Landlord Letting Agent UK 2026 — Using an Agent Guide

Overview

Types of letting agency service

• Let-only (tenant find): The agent markets the property, references tenants, and prepares the tenancy agreement. The landlord then manages the tenancy themselves. Typical fee: 8–12% of the first month's rent
• Rent collection: The agent finds the tenant and collects rent monthly. The landlord manages maintenance and compliance. Typical fee: 10–14% of monthly rent
• Full management: The agent handles everything — marketing, referencing, tenancy agreements, rent collection, maintenance, compliance, tenant communication, and end-of-tenancy. Typical fee: 12–20% of monthly rent
• Some agents charge a flat annual fee rather than a percentage — compare total cost over a typical 12-month tenancy before choosing
• Renewal fees and void period charges: check whether the agent charges for tenancy renewals and whether they charge management fees during void periods — these can significantly affect the total cost

What agents must do by law

• Redress scheme membership: The Property Ombudsman (TPO) or Property Redress Scheme (PRS) — display membership certificate at office and on website
• Client Money Protection (CMP): agents who hold client money (rent, deposits) must belong to a government-approved CMP scheme — verify membership at checkmyagent.co.uk
• Tenant Fees Act compliance: agents cannot charge tenants prohibited fees (referencing fees, inventory fees, credit check fees, administrative fees, renewal fees)
• Deposit protection: agents who hold deposits must protect them in a government-approved TDP scheme within 30 days and serve Prescribed Information on the tenant
• Right to Rent checks: agents conducting let-only or management services must conduct Right to Rent checks on all tenants and keep records for 2 years after tenancy end
• Anti-money laundering: agents must register with HMRC for anti-money laundering supervision and conduct due diligence on landlord clients

How to choose a letting agent

• Verify redress scheme membership (TPO or PRS) — check the scheme's register, not just the agent's website
• Verify Client Money Protection membership — required since April 2019. Check checkmyagent.co.uk
• Check online reviews: Google, Trustpilot, AllAgents — look for patterns in complaints about communication, maintenance handling, and deposit disputes
• Ask about the management-to-staff ratio: how many properties does each property manager handle? Over 150 is a warning sign for service quality
• Ask about their Renters' Rights Act 2025 compliance process — do they have updated templates, the Information Sheet distribution process, and Section 13 rent increase procedures?
• Get a full fee schedule in writing before signing — including setup fees, renewal fees, void period charges, and fees for specific services (serving Section 8, attending court)

Switching agents and terminating an agency agreement

• Read the termination clause in your agency agreement before signing — some agreements have long notice periods (3–6 months) or prohibit you from using another agent to let to a tenant introduced by them for a period
• Check for 'protection periods': if a tenant introduced by the agent takes a tenancy within a specified period after you leave the agent, you may owe the original agent a fee
• Give notice in writing to the agent — keep a copy of the notice and record the date it was sent
• Instruct the agent in writing to transfer all tenant records, deposit certificates, inventory reports, tenancy agreements, and property keys to you or the new agent
• Notify the tenant in writing that the management has transferred and provide the new point of contact for rent payments and maintenance
• Check that the deposit is still correctly protected and that the TDP registration has been transferred if necessary