Letting fees can quickly become complicated if the percentages and a few extras do not match up exactly. For landlords living in the UK, this guide is a breakdown for both parties, so everyone knows what they are paying for. Let’s start by looking at what is working in the market and how you can keep more rent for yourself whilst staying as per UK rules. 

What are you actually paying for?

Letting fees that landlords pay to agents are to find out the tenants or manage the tenancy. Following the Tenant Fees Act 2019, most fees to tenants were banned in England, leaving the bulk of charges to be borne by the landlord. 

The three common service levels 

1) Tenant-finding

The agent markets the property, handles enquiries and viewings, references tenants, completes Right to Rent checks, prepares the tenancy agreement, takes the first rent and deposit, and hands over keys. Ongoing management is over to you. Right to Rent checks are a legal must, with updated Home Office guidance in 2025.

2) Rent Collection

Everything in Let Only, plus the agent collects monthly rent, chases arrears, and produces statements. You still manage repairs.

3) Fully Managed

The agents are responsible for complete management, including maintenance coordination, compliance scheduling (gas safety, EICR, EPC), inspections, renewals, deposit dispute handling, and serving notices where required. The average fee for this service in the UK is around 10–15% of monthly rent (before VAT), depending on location and complexity. 

What influences the fee?

There are multiple factors, including:

• Prime London and HMOs usually cost more to manage.

• HMOs/room-lets involve more tenants, bills, and safety checks.

• Photos, floor plans, portal coverage, inspections, out-of-hours, deposit dispute handling, and compliance reminders all add up to more fees.

• Inventory, check-in/out, legal notices, and certificate costs also add up. 

How do agents calculate fees?

Agents can either charge a percentage of rent or a fixed fee. Market norms for fully managed services typically range from 10–15% plus VAT. To better understand this calculation, here’s an example using a London rent:

• Monthly rent: £1,800

• Fully managed fee at 12% = £216

• VAT at 20% = £43.20

• Total monthly fee = £259.20

• Annual cost = £3,110.40

If you chose a let-only service at 7% of the first year’s rent on the same property:

• Annual rent: £21,600

• 7% fee = £1,512

• VAT = £302.40

• One-off total = £1,814.40

The legal guardrails that affect fees

• Tenant Fees Act 2019: bans most tenant charges and caps deposits; landlords should expect to bear the legitimate costs of letting.

• Right to Rent checks: Landlords (or their agents) must verify prospective tenants’ right to rent; guidance was updated in June–July 2025.

How Cribs Estates is helping landlords

Cribs Estates has been working locally in the UK for over a decade now, helping landlords with complete letting management. They have a clear and affordable fee structure with 3 tiers for the landlords:

• Let Only: 7% (plus VAT): marketing across major portals and social channels, professional photos/floor plan/virtual tour, viewings, referencing (via reputable agencies), Right to Rent, AST signing, first rent and deposit handling, and handover.

• Rent Collection: 9% (plus VAT): everything in Let Only plus monthly rent collection, arrears chasing, statements, and renewals.

• Fully Managed: 12% (plus VAT): all of the above plus repairs coordination, compliance scheduling (Gas Safety, EICR, EPC, PAT), periodic inspections (typically 6–12 months), deposit disputes, guidance on serving notices, and general legislative updates.

Cribs also charges separately for other services, such as HMO licence application preparation, legal notices (Section 8/21), inventory check-in, and certificate costs, with a note that all fees are subject to 20% VAT. This lets you budget correctly and avoid surprises.

Should landlords choose agents?

Yes! As a landlord, it is mandatory these days to get agents to work for you, whilst you can focus on building your portfolio. Moreover, it helps with:

• Getting the marketing done in the right direction to minimise void times.

• Ensuring all properties comply with relevant regulations, including Gas, Safety, EICR, and EPC, to avoid any issues.

• Maintaining the property in the right way involves obtaining all necessary approvals, conducting inspections, generating reports, renewing licenses, and making deposits. 

• Obtaining a tailored HMO management service that guarantees rent every month.

Contact Cribs Estates to discuss a plan with affordable letting agent fees tailored to your property's needs.