How Much Should a Letting Agent Charge? A Middlesbrough Landlord Guide

One of the most common questions we get from landlords who are considering switching agents, or using a letting agent for the first time, is a straightforward one: what should I actually be paying? The lettings industry is not always transparent on this, so we are going to set it out plainly.

The Two Main Fee Structures

Most letting agents charge in one of two ways. The first is a let-only fee, which is a one-off charge for finding and placing a tenant. The second is a fully managed service, where the agent handles everything on an ongoing basis in exchange for a monthly percentage of the rent.

Let-only fees in Middlesbrough typically range from half a month to one full month of the agreed rent. At Ascot Knight, we charge one month. This covers professional photography, marketing on Rightmove, tenant referencing, right-to-rent checks, and preparation of the tenancy agreement.

For fully managed services, you should expect to pay somewhere between 8% and 15% of monthly rent in the Teesside market. Be cautious of agents at the very bottom of that range — the margin required to deliver a genuinely attentive service is not there at 6% or 7%, and you will feel it in response times and maintenance handling.

What Should Be Included

A properly managed service should include rent collection, monthly financial statements, coordination of maintenance and repairs, regular property inspections, and handling of all tenant communication. Compliance management — ensuring your gas safety certificate, EICR, and other legal requirements are in order — should also be part of the service.

If an agent is charging you separately for each inspection, for issuing notices, for renewing tenancies, or for administering deposits, those are red flags. Some agents use a low headline percentage to attract landlords and then add charges for every routine action. Read the full fee schedule before signing anything.

What You Should Not Be Paying

Since the Tenant Fees Act 2019, agents are banned from charging tenants for referencing, administration, or most other services. Some of the costs that were previously passed to tenants have migrated onto landlord fee schedules instead. If your agent is adding a long list of small charges that did not exist a few years ago, it is worth asking whether they were simply shifted across.

You also should not be paying a renewal fee every time a tenancy continues. In our view, retaining a good tenant and renewing their tenancy is part of the service — not an occasion to levy an additional charge.

Is Cheaper Always Better?

No. In lettings, as in most things, you tend to get what you pay for. The cost of a single extended void period, a poorly referenced tenant, or a compliance issue that was not caught in time will almost always exceed the annual saving from choosing a cheaper agent. The fee you pay your agent is not a cost — it is the price of having the job done properly.

Our fees at Ascot Knight start at 8% for our Essential tier, rising to 11% for Standard and 14% for Total Care. We are transparent about what each tier includes and there are no hidden charges on top. If you would like to compare what you are currently paying against what you are getting, we are happy to have that conversation.