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Agent fees

Agent fees are charges a letting agent applies for services related to renting a property, usually paid by the landlord, while tenants only pay legally permitted fees.

About agent fees

Agent fees are charges applied by a letting agent for the professional services involved in renting out a property. In the UK, the vast majority of these fees are paid by the landlord. Under the Tenant Fees Act 2019, tenants can only be charged for a very specific list of legally permitted payments.

Why do agent fees exist?

Agent fees exist because letting agents handle complex, time-consuming tasks that require professional expertise and legal knowledge, such as:

  • Sourcing tenants: Marketing the property across major platforms and conducting viewings.
  • Vetting applicants: Performing essential background checks, including credit history, employment references, and "Right to Rent" verifications.
  • Legal documentation: Drafting professionally vetted tenancy agreements that comply with current housing laws.
  • Financial management: Overseeing the collection of monthly rent and ensuring payments are transferred on time.
  • Administrative & legal support: Providing ongoing assistance for matters such as break clauses, early terminations, or mandatory safety compliance.

These services help landlords secure reliable tenants quickly and provide tenants with the peace of mind that their move is being handled professionally and legally.

Frequently Asked Questions about agent fees

1. Who pays agent fees?

In the UK, agent fees are almost entirely the responsibility of the landlord. Tenants are legally protected from most administrative charges and only have to pay "permitted payments."

2. Which costs can a letting agent never charge tenants?

Agents are strictly prohibited from charging tenants for "admin fees," reference checks, credit checks, or any other prohibited payments. Only specific, legally allowed payments—such as a holding deposit, a security deposit, or the monthly rent—can be requested from a tenant.

3. What is the difference between a holding deposit and a security deposit?

  • Holding Deposit: A payment (capped at one week’s rent) made to reserve a property while references are being processed. This effectively takes the property off the market.
  • Security Deposit: A larger sum (usually capped at five weeks' rent) paid at the start of the tenancy. This deposit is held in a government-backed protection scheme as security against potential property damage or unpaid rent.