Use the free Property Management Fees Calculator UK on ToolVexa to work out what a letting agent’s management fee will cost each month, including VAT. Enter the monthly rent, the fee percentage and the VAT rate, press Calculate, and your result appears straight away.
How to Use
Enter the monthly rent in pounds, the management fee as a percentage of that rent, and the VAT rate that applies to the fee. Press Calculate to see the fee before VAT, the VAT amount, the total monthly cost and the annual cost.
Formula in Plain Words
The monthly fee is the rent multiplied by the fee percentage divided by 100. VAT is that fee multiplied by the VAT percentage divided by 100. Add the fee and the VAT together for the total monthly cost, then multiply by 12 for the annual cost.
Worked Example
For a monthly rent of £1,800, a management fee of 12% and VAT of 20%, the monthly management fee is £216.00, the VAT on the fee is £43.20, the total monthly cost is £259.20 and the annual cost is £3,110.40.
FAQs
Is VAT always charged on a management fee?
Not always. It depends on the agent and the service, so check the agreement and use the VAT rate that applies to your fee, or enter 0 if no VAT is charged.
Does this include other charges?
No. It covers only the percentage management fee and VAT on that fee. Letting, renewal, maintenance and other charges are separate.
Can I compare two agents?
Yes. Run the calculation once for each fee percentage and compare the total monthly costs.