Letting agent fees explained

Letting agent fee structures can feel confusing. Some agents quote neat percentages, others headline a low “from” price then layer on extras in the small print.

This guide breaks down the main fee types, how they’re usually calculated and what’s typically included at each service level so you can compare quotes more confidently.

The main service levels

Most traditional letting agents group their services into three broad levels. The names vary, but the structure is similar.

Let-only

Let-only (sometimes called “tenant-find”) usually covers marketing the property, handling enquiries, conducting viewings, basic tenant referencing and drawing up the tenancy agreement. Once the tenant moves in and rent starts, day-to-day management normally passes back to you as the landlord.

Rent collection

Rent collection sits between let-only and full management. The agent does everything in let-only and then continues to collect rent each month, chasing late payments and passing funds on to you after deductions. You’ll typically still handle maintenance and inspections yourself.

Full management

Full management usually includes let-only and rent collection plus being the main point of contact for tenants, coordinating maintenance, arranging periodic inspections and dealing with renewals, notices and day-to-day issues as they arise.

Percentage vs fixed fees

Agents typically charge either a percentage of the rent, a fixed fee, or a mix of both.

Percentage of rent

A percentage fee is usually applied to the rent received each month. For example, a 10% + VAT management fee on a rent of £1,200 per month means the agent takes £120 + VAT each month while the tenancy runs.

Fixed fees

Fixed fees may be quoted as a one-off amount (common for let-only) or as a flat monthly price. This can feel simpler, but you should still check how long the fixed price applies and whether it changes at renewal.

From a landlord’s perspective, percentages naturally rise with rent levels but fall if the property is empty, while fixed fees can be easier to budget for but less flexible if circumstances change.

What’s usually included in the headline fee

Headline fees cover different things with different agents, so it’s important not to assume.

Marketing on major portals and the agent’s own website
Handling enquiries, arranging and carrying out viewings
Basic tenant referencing and right-to-rent checks
Preparing the tenancy agreement and move-in paperwork
For management services, chasing rent, coordinating maintenance and carrying out inspections

Every agent packages services slightly differently, so always ask for a written breakdown of what’s included at each service level.

Common extra charges

Headline percentages rarely tell the whole story. Keep an eye out for:

Setup or tenant-find fees – one-off charges when a new tenancy starts.
Tenancy renewal fees – applied when a fixed term is renewed or extended.
Inventory and check-in/check-out fees – for creating inventories and attending move-in or move-out.
Court or eviction-related fees – for serving notices or attending hearings.
Early termination or exit fees – if you change agent or sell while tenants are in place.

How VAT is presented

Some agents quote fees “plus VAT”, others quote “including VAT”. A 10% + VAT fee is not the same as a 10% including VAT fee, so it’s important to convert everything to the same basis before comparing.

When you’re comparing options, always make sure you’re looking at either all-inclusive figures or all “plus VAT” figures rather than a mixture.

Using LetCompare alongside this guide

Once you understand the main fee types and extras, it becomes easier to spot where a quote sits compared with what’s typical in your area.

LetCompare brings together typical fees from multiple agents so you can sense-check new quotes and see whether they sit broadly in line with local ranges before you negotiate.

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