Letting agent fees: what landlords and tenants pay
Landlords usually pay a one-off fee to find a tenant or an ongoing fee to manage the tenancy. The headline percentage is only part of the cost: ask about letting, inspections, check-out, maintenance and VAT before comparing quotes. In England, the Tenant Fees Act limits what a tenant can be asked to pay.
What do letting agents charge landlords?
A let-only service finds and prepares a tenant. A fully managed service continues with rent collection, repairs, inspections and tenancy administration. Agents may charge a one-off letting fee as well as a monthly management fee, so check both.
Ask for a complete written price list and confirm whether VAT is included in every figure. Different agents include different services in their headline rate.
- Tenant-find and repeat letting fees
- Inspection and check-out fees
- Maintenance handling or contractor mark-ups
- Any renewal, set-up or cancellation charges
What can an agent charge a tenant in England?
The Tenant Fees Act 2019 restricts payments required from tenants in England. Rent, a capped holding deposit, a capped tenancy deposit and certain default or tenant-requested payments are permitted within the rules. Required payments for utilities, council tax, TV licences and communication services may also be allowed when the tenancy agreement provides for them.
A holding deposit is generally capped at one week's rent. A tenancy deposit is generally capped at five weeks' rent, or six weeks where annual rent is £50,000 or more. Referencing, inventory, administration and routine renewal fees cannot be imposed on tenants.
How to compare two quotes
Compare the total cost across a realistic tenancy, including a change of tenant. Ask each agent to explain what happens when the property is empty or a repair is needed.
- Is the monthly percentage VAT inclusive?
- What does the first let cost, and what does each later let cost?
- Are inspections, inventory and check-out included?
- Is a percentage added to contractor invoices?
- What notice or tie-in period applies?
Accommodation.co.uk fees shown on this site
The figures below follow this site's current fee data. A tailored quote should confirm exactly which services and VAT treatment apply to your property.
Fees to include in your comparison
| Fee | Site figure | What it covers |
|---|---|---|
| Monthly management | 9% of rent | Ongoing managed service |
| Let only | 90% of first month's rent | One-off tenant-find service |
| Managed first let | £239 | Letting fee alongside monthly management |
| Managed later new tenancy | £478.80 | Per new tenancy after the first let |
| Maintenance handling | 10% | Check the basis in your written quote |
| Inspection | £60 | Per inspection, including VAT |
| Check-out | £60 | At the end of a tenancy |
Official guidance
This guide is general information. Check current official guidance and seek professional advice for your circumstances.