Letting agents in London can take the stress out of managing a rental property, but they also come at a cost. Whether they’re worth it depends on your time, confidence, and goals as a landlord.
Being a landlord in London can be very profitable, but it’s rarely hands-off. From ever-changing legal compliance and tenant issues to emergency repairs and missed rent payments, there’s a lot that can go wrong, and a lot that needs managing.
That’s where letting agents come in. They promise to save you time, hassle, and make sure your property is legally compliant and well looked after. But with fees that can eat into your rental income, are they really worth it?
At J Property Management, we’ve worked with landlords across South London who’ve asked themselves this very question. In this guide, we’ll walk you through the pros and cons of using a letting agent, what you can expect from their services, and how to decide what’s right for you.
Is it worth using letting agents in London?
Let’s weigh up the pros and cons of hiring letting agents in London.
Pros
Saves you time: Letting agents in London takes care of everything from advertising the property to collecting rent and managing repairs – ideal if you’re short on time or don’t live nearby.
Legal know-how: London landlords have to comply with over 400 pieces of legislation, and the rules keep changing. Letting agents help you stay compliant with deposit protection, right to rent checks, safety certificates, and more.
Expert tenant screening: Agents perform full referencing checks, credit history reviews and right-to-rent compliance to help lower the risk of rent arrears or property damage.
Better marketing: Agents know how to present your property in the best light, usually listing on portals like Rightmove and Zoopla to find tenants faster and reduce empty periods.
Repairs sorted: A letting agent can coordinate tradespeople and emergency repairs, saving you time and headaches – and often at better rates.
Professional buffer: Having someone handle communications with tenants keeps things more objective, especially during disputes or rent negotiations.
Peace of mind: With inspections, documents, renewals and rent increases all handled, you can relax knowing your property is in good hands.
Cons
It costs: Full property management services in London normally cost 12% – 20% of the monthly rent, plus extra fees in some cases.
Quality varies: Not all agents offer the same service. If you don’t choose carefully, you might end up chasing your agent more than your tenants.
Less control: Some landlords prefer to meet tenants personally and oversee maintenance. Working with an agent puts a middleman between you and your investment.
Extra charges: Agents may add fees for arranging third-party services or mark up costs for things like gas safety checks or EPCs.
If you’d prefer to be hands-off and keep everything compliant and professional, a letting agent could be a good investment. If you’re experienced, confident and have the time to self-manage, you might prefer to go it alone.
Want a flexible solution that works for you? At J Property Management, we offer both full and part-managed services – so you stay as involved (or uninvolved) as you like.
What is the difference between an estate agent and a letting agent?
While the terms are sometimes used interchangeably, there’s a clear difference:
Estate agents specialise in buying and selling property.
Letting agents focus on renting and managing properties on behalf of landlords.
Some estate agents offer letting services, but letting specialists – like us at J Property Management- live and breathe the lettings market every day. We know London rental values, local legislation, tenant demand and property upkeep like the back of our hands, so we can offer a service that estate agents often can’t match.
What to expect from letting agents in London
Letting agents in London usually offer three levels of service:
1. Let-only: They’ll market the property, find tenants, do referencing and help set up the tenancy. After that, the landlord takes over.
2. Rent collection: Adds rent collection and arrears chasing to the above.
3. Full management: A full service including marketing, tenant find, rent collection, property inspections, maintenance, renewals and legal compliance.
At J Property Management, our full-service option is designed for landlords who want total peace of mind, from day one to the end of the tenancy. We also offer a flexible part-managed solution if you’d prefer to retain some control but need help with the trickier bits.
Looking for a tailored lettings solution in South London? Speak to the team at J Property Management and find out how we can help.
Do I really need a letting agent?
Not always – but many landlords find it’s worth the cost, especially in a fast-moving city like London.
You may benefit from an agent if you:
- Are new to lettings and want support with legal compliance
- Don’t have time to deal with tenant queries or emergencies
- Live far from your rental property
- Want a professional buffer between you and your tenants
- Own multiple properties and want streamlined management
However, if you’re local, legally savvy, and confident managing tenancies, then self-managing might make more financial sense.
What is a letting agent fee in London?
Letting agent fees in London can vary, but here’s what you should expect to pay:
- Let-only service: Typically one month’s rent or
- Rent collection: 6%–10% of the monthly rent
- Full management: 12%–20% of the monthly rent, depending on location and service scope
J Property Management Fees:
We believe in transparent, fair pricing – with no hidden costs. Here’s what we offer:
- Let-only: Competitive fixed fee of £750 only once tenants are placed.
- Full management: From 10% of monthly rent, including rent collection, property inspections, renewals, compliance checks, and tenant management
- Happiness guarantee: If you’re not happy with our service within 60 days, you’re free to walk away – no penalties, no fuss.
We’re proud members of the Property Redress Scheme and CM Protect, giving you peace of mind that your investment is in safe hands.
Want to know what your property could rent for? Get in touch for a free lettings valuation today.
Can I claim letting agent fees as taxable expenses?
Yes, letting agent fees are considered an allowable expense by HMRC, meaning they can be deducted from your rental income when calculating your tax liability.
This includes:
- Agent management fees
- Tenant find fees
- Marketing costs
- Renewal charges
- Admin charges (e.g. referencing, agreement drafting)
So while a letting agent’s fees might lower your monthly income, they can also help lower your annual tax bill – making the overall cost more manageable.
As with all tax matters, it’s worth speaking to a qualified accountant if you’re unsure what you can claim.
Are letting agents liable?
It’s important to understand that, even if you use letting agents in London, legal liability always sits with the landlord.
That means you’re still responsible if:
- Deposit aren’t protected properly
- A property doesn’t meet safety standards
- Evictions are handled incorrectly
However, reputable letting agents (like J Property Management) will make sure that you’re fully compliant with current legislation – and help you avoid costly mistakes.
All letting agents in England must:
- Belong to a redress scheme (like the PRS or The Property Ombudsman)
- Hold Client Money Protection (CMP)
- Follow industry codes of conduct if part of bodies like ARLA, UKALA or Safeagent
We meet all these standards at J Property Management, so you can be confident you’re working with professionals who take their responsibilities seriously.
So, are letting agents worth it in London?
Yes, if you want to save time, reduce stress, stay legally compliant, and protect your investment then letting agents are worth it.
That said, they’re not for everyone. If you’re confident in your legal knowledge, happy to handle tenant communications, and looking to maximise profit, managing the property yourself could work well too.
Ultimately, the decision comes down to how much time, energy and risk you’re willing to take on.
At J Property Management, we offer flexible solutions tailored to you – from full management for peace of mind, to let-only services for hands-on landlords who just want help finding the right tenant.
Thinking about using a letting agent? Contact J Property Management today for honest advice, fair pricing, and expert support across South London.
