For landlords · 6 min read
The letting agent charges that never make the headline rate
The percentage an agent quotes is rarely the full cost. Published schedules from major agents show minimum commissions (commonly £1,500 including VAT, which overrides the percentage on lower-rent properties), tenancy agreement fees of £288–£450, referencing charged per tenant, right-to-rent checks charged per adult occupant, deposit registration fees, inventory and check-out arrangement fees on top of the inventory cost itself, and per-visit charges of around £150. On a sharing household these can add over £600 before commission.
Frequently asked questions
What is a minimum commission on a letting agreement?
A floor that applies when the percentage calculation falls below it — commonly £1,500 including VAT. On lower-rent properties it raises the effective rate well above the advertised percentage, so on a £700 pcm flat you could pay close to 18% rather than 13.2%.
Why am I charged referencing for each tenant?
Most agents price referencing per person, typically around £60 per tenant plus about £30 per adult occupant for right-to-rent checks and £60 per guarantor. A three-sharer household therefore costs considerably more to set up than a single tenant.
Can a letting agent charge me to protect the deposit?
Yes, a landlord can be charged a deposit registration fee of around £48 even though the schemes themselves are free to use for the standard custodial option. It is a fee for the administration, not the protection.
What questions should I ask before signing with an agent?
Whether a minimum commission applies, whether every quoted figure includes VAT, what is charged per tenant/occupant/guarantor, what recurs at renewal, and what you still owe if you leave the agent while their tenant remains in the property.
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