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How Much do Letting Agents Charge Landlords

Letting Landlords
Posted in   Apr 15 , 2025
How Much do Letting Agents Charge Landlords

Landlords considering letting a property in the UK know that the process can be rewarding but demanding. The most common way landlords handle multiple properties outside their living areas is by hiring reliable and cost-effective letting agents. If you’re thinking about managing your properties but don’t know how much letting agents charge landlords, and what you're paying them for, here’s a brief breakdown of how the fees are calculated and whether it’s worth the investment. 

The Standard Fee Structure: What to Expect

The fee structure in the UK depends on the list of services provided, which is why most companies offer 3-tier services: finding tenants, collecting rent, and managing the entire property. Each service has a different price structure and responsibilities. 

If we talk about finding tenants only service, companies charge around 75% to complete 100% of one month's rent, along with added VAT. The services included in this tier include marketing the property, handling viewings, background checks of the tenants, and drafting tenancy agreements. 

Next comes the rent collection service, where the estate agents collect the rent on your behalf and even chase the arrears if needed. This service will cost landlords around 5%-10% of monthly rent, with additions that include tenant finding fees. 

For landlords who opt for complete managed services, the most viable option is an estate agent who charges between 10% and 15% of their monthly rent. The services include every aspect, ranging from property maintenance and inspection to handling the queries of tenants, checking local council compliance, and any emergencies.

Location Matters

Like the property prices, the fees of letting agents can also vary as per the location. For example, in London and other areas with high demand, agents charge higher to manage a full service and push to go ahead 15%, depending on how premium the the property is and what management is required there.

Whereas, the landlords living in the small areas will the rates of agents to be more cost-effective. But, you need to remember that cheap rate does not mean a better service so it’s important to do the homework about your expectations before thinking about the cost and going for a cheap option. 

Are the Fees Regulated?

As per the official Tenant Fees Act 2019, the letting agents were banned to take fees from tenants, however, they are allowed to charge landlords. Agents can set their own pricing as per tier-services provided so it becomes necessary to comapre the services with other agencies before hiring and signing the agreement. 

It is required for letting agents to be a part of a redress scheme like Property Ombudsman or the Property Redress Scheme. Majority of the estate agents are already a part of bodies like ARLA Propertymark that has a list of code to conducts to follow and encourage to have transparency.  

Can You Negotiate?

Yes, letting agent fees are not set in stone. Especially in areas with plenty of competition, many agents are open to negotiation. If you have multiple properties or intend to be a long-term client, you may be able to secure a reduced rate.

It’s always worth asking for a discount or requesting that certain extras be included in the base fee. But do so carefully, choosing an agent solely because they’re the cheapest may backfire if the service turns out to be poor.

Is It Worth Paying for a Letting Agent?

This ultimately comes down to your experience, availability, and how hands-on you want to be. If you’re a new landlord or live far from your rental property, a letting agent can provide peace of mind and ensure you remain compliant with ever-changing regulations.

Full management may seem costly, but for landlords who value time and stress-free income, it can be well worth the expense. On the other hand, if you’re confident in handling tenant queries, legal paperwork, and maintenance issues yourself, a tenant-find only service might suffice.

How Cribs Estates Can Help

At Cribs Estates, we understand that every landlord has different needs. Whether you own one property or a growing portfolio, our letting services are designed to make the process smooth, compliant, and profitable. We offer transparent pricing with no hidden fees, and our experienced team handles everything from finding the right tenant to managing day-to-day maintenance and ensuring legal compliance.

Located in the heart of London, we know the local rental market inside out. Our dedicated lettings experts provide personalised advice, regular updates, and access to trusted contractors, so you can rest easy knowing your property is in safe hands.


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