Managing rental property can be a great investment, but it’s not without its challenges. From finding tenants to handling maintenance and staying compliant with legal regulations, it can quickly become a full-time job. That’s where a property management company can make all the difference.
In this guide, we’ll walk you through what a property management company actually does, the services you can expect, how they work, what they cost, and how to choose the right one.
Table of Contents
What Is a Property Management Company?
A property management company is a professional service that handles the day-to-day operations of a rental property on behalf of the owner. In the UK market, they act as a trusted partner between landlords and tenants, ensuring everything runs smoothly while keeping you legally compliant and financially secure.
From sourcing tenants to collecting rent and managing repairs, their core purpose is to save you time, protect your investment, and deliver a hassle-free experience.
A top-tier property management company offers a wide range of services designed to streamline every aspect of letting and managing your property.
Responsibilities of A Property Management Company
Tenant Screening & Lettings Management
Property managers are responsible for marketing rental properties, conducting viewings, and screening potential tenants. They perform background checks, verify employment and income, and assess creditworthiness to ensure reliable tenancy.
Rent Collection & Financial Management
They ensure rent is paid on time, chase arrears, and provide monthly statements. Many landlords appreciate the structured approach to finances, especially when managing multiple properties or HMOs.
Maintenance & Repairs
A good property manager will have a network of reliable contractors on speed dial. Whether it’s a leaking tap or an urgent boiler breakdown, they’ll get it sorted fast — often before the tenant even calls you.
Legal Compliance & Regulations
With UK rental laws constantly evolving, it’s easy to fall foul of the rules. Property managers stay on top of legislation and make sure everything from your gas safety certificate to deposit protection is handled correctly.
Handling Tenant Complaints & Evictions
Sometimes, things don’t go to plan. A property manager acts as the first line of defence in disputes, and when necessary, they’ll manage the eviction process lawfully and professionally.
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Ten Benefits of Using A Property Management Company
Hiring a property management company can offer landlords a wide range of advantages that go beyond simply handling tenant issues. From financial optimisation to legal compliance and tenant satisfaction, here’s a deeper look at the core benefits:
1. Time-Saving and Stress Reduction
Managing rental property can be time-consuming and stressful, especially for landlords with multiple properties or other full-time commitments. A property management company handles day-to-day operations such as:
- Responding to tenant inquiries and complaints
- Coordinating repairs and maintenance
- Collecting rent and managing arrears
- Organising safety inspections
By outsourcing these responsibilities, landlords free up valuable time and avoid the mental burden of dealing with tenants and property issues directly.
2. Professional Tenant Screening
Placing the wrong tenant can lead to costly problems such as rent arrears, property damage, or even legal disputes. Property management companies use thorough and professional screening processes to evaluate applicants, including:
- Credit checks
- Employment and income verification
- Landlord references
- Background checks (where appropriate)
This helps ensure that reliable, responsible tenants are placed in your property, reducing the likelihood of issues down the line.
3. Reduced Vacancy Rates
Vacant properties generate no income but still incur costs. Property managers help minimise vacancy periods by:
- Marketing the property across high-traffic platforms
- Using local market knowledge to set competitive rental prices
- Conducting prompt and flexible property viewings
- Ensuring a smooth tenant turnover process
Their expertise ensures your property is let quickly, maximising your rental income.
4. Efficient Rent Collection and Cash Flow Management
Late or missed rent payments can severely impact your financial stability. Property management companies enforce strict rent collection procedures and policies, including:
- Setting clear expectations with tenants
- Following up swiftly on late payments
- Implementing and enforcing penalty clauses
- Issuing legal notices when necessary
This leads to more consistent and reliable income streams for landlords.
5. Legal Compliance and Risk Management
UK landlords must comply with a wide range of laws and regulations, from gas safety checks to tenancy deposit protection schemes. Failure to comply can lead to fines, prosecution, or invalid eviction notices.
Property management companies stay up-to-date with current legislation and ensure:
- All safety certificates are up to date (e.g., EPC, Gas Safety, EICR)
- Tenancy agreements are legally compliant
- Deposits are handled according to the Tenancy Deposit Scheme (TDS)
- Proper notice periods are served in accordance with the Housing Act 1988 and other UK laws
This protects landlords from costly legal mistakes and ensures peace of mind.
6. Access to Reliable Contractors and Tradespeople
One of the biggest headaches for landlords is finding trustworthy tradespeople for repairs and maintenance. Property managers usually have an established network of vetted professionals who:
- Provide timely, high-quality service
- Offer competitive pricing
- Are familiar with property standards and legal requirements
This leads to quicker repairs, better property upkeep, and happier tenants.
7. Improved Tenant Retention
Retaining good tenants reduces void periods and re-letting costs. Property management companies help keep tenants satisfied by:
- Addressing maintenance issues quickly
- Communicating professionally and promptly
- Conducting regular inspections to maintain property standards
- Offering renewal incentives when appropriate
High tenant satisfaction increases the chances of lease renewals and long-term tenancies.
8. Detailed Financial Reporting
Property management companies often provide monthly or quarterly statements that outline:
- Rent collected
- Expenses (e.g., repairs, management fees)
- Outstanding payments
- Tax-deductible costs
This makes financial tracking and tax preparation easier and more transparent for landlords.
9. Scalability for Portfolio Landlords
For landlords with multiple properties or those looking to scale, self-managing becomes increasingly complex. Property managers provide scalable systems and centralised management that:
- Streamline communication across multiple properties
- Reduce administrative overhead
- Enable landlords to focus on investment strategy rather than operations
10. Peace of Mind
Ultimately, one of the biggest benefits is the peace of mind that comes from knowing your property is being managed by professionals. Whether you’re a first-time landlord or a seasoned investor, entrusting your property to experts means:
- Fewer late-night phone calls
- Less legal uncertainty
- Better tenant relationships
How Does Property Management Work?
Here’s a typical journey when working with a rental management company:
Step 1 – Initial Consultation
You discuss your property, goals, and what level of service you need.
Step 2 -Property Evaluation
They assess the rental value and flag any issues or legal requirements.
Step 3 – Onboarding & Marketing
Your property is listed, viewings arranged, and tenants vetted.
Step 4 – Ongoing Rental Management
They take care of rent collection, inspections, maintenance, and communication. You stay in control but with much less on your plate.
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Property Management Fees
Property management fees vary by region, property and service level, but here’s more detail on what you may be charged.
Let-Only Fee (Tenant Find Fee)
This is a one-off fee charged when the agency finds and places a tenant into your property. The service generally includes:
- Advertising the property on portals such as Rightmove and Zoopla
- Conducting viewings
- Vetting and referencing potential tenants
- Preparing and signing the tenancy agreement
- Collecting the first month’s rent and deposit
- Registering the deposit with a government-approved Tenancy Deposit Scheme (TDS)
Cost:
Typically ranges from 75% to 100% of the first month’s rent, or a fixed fee (e.g., £500–£800). VAT is usually applicable.
When it’s ideal:
For landlords who are confident managing the property themselves after a tenant is secured.
Full Management Fee (Ongoing Monthly Fee)
This is the most common type of fee for landlords looking for hands-off management. It covers the day-to-day running of the tenancy, including:
- Rent collection and arrears management
- Maintenance coordination and emergency repairs
- Regular property inspections
- Tenant communication and conflict resolution
- Renewals and contract extensions
- Legal compliance (e.g., EPCs, safety checks)
Cost:
Usually between 8% and 15% of the monthly rent, plus VAT.
When it’s ideal:
For landlords who want passive income and minimal involvement in the rental process.
Renewal or Tenancy Extension Fee
This is a charge for renewing an existing tenant’s contract after the fixed term ends.
Services covered:
- Negotiating renewal terms
- Drafting and issuing new agreements
- Ensuring continued legal compliance
Cost:
Typically a flat fee (£100–£200) or a percentage of one month’s rent.
Maintenance and Repair Fees
While most property managers don’t charge directly for organising repairs, some may add a mark-up (typically 10–15%) on contractor invoices, or have a minimum call-out charge for emergencies. It’s important to clarify:
- Whether they pass on costs at net price
- If they use in-house or third-party contractors
- Whether you can approve quotes above a certain threshold
What affects property management prices?
- Location (e.g. higher in London or high-demand cities)
- Type of property
- Whether you have a single property or a multiple property portfolio
Remember, when it comes to property management company fees, cheaper isn’t always better. Look at what’s included in your property management package and the value it is delivering.
Remember, when it comes to property management company fees, cheaper isn’t always better. Look at what’s included in your property management package and the value it is delivering.
How to Choose the Right Property Management Company
Not all property managers are equal. Here’s what to look for:
Check Experience and Credentials
Choose a company with proven local expertise and industry accreditations.
Read Reviews and Testimonials
Past clients often paint a clearer picture than the website does. Check Google, Trustpilot, and landlord forums. We take pride in how great our online reviews are!
Compare Fees and Services
Always ask for a detailed breakdown. Look for transparency and make sure there are no hidden extras.
Communication and Transparency
Your manager should be responsive, proactive, and willing to keep you in the loop.
Common Misconceptions About Property Management Companies
There are a few persistent myths that hold landlords back:
“It’s only for big portfolios.”
Not true. Many single-property landlords benefit hugely from support. In fact, most of our landlords have less than three properties.
“I’ll lose control.”
A good manager works with you, not instead of you.
“They have to be local.”
Local knowledge helps, but many companies now manage wider areas using digital systems and local contractors.
“It’s too expensive.”
When you factor in the time saved and problems avoided, it can often pay for itself.
Summary and Key Takeaways
- A property management company gives landlords peace of mind, legal protection, and more time back in their day
- They can protect your investment, improve your returns, and ensure your tenants are happy
- Take time to find the right property management company by reading reviews and comparing services
