Letting agent fees, explained properly

What the market really charges

Across the five cities we rank, only thirteen agencies out of forty eight publish a landlord tariff at all. Those thirteen are the basis of everything below, because a range built from agencies that will not name a price is a range built from guesswork.

For full management, published tariffs run from ten point eight percent to fifteen point six percent of rent including VAT. The single commonest figure is twelve percent including VAT, which is how ten percent plus VAT looks once the tax is added. One agency, in Edinburgh, tapers its fee down over time and reaches seven point two percent including VAT for landlords who stay seven years or more, which is the only arrangement of its kind we have found anywhere.

Rent collection, without repairs or inspections, runs from seven point two to nine point six percent including VAT. Tenant find, where the agency hands the property back to you once someone moves in, is usually priced as a percentage of the first month's rent, between seventy five and one hundred and twenty percent, or as a flat fee from around five hundred pounds.

Thirteen published tariffs

Every figure below comes from the agency's own published material and was checked on 1 or 2 August 2026. Where a tariff is quoted plus VAT, that is how the agency states it, and the VAT section below explains why that matters.

Two things stand out. The cheapest ongoing rate and the dearest are more than four percentage points apart, and the upfront charge varies from one hundred and forty nine pounds to most of a month's rent. The second of those catches more landlords than the first.

The VAT trap

This is the single most common misunderstanding in letting, and it is entirely avoidable.

Some agencies quote plus VAT. Some quote including VAT. At the standard rate of twenty percent, ten percent plus VAT is twelve percent including VAT, and twelve percent plus VAT is fourteen point four percent including VAT. So an agency quoting twelve percent and an agency quoting twelve percent plus VAT are two percentage points apart, and on a one thousand pound rent that is two hundred and forty pounds a year.

Notice what this does to the table above. Thornley Groves quoting fourteen point four percent including VAT looks dearer than an agency quoting twelve percent plus VAT, but they are the identical rate stated two different ways. Thornley Groves is simply being clearer about it.

A worked example on 1,000 pounds a month

Take a flat let at one thousand pounds a month, on a twelve month tenancy, with four real tariffs from the table.

The gap between the cheapest and the dearest is one thousand one hundred and thirty four pounds in year one, and four hundred and thirty two pounds in every year after that. Over five years, assuming one tenancy change with a fresh marketing charge, the difference runs past two thousand five hundred pounds.

That is a real difference. It is also less than three void months. Weigh it accordingly.

The upfront charge nobody talks about

The monthly percentage is what gets negotiated. The upfront charge is where the money actually is, and it recurs every time the tenant changes.

Across the published tariffs it takes three forms. A flat fee, from one hundred and forty nine pounds to five hundred pounds plus VAT. A percentage of the first month's rent, from fifty percent to one hundred and twenty percent. Or a percentage with a floor, such as ninety percent of the first month including VAT with a minimum of seven hundred and eighty pounds, rising to nine hundred pounds in a city centre or student area.

That last structure is the one to watch, because the minimum bites hardest on lower rents. On a six hundred pound flat, a minimum of seven hundred and eighty pounds is one hundred and thirty percent of a month's rent, not ninety.

Ask what triggers the charge again. A new tenant almost always does. A renewal with the same tenant sometimes does, at anything from ninety pounds to two hundred and forty pounds, and sometimes does not.

The charges that appear later

These are the ones that turn a quoted percentage into an actual bill. Every figure here is from a real published tariff.

• Inventory. Ninety five pounds to one hundred and fifty pounds plus VAT. Sometimes free on a managed service.
• Renewal. Ninety pounds to two hundred and forty pounds, each time the tenancy rolls over.
• Additional property visit. Around sixty pounds beyond the included inspections.
• Work outside the agreement. Typically sixty pounds an hour, which covers insurance claims, major works supervision and tribunal preparation.
• Serving notice. Around twenty five pounds at the cheapest published tariff, more elsewhere.
• Rent review. Around twenty five pounds.
• Year end statement. Fifty pounds plus VAT at one Glasgow agency, which is the sort of charge that usually only surfaces on an invoice.
• Taking over an existing tenancy. Two hundred and fifty to three hundred pounds.
• HMO licence project management. Four hundred and fifty pounds for an initial application and three hundred for a renewal at one Dundee agency, which is genuinely skilled work and fairly priced.
• Refurbishment or works supervision. Often ten percent of the spend, which on a ten thousand pound refit is a thousand pounds.

Ask for the complete schedule, not the headline three. An agency that will not put every charge in one document before you sign is telling you something.

The fee that keeps running after you leave

This clause deserves its own section because it costs more than everything above combined and almost nobody checks for it.

Some agency agreements provide that if the tenant they introduced stays in the property, commission continues to be payable even after you have terminated the agreement and moved to another agent. In its worst form it runs for the life of the tenancy, so you pay two agencies at once, one of which is doing nothing.

Find the termination clause before you sign and ask three questions. What is the notice period. Is anything payable after termination. And does the introduction commission survive if the tenant stays. Get the answers in the agreement rather than in an email.

If you are already in an agreement like this, the clause may be challengeable as an unfair term under the Consumer Rights Act 2015, particularly where it was not brought to your attention. The switching guide covers how to approach that.

What is actually negotiable

More than most landlords assume, and less than the headline percentage.

• The upfront charge. The most negotiable item on the list, particularly if you are bringing more than one property or moving from another agency.
• The renewal fee. Frequently waived if you ask, because the work involved is small.
• The notice period. Three months is common. One month is achievable. Twelve is not reasonable and should be refused.
• The management percentage. Perhaps one point on a single property, more across a portfolio. Do not expect much.
• The post-termination commission clause. Ask for it to be struck out entirely. Some agencies will.

One thing worth paying more for: an agency that publishes its fees at all. Only thirteen of the forty eight agencies we rank do. The willingness to be pinned down on money before you sign tends to travel with the willingness to be pinned down on everything else.