Letting Agency

Hello

A letting agent collects rent from a tenant deducts their % for management fees and passes the balance onto the landlord.. All money passes through the letting agents client monies bank account.  The management fee part is straightforward income for the letting agenet but please can someone clarify how the balance is treated; a) for VAT purposes ?b) for accounts purposes ? To give an example, say the rent to a tenant is £1000 (domestic properties only)the agent collects the rent from the tenant and pays the landlord less its management fee at say 10% £100 (85.10 + VAT) The £900 passes through a bank account owned by the letting agent so is this an exempt supply ? and in this case would the partial exemption rules on VAT apply? A further question would then be in the accounts is the £900 treated as income to the company offset by a £900 expenditure? I might be over complicating things but I want to make sure I get it right ...