How Much Do Letting Agents Charge In 2025?

Letting a property comes with many responsibilities, and for landlords who prefer a hands-off approach, hiring a letting agent can be an attractive option. But how much do letting agents charge, and what exactly do these fees cover?

Understanding the fees charged by letting agents is essential before committing to a service. While average letting agent fees (UK) vary depending on the level of service, location, and agency, they can significantly impact a landlord’s profitability. 

In this guide, we’ll break down typical property management fees, explore ways to reduce or eliminate letting agent fees with software like Landlord Studio, a property management platform that helps landlords take full control of their rental operations while cutting costs and maximising profits. 

Understanding Letting Agent Fees

Letting agent fees are the costs landlords pay for professional property management services. These fees are typically charged as a percentage of the monthly rent or as fixed one-off fees for specific services like tenant sourcing or inventory preparation.

How Much Do Letting Agents Charge in the UK?

On average, the average letting agent fees (UK) are:

• Tenant Find Only: 8% to 12% of the annual rent or a one-off fee (typically £500-£1,500).
• Rent Collection Services: 5% to 8% of monthly rent, where the agent collects payments and handles arrears.
• Full Management: 10% to 15% of monthly rent, covering maintenance, inspections, compliance, and tenant relations.

For a rental property generating £1,200 per month, a full management service at 12% would cost around £144 per month or £1,728 per year. This highlights why landlords must carefully evaluate whether letting agent fees are justifiable for their circumstances.

Breakdown of Common Letting Agent Fees

Tenant Find Fee (Letting Fee)

The letting fee covers marketing, property viewings, and securing tenants. This service is ideal for landlords who are comfortable managing the property themselves but need help finding suitable tenants. The cost is typically 8% to 12% of the annual rent or a fixed fee of around £500 to £1,500.

Tenant Referencing Fee

Although landlords cannot charge tenants for referencing due to the Tenant Fees Act 2019, some letting agents charge landlords for background and affordability checks. This may be included in the tenant find service or charged separately, often ranging from £50 to £150 per applicant.

Property Management Fees

Property management fees cover day-to-day tasks such as rent collection, repairs, and inspections. These fees typically range from 10% to 15% of monthly rent and may include:

• Handling maintenance requests
• Managing disputes and evictions
• Ensuring compliance with safety regulations

Inventory Fee

A detailed inventory protects landlords from disputes over property conditions. Agents often charge between £100 and £250 for an inventory check.

Tenancy Renewal Fees

Some agents charge a renewal fee when extending a tenancy agreement. This can be a fixed fee (e.g., £100-£250) or a percentage of the monthly rent (often 5%).

Void Period Management Fee

Some letting agents charge a fee to manage the property during void periods, covering security and basic maintenance. This is often a fixed fee or a percentage of the rent that would have been due.

Factors Affecting Letting Agent Fees

The average estate agent fees vary greatly based on several factors including:

• Location: London and high-demand areas tend to have higher average estate agent fees due to higher rents and increased demand for management services.
• Service Level: Full management is more expensive than tenant find-only services.
• Property Size & Type: Larger properties or HMOs (Houses in Multiple Occupation) require more management, leading to higher costs.
• Reputation of the Agent: Established agencies with strong track records often charge higher letting agent fees.

How to Avoid Letting Agent Fees

Hiring a letting agent is not the only way to manage rental properties. Many landlords successfully self-manage their properties, saving thousands in fees each year. With the right tools, managing a rental property can be straightforward and cost-effective.

Benefits of Self-Managing Your Rental Property

• Save Thousands Per Year: Avoiding property management fees can significantly increase rental income.
• Direct Control Over Tenants & Maintenance: Communicate directly with tenants and ensure maintenance is handled efficiently.
• More Transparency Over Finances: No hidden fees or unexpected charges from a third-party agent.

Self-Managing Your Property with Landlord Studio

Managing your rental property doesn’t have to be complicated. Landlord Studio provides an all-in-one solution for landlords looking to eliminate letting agent fees and operate at maximum efficiency. 

With Landlord Studio, you can:

• Reduce Late Rent: Stay on top of upcoming and overdue payments and create automated rent reminder emails to chase late rent.
• Track Income and Expenses: Digitise receipts and automate income and expense tracking with bank feeds.
• Generate Tax Reports: Simplify tax filing with customisable financial reports - and make sure you’re MTD-ready with digital record-keeping software designed for you.
• Store Digital Tenancy Agreements & Compliance Certificates: Keep all important documents in one place.
• Manage Maintenance Requests: Track, prioritise, and manage maintenance and repairs efficiently.

By using Landlord Studio, landlords can take full control of their property investments, reduce letting agent fees, and in turn, make more profit. 

Should You Pay Letting Agent Fees?

Understanding how much letting agents charge is invaluable to any landlord looking to maximise their rental income. While letting agents provide convenience, their fees can significantly reduce profitability.

Before hiring an agent, it’s always worth:

• Comparing average letting agent fees to find the best value for services. 
• Considering self-managing with Landlord Studio to avoid property management fees.
• Weighing the benefits of full management vs. tenant-find services based on their needs.

So how much do letting agents charge in your area? If the answer is, ‘too much’, why not try Landlord Studio today for a smarter way to manage your properties?