Hidden letting agent fees to watch out for

Renewal fees

Renewal fees are charges made when a tenancy is renewed or extended. They may be a fixed amount or a percentage of the new rent.

On their own, renewals can look modest, but over several years they add up. A renewal fee applied every 12 months can significantly increase the total cost of using an agent.

Ask agents whether they charge renewal fees, how often they apply and whether they’re reduced if you’ve used the same tenant for a long period.

Setup and tenant-find charges

Many agents charge one-off setup or tenant-find fees when a new tenancy begins. These may cover marketing, viewings, referencing and initial paperwork.

Some agents charge setup fees in addition to a percentage management fee, while others roll more of the cost into the ongoing percentage. Understanding how these pieces fit together makes comparisons easier.

Inventory and check-in/check-out

Inventories and check-in/check-out appointments are important for protecting both landlords and tenants if there’s a deposit dispute later on.

In some cases landlords pay for these; in others tenants do, or the cost is shared. Ask who arranges the reports, who pays for them and what the typical cost range looks like for your property type.

Maintenance mark-ups and contractor fees

Some agents add a margin on top of contractor invoices or charge a percentage “arrangement” fee for organising works. Others simply pass on third-party costs with no extra charge.

You should be told clearly if any management or administration fee is applied to maintenance, along with how decisions are approved at different spend levels.

Exit and termination fees

Some contracts include fees if you end the agreement early, move to a different agent or sell the property while tenants are still in place.

Look for clauses that continue beyond the management period, or that charge ongoing commission even after you’ve left. If anything looks unclear, ask for an explanation in writing before signing.