The short answer
Self-managing gives you the most income if everything goes well, but the most work and risk. A letting agent saves time but costs roughly 12–18% of the rent once VAT is included, and you still carry voids and arrears. Guaranteed rent gives a fixed income for an agreed term with management handed over, usually in exchange for a lower monthly figure. The right choice depends on how much you value certainty and time.
| Self-managing | Letting agent | Guaranteed rent | |
|---|---|---|---|
| Typical cost | Your time, plus compliance and maintenance costs | Full management about 10–15% of rent plus VAT; tenant-find often around one month's rent | No management fee, but the guaranteed rent is usually below full market rent |
| Your time | High: viewings, repairs, compliance, rent chasing | Low to medium | Low during the term |
| Void periods | You lose the rent | You lose the rent | Rent is paid as set out in the agreement |
| Arrears risk | Yours | Yours (agent chases) | Usually the provider's, as set out in the agreement |
| Compliance work | Yours | Shared; you remain legally responsible | Set out in the agreement; check carefully |
| Income | Variable | Variable | Fixed for the agreed term |
| Main thing to check | That you have the time and knowledge | The agent's fees, redress scheme and client money protection | The provider's financial strength, and the agreement's terms and exit |
Before signing any guaranteed rent agreement
- check the provider's company details, accounts and track record
- confirm exactly what is guaranteed, when it's paid and for how long
- check who handles repairs, safety certificates and compliance
- read the break clauses and what happens at the end of the term
- get your mortgage lender's and any freeholder's consent
- take independent legal advice
Work out your real numbers
Use our landlord cost calculator to compare your likely net income from self-managing or using an agent with a fixed guaranteed figure.
Common questions
How much do letting agents charge?
Full management typically costs 10% to 15% of the monthly rent plus VAT, so a quoted 10% is about 12% once VAT is added. Tenant-find only is often around one month's rent or £500 to £1,500. Add-ons such as inventories and renewals can add several hundred pounds a year.
Is guaranteed rent worth it?
It can be if you value a fixed, predictable income and want to hand over day-to-day management. You'll usually receive less than the full market rent, in exchange for the provider taking on voids and management. Compare the guaranteed figure with your realistic net income after fees, voids and costs.
What are the risks of guaranteed rent?
The guarantee is only as good as the company giving it. Check the provider's financial standing and track record, read the agreement carefully, confirm who is responsible for repairs and compliance, check how it ends, and make sure your mortgage lender and any freeholder consent.
Does guaranteed rent help with the Renters' Rights Act?
It can reduce your day-to-day involvement, because the provider manages the property during the term. You remain the owner, so you should take advice on your own legal and tax position.
See what guaranteed rent could look like for your property
Tell us the basics and we'll come back with terms in writing. No obligation.
Sources
- Buildington: letting agent vs self-managing, 2026 guide
- Which?: key dates for the Renters' Rights Act
General information, not legal, tax or financial advice. Checked and last updated 29 October 2026.