Letting agent fees: let-only or full management?

Overview

Let-only costs less but leaves the tenancy to you, and full management costs most but means you rarely deal with it. Which suits you depends on where you live, how many homes you let and your tax rate. To show the numbers, this guide follows one example, a £180,000 house let for £1,100 a month, set out below.

Key points

• A let-only agent finds and checks a tenant for a one-off fee, often around a month's rent. Full management, where the agent runs everything, is a share of the rent each month, around 15% to 20% by the agents' trade body's figures.
• Tenants in England and Wales can't be charged letting fees, so the agent's fees are all yours. They come off the rent for tax.
• For a higher-rate taxpayerIncome tax bandsIn England and Wales: no tax on the first £12,570 (the personal allowance), 20% basic rate up to £50,270, 40% higher rate up to £125,140 and 45% above. Rent is added to your other income, so it's taxed at your top rate. From April 2027, property income has its own rates: 24%, 44%, 49%. on the example, full management at the top of that range cuts the cash left after tax from £1,675 to £91 a year.

How much do letting agents charge?

Finding a tenant usually costs around a month's rent, and having the agent run everything costs a share of the rent each month. Agents set their own fees, so get quotes, but Propertymark, the agents' trade body, and Which? both give a guide.

Neither says whether those include VAT.

By law, every letting agent in England and Wales must show its fees, including VAT, on its website and in its office, so you can compare them before you call. Check the VAT-inclusive figure, because a fee quoted "plus VAT" is a fifth more.

Ask what's extra. Some agents charge separately for drawing up the tenancy, the inventory, renewing the tenancy, arranging safety certificates or managing big repairs. A low headline rate with a list of extras can cost more than a higher all-in one.

What do you get for each service?

Let-only gets you a tenant and leaves the rest to you, and full management covers the whole tenancy.

This is the usual split, not a rule, so check the agent's terms for what yours includes, especially who protects the depositDeposit protectionA tenant's deposit must go into a government-approved scheme within 30 days of getting it, and the tenant must be told the scheme's details within 30 days too.. Using an agent doesn't take the legal duties off you entirely, so know what they've agreed to do and check it's done.

What does each option cost you after tax?

An agent's fee is an allowable cost, so it comes off the rent before tax, and the real cost is the fee less the tax it saves. On the example, each £1 of fee costs a basic-rate taxpayer 80p and a higher-rate one 60p. Here's the example rental each way.

Let-only is one month's rent each time a tenant moves in, here every 2 years. The percentages include VAT and are examples to compare, not quotes.

On a rental with a mortgage, the agent takes a big share of what's left. Full management at 20% costs £2,640 a year, against the £5,042 the house makes before tax without an agent. For a higher-rate taxpayer, choosing it over let-only costs £1,254 a year after tax. That's the price of not dealing with the tenancy yourself.

The deal check starts with a 10% agent. If yours charges more, change it in the full breakdown, because it can be the difference between a deal that pays and one that doesn't.

Should you manage the property yourself?

Managing it yourself saves the whole fee, and suits landlords with one or two properties near home, some spare time and a good grip of the rules. It doesn't suit you if you live far away or can't take a call about a leak at short notice.

As a self-managing landlord in England you do everything an agent would: advertise, check references and the right to rent, set up the tenancy, protect the deposit within 30 days, book the gas and electrical checks, arrange repairs and serve notices correctly. The rules changed a lot on 1 May 2026, when tenancies in England became open-ended and section 21 notices ended. Since then you also can't take any rent before the tenancy agreement is signed. How do I rent out my house? lists the checks.

In Wales, a landlord who finds tenants or manages the property themselves needs a Rent Smart Wales licence, with training. If you don't want the licence, you must use a licensed agent.

Let-only is a middle way. You pay an agent to find and check a good tenant, which is where mistakes cost most, then manage the tenancy yourself.

How do you choose a letting agent?

Compare at least three agents on their published fees including VAT, what's included, and their scheme memberships. In England every letting agent must belong to a government-approved redress scheme, and one that holds your rent or a deposit must belong to a client money protection scheme. In Wales the agent must be licensed by Rent Smart Wales.

• Read the contract's exit terms. How much notice to end it, and whether you owe a fee if the tenant they found stays on after you leave, or if you sell to the tenant.
• Ask about renewals. Some agents charge again when a tenancy carries on. Since tenancies in England no longer have fixed terms, check how the contract deals with that.
• Ask how they handle repairs. Whether they need your approval above a set amount, and whether they add a fee to contractors' bills.
• Ask how fast the rent reaches you, and what statements you get. You'll want a yearly one for your tax returnSelf AssessmentHMRC's yearly tax return, where landlords report their rent and costs. Register by 5 October after your first tax year with rent, then file and pay online by 31 January..

Whatever you pay goes on your tax return as a cost, and Allowable expenses for landlords lists the others. Do landlords need an accountant? covers help with the return itself.

Common questions

Rules checked against GOV.UK by hand on 31 October 2026. Example figures from our calculator, on the rules in force today. Not financial or tax advice: check your own case with an accountant.