 15%, usually plus VAT. London and HMOs are at the top of the range.
Are letting agent fees tax deductible?
Yes. Agent and management fees are an allowable expense, so they reduce your taxable rental profit. Fees for buying or selling a property are treated differently and count against capital gains instead.
Can letting agents charge tenants fees?
In England, agents and landlords can't charge tenants fees beyond rent, a capped deposit, a holding deposit and a few permitted payments, under the Tenant Fees Act 2019. The costs of finding and setting up a tenancy fall on the landlord.
Can I negotiate letting agent fees?
Often, yes, especially with more than one property or a long tenancy. Ask for the full fee schedule, check what's included, and compare at least three agents.
Sources
Last updated 1 October 2026.