Understanding letting agent fees helps you keep more of your rent and avoid surprises. This guide explains common fee types, what’s allowed under the law, tax treatment, how to check an agent’s credentials, and practical tips to cut costs while protecting your investment.
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- What are the common letting agent fees?
- Tenant Fees Act 2019
- Are letting agent fees tax-deductible?
- How to verify an agent’s credentials
- Local high street, national, or online?
- Tips to reduce costs and protect returns
- Frequently asked questions
- Compare letting agent fees
Quick summary
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Letting agent fees vary by service: tenant-find (one-off), rent-collection (monthly %), and full management (monthly %). Typical ranges in 2025: tenant-find often a one-off (or ~8–12% of annual rent), rent collection ~3–12% monthly, full management ~8–20% monthly depending on location, service level and agent. .
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Most charges to tenants are banned under the Tenant Fees Act 2019 — landlords/agents must comply. GOV.UK
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Letting agent fees are normally allowable expenses for tax purposes when they’re incurred “wholly and exclusively” for renting out the property. Check HMRC guidance. GOV.UK
What are the common letting agent fees?
1. Tenant-find / Let-only
A one-off fee to find and place a tenant. This is often either:
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a percentage of the first month’s rent (historically high percentages were common), or
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a fixed one-off fee (typical range: £400–£1,500 depending on property/location/agent).
2. Rent collection
Agent collects rent and chases arrears. Charged as a monthly percentage of rent (commonly ~3–12%). This can be a cost-effective middle ground if you want some hands-off work but still keep control.
3. Full property management
Includes tenant sourcing, checks, rent collection, maintenance coordination, inspections and compliance. Typical fees are around 8–20% of monthly rent in most of the UK; fees can be higher in London (Best Letting Agents in London) and some high-cost areas.
4. Other possible charges
Agents may also list additional fees such as:
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tenancy renewal fees,
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property visit/inspection fees,
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admin fees for legal notices.
Many firms bundle some of these into a single management fee; others itemise them. Always ask for a full fee schedule.
What landlords must know about the Tenant Fees Act 2019
The Tenant Fees Act bans most upfront, routine, or admin charges to tenants (e.g., referencing, inventories, admin fees), though permitted charges such as rent, deposit and some limited costs (e.g., defaults) still apply. Breaches can lead to penalties and enforcement action. If you’re unsure whether a charge is lawful, check guidance. Tenant Fees Act.
Tax treatment: are letting agent fees deductible?
Yes — fees paid to a letting agent for services relating to renting your property are normally allowable expenses and can be deducted from rental income for Income Tax purposes, provided they are incurred wholly and exclusively for the business of letting. Always keep invoices and, for complex cases, confirm with an accountant or HMRC guidance. GOV.UK
How to compare letting agent fees (practical checklist)
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Ask for a full written fee schedule (include VAT where applicable).
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Compare like-for-like services — what’s included: insurance, repairs management, check-ins, deposit protection, court work.
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Check local market pricing — national chains, high-street agents and online agents all differ in overhead and price. Online agents often cost less but require landlord involvement.
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Read reviews & check accreditation — look for ARLA/Propertymark/NAEA membership and client-money protection where applicable. Confirm membership on the industry body website.
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Negotiate — offering multiple properties or longer contracts can secure discounts.
How to verify an agent’s credentials
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Use the Propertymark/ARLA search tools or the agent’s Propertymark/ARLA membership details page to verify membership and whether they have client money protection. Membership signals training, standards and a complaints route. Propertymark
Which model is best for you: local high street, national, or online?
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Local high-street agent: better local market knowledge and hands-on services; can be pricier.
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National agent: wider reach, possibly standardised fees and processes.
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Online agent: lower headline fees; best if you’re willing to self-serve some tasks.
Decide by balancing cost, convenience, and the level of risk you’re comfortable managing.
Real examples (illustrative)
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Property A — rent £1,400pcm:
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Let-only one-off fee of £1,120 (80% of first month) vs. online tenant-find fixed fee of £199.
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Rent collection fee at 12% = £168 pcm; full management at 20% = £280 pcm. Vs.
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Online rent collection fixed fee of £59 pcm; full management fixed fee of £109 pcm. Compare plans & pricing.
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These figures are illustrative — always use current quotes for accurate budgeting.
Top tips to reduce costs and protect returns
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Compare at least three agents on price and scope. Use comparison tools (our own is one option).
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Bundle properties with one agent to improve negotiation power.
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Clarify renewals & exit costs before signing — hidden renewal or exit fees can erode savings.
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Consider fixed-fee online services for straightforward tenancies; choose full management only if you need hands-off service.
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Keep records and invoices — necessary for tax, dispute resolution, and transparency. GOV.UK
Frequently asked questions
Q: Can agents still charge tenants any fees?
A: Only permitted fees (rent, security deposit within statutory caps, certain default charges) are allowed. The Tenant Fees Act 2019 prohibits most upfront tenant admin fees. Check guidance if in doubt. Tenant Fees Act.
Q: Are inventory/check-in fees banned?
A: If charged to tenants, these are generally prohibited under the Tenant Fees Act. Agents may include these costs in a package charged to the landlord.
Q: Is guaranteed rent a good option?
A: Guaranteed rent schemes can offer predictable income but often come at a higher cost. Compare the premium you pay with the benefit of certainty and reduced management time. (If considering guaranteed rent, read the contract and small-print carefully.)
Want a fast way to compare letting agent fees?
If you’d like a quick comparison of letting agent fees and services, try a trusted comparison tool — it can reveal potential savings and show what’s typical in your area. For an option tailored to landlords, see LettingaProperty’s comparison page.
We’ve compiled a list of the most popular letting agents and their fees, updated quarterly. The last update was in August 2025.
You can save up to £1,966 every year by comparing letting agent fees. Start your free comparison and see how much more you could earn from your rental.
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Why choose LettingaProperty.com to reduce your letting agent fees?
If you want to cut costs without cutting corners, LettingaProperty.com is designed for landlords who care about returns and certainty. We combine a simple online dashboard with hands-on support so you get lower fees, professional management, and fewer surprises.
What we offer
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Simple by Design: A clean, intuitive interface makes managing your property straightforward from day one.
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Real-Time Insights: Track viewings, applications, payments and more — all live in your dashboard.
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Support When You Need It: Access help from our property team whenever you hit a snag — we’re here to back you up.
- Income Protection: With Vivo (Our property management platform), rent guarantee comes built in — so you don’t lose out when tenants fall behind.
How it helps
In practice, switching to a smarter service can reduce your overall costs (many landlords save substantially versus high-street fees) while keeping a hands-off, professional service. If guaranteed income and predictable costs matter to you, LettingaProperty is built around those priorities.
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Final word
letting agent fees are not one-size-fits-all. The right choice depends on how much time you want to spend, how involved you want to be, and whether you’re willing to trade lower fees for some DIY work. Get written quotes, check credentials, and compare services — that’s how you protect rental income and avoid nasty surprises.
