Renting
What a letting agent does, and who pays for it
Letting agents sell three different services under one name. Knowing which one you are buying explains almost every complaint about them.

These are listed in the order worth acting on, which with letting agents is not the order they are usually presented in.
What matters most
- Tenant-find, rent collection and full management are separate services.
- Many jurisdictions now restrict what agents may charge tenants.
- Client money protection and redress membership are worth checking.
Three services under one name
Tenant-find means advertising, viewings, referencing and paperwork, after which the landlord deals with everything for the rest of the tenancy. Rent collection adds the handling of payments and chasing arrears, but leaves repairs and inspections with the landlord.
Full management adds repairs, inspections, compliance and being the contact point when something fails at an inconvenient hour. The fee structures differ accordingly, usually a one-off charge for tenant-find and a percentage of rent for the ongoing services. Most disputes about agents come from a mismatch between what was bought and what somebody assumed was included.
What tenants can be charged
Several jurisdictions have restricted or banned tenant fees, limiting charges to rent, a capped deposit and a small number of permitted payments. Where fees are banned, agents recover the cost from landlords, which tends to appear in rents rather than disappearing altogether.
Where it helps most, holding deposits are commonly permitted but regulated, with rules on when they must be repaid and when they may be retained. Be cautious about any charge described as administration, referencing or contract preparation, and check the local rules before paying it. Ask for a written breakdown of every payment required before the tenancy begins, since a lawful charge will always be explainable.
What a landlord is actually buying
A management fee buys time and distance rather than a better tenant, and it is worth most to landlords who live far away or travel. It also buys knowledge of compliance obligations, which change frequently and carry real penalties in many jurisdictions when missed.
On an ordinary week, it does not remove legal responsibility, because in most systems the obligations sit with the landlord regardless of who was instructed. Read what is excluded: renewals, inspections beyond a set number, court attendance and arrangement of major works are often charged separately. Ask how repairs are authorised, what the threshold is for spending without approval and whether the agent marks up contractor invoices.
Checking the agent itself
Ask whether the firm belongs to a redress or ombudsman scheme where the jurisdiction has one, since that is your route when things go wrong. Ask about client money protection, which matters because rent and deposits pass through the agent account before reaching anybody else. Ask how deposits are protected and which scheme is used where a statutory scheme exists in your jurisdiction.
Ask who conducts viewings and inspections, because some firms use a central team with no knowledge of the individual property. Look at how quickly they answer an enquiry as a prospective tenant, since that is a fair sample of how they answer a repair report.
When the agent is the problem
Repairs reported and not actioned are the most common complaint, and the fix is a written record with dates rather than repeated phone calls. Put every report in writing, keep the acknowledgement, and follow up in writing when nothing happens within a reasonable period.
Where the agent is unresponsive, escalate to the landlord directly if you can identify them, because they carry the legal obligation. After that, the redress scheme or the local authority may be the appropriate route depending on the jurisdiction and the seriousness. Keep everything factual and dated, because a tidy written record is what makes any complaint process work quickly.
Adjust the size of it until it is something you would actually do tired.
Getting value from the relationship
Tenants who report problems early, in writing and without hostility generally get faster service than those who wait and then escalate. Landlords who pay promptly, authorise repairs quickly and set clear thresholds get better attention from a managing agent than those who query everything. Ask for an annual review of the management arrangement, including the fee, since these agreements are renegotiable like any other.
Check the notice period in the management agreement before instructing, because long tie-ins appear here as much as in sales agency. Regulation of letting agents differs sharply between countries and is tightening in several, so confirm the current local rules rather than assuming.
Everything above, in order of what to do first
- Three services under one name. Tenant-find means advertising, viewings, referencing and paperwork, after which the landlord deals with everything for the rest of the tenancy.
- What tenants can be charged. Several jurisdictions have restricted or banned tenant fees, limiting charges to rent, a capped deposit and a small number of permitted payments.
- What a landlord is actually buying. A management fee buys time and distance rather than a better tenant, and it is worth most to landlords who live far away or travel.
- Checking the agent itself. Ask whether the firm belongs to a redress or ombudsman scheme where the jurisdiction has one, since that is your route when things go wrong.
- When the agent is the problem. Repairs reported and not actioned are the most common complaint, and the fix is a written record with dates rather than repeated phone calls.
- Getting value from the relationship. Tenants who report problems early, in writing and without hostility generally get faster service than those who wait and then escalate.
The takeaway
Establish which of the three services is being bought, check redress and client money protection, and put every repair report in writing.
Pick the one that costs you least, and let the rest wait.
Questions readers ask
Can a letting agent charge me a referencing fee?
It depends on the jurisdiction. Several have banned or capped tenant fees, permitting only rent, a capped deposit and specific payments. Check before paying anything.
Does full management remove the legal responsibility from a landlord?
Generally no. In most systems the obligations remain with the landlord even where an agent handles the work, which is why the choice of agent matters.
Also by Gareth Pryce
- The order property decisions actually arrive inBuying
- Survey levels, and which one is worth paying forSurveys & Condition
- Leasehold: the questions to ask before you offerLegal & Paperwork
- The running costs that start the day you completeRunning a Home





