How Our Payment Model Works

Published by Leaseholder Led · Independent guide — 20 March 2026

How the Introduction Fee Works

When your building appoints a new managing agent through Leaseholder Led, the winning agent pays us a fixed introduction fee: £2,500 plus £30 per flat. The fixed element covers the engagement, tender management, and transition coordination — work that is broadly consistent regardless of block size. The per-flat element scales with the size and value of the contract to the incoming agent.

Every agent we work with is quoted the same fee formula: £2,500 plus £30 per flat. The fee does not depend on the management fee they quote to your building — whether they charge £200 per unit per year or £400, our introduction fee is identical. This means we have no financial incentive to steer you towards a more expensive agent.

Where the Fee Comes From

Managing agents actively spend money to win new buildings. Marketing, sales teams, pitches, sponsorships — new business acquisition has a cost. Our introduction fee replaces some of that activity. Instead of spending their budget on cold outreach, the agent receives a qualified, tender-ready opportunity with a group of leaseholders who have already decided to find a new managing agent.

The fee comes from the agent's existing business development budget. It does not get added to your service charges, and it does not inflate the management fee they quote to your building. Agents quote their standard rates — the same rates they'd quote if you approached them directly.

Why This Model Aligns Our Interests With Yours

The introduction fee structure means we only get paid when you successfully appoint a managing agent you're happy with — whether you change agent without RTM or need to exercise Right to Manage first. If the process stalls, if you decide not to proceed, or if no agent meets your standards — we earn nothing.

This creates a simple alignment: our success depends entirely on your satisfaction.

It's also worth noting what the model doesn't incentivise. Because our fee is a flat amount — not a percentage of the management fee the appointed agent charges — we have no reason to prefer one agent over another based on their pricing. Whether the winning agent quotes £200 per unit per year or £400, our introduction fee is exactly the same. The decision is entirely the leaseholders'.

Where a building needs to exercise Right to Manage before appointing a new agent, an additional per-flat charge applies on top of the standard fee, reflecting the level of leaseholder organisation at the point of instruction:

• •High engagement (active residents' association, clear champion in place): +£10 per flat
• •Medium engagement (some momentum but needs organising): +£15 per flat
• •Low engagement (cold start, no existing group): +£20 per flat

The add-on is assessed at the point of instruction and confirmed in writing before any work begins. You can read more about the RTM process in our dedicated guide.

A Familiar Model

This isn't a novel arrangement. Introduction-based fee models are well established across professional services:

• •Recruitment agencies are paid by the hiring company, not the candidate. The candidate gets a free service; the employer pays a fee for a qualified introduction.
• •Mortgage brokers are typically paid by the lender, not the borrower. The borrower gets free advice; the lender pays a commission for the introduction.
• •Insurance brokers operate similarly — the insurer pays, the policyholder benefits from independent comparison and advice.

In each case, the party being introduced (the employer, lender, or insurer) pays because they're gaining a qualified client they'd otherwise have to spend money acquiring. The same logic applies here: the managing agent gains a building they'd otherwise need to find and win through their own sales efforts.

Common Questions

Still have questions?

Related guides

• •How to Find a New Managing Agent — directories, comparison platforms, and expert-led services compared
• •Why Leaseholders and Managing Agents Both Need an Independent Process Leader — how Leaseholder Led fills a critical gap
• •What Is Right to Manage and Do I Need It? — understand whether RTM is the right route for your building