Money · 2 June 2026 · 5 min read

What rent collection actually costs a private landlord

Rent collection is sold in three shapes: a percentage of rent, a flat monthly fee, or free if you do it yourself by bank transfer. On a single property the difference over a year is larger than most landlords expect.

The percentage model

High street letting agents typically charge a rent collection percentage on every payment, often with a separate setup fee at the start of the tenancy. On £650 a month, a 10% collection fee is £780 a year before VAT — roughly a month and a fortnight of rent.

The flat-fee model

Online services have pushed the price down to a fixed monthly figure. That is a clear improvement on a percentage for higher rents, but it is regressive at the lower end: a flat fee is the same whether the rent is £2,000 or £550.

Doing it yourself

Manual bank transfers cost nothing in fees and quite a lot in attention. The real cost shows up when a payment is late, when you need to reconstruct a payment history for a deposit dispute, or when a conversation about repairs happened by text eighteen months ago.

Where Signlet sits

Signlet charges 0.1% of each rent payment plus a one-off £5 setup fee. On £650 a month that is 65p per payment — £7.80 a year — and the rent goes directly from tenant to landlord rather than sitting in a client account. The tenancy agreement, deposit record, payment history and messages stay in the same place, which is the part that saves the hours.

Keep reading

General information about renting in England and Wales. Signlet is not a law firm — check your own circumstances before relying on any of it.