Letting agent fees in England are not regulated, so they vary a lot. Two agents on the same high street can charge very different amounts for what looks like the same service, and the headline percentage is rarely the whole story. This guide sets out what landlords are paying in 2026, where the extra charges hide, and what a fair fee should include.
The three services and what they usually cost
Most agents sell three levels of service. The names vary, but the structure does not.
| Service | What the agent does | Typical fee in England |
|---|---|---|
| Let only | Markets the property, finds and references a tenant, sets up the tenancy | 8% to 12% of the first year's rent, or a fixed fee of roughly £500 to £1,500 |
| Rent collection | Let only plus collecting the rent, chasing arrears and sending statements | 8% to 12% of rent, ongoing |
| Fully managed | Everything above plus repairs, inspections, compliance and the tenant relationship | 10% to 18% of rent, ongoing |
Central London sits at the top of those ranges and sometimes above them. Outside London, a fully managed fee of 12% to 15% including VAT is common for a single property. Portfolio landlords can usually negotiate.
Check whether VAT is included
This is the oldest trick in the trade. A fee advertised as 12% often means 12% plus VAT, which is 14.4%. On £1,200 a month that is £29 a month more than you thought, every month, for as long as the tenancy runs. Ask every agent to quote including VAT and compare on that basis. Our own fees are published including VAT for that reason.
The extras that change the real cost
The management percentage is often the smallest part of what a landlord pays over a tenancy. These are the charges to ask about before you sign.
- Tenancy set-up or admin fee. Some agents charge £200 to £500 on top of the let only fee for drawing up the agreement and serving the statutory documents. That work is the let only service, so ask why it is billed twice.
- Renewal fees. Historically the biggest earner. Since 1 May 2026 all tenancies in England are periodic under the Renters' Rights Act, so there is no fixed term to renew. If an agent still lists a renewal fee, ask what it is for.
- Inventory, check-in and check-out. Reasonable to charge for, because they take time and protect your deposit position. £100 to £250 is normal for an inventory on a two-bedroom property. Some agents include them in the management fee.
- Contractor mark-ups. Some agents add 10% to 15% to every repair invoice, sometimes without saying so. Ask whether contractor invoices are passed on at cost, and ask to see the original invoice, not a summary line on your statement.
- Certificates. Gas safety, electrical inspection and energy performance certificates all have to be done. The question is whether the agent charges a fair arranging fee or a large margin on top of the contractor's price.
- Rent review and notice fees. Serving a Section 13 rent increase notice takes ten minutes. Some agents charge £50 to £100 for it. Others charge for serving a possession notice, which is more defensible because it has to be right.
- Withdrawal and termination fees. Read what happens if you leave. Some agreements require three months' notice and a fee equal to several months' commission. A few still contain a clause entitling the agent to commission if your tenant ever buys the property. Strike it out.
- Rent guarantee insurance. Useful for some landlords, but it is a product sold on commission. Check the price against buying it directly.
What a fair full management fee should include
If you are paying 12% to 15% including VAT, you should expect all of the following without further charge.
- Marketing on the main portals with professional photography
- Referencing, right to rent checks and a compliant tenancy agreement
- Rent collected and paid to you within a fixed number of working days, with a statement
- Arrears chased from the first missed payment, with a written record
- Repairs arranged, quoted, approved by you above an agreed float, and checked when done
- Inspections at least twice a year, with photographs
- Certificates tracked and renewed before they expire
- An annual rent review and the Section 13 notice served correctly
- Pet requests answered within the 28 days the law now requires
- A named person who picks up the phone
Anything on that list that appears as a separate line on the tariff is a reason to ask questions.
Is the fee worth it?
On £1,200 a month, a 15% management fee is £180 a month or £2,160 a year, and it is tax deductible against rental income. Against that, a single mistake now costs more than it used to. A tenancy set up without the right documents can leave you unable to regain possession. Letting without a required licence can mean a rent repayment order of up to two years' rent. A rent increase served on the wrong form is void and you wait another year.
A good agent is not cheap and does not need to be. The question is whether the fee buys the things above, in writing, from people you can reach. For a straight comparison of our three services, see what we charge, or request a proposal and we will send a written quote for your property within two working days.