London letting agent fees explained
By the Dome team · Reviewed
Most London letting agents charge somewhere between 10% and 20% of the monthly rent, before extras. Here is what that number covers, what it leaves out, and how to compare quotes properly.
The short answer
Traditional London agents usually charge a percentage of the rent you collect. Expect roughly 10% to 20% of monthly rent, depending on how much they do. Many quote fees before VAT, so the figure you actually pay is 20% higher than the headline.
The three common service levels
| Service | What you usually get |
|---|---|
| Let only | Marketing, viewings, referencing and the tenancy agreement. You manage everything after move-in. |
| Rent collection | Let only, plus collecting rent and chasing arrears. Repairs and compliance stay with you. |
| Full management | Rent collection, plus repairs, inspections, tenant communication and compliance tracking. |
As a real example, Dexters publishes VAT-inclusive fees of 13.2% for rent management, 19.2% for full management and 21.6% for premium management (source: dexters.co.uk/landlords/fee-structure).
The costs that are easy to miss
- VAT. Check whether a quote is "plus VAT". A 15% fee becomes 18%.
- Repair markups. Many agents add a percentage on top of every contractor invoice, often 10% to 15%.
- Set-up and renewal fees. Charges for drawing up a tenancy, renewing it, or checking tenants in and out.
- Inspection fees. Some agents charge per routine visit.
- Compliance admin. Arranging certificates can come with its own fee on top of the certificate itself.
What this costs over a year
On a £2,500 a month London flat, a 15% plus VAT full management fee works out at £450 a month, or £5,400 a year, before any repair markups or one-off charges.
How to compare quotes
- Ask for every fee in writing, including VAT.
- Ask whether repairs are marked up, and by how much.
- Ask what happens after hours, and who your tenant actually calls.
- Check the agent belongs to a property redress scheme and a client money protection scheme.
Unsure which rules you need to follow yourself? Read our landlord compliance checklist.
How Dome charges
Dome provides full management for a flat 6% of rent, with your first month of management free. Repairs are charged at the contractor's direct cost, with no agent markup. See what's included.
Frequently asked questions
How much do London letting agents charge?
Most London agents charge roughly 10% to 20% of the monthly rent, depending on the service level. Many quote fees before VAT, so the real cost is 20% higher than the headline figure.
Are letting agent fees quoted with VAT?
Often not. Check whether a quote is inclusive or exclusive of VAT, as adding 20% VAT can turn a 15% fee into 18%.
What extras do letting agents charge for?
Common extras include tenancy renewal fees, inventory and check-out fees, deposit registration fees and a markup on repair invoices.
