Letting agents typically charge landlords fees based on the level of service provided, generally as a percentage of the monthly rent. These fees can vary widely, but common structures include:
- Let-Only Service (finding tenants): Around 50% to 80% of the first month's rent, sometimes a flat fee.
- Rent Collection Service: Typically 5% to 12% of the monthly rent.
- Full Property Management: Ranges from 8% to 20% of the monthly rent, with most agents charging between 12% and 15%, higher in major cities like London.
Additional fees may include setup fees, inventory checks (£100-£250), renewal fees (£50-£150 or a percentage of rent), and other administrative charges. Tenants in England face limited fees due to the Tenant Fees Act 2019, mainly paying deposits and rent, with most service fees being banned. Overall, landlords should expect to pay between about 8% and 20% of monthly rent depending on services chosen and location, with London generally at the higher end. These fees are tax deductible for landlords as a business expense.
