Just spent the last few days reviewing a Lettings Agency’s “fully managed” service contract for my rental property in England, and… wow. The sheer weight of hidden fees and punitive clauses deserves a post of its own.

Here’s a breakdown of the most eyebrow-raising terms I found, so that fellow landlords can spot red flags before signing anything:

1. The “Compliance Fee” (aka Double-Charging)

Beyond the main management fee (which was already pushing 18% of monthly rent, inclusive of VAT), there’s a mandatory “compliance fee” of £14.40 a month. Apparently, that’s for the agent to indemnify themselves against their own errors despite statutory compliance being a basic duty for which reputable agents are already responsible. Why would I pay an extra monthly premium for peace of mind that my agent will do their job properly?

2. Management Fee “Discounts” That Aren’t

Even after offering me a so-called discounted rate, the total cost (once all ‘required’ extras are added) is substantially above market average. Don’t be fooled by headline rates; always calculate the true monthly and yearly cost with all fees included.

3. Exit Fees Straight Out of a Ransom Note

Buried in the small print: to terminate the agreement outside initial terms, you can be on the hook for the equivalent of two months’ rent plus VAT as an “exit charge.” For a property at £3000/month, that’s over £7,200 just to leave. This kind of lock-in is not standard among quality agents.

4. A Minefield of “Creative” Charges

- £150 per simple tenancy renewal. 
- Deposit handling fee or “No Deposit Option” fee £7.20/month (on top of compliance fee).
- Annual “admin charges” for providing HMRC documentation or for being an overseas landlord (£15 a year for each).
- £59.40 per income/expenditure report.
- £12 for cutting a single key (plus contractor markup).
- £60 charge for any vacant property visit, regardless of time spent.
- Automatic retention of £300 for “cleaning/marketing” at exit—whether or not these services are needed.

5. Overlapping and Cumulative Fees

Many of these charges stack so you can easily pay for compliance, deposit handling, admin, and other “protections” for the same tenancy, each as a separate line item.

6. Market Comparisons Don’t Lie

I compared these terms against at least five other large agencies and several independents. None came close to this level of cumulative cost or contractual restriction. Most reputable agents deliver compliance, deposit handling, and admin support within the main management fee.

I am sick and tired of these vampires! Honestly, the software is doing most of the work, but yet we are being overcharged by thousands, and at the end, it is the Tenants who pays, either through a bad let or higher rent!

If you’re a landlord, always demand full fee transparency, get all terms in writing, and NEVER sign anything with hidden compliance/admin surcharges, punitive exit penalties, or stacked repetitive fees. Read the entire Terms of Business don’t just go by the marketing headline.

Legal note: This post is for general information only and based on one contract review. Not naming names to avoid issues, but suffice to say, read before you sign!

Have you seen similar clauses? What’s the wildest hidden fee you’ve faced as a landlord? Let’s hear more horror stories (and tips for avoiding them) below!