For landlords · 6 min read
Letting agent fees explained: what landlords actually pay
UK letting agents typically charge landlords either a one-off tenant-find fee of around 8–12% of annual rent (often quoted as about one month's rent), or 8–15% of rent every month plus VAT for full management. On top of that sit renewal fees, tenancy set-up or admin fees, inventory and check-out charges. On a £1,500 pcm tenancy, 10% management plus VAT is roughly £2,160 a year, every year the tenant stays. Hilltro charges one flat £49 fee, paid only when you find a tenant, and management is free for life.
Frequently asked questions
How much do letting agents charge landlords in the UK?
Typically 8–12% of annual rent as a one-off tenant-find fee, or 8–15% of monthly rent plus VAT for full management, with renewal, set-up, inventory and check-out fees on top. On a £1,500 pcm tenancy, 10% management plus VAT is roughly £2,160 a year.
Do letting agent fees include VAT?
Usually not. Fees are commonly quoted excluding VAT, so a 10% management fee costs 12% of rent once 20% VAT is added. Always ask for the VAT-inclusive figure in writing.
What is a renewal fee and do I have to pay it?
A renewal fee is charged each time a tenancy is renewed or continues, even though the tenant is already in place. It is contractual, so check your agency agreement — renewal fees are one of the most commonly negotiated or removed charges.
Can a letting agent charge the tenant instead?
No. The Tenant Fees Act 2019 bans charging tenants for referencing, renewals, inventories and most admin in England. Those costs generally sit with the landlord now.
Is there a cheaper alternative to a letting agent?
Yes. Online platforms let you advertise and manage directly. Hilltro charges one flat £49 fee, paid only when you find a tenant through the platform, with no commission and management free for life.
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