In short: Letting agents typically offer three tiers, let-only (around 8–12% of a year’s rent, or a flat £500–£1,500), rent collection (roughly 5–8% of monthly rent), and fully managed (roughly 10–15%+ of monthly rent, add VAT on top), each covering progressively more of the day-to-day work. Self-managing saves that fee but costs real time and requires you to personally handle compliance, repairs, and increasingly tenant-facing legal process now that Section 21 is gone. It suits confident, local, hands-on landlords with one or two properties; it suits agents better if you’re remote, time-poor, own several properties, or are uneasy handling the new Renters’ Rights Act possession and rent-increase procedures yourself.
The three service tiers, and what’s actually included
Let-only / tenant-find (roughly 8–12% of the first year’s rent, or a one-off flat fee of £500–£1,500). The agent markets the property, arranges viewings, references and right-to-rent-checks the tenant, and draws up the tenancy agreement. Once the tenant moves in, you take over everything, rent collection, repairs, compliance, deposit handling, and any future notices. This is the cheapest tier and suits landlords who are happy to run the tenancy day-to-day themselves but don’t want to handle marketing and vetting.
Rent collection (roughly 5–8% of monthly rent, ongoing). Everything in let-only, plus the agent collects the rent each month, chases late payments, and handles the basic tenant relationship. You still deal with maintenance, certificate renewals, and any legal process yourself.
Fully managed (roughly 10–15% of monthly rent, sometimes up to 20% in London and prime areas, ongoing). The agent does everything above plus arranges repairs and contractors, manages routine inspections, handles the day-to-day tenant relationship, keeps track of certificate renewal dates, and, crucially, deals with the process if things go wrong, from arrears to serving notices. Some agents charge extra for check-in/check-out inventories, renewal fees, or arranging safety certificates, so ask for the full fee schedule, not just the headline percentage.
Read the fee schedule carefully. Quoted management fees are almost always plus VAT if the agent is VAT-registered, a “10%” fee is really 12% once VAT is added. Watch too for renewal fees, tenant-find fees charged again at each re-let, and admin charges for arranging certificates or contractors.
What self-managing actually costs you in time
Landlords who self-manage successfully tend to underestimate, at first, how much time compliance now takes: arranging and chasing gas safety, EICR and alarm checks, keeping on top of deposit protection deadlines, responding to maintenance issues promptly (tenants increasingly expect same-day acknowledgement), handling viewings and referencing between tenancies, and, since May 2026, correctly issuing Section 13 rent increase notices on the new prescribed form and handling any First-tier Tribunal referral if a tenant challenges the rent. None of this is difficult in isolation, but it adds up, especially if you have a full-time job, live far from the property, or own more than one or two units.
Redress scheme membership is now unavoidable either way
Since 2014, letting agents in England have been legally required to belong to a government-approved redress scheme (currently The Property Ombudsman or the Property Redress Scheme). If you use an agent, this obligation sits with them. But the Renters’ Rights Act is introducing a new Private Rented Sector Ombudsman that all private landlords in England must join directly, regardless of whether they use an agent, as part of the wider Private Rented Sector Database reforms being phased in through 2026–2028. In practical terms this means self-managing landlords will soon carry the same personal redress obligation that agents have always had, and failing to register may restrict your ability to serve valid possession notices.
When self-managing suits you
- You live close to the property and can respond quickly to issues
- You only have one or two properties and can realistically keep on top of certificate renewal dates, rent reviews and tenant communication
- You’re comfortable with, or willing to learn, the legal process around notices, deposit disputes and (now) tribunal referrals
- You want to build a direct relationship with your tenant, which can help with retention and small issues being resolved informally
- The fee saving is meaningful relative to your rent (percentage fees hit small portfolios harder in relative terms than large ones)
When an agent is worth it
- You live far from the property, or own property in a city you don’t live in
- You have a full-time job or other commitments and genuinely can’t guarantee a fast response to a boiler outage or a leak
- You own multiple properties and the coordination overhead of self-managing scales badly
- You’re not confident navigating the post-Renters’ Rights Act legal landscape, grounds for possession, rent increase procedure, tribunal referrals, where getting the process wrong can mean starting again from scratch or facing a rent repayment order
- You want a buffer between yourself and the tenant for difficult conversations (rent increases, arrears, complaints)
A middle path
Many experienced landlords land on rent collection as the sweet spot: the agent finds and vets the tenant and handles the money, but the landlord stays close enough to manage repairs directly (often cheaper using your own trusted tradespeople) while avoiding full management fees. Others switch tiers over time, using full management for a first, unfamiliar property, then moving to self-management once they understand the compliance calendar and feel confident with it.
Whichever route you choose, always check any agent you engage is a member of a government-approved client money protection scheme and redress scheme before you sign, this is now a longstanding legal requirement for agents, and one of the simplest ways to avoid handing your rent to a firm that later disappears.
Related reading
- 50 Questions From Landlords, Answered (all 50 questions)
- our letting agent fees breakdown
- our property management services
Sources
- What does a letting agent do for a landlord?, Propertymark
- Renting out your property: guidance for landlords and letting agents, GOV.UK
This is general information, not legal, tax, or financial advice. Rules referenced are accurate to the best of available information as of July 2026 for England unless stated otherwise. Always check current government guidance (gov.uk) or consult a solicitor/accountant for your specific situation.
Last Updated on September 28, 2026