Property management is the business of running a rental property on a landlord’s behalf. A property management company finds tenants, collects rent, handles maintenance, deals with complaints, manages compliance, and takes care of everything else that comes with letting a property — so the landlord doesn’t have to.
That’s the short answer. What it looks like in practice depends on the type of service, the company, and what the landlord actually wants to hand over.
What property managers actually do
The scope varies by provider, but a full property management service typically covers:
- Marketing the property and finding tenants
- Referencing and vetting applicants
- Drafting and managing tenancy agreements
- Collecting rent and chasing arrears
- Handling maintenance requests and coordinating repairs
- Conducting regular property inspections
- Managing compliance — Gas Safety Certificates, EPCs, Electrical Installation Condition Reports, deposit protection
- Dealing with tenant disputes and, where necessary, the legal process of regaining possession
- Managing the end of tenancy and preparing the property for the next let
Some landlords use property management for the whole package. Others use it just for tenant finding, or just for maintenance coordination. The level of involvement is usually up to you.
Full management vs let only
Most property management companies offer different tiers. Let only means they find and vet a tenant, set up the tenancy, and hand everything back to you. Full management means they take on ongoing responsibility for the property and its tenants for the duration of the tenancy.
Full management costs more — typically 10 to 15% of the monthly rent, on top of a tenant find fee. Let only is cheaper upfront but leaves you dealing with everything once the tenant moves in.
There’s a third option that’s different in structure: guaranteed rent. Rather than managing your property on your behalf, the company becomes your tenant directly, pays you a fixed monthly amount, and takes full responsibility for the property. No fees, no commission, no tenant management on your end at all. For London landlords who want a genuinely hands-off arrangement, it’s worth understanding the difference.
Property management fees — what to expect
For a standard full management service in London, expect to pay:
- A tenant find fee of one to two weeks’ rent, or a flat fee
- A monthly management fee of 10 to 15% of the rent collected
- Additional charges for renewals, inspections, maintenance coordination, and end-of-tenancy management — these vary widely and are worth checking before you sign
The headline percentage often understates the real cost once additional fees are included. A property management company charging 10% with lots of add-ons can cost more than one charging 14% with everything included. Always ask for a full fee schedule.
What landlords get wrong about property management
The most common mistake is assuming a management fee means no involvement. Most standard property management services still require landlords to make decisions — approve repairs above a certain cost, sign off on tenancy renewals, deal with insurance claims, handle mortgage-related queries. The manager handles the day-to-day, but the landlord is still in the loop.
The second mistake is not accounting for void periods. A property management company finds you tenants, but they don’t guarantee you’ll always have one. If your property sits empty for six weeks between tenancies, you’re paying the mortgage with no income coming in. That’s a real cost that doesn’t show up in the management fee percentage.
Both of these are reasons some London landlords choose guaranteed rent over traditional property management — the provider becomes the tenant, void periods disappear, and the landlord’s involvement drops to near zero.
Property management and the Renters’ Rights Act 2025
The Renters’ Rights Act 2025 changes the landlord-tenant relationship significantly. Section 21 evictions are abolished. Fixed-term tenancies are gone, replaced by periodic tenancies from day one. Tenants can give notice at any time, and landlords can only regain possession on specific legal grounds through a court process that’s slower than before.
For landlords using traditional property management, this means regaining possession of a property — whether to sell, move back in, or deal with a problem tenant — is more complex and more time-consuming than it used to be. Property managers need to be well-versed in the new grounds for possession, and the legal process for enforcing them.
The Act comes into effect in stages from May 2026. If you’re reviewing your property management arrangements, it’s worth doing that now rather than after the changes take hold.
How to choose a property management company in London
London has no shortage of property management companies. The quality varies considerably. A few things worth looking at:
How long have they been operating? Established companies with a track record are lower risk than newer entrants. Ten years in London’s rental market means they’ve dealt with downturns, regulatory changes, and difficult tenants.
Do they have local knowledge? A company that manages properties across all 32 London boroughs understands local rental dynamics, typical tenant profiles, and council relationships. That matters for finding good tenants quickly and at the right rent.
What do other landlords say? Look for reviews beyond the company’s own website. Google, Trustpilot, and property forums give a more honest picture.
What’s actually included in the fee? Get the full fee schedule in writing before committing. Understand what triggers additional charges.
Do they offer alternatives? A company that only offers one type of service may not be the right fit for every landlord. Companies like SmartSpace offer both traditional residential lettings and guaranteed rent — so you can choose the arrangement that actually fits your situation.
Is property management worth it?
For most landlords, yes. The time cost of managing a property yourself — maintenance calls, chasing arrears, keeping up with legislation, dealing with disputes — adds up quickly. A good property management company handles all of that for a fee that, for most London properties, is reasonable relative to the rent.
The question isn’t really whether property management is worth it. It’s which type of arrangement is worth it for you — standard management, full management, or a guaranteed rent scheme that removes the fee structure and the void period risk entirely.
SmartSpace property management services in London
SmartSpace Property Solutions has been managing rental properties across London for over 10 years. We offer residential lettings, portfolio management, and our flagship guaranteed rent service — where we lease your property directly, pay you every month with no void periods or commission, and handle everything else.
We cover all 32 London boroughs and work directly with Croydon Council as an official housing provider.
If you want to find out what your property could earn, book a free valuation or call 020 8686 3388. No obligation, written offer within 24 hours.
