Letting Agent Fees Explained — Let Only vs Fully Managed in 2026

What Are Letting Agent Fees?

Letting agent fees are the charges landlords pay for professional help marketing a property, finding tenants, and optionally managing the tenancy. Since the Tenant Fees Act 2019 banned most charges to tenants in England, agents now recover their costs entirely from landlords, which has pushed management fees upward across the board.

Most agencies quote fees as a percentage of the monthly rent, though some offer fixed-fee packages for straightforward lets. According to HomeOwners Alliance data from late 2025, the national average let-only fee sits around 8% plus VAT, while fully managed services average 12% plus VAT. In London, however, competition and operating costs mean fees frequently exceed these benchmarks, particularly in prime central postcodes where fully managed fees can reach 15–18% plus VAT.

It is essential to clarify exactly what is included in the headline percentage. Some agents advertise a low management fee but then layer on charges for inventory clerks, check-out reports, renewal fees, and even admin fees for responding to maintenance requests. Always request a full schedule of fees in writing before instructing an agent, and compare the total annual cost rather than the headline rate alone.

Let Only Fees: What You Get and What You Pay

A let-only service (sometimes called tenant-find or introduction-only) covers the work required to place a tenant and start the tenancy, then steps back. This typically includes property marketing across portals such as Rightmove and Zoopla, accompanied viewings, tenant referencing and right-to-check compliance, drafting the tenancy agreement, registering the deposit with a government-approved scheme, and handing over keys and documentation.

Let-only fees in 2026 generally fall between 6% and 10% of the annual rent plus VAT, charged as a one-off payment or occasionally split across the first few months. In practice, a £2,000-per-month London rental would incur a let-only fee of approximately £1,440 to £2,400 plus VAT for the initial letting. Some founder-led agencies such as Seymont London work on transparent fixed-percentage models without renewal or hidden admin charges, which can offer better value for landlords who are confident managing their own tenancies.

The trade-off is straightforward: after the tenant moves in, you are responsible for rent collection, maintenance coordination, periodic inspections, deposit disputes, and compliance with safety regulations including gas, electrical, and Energy Performance Certificate requirements. This model suits experienced landlords with time to spare, properties in good condition, and tenants who pay reliably. It is a false economy if you lack the availability to deal with a broken boiler on a Sunday evening or the knowledge to navigate Section 21 notice reforms.

Fully Managed Fees: Ongoing Service and True Cost

Fully managed lettings services take on the entire tenancy lifecycle. Alongside the initial tenant-find work, a fully managed agent will collect rent and chase arrears, coordinate and sometimes fund emergency repairs, conduct quarterly or biannual property inspections, manage safety certificate renewals, handle deposit deductions and disputes at the end of tenancy, and serve notices or begin possession proceedings if required.

Fees for fully managed packages in 2026 range from 10% to 15% plus VAT of the monthly rent, charged every month for as long as the tenancy runs. Using the same £2,000-per-month example, a 12% fully managed fee would cost £240 plus VAT each month, or £2,880 plus VAT annually. Over a three-year tenancy, that totals more than £8,600 plus VAT — a significant sum, but one that buys peace of mind and regulatory protection if the agent is competent and properly insured.

The devil, as always, is in the detail. Some agents include all maintenance coordination within the headline fee, while others charge a markup on contractor invoices (typically 10–15%) or levy separate fees for arranging works over a certain value. Renewal fees — charging landlords again when an existing tenant signs a new fixed term — were once universal but are now less common; however, many agencies still apply them, sometimes at 25–50% of the original let-only fee. Read the terms of business carefully, and budget for the true annual cost including VAT, markups, and any ancillary charges.

Hidden Costs and Common Traps

Beyond the headline letting agent fees and management fees, several less-obvious costs can inflate your total outlay. Inventory and check-in fees, often presented as mandatory, can add £200–£500 depending on property size, and check-out reports carry similar charges. Some agents require landlords to use their in-house maintenance contractors or approved supplier panels, which may not offer competitive rates.

Renewal fees remain a particular bugbear. While a few progressive agencies have abolished them entirely, many still charge landlords when a sitting tenant renews for another fixed term, despite minimal work being involved. These fees can range from £150 to several hundred pounds, and over a ten-year tenancy with multiple renewals, they add up to a material sum that is rarely highlighted at the outset.

Another trap is the notice period in management contracts. Some agencies lock landlords into 12-month terms with onerous exit clauses, making it difficult to switch if service levels drop. According to Which? research published in early 2025, nearly one in five landlords reported dissatisfaction with their letting agent, citing poor communication and slow maintenance responses as the primary complaints. Always check the contract term and notice provisions, and avoid agents who demand more than three months' notice to terminate a fully managed agreement.

Which Service Should You Choose?

The choice between let-only and fully managed depends on three factors: your experience, your available time, and the condition and location of your property. Experienced landlords with a single well-maintained property nearby, a trusted plumber and electrician on speed-dial, and confidence navigating tenancy law may find a let-only fee represents better value, particularly if they can avoid renewal fees by managing subsequent tenancies themselves.

Conversely, landlords with multiple properties, those living abroad or far from their rental, or anyone who simply values their evenings and weekends will usually find the extra cost of full management worthwhile. The key is to calculate the true annual difference — often smaller than it first appears once you factor in your own time, the risk of compliance errors, and the cost of mistakes such as invalid Section 21 notices or unprotected deposits.

Don't assume the cheapest option is the best. A low management fee coupled with high contractor markups, renewal fees, and poor service can cost more — in money and stress — than a slightly higher headline rate from a responsive, transparent agent. Look for agencies that publish clear fee schedules, hold Client Money Protection and belong to a recognised redress scheme such as The Property Ombudsman, and can demonstrate a track record of regulatory compliance and landlord satisfaction.

Getting the Best Value in 2026

To secure competitive letting agent fees without sacrificing service, start by obtaining at least three written quotations that break down every charge, including VAT, inventory, renewals, and any contractor markups. Ask how often inspections take place, what the average time to arrange a repair is, and whether you will have a dedicated property manager or a rotating call-centre team.

Check online reviews, but also ask for references from current landlord clients — a reputable agent will happily connect you with others on their books. Verify that the agency is registered for Client Money Protection (a legal requirement since 2019) and holds professional indemnity insurance; both should be easy to confirm and prominently displayed.

Finally, remember that letting agent fees are tax-deductible as an allowable expense against your rental income, so the net cost after tax relief is lower than the gross figure. For a higher-rate taxpayer, a £2,880 annual management fee costs closer to £1,730 after tax relief, which can make the difference between let-only and fully managed feel more palatable. For specialist support and a transparent fee structure, explore our [landlord services](/landlord-services) or review what is included in our [fully managed](/landlord-services/fully-managed) and [property management](/property-management) packages.

Thinking about selling or letting in London? Book a free, no-obligation valuation with our team at [seymont.co.uk/valuation](/valuation) and we'll walk you through your options with complete honesty.