Updated 28 July 2026 · Independent landlord guidance
Quick summary (TL;DR)
- Tenant-find is typically a one-off fee (about 4–8% of first year’s rent or £400–£1,500).
- Rent collection commonly sits around 5–10% of monthly rent; full management about 8–15% + VAT (London higher).
- Tenant Fees Act 2019 (England) bans most tenant admin fees — costs often shift to landlords.
- Allowable agent fees are usually tax-deductible against rental income — keep invoices for Self Assessment.
Understanding letting agent fees protects your yield. Start with service level, then convert every quote into an all-in annual cost for your rent. The bands below are typical 2026 ranges — always confirm locally in writing.
Typical letting agent fees side-by-side
Illustrative UK bands (not a live agent quote). Use them to sanity-check any schedule — thenshortlist regulated agents near your postcode.
Let only
Tenant find
4–8%
of first year’s rent (one-off) or ~£400–£1,500
On £1,200/mo ≈ £576–£1,152 once
- Marketing & viewings
- Referencing
- Tenancy setup
Mid tier
Rent collection
5–10%
of monthly rent (+ VAT where applicable)
On £1,200/mo ≈ £720–£1,440 / year
- Tenant find elements
- Rent processing
- Arrears chasing
Most common for distant landlords
Most hands-off
Full management
8–15%
of monthly rent (+ VAT) — London often higher
On £1,200/mo ≈ £1,152–£2,160 / year before extras
- Rent collection
- Repairs coordination
- Inspections & day-to-day
Worked example — £1,200 per month rent
Rough pounds before inventory, renewals or contractor mark-ups. VAT shown where the management percentage usually attracts it.
| Service (example rate) | How we got there | About |
|---|---|---|
| Tenant find (one-off mid) | 6% of £14,400 | £864 |
| Rent collection (8% + VAT) | 8% × £1,200 × 12 × 1.2 | £1,382 |
| Full management (12% + VAT) | 12% × £1,200 × 12 × 1.2 | £2,074 |
A “cheaper” 10% that excludes renewals and marks up contractors can cost more than a clearer 12% inclusive schedule. Price the whole year, not the brochure percentage.
