{"id":1477,"date":"2025-07-15T16:31:52","date_gmt":"2025-07-15T16:31:52","guid":{"rendered":"https:\/\/www.simplybusiness.co.uk\/knowledge\/tenants\/lettings-agency-fees-for-landlords\/"},"modified":"2025-07-15T16:31:53","modified_gmt":"2025-07-15T16:31:53","slug":"letting-agent-fees-for-landlords","status":"publish","type":"knowledge","link":"https:\/\/www.simplybusiness.co.uk\/knowledge\/tenants\/letting-agent-fees-for-landlords\/","title":{"rendered":"Letting agent fees for landlords \u2013 a simple guide"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Letting agents can be useful, but they can be expensive too. Many landlords rely on them to manage their property, collect rent, or just find tenants.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But what do letting agents do? And crucially, what are the average letting agent fees (or letting agency fees) for landlords?<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"wp-block-list-item\"><a href=\"#what-are\">What are letting agent fees?<\/a><\/li>\n\n\n\n<li class=\"wp-block-list-item\"><a href=\"#common\">Common types of letting agent fees<\/a><\/li>\n\n\n\n<li class=\"wp-block-list-item\"><a href=\"#how-much\">How much are letting agent fees?<\/a><\/li>\n\n\n\n<li class=\"wp-block-list-item\"><a href=\"#average\">Average cost of letting agent fees<\/a><\/li>\n\n\n\n<li class=\"wp-block-list-item\"><a href=\"#self-managing\">Using a letting agent vs self-managing<\/a><\/li>\n\n\n\n<li class=\"wp-block-list-item\"><a href=\"#ban\">Ban on letting agent fees (for tenants)<\/a><\/li>\n\n\n\n<li class=\"wp-block-list-item\"><a href=\"#holiday\">Holiday letting agent fees<\/a><\/li>\n\n\n\n<li class=\"wp-block-list-item\"><a href=\"#faqs\">Letting agent fees FAQs<\/a><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-are\">What are letting agent fees for landlords?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Letting agent fees are payments that landlords make to letting agents for the services they provide.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Letting agent fees (as well as the services included) differ from one letting agent to another, but typically landlords pay the letting agent for things like finding tenants, <a href=\"https:\/\/www.simplybusiness.co.uk\/knowledge\/tenants\/tenant-referencing-guide-for-landlords\/\" data-type=\"knowledge\" data-id=\"971\" >reference check<\/a>s, and property management.<\/p>\n\n\n\n<div class=\"wp-block-group has-azure-200-background-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-30c80bf8 wp-block-group-is-layout-constrained\" style=\"border-radius:35px;margin-top:var(--wp--preset--spacing--90);margin-bottom:var(--wp--preset--spacing--90);padding-top:var(--wp--preset--spacing--90);padding-right:var(--wp--preset--spacing--90);padding-bottom:var(--wp--preset--spacing--90);padding-left:var(--wp--preset--spacing--90)\">\n<h2 class=\"wp-block-heading\" id=\"common\">The 3 most common types of letting agent fees<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">You can choose different levels of service from your letting agent depending on how much you\u2019re willing to spend \u2013 and whether you have the time to manage some of the details yourself.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The three most common types of letting agent fees are for:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li class=\"wp-block-list-item\">Finding tenants (let only)<\/li>\n\n\n\n<li class=\"wp-block-list-item\">Rent collection<\/li>\n\n\n\n<li class=\"wp-block-list-item\">Full property management<\/li>\n<\/ol>\n<\/div>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Fee<\/strong><\/td><td><strong>Services included<\/strong><\/td><\/tr><tr><td>Finding tenants<\/td><td>Finding tenants for your property, completing tenant referencing, drawing up a tenancy agreement, and collecting a security deposit<\/td><\/tr><tr><td>Rent collection<\/td><td>Includes all tenant-find services, plus collecting rent each month, and following up on any rent arrears<\/td><\/tr><tr><td>Full property management<\/td><td>Includes all tenant-find and rent collection services, plus maintenance and repairs. The agent will also act as the main point of contact for your tenants<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-much\"><strong>How much are letting agent fees for landlords?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The fees you pay will depend on the services you choose, and you may pay them as a flat fee or as a percentage of your rent.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you want to manage most aspects of the tenancy yourself, you may only need to pay a letting agent to find tenants for you. This is likely to be a one-off payment of a few hundred pounds.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But if you\u2019re looking to take a more hands-off approach, you\u2019ll need to pay the agent a full management fee. This is likely to cost you between \u00a31,000 and \u00a32,000 a year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Fees also vary depending on the location of the property, and the agency you choose. For example, letting agent fees in London and other big UK cities are often higher.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s important to note that you may also have to pay a setup or administration fee.<\/p>\n\n\n\n<div id=\"nba-body-001\">\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"average\">Average letting agent fees for landlords<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The amount you pay will depend on the level of service you\u2019re getting, but this is a rough guide to letting agency fees for landlords:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Fee<\/strong><\/td><td><strong>Typical cost<\/strong><\/td><\/tr><tr><td>Finding tenants<\/td><td>A one-off fee that can be as high as one month\u2019s rent<\/td><\/tr><tr><td>Rent collection<\/td><td>Usually charged as a percentage of the rent, between 5% and 10%<\/td><\/tr><tr><td>Full property management<\/td><td>Usually charged as a percentage of the rent, up to 20%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">For example, if you charge a monthly rent of \u00a3950, your letting agent fees could cost:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"wp-block-list-item\">a one-off fee of up to \u00a3950 for finding tenants<\/li>\n\n\n\n<li class=\"wp-block-list-item\">a monthly fee of between \u00a350 and \u00a395 for rent collection<\/li>\n\n\n\n<li class=\"wp-block-list-item\">a monthly fee of up to \u00a3200 for property management<\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-group has-azure-300-background-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-69910985 wp-block-group-is-layout-constrained\" style=\"border-radius:10px;padding-top:var(--wp--preset--spacing--20);padding-right:var(--wp--preset--spacing--90);padding-bottom:var(--wp--preset--spacing--50);padding-left:var(--wp--preset--spacing--90)\">\n<p class=\"wp-block-paragraph\">We\u2019ve also looked at the prices of a large letting agent in the UK, Andrews:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"wp-block-list-item\"><strong>let only:<\/strong> 12 per cent of the total rent<\/li>\n\n\n\n<li class=\"wp-block-list-item\"><strong>rent collection:<\/strong> 15 per cent of the total rent<\/li>\n\n\n\n<li class=\"wp-block-list-item\"><strong>full management:<\/strong> 18 per cent of the total rent<\/li>\n<\/ul>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"self-managing\">Letting agent vs self-managing \u2013 what\u2019s best for landlords?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">There\u2019s no requirement for you to have a letting agent. In fact, many landlords choose to manage the entire lettings process themselves. Your choice here will depend on a range of factors, including your proximity to the property, and the level of service that you\u2019d otherwise need from an agent.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, if you simply don\u2019t have the time to take on the management side, you might need to work with an agent to keep up with general maintenance. However, if you just need someone to help you find tenants, you might well be able to do this yourself.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here are some of the pros and cons of using a letting agent vs self-managing:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><\/td><td><strong>Pros<\/strong><\/td><td><strong>Cons<\/strong><\/td><\/tr><tr><td>Letting agent<\/td><td>More hands-off, more professional<\/td><td>More expensive, less control<\/td><\/tr><tr><td>Self-management<\/td><td>Cheaper, more control, potentially a better relationship with tenants<\/td><td>More time-consuming, less professional, potentially more stressful<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"ban\">Ban on letting agent fees for tenants<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.gov.uk\/government\/collections\/tenant-fees-act\" target=\"_blank\" rel=\"noreferrer noopener\" rel=\"noopener noreferrer\" target=\"_blank\">The Tenant Fees Act 2019<\/a> came into force on 1 June 2019. This means that most fees for tenants are now banned, including those applied to assured shorthold tenancies, student housing, and lodger agreements.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At the time, it was widely reported that letting agents would pass the costs on to landlords in the form of higher management fees. It was suggested that this could encourage landlords to increase rents, or force landlords to sell their properties due to rising costs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Since 2019, average rents have continued to rise as the shortage of rental properties has worsened.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A combination of factors could be responsible for more landlords selling up, including rising interest rates and increased regulation such as the <a href=\"https:\/\/www.simplybusiness.co.uk\/knowledge\/landlord-regulation\/renters-rights-bill\/\" data-type=\"knowledge\" data-id=\"25235\" >Renters\u2019 Rights Bill<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, despite challenging conditions, landlords can still generate solid rental yields thanks to high average rents and fierce competition for available properties.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"holiday\">Holiday letting agent fees<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Finally, what about letting agent fees for holiday lets? Usually agents will charge commission on each holiday booking made through them, which can be anything from 15 to 25 per cent.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Make sure you know what\u2019s included in the fee, for example services can stretch to cleaning and maintenance as well as dealing with admin, enquiries, and key collection.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Read our <a data-type=\"knowledge\" data-id=\"1182\" href=\"\/knowledge\/tenants\/guide-to-holiday-let-agents\/\">guide to holiday let agents<\/a> for more information.<\/p>\n\n\n\n<div class=\"wp-block-group has-azure-200-background-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-30c80bf8 wp-block-group-is-layout-constrained\" style=\"border-radius:35px;margin-top:var(--wp--preset--spacing--90);margin-bottom:var(--wp--preset--spacing--90);padding-top:var(--wp--preset--spacing--90);padding-right:var(--wp--preset--spacing--90);padding-bottom:var(--wp--preset--spacing--90);padding-left:var(--wp--preset--spacing--90)\">\n<h2 class=\"wp-block-heading\" id=\"h-letting-agent-fees-4-key-takeaways\">Letting agent fees \u2013 4 key takeaways<\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li class=\"wp-block-list-item\">Using a letting agent can save landlords time and hassle \u2013 but it will cost<\/li>\n\n\n\n<li class=\"wp-block-list-item\">Landlords typically use letting agents for finding tenants, collecting rent, or full property management<\/li>\n\n\n\n<li class=\"wp-block-list-item\">Letting agent fees can vary depending on your service, agent, and location<\/li>\n\n\n\n<li class=\"wp-block-list-item\">Fees can be charged as a one-off cost or a monthly percentage of your rent<\/li>\n<\/ol>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"faqs\">Letting agents fees \u2013 landlord FAQs<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-is-it-worth-using-a-letting-agent\">Is it worth using a letting agent?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Using a letting agent can be beneficial for landlords. It can save them time and allow them to have a more hands-off approach to renting out a property. Letting agents can also provide a professional service and help landlords keep up to date with regulation and compliance.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On the other hand, using a letting agent can be costly and leave landlords feeling like they have less control over their property.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ultimately, it depends on whether you want to manage your property yourself or get help with certain aspects of the process.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-much-do-letting-agents-charge-for-full-management\">How much do letting agents charge for full management?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Letting agents usually charge a percentage of the landlord\u2019s rent each month for full management. Fees can vary from between 10 per cent and 20 per cent of the rent.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-much-do-letting-agents-charge-a-month\">How much do letting agents charge a month?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">How much letting agents charge landlords a month depends on the agent, the service they provide, and the location of the property.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Tenant-finding services can cost as much as one month\u2019s rent, while rent collection and full management are charged at between five per cent and 20 per cent of the monthly rent.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-is-full-management\">What is full management?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Full management refers to a property management service offered by letting agents. It usually includes services such as finding tenants, managing contracts, collecting rent, managing maintenance and repairs, and being the main point of contact with the tenant.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-is-tenant-find-only\">What is tenant-find only?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Tenant-find only is a service provided by letting agents whereby they find tenants to live in a landlord\u2019s property. The service also usually includes tenant referencing and drawing up contracts.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Landlords that use this service have to handle things like rent collection and property maintenance themselves.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Useful guides for buy-to-let landlords<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"wp-block-list-item\"><a href=\"\/knowledge\/landlord-regulation\/rules-for-landlords-2026\/\" data-type=\"knowledge\" data-id=\"1066\">How to become a landlord<\/a><\/li>\n\n\n\n<li class=\"wp-block-list-item\"><a href=\"\/knowledge\/buying-and-selling\/best-buy-to-let-areas\/\" data-type=\"knowledge\" data-id=\"1335\">Best buy-to-let areas in the UK<\/a><\/li>\n\n\n\n<li class=\"wp-block-list-item\"><a href=\"\/knowledge\/landlord-tax\/tax-on-rental-income\/\" data-type=\"knowledge\" data-id=\"1545\">How to do a landlord tax return: a 6-step guide<\/a><\/li>\n\n\n\n<li class=\"wp-block-list-item\"><a href=\"\/landlord-insurance\/faq\/what-is-landlord-insurance\/\">What is landlord insurance?<\/a><\/li>\n<\/ul>\n\n\n\n<div id=\"nba-upsell-001\" class=\"wp-block-group has-azure-200-background-color has-background has-global-padding is-layout-constrained wp-container-core-group-is-layout-94e519ba wp-block-group-is-layout-constrained\" style=\"padding-top:var(--wp--preset--spacing--80);padding-right:var(--wp--preset--spacing--40);padding-bottom:var(--wp--preset--spacing--80);padding-left:var(--wp--preset--spacing--40)\">\n<h3 class=\"wp-block-heading has-text-align-center\" id=\"getsetwithtailoredlandlordcover\">Get set with tailored landlord cover<\/h3>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\">Over 200,000 UK landlord policies, a 9\/10 customer rating and claims handled by an award-winning team. Looking to switch or start a new policy? Run a quick <a href=\"\/landlord-insurance\/\" data-type=\"page\" data-id=\"1608\">landlord insurance quote<\/a> today.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-a89b3969 wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/quote.simplybusiness.co.uk\/landlord\">Start your quote<\/a><\/div>\n<\/div>\n<\/div>\n\n\n\n<div id=\"nba-body-end\">\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Letting agent fees for landlords can vary depending on the service provided.<\/p>\n","protected":false},"author":3,"featured_media":18385,"comment_status":"open","ping_status":"closed","template":"","meta":{"sb_hreflang":"","sb_hreflang_url":"","disable_breadcrumbs":false,"sb_breadcrumbs":[],"sb_reviewed_by":"","sb_review_date":"","sb_enable_content_gating":true,"footnotes":""},"categories":[331],"hidden-category":[],"coauthors":[20],"class_list":["post-1477","knowledge","type-knowledge","status-publish","has-post-thumbnail","hentry","category-tenants"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.2 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Letting agent fees for landlords \u2013 a simple guide<\/title>\n<meta name=\"description\" content=\"What letting agent fees do landlords pay in the UK? 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