Why a Low Management Fee Doesn’t Always Mean a Better Deal

When comparing lettings agents, the number most landlords look at is the management percentage. One agent offers eight percent, another quotes twelve. The lower figure is the smarter choice, right? Only, that headline rate rarely tells the full story.

Some agents rely on low advertised percentages to draw landlords in, planning to make-up the difference through a maze of additional charges. Mark-ups on contractor invoices, renewal fees, exit fees, administration costs, inflated maintenance call-outs – once these extras are factored in, the “cheaper” agent often ends up costing considerably more.

1. The illusion of low percentages

That shiny low percentage might only cover rent collection, or the bare minimum of management. Anything beyond that; check-ins, inspections, compliance checks, or rent reviews are additional charges.  In some cases, agents apply hidden mark-ups to third-party contractors, adding ten or even twenty percent to every invoice. You might never see the true cost of the work, only the inflated total passed through to you. It’s perfectly legal but rarely transparent.

2. Why transparency matters

We believe a lettings agent should be clear about exactly what’s included in their fee and what isn’t.

You deserve to know:

• Whether maintenance invoices are passed on at cost or with a margin added

• If tenancy renewals, inspections, and compliance management are included

• Whether certificate coordination (EICR, Gas Safety, EPC, etc.) is charged separately

The most telling sign of a trustworthy agent is one who’s happy to show their pricing in plain sight and explain what every pound pays for. Does your agent do this?

3. Value versus cost

The best measure of a good agent isn’t just their percentage, but their total cost of service and the value they deliver.

Consider this example:

• Agent A charges 8% management but adds 15% to every contractor invoice, plus renewal and compliance fees.

• Agent B charges 12% management, passes contractor costs on at cost, and includes renewals and compliance within the fee.

At the end of the year, Agent B often works out cheaper, and their landlord knows exactly what’s been paid, to whom, and why.

4. The Let Correct approach

At Let Correct, we do things differently. Our pricing is transparent, straightforward, and built around fairness.

• We charge a clear management fee that includes full compliance oversight.

• No mark-ups are ever added to contractor invoices; what the contractor charges is what you pay.

• There are no hidden fees - ever. Our fee covers everything it should, start to finish.

• You receive clear documentation and proactive advice rather than reactive costs.

It’s an approach designed to add value, reduce risk, and build trust, not to win on headline rates and make it up in the small print. We add value wherever we can.

5. How landlords can protect themselves

If you’re comparing agents, take a few minutes to do a like-for-like comparison:

1. Ask for a full breakdown of all annual costs.

2. Confirm whether contractor invoices are marked up.

3. Check if renewals, inspections, and compliance are included.

4. Review how frequently the property will be inspected and how issues are reported.

A good agent will be happy to answer every question and provide the numbers in writing.

Final thoughts

Headline percentages can be misleading. What matters most is transparency, accountability, and the total value you receive for your money. At Let Correct, we believe in pricing that reflects exactly that: no hidden fees, no mark-ups, and no surprises. If you’d like to see how your current setup compares, we’re happy to offer a free Lettings MOT, a quick health check of your property’s compliance and management costs. No obligation, just clarity.

Let Correct – Transparent, compliant, and value-driven lettings across Shropshire and beyond.