What does a letting agent do

A letting agent is a professional intermediary who acts on behalf of a landlord to let and sometimes manage a rental property. Their services range from finding and referencing tenants through to full day-to-day property management. Unlike a managing agent, which typically refers to the ongoing management role, the term "letting agent" is more commonly used to describe the tenant-finding and tenancy set-up function, though many agents offer both services.

What does a letting agent do?

The scope of what a letting agent does depends on the service level agreed. There are typically three tiers:

A tenant find only service covers marketing the property, conducting viewings, referencing applicants, and drawing up the tenancy agreement. Once the tenant is in place and the tenancy started, the landlord takes over all management. This is the lowest-cost option, usually charged as a one-off fee of around one to two weeks' rent.

A rent collection service adds ongoing rent collection to the tenant find function, with the agent collecting rent from the tenant and remitting it to the landlord, handling late rent notices and initial arrears chasing. Management of the property remains the landlord's responsibility.

A full management service covers everything, including marketing, referencing, tenancy set-up, rent collection, handling repairs and maintenance, conducting property inspections, managing compliance obligations such as gas safety and electrical safety certificates, and dealing with day-to-day tenant queries. Full management typically costs 10–20% of the monthly rent, varying by location and agent. See our blog articles on property management fees in London, Manchester, Birmingham, Bristol, Leeds, Liverpool, and Brighton for current benchmarks.

What letting agents are responsible for

Under the Renters' Rights Act, letting agents must be members of an approved redress scheme and hold client money in a protected account. They are required to display their fees transparently and cannot charge prohibited payments to tenants. If an agent handles deposit protection, they are responsible for registering the tenancy deposit in an approved scheme and serving prescribed information correctly and within the legal deadline.

Critically, instructing a letting agent does not transfer the landlord's legal responsibility to that agent. If the agent fails to protect a deposit, carry out a right to rent check, or meet rental standards, the landlord can still face penalties. Landlords should check an agent's redress membership, client money protection, and professional body memberships before instructing them, and monitor compliance throughout.

Self-managing as an alternative

Many landlords, particularly those with one to five properties, find that self-managing with the right tools is more cost-effective and gives them greater control than using a full management agent. August is designed specifically for self-managing landlords, covering rent tracking, expense management, compliance reminders, document storage, maintenance reporting, and MTD record-keeping in one place. See our guide to property management costs for a full comparison of agent fees versus self-management costs.