Letting Agent

A professional who manages a property on behalf of a Landlord (see 'Landlord') is called a 'letting agent'. The duties of the letting agent, whose fee is normally charged as a percentage of rent received, can include:

Drawing up a lease (in the absence of a solicitor), collecting rent, inspecting property, arranging repairs and maintenance, arranging insurance, corresponding with tenants, organising check-ins and check-outs, preparing inventories and handling deposit disputes.

Pertinent to UK taxation, letting fees are an allowable expense in the reporting of property related income in order to reduce letting profit and associated taxation. Additional duties apply to letting agents concerning UK non-resident clients, whereby the agent is required to calculate the profit from the letting, deduct tax as calculated and pay it over to HMRC. In the event that the client is approved for the exemption from 'deduction of tax at source' the agent is instructed by HMRC to cease this duty (see also 'Non-Resident Landlord' and 'NRL Scheme').