- London agents usually offer three tiers: tenant find, rent collection and full management, with guaranteed rent as a separate model.
- Full management is commonly quoted in the region of 12% to 18% of the rent, plus VAT, so always check whether a quote includes VAT.
- Extra fees for set-up, inventories, works commission, rent reviews and “withdrawal” can add more than the headline difference between agents.
- Compare agents on annual net income: rent achieved, minus fees, minus void weeks, minus compliance costs.
Landlords understandably start with the percentage. But two agents quoting 12% and 15% can leave you with very different amounts over a year, in either direction, once the extras, the rent achieved and the empty weeks are counted. This guide explains the structures so you can compare like with like.
The three classic service levels
Tenant find (let only)
The agent markets the property, conducts viewings, references the tenant and sets up the tenancy. After that, you run everything: rent, repairs, compliance, inspections and any problems. Often charged as a percentage of the first year's rent, or a fixed fee equivalent to several weeks' rent.
Rent collection
Tenant find plus monthly rent collection, statements and arrears chasing. Maintenance and compliance usually stay with you.
Full management
Everything above plus maintenance, contractor management, compliance certificates, inspections, deposit handling and dealing with the tenant day to day. In London, full management is commonly quoted somewhere in the region of 12% to 18% of the monthly rent, before VAT. At 20% VAT, a 15% fee is really 18% of your rent.
Ranges vary by area, property type and portfolio size, and some agents price per property rather than by percentage, so treat these as a guide rather than a market rate.
The extras that change the maths
Since the 2019 tenant fees ban, agents cannot charge tenants for most services, so more of the cost sits with landlords. Read the full fee schedule, not just the headline, and look for:
- Set-up or onboarding fees at the start of each tenancy.
- Inventory and check-out fees, sometimes charged at both ends.
- Commission on maintenance, where the agent adds a percentage on top of contractor invoices.
- Compliance arranging fees for gas safety certificates, EICRs and EPCs, on top of the certificate cost itself.
- Rent review fees. Renewal fees largely disappear now that tenancies are periodic under the Renters' Rights Act, but some agents charge for the annual rent increase process instead.
- Deposit registration and dispute fees.
- Withdrawal or tie-in clauses that charge you if you move to another agent while their tenant is still in place.
None of these are wrong in themselves. The problem is comparing an all-inclusive quote with a low headline rate plus extras.
Compare on net income, not on percentage
A worked example, using a £2,000 a month London flat over one year:
| Agent A | Agent B | |
|---|---|---|
| Headline fee | 12% + VAT | 15% + VAT |
| Rent achieved | £1,950 (listed high, reduced after three weeks) | £2,050 (priced from evidence, let in week one) |
| Empty weeks at changeover | 4 | 1 |
| Extras (set-up, inventory, works commission) | £900 | Included |
| Approximate net to landlord | £17,590 | £19,780 |
Hypothetical illustration to show the method, not a quote. Net is rent received for the weeks occupied, less the fee plus VAT on that rent, less extras.
The cheaper-looking agent costs this landlord around £2,200 a year. The difference comes from pricing, speed and inclusions, not from the fee. Our article on what an empty week really costs explains why voids matter so much.
Where guaranteed rent fits
Guaranteed rent works differently. Instead of paying a fee from a variable rent, you receive a fixed monthly sum for an agreed term, whether the property is occupied or not, and the operator carries voids and day-to-day costs. The guaranteed figure is normally lower than the open-market rent, because the operator takes on that risk. For landlords who value certainty over the last few percent of yield, it can be the better trade. We explain the questions to ask in Is guaranteed rent safe?
Questions to ask every agent
- Is the fee quoted with or without VAT?
- What is not included, and what does each extra cost?
- Do you add commission to contractor invoices?
- How did you arrive at the rent figure, and what evidence supports it?
- What were your average void weeks last year?
- Who handles Renters' Rights Act paperwork, licensing and the new landlord register?
- What is the notice period, and is there a fee to leave?
How Morgan Prescott quotes
Every free appraisal comes back within 24 hours with the achievable rent for each route (full management, Rent Secured and, where the property qualifies, guaranteed rent) and the fee for each in writing. Annual gas safety certificates are included on managed properties. You can compare the net figure side by side before you decide.