Letting agency fees in London range from £750 for tenant sourcing services to 20%+ of monthly rent for full management.
If you’re a landlord in London, understanding letting fees is important if you want to keep your rental property profitable. And with so many letting agents offering a range of services – from just finding tenants to managing your property end-to-end – costs can quickly add up.
In a city like London, where property values are high and demand is fierce, it pays to know exactly what you’re getting (and what you’re paying for).
Here, we explain the current landscape of letting fees in London, what you can expect to pay and most importantly – how to reduce those fees.
What Do Letting Agency Fees Cover?
Let’s start with the basics. What do letting agent fees actually cover?
Letting agent fees vary based on the level of support you need, but usually cover some or all of the following:
- Tenant sourcing: Advertising your property, conducting viewings, tenant referencing, and setting up tenancy agreements.
- Rent collection: Handling all payment processing, chasing rent arrears, and providing monthly statements.
- Property management: Ongoing support including maintenance, repairs, tenant communication, inspections, and compliance checks.
Most letting fees are charged as a percentage of the monthly rent – so the more you charge, the more you pay.
In London, letting fees are generally priced as:
- Tenant find services from £750 to one full month’s rent.
- Rent collection-only services at 5–10% of rent.
- Full management at 12–20% of rent – sometimes more with hidden fees.
At J Property Management, our pricing is fair, and we promise no hidden fees:
- Tenant sourcing: £750 flat fee upon tenant placement
- Full management: 10%
- Rent collection: 7%
- Full management with guaranteed rent: 12%
Want to learn more about our services? Speak to a J Property advisor today.
London Letting Agency Fees: What Landlords Actually Pay
Letting agent fees in London can vary widely, and for many landlords, the actual cost is often higher than expected.
While the advertised rate might seem reasonable, it’s important to look at the full picture – many agents add charges on top of their base fee, which can increase your payments.
Usually, London landlords who go for a full property management service with a traditional high street agent can expect to pay between 12% and 20% of the monthly rental income. On a property renting for £2,000 per month, that’s £240 to £400 every month, or £2,880 to £4,800 per year – and that’s before factoring in any extras.
Common add-ons include:
- Tenancy setup fees: Sometimes upwards of £300 just to start a new tenancy
- Renewal fees: Charged when a tenant decides to stay on after their initial term, often 8–15% of the monthly rent
- Inventory and check-in/out reports: These can cost £100 – £300 depending on the property size
- Deposit registration fees
- Legal notices, gas safety certificates, EPCs, and maintenance mark-ups – often charged at higher rates or with extra handling fees
Suddenly, what looked like a 12% fee can end up costing closer to 18–22% when all is said and done.
At J Property Management, we do things differently. We offer a transparent, all-in-one pricing model, so you always know what you’re paying – and why. Our full management service starts at just 10%, and even our most comprehensive service (which includes guaranteed rent collection) is only 12% with no hidden fees, guaranteed.
How To Reduce Your Letting Agency Fees
Even on the lower end, property management fees can eat into your rental yield. So how do you cut down on them without compromising on service quality?
Choose the Right Level of Service
Not every landlord needs full management. If you’re local and hands-on, a rent collection-only service might be enough. At J Property, we offer this for just 7% of monthly rent, with support for chasing arrears and ensuring payments are made on time.
Avoid Overpriced High Street Agents
Many traditional agents in London still charge 15–20% – often with added setup and renewal fees. Choosing a local, independent company means you get more personalised service at a much better rate.
Negotiate for Portfolio Discounts
If you manage more than one property, ask for multi-property discounts. At J Property Management, we’re happy to discuss flexible pricing for landlords with larger portfolios – just reach out and we’ll tailor a plan that works for you.
Go for Fixed-Fee Tenant Sourcing
Some agents charge a full month’s rent to find tenants. Our tenant find service is a flat £750, saving you hundreds compared to percentage-based models.
Avoid Hidden Charges
Ask upfront about admin fees, check-in/check-out charges, and exit fees. That way, you can make sure everything is clear and up-front from day one.
Online vs High Street Letting Agents: Who Offers Better Value?
When it comes to choosing a letting agent, landlords often find themselves weighing the pros and cons of online letting agents versus traditional high street agencies.
Both have distinct advantages, but the real question is: who delivers the best value for money?
Online Letting Agents: Lower Costs, Less Support?
Online letting agents have gained popularity in recent years, especially among landlords looking to cut costs. These agencies will offer lower fixed fees or subscription-style pricing – sometimes as little as £50 to £100 per month, or a flat one-off fee of around £1,000 for tenant find services. On the surface, this sounds like a bargain.
However, the trade-off is often limited service. Most online agents only offer a basic tenant-finding service.
That means you’ll likely be responsible for:
- Managing tenant communication
- Handling rent collection and chasing arrears
- Organising repairs and maintenance
- Staying compliant with changing legislation
- Managing the end-of-tenancy process
In other words, the admin and legal responsibilities still fall on you. If you’re a full-time professional, live far from your rental property, or simply want peace of mind, this setup might cost you more in time, stress, and risks than it saves in money.
High Street Letting Agents: Full Support, But High Costs
High street letting agents offer a more traditional, full-service model. This normally includes everything from marketing your property and sourcing tenants to collecting rent, managing repairs, and staying on top of legal compliance. For busy or hands-off landlords, this can be very important.
However, these services come at a cost – often 15% to 20% of your monthly rent, plus additional fees for setup, renewals, safety certificates, and even administrative tasks. In London, it’s not unusual for landlords to pay over £4,000 per year for a single property, especially when everything is added up.
Worse still, many high street agents tie landlords into long contracts, with expensive exit fees if you want to switch agencies before the tenancy ends. This means if you’re unhappy with the service, your options are limited.
At J Property Management, we offer the best of both. We’ve built a model that combines the value of online agents with the service of a high street agency – without the high fees or rigid contracts.
Our pricing is simple and transparent, we offer: £750 for tenant find, 7% for rent collection, and 10% for full property management.
Within this, we offer 24/7 tenant support, regular inspections, and a hands-off experience for landlords.
Plus, our 60-day happiness guarantee means you’re never locked in. If you’re not happy, you can walk away – no penalties, no stress.
In short, we give landlords the support they need at a price that makes sense. Whether you’re managing one flat or a whole portfolio, we’re here to deliver expert service, peace of mind, and serious value.
Want a bespoke letting plan for your property? Get in touch with our South London team.
How to Choose the Right Letting Agent for You
When selecting a letting agent, look beyond the headline fee and ask:
- Are the fees transparent and all-inclusive?
- Do they offer flexibility or tie-in contracts?
- Are they PRS or ARLA registered?
- Do they provide full compliance support?
- Will they help maximise your rental return?
Asking all these questions upfront can help you make the right choice and avoid any expensive mistakes further down the line.
Letting Agency Fees: Everything You Need To Know
Letting fees in London can be high, but they don’t have to be. With a clear understanding of what you’re paying for and by choosing the right agent, you can cut costs, reduce stress, and keep more of your rental income.
At J Property Management, we keep things simple:
- Fair prices
- Flexible contracts
- No hidden charges
- Happiness guarantee
Whether you’re letting your first flat or managing a portfolio across South London, we’re here to help make it easy and profitable.
Ready to reduce your letting costs and simplify your property management? Speak to J Property today and let’s find the perfect service for you.
