Property management fees in London
January 1, 2025
Property management fees in London
Being a landlord in London, one of the world’s most dynamic and costly rental markets in the UK, comes with both opportunity and complexity. Many landlords immediately look to letting agents or property managers for help, but the fees can be substantial. If you’re considering hiring a property management company, or thinking about whether you could manage the property yourself, understanding the fee structures is crucial.
In this article, we’ll cover:
The common types of fees charged by London property managers
Typical fee levels across London boroughs
The key factors that influence what you pay
How much you could save by self-managing with tools like August
Common fee types in London
When you hire a property manager or letting agent in London, fees can be broken down into several categories:
Monthly management / ongoing oversight (often 12–15 % of rent)
Tenant sourcing / letting fee (usually 75–100 % of one month’s rent)
Renewal fees (£75–£150)
Inventory, check-in/out reports (£100–£300)
Maintenance mark-ups (often 10–15 % on top of contractor invoices)
Vacancy management (ongoing charges while empty)
For a property renting at £2,500/month in Wandsworth, Hackney, or Camden, the ongoing management fee alone could be £300–£375 per month, before adding letting and renewal fees. In prime areas like Kensington, Chelsea, and Westminster, agents may charge closer to 20 % for a more “hands-off” service.
How the costs add up
Here’s a hypothetical scenario for a flat in Islington renting at £2,500/month:
Management fee (13 %): £325/month = £3,900 per year
Tenant find fee: £2,500
Renewal fee: £120
Inventory/check-in/out: £180
Maintenance markups: ~10 % on works
Annual total: £6,800–£7,500+, which can be 25 % of annual rent if you have tenant turnover.
Why self-managing is different
For many landlords, especially those with just one or two properties, the idea of handing away 12–20 % of rent each month doesn’t make sense.
That’s where self-management comes in. Traditionally, it was difficult and time-consuming. Chasing rent, handling compliance, and tracking paperwork. But with digital tools, landlords in Canary Wharf, Southwark, Clapham, or Tower Hamlets can now run their properties professionally without the high fees.
With August, you can:
Collect rent automatically via Open Banking
Track compliance tasks and store documents like gas safety and licensing, vital in boroughs like Hackney or Southwark
Manage tenant maintenance communication in one place
Handle check-ins, move-outs, and reminders without extra charges
Avoid hidden mark-ups on maintenance by choosing your own contractors
The savings in real terms
Let’s revisit that Islington flat example:
Annual letting agent fees: ~£7,000
With August, your software subscription is a fraction of that depending on your pricing plan, leaving thousands in savings while you stay in control.
Even if you choose to outsource one-off jobs, like inventory checks, you’re still keeping the monthly 12–20 % fee in your pocket.
London hotspots where self-managing pays off
Wandsworth – growing professional demand, many single-let houses where management is straightforward
Hackney – high yields, younger tenants, frequent turnover and remember fees add up quickly if you use agents
Westminster & Kensington/Chelsea – prime rents mean even a 12 % fee can run into thousands every year
Camden & Islington – popular with students and sharers, higher renewal/admin fees
Tower Hamlets & Canary Wharf – busy rental market, easy to let, but costly to outsource property management
Clapham & Southwark – active demand from young professionals, high turnover makes self-managing more rewarding
Final word
Property management fees in London are among the highest in the UK. Landlords can easily see 10–25 % of annual rent disappear into management costs. But with the right digital tools, there’s no need to choose between expensive agents and stressful DIY admin.
