Landlord guide
Do letting agents add a markup to maintenance costs?
Some letting agents add a markup, often 8% to 20%, on top of what a contractor actually charges for repairs, sometimes described as a call-out or admin fee instead. This is not illegal, but it should be disclosed in your management agreement. If it is not clearly stated, ask your agent directly whether they mark up invoices, and request the original contractor invoice alongside anything you are billed.
Why markups exist
Agents argue the markup covers the time spent arranging and overseeing repairs. Whether that is fair depends on how transparent the charge is and how much work is genuinely involved.
How to spot one
Ask for the original invoice from the contractor and compare it with what you were charged. A gap between the two figures, without explanation, is a markup.
- Request the contractor's original invoice
- Check your agreement's wording on maintenance charges
- Ask if there is a fixed admin fee instead of a percentage markup
What to do if you find one
Raise it with your agent and ask for it to be removed or capped going forward. If they will not change their approach, this is a reasonable reason to compare other agents.
