Landlord statements: what to include, how often to send them and what causes complaints
What a letting agent's landlord statement should show, from rent and fees with VAT to costs passed on, tenant money held and non-resident landlord tax.
A landlord statement is the document a letting agent sends to show what rent came in, what was taken out and what was paid over. For most landlords it is the only regular contact they have with the agency, and for their accountant it is the record the tax return is built from. A statement that is late, unclear or wrong is behind a large share of complaints to agents.
This guide covers what to include, how often to send statements, the client money rules behind them, and the extra duties when the landlord lives abroad. Checked against gov.uk on 31 October 2026.
At a glance
| Item | What the statement should show |
|---|---|
| Period | The dates covered and the date it was produced |
| Rent | Each tenancy, rent due, rent received, with dates and any arrears |
| Agency fees | Management or let-only fee, with VAT shown separately if you are VAT registered |
| Costs passed on | Repairs, certificates, licence fees and other third-party costs, with the invoice available |
| Money held | Anything held back, such as a float or tenant money that is not the landlord's to receive |
| Payment | The amount paid to the landlord, the date and the account it went to |
| Tax | For a non-resident landlord, the tax deducted under the Non-resident Landlord Scheme |
| Running balance | Opening balance, movements, closing balance, so one statement follows from the last |
What to include
Rent received, by tenancy
Show each property and tenancy on its own lines: the rent due for the period, the rent received, the date it arrived and anything still owed. A landlord who sees rent received without the rent due cannot tell that a tenant is a month behind. If a payment arrived late and belongs to last month, say so rather than letting it look like this month's rent.
Your fees, and the VAT on them
Agency fees are the agency's income, so they come out of the landlord's rent before anything is paid over. Show the basis of the fee (a percentage of rent collected or a fixed amount), the fee itself, and if your agency is VAT registered, the VAT as a separate line at the standard rate of 20%. A landlord's accountant needs the net fee and the VAT apart.
The fees you charge landlords must also be published in your office and on your website under the Consumer Rights Act 2015. See legal requirements for letting agents.
Costs passed on
A repair invoice, a gas safety check, an EICR or an HMO licence fee paid on the landlord's behalf is a cost passed on. It is not your fee, so it carries no agency VAT; the contractor's own VAT, if any, is inside their invoice. Show each cost on its own line with the contractor, the property and the date, and keep the invoice where the landlord can see it.
Money held for tenants
Some money that passes through your client account is not the landlord's to receive. A tenant's overpayment, a holding deposit before a tenancy is agreed, or a deposit between receipt and protection all belong to the tenant until something changes. Show these as held, clearly labelled, and never roll them into the amount paid to the landlord. Deposits are then protected in a scheme within 30 days; see tenancy deposit protection rules.
The payment itself
End with what was paid, when and to which account, and a closing balance that becomes the next statement's opening balance. If the landlord has more than one property with you, decide with them whether they want one statement per property or one combined statement, and keep to it.
How often to send statements
Monthly is the standard for managed properties, sent within a few days of the month's rent being received. Some landlords ask for a statement each time rent is paid over. Whichever it is, write the frequency into the terms of business and keep to the same day each month so a missing statement is noticed by you before it is noticed by the landlord.
Send a year-end summary too, covering the tax year from 6 April to 5 April. From 6 April 2026, landlords with qualifying income from property and self-employment over £50,000 must keep digital records and send quarterly updates under Making Tax Digital for Income Tax, with the threshold falling to £30,000 from April 2027 and £20,000 from April 2028. Those landlords will ask for statements their software can take, so a consistent monthly layout matters more than it used to.
The client money rules behind the statement
Every figure on a statement is money you hold for someone else. In England a letting or property management agent that holds client money must:
- belong to a government-approved client money protection scheme
- hold client money in a client account with a bank or building society authorised by the FCA
- display the scheme certificate in any office where you deal with the public and on your website, and provide a copy free of charge to anyone who asks
Not joining a scheme can lead to a fine of up to £30,000; failing to display or provide the certificate up to £5,000. The statement is the landlord-facing side of the same discipline: the total of what every landlord and tenant is owed, plus unpaid supplier invoices, should equal the balance of the client account. A monthly reconciliation that proves it is what a scheme or an auditor will ask to see.
Non-resident landlords
If a landlord's usual home is outside the UK (gov.uk uses living abroad for more than six months of the year), a letting agent collecting their rent must operate the Non-resident Landlord Scheme:
| Duty | Detail |
|---|---|
| Register | Form NRL4, regardless of how much rent you collect |
| Deduct tax | Basic rate, 20%, on the rent for the quarter less the deductible expenses you paid in that quarter |
| Pay and report quarterly | Quarters end 30 June, 30 September, 31 December and 31 March; payment is due within 30 days of each quarter end |
| Annual return | Form NRLY to HMRC and to the landlord by 5 July |
| Certificate | Form NRL6 to the landlord each year, so they can claim the tax deducted |
| Records | Keep rent, expenses and correspondence about where the landlord lives for 4 years |
The only exception is where HMRC has told you in writing that the landlord may receive rent with no tax deducted; even then you may still need to register and complete the annual return. On the statement, show the tax deducted as its own line in the quarter it relates to, so the landlord can match it to the NRL6 later.
The mistakes that cause complaints
- Fees and VAT on one line. Split them.
- Rent received without rent due. The landlord cannot see arrears.
- Costs with no invoice. Attach it or make it available in a portal.
- Tenant money paid to the landlord. It has to be repaid, usually after an argument.
- Statements that do not roll forward. If the closing balance on one does not open the next, every other figure is doubted.
- A different layout each month. Accountants reconcile by position; keep it fixed.
- Late statements. Pick a day and hit it.
- NRL tax missing or shown net. The landlord needs the gross rent, the tax and the net to reconcile with HMRC.
How Letfold helps
Letfold builds the landlord statement from the same rent, payment and repair records the rest of the agency uses, so rent due, rent received, agency fees with a separate VAT line, costs passed on and the amount paid out appear without spreadsheet work. Statements go out automatically each month and sit in the landlord's portal, money held for tenants is shown as held and never payable, and the non-resident landlord tax is worked out by quarter alongside a monthly client money reconciliation. See features and pricing.
Frequently asked questions
What should a landlord statement include?
The period, rent due and received per tenancy, agency fees with VAT shown separately, each cost passed on, any money held, the amount paid to the landlord and a running balance from the last statement.
How often should a letting agent send landlord statements?
Monthly is the norm for managed properties, within days of rent being received, plus a year-end summary covering 6 April to 5 April. Put the frequency in the terms of business.
Do letting agents charge VAT on their fees?
Agencies that are VAT registered charge VAT at the standard rate of 20% on their own fees. Costs paid to third parties on the landlord's behalf are passed on at the amount invoiced, with no agency VAT added.
What is the Non-resident Landlord Scheme?
An HMRC scheme under which a letting agent collecting rent for a landlord whose usual home is abroad deducts basic-rate tax from the net rent each quarter, pays it to HMRC within 30 days of the quarter end, and sends an annual return and certificate by 5 July.
Does a letting agent need client money protection?
Yes. An agent in England that holds client money must belong to an approved client money protection scheme and hold the money in an FCA-authorised client account, with a fine of up to £30,000 for not joining.
Sources
Checked on 31 October 2026:
- Paying tax on rent on behalf of landlords who are abroad (gov.uk)
- Protecting clients' money if you're a property agent (gov.uk)
- VAT rates (gov.uk)
- Consumer Rights Act 2015, section 83: duty of letting agents to publicise fees (legislation.gov.uk)
- Check if you're eligible for Making Tax Digital for Income Tax (gov.uk)
This article is general information for England, not legal advice.
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