How much do letting agents charge? It is the first question most landlords ask, and the honest answer is: it depends on how much work you hand over. Letting agent fees range from a one-off tenant-find charge to an ongoing percentage of your rent for full management, and what is bundled into that percentage varies enormously between agencies. This guide breaks down the typical letting agent fees for landlords in the UK, what each service actually covers, and how to compare quotes so you are paying for value rather than a logo.
Letting agent fees at a glance
- Tenant-find (let-only): typically a one-off fee of around one month's rent, or a percentage of the first month.
- Rent collection: usually 5–10% of the monthly rent.
- Full management: usually 10–20% of the monthly rent, often 12–15% in London.
- The Tenant Fees Act 2019 banned most fees charged to tenants, but landlord fees remain.
- The lowest headline fee is rarely the best value, check what is actually included.
What do letting agents do?
Letting agents exist to take the day-to-day load off a landlord: finding and vetting tenants, handling the administrative and legal setup of a tenancy, and, in many cases, managing the property throughout. Their value is sharpest for landlords juggling several properties, those who live far from the property, or anyone new to letting who would rather not learn compliance the hard way. What you pay reflects how much of that work you delegate, which is exactly why letting agent fees are quoted as a menu rather than a single number.
What are letting agent fees for landlords?
Letting agent fees for landlords are the charges an agency makes for services such as finding a tenant, running reference checks, setting up the tenancy, and managing the property. They are charged either as a flat fee (common for tenant-find) or as a percentage of the rent (common for ongoing management). Crucially, the headline percentage is only half the story, the other half is what the percentage buys, because two agents quoting "12% management" can deliver very different levels of service for that money.
How much do letting agents charge?
For full management, letting agent fees typically run between 10% and 20% of the monthly rent, with most London agents landing around 12–15%. The exact rate depends on location, the agent's reputation, and, most importantly, the scope of work included. It is always worth shopping around, but remember that the lowest fee rarely equates to the best service: an agent charging a couple of percent less while excluding inventories, inspections and compliance can cost you far more when something goes wrong. The services break down into clear tiers:
Tenant-find (let-only)
The basic service: the agent finds and references a tenant, then hands the managed relationship back to you. Typical cost is around one month's rent as a one-off, or a percentage of the first month. A genuinely good let-only service should still include photography, marketing, referencing and the compliance paperwork, our guide to what a let-only service should include covers exactly what to check before you sign.
Rent collection
The agent collects rent each month and chases arrears, but does not handle maintenance. Fees usually fall in the 5–10% of monthly rent range.
Full management
For hands-off ownership, full management covers everything from advertising to handling issues throughout the tenancy: repairs, inspections, renewals and compliance. Fees range from 10–20% of monthly rent. This is where the gap between agents is widest, because the cheap end often quietly excludes the things that protect your investment.
Other fees to watch for
Beyond the core percentage, traditional agents often add separate charges for tenancy setup, renewals, check-in and check-out, inventory, end-of-tenancy cleaning, deposit registration and even routine inspections. These add-ons are where a "low" management fee quietly becomes an expensive one, so ask for the full schedule, not just the headline rate.
Holiday letting agent fees
For holiday lets and co-hosting on platforms like Airbnb, the structure is different: agents commonly charge a commission of 15–25% per booking, sometimes with a flat element, reflecting the higher turnover and the cleaning, maintenance and guest-management involved. As always, the only number that matters is the all-in cost once every service is accounted for.
The ban on letting agent fees for tenants
Since the Tenant Fees Act 2019 took effect on 1 June 2019, most fees charged to tenants in England are banned. A handful remain permitted, holding deposits, tenancy deposits, and certain charges such as early termination, but the broad sweep of admin and referencing fees can no longer be passed to tenants. The Act does not apply in Scotland or Wales, which have their own regimes. For landlords, the practical effect is that the costs of letting now sit with you and your agent, which makes understanding letting agent fees more important than ever.
DIY versus a letting agent
Managing a property yourself saves the fee but costs your time and exposes you to compliance risk; a good agent buys you convenience, expert advice, and access to a wider pool of vetted tenants. The right answer depends on how many properties you hold, how close you live, and how much regulatory detail you want to track, see why London landlords use property management for the full case on the management side.
Shopping around and negotiating
Compare agents on reputation, service scope and the complete fee schedule, not the headline percentage alone. Fees are often negotiable, particularly for full management or multiple properties, and a slightly higher fee can be the cheaper option if it folds in services you would otherwise pay for separately. Our guide to choosing a letting agent in London sets out the exact questions to ask before you commit.
The AIHPG approach to letting agent fees
We built our model around the frustration this whole article describes: paying a percentage every month regardless of whether any work was actually done. With us, cleaning, inventories, EICR, gas safety, EPC and decoration are included as standard rather than billed as the "other fees" above, so the number we quote is close to the number you actually pay. And if a tenant leaves during your rental period, we re-let at no additional letting fee. The point is not to be the cheapest letting agent fees on a price list; it is to make the fee you pay match the service you receive.
See what your fee should actually include
Stop paying management percentages for work that is billed separately. Our included-as-standard model means fewer surprise charges and a fee that matches the service.
Compare us on fees →Frequently asked questions about letting agent fees
How much do letting agents charge to manage a property?
For full management, letting agents typically charge 10–20% of the monthly rent, with most London agents around 12–15%. The rate depends on location, the agent and, most importantly, what is included, because cheaper headline fees often exclude inventories, inspections and compliance.
What are letting agent fees for landlords?
They are the charges an agency makes for services such as tenant finding, referencing, tenancy setup and ongoing management. They are charged either as a one-off flat fee (common for tenant-find) or as a percentage of the rent (common for management).
How much is a tenant-find or let-only fee?
A tenant-find (let-only) service is typically a one-off fee of around one month's rent, or a percentage of the first month's rent. A proper let-only service should still include marketing, referencing and compliance paperwork, not just an introduction.
Do tenants still pay letting agent fees?
No, not in most cases. The Tenant Fees Act 2019 banned most fees charged to tenants in England from 1 June 2019. A few payments remain permitted, such as holding deposits and tenancy deposits, but admin and referencing fees can no longer be passed to tenants. Scotland and Wales have separate rules.
Can you negotiate letting agent fees?
Often, yes, particularly for full management or where you have several properties. Just as important as the percentage is what it includes: a slightly higher fee that bundles inventories, inspections and compliance can be cheaper overall than a low fee with everything billed as an extra.
This guide is general information for landlords, not financial or legal advice. Letting agent fees, the Tenant Fees Act and permitted payments can change and vary by agent and by nation of the UK, confirm current figures with your agent and check the latest gov.uk guidance for your situation.
