How to start a UK property management company in 2026

Now is a fantastic time to start a property management company in the UK. The private rented sector in the UK is huge, growing from 3.1 million to 4.7 million households between 2008 and 2024.

On top of this, new research from Landbay shows that 52% of landlords are planning to purchase new rental properties in the next 12 months. With more than half of landlords not managing their own properties, there is an increasing demand for reliable property professionals. That’s where you come in.

Starting your dream property management company is a fantastic way to build a scalable, future-ready business. In this guide, we’ll walk you through what you need to do to get your property management business set up and ready to trade.

In this article:

• What does a property management company do?
• What do I need to start a property management company?
• Starting a property management company: 7 steps
• How much does it cost to start a property management company?
• What do property managers charge?
• What business licences do I need?
• What type of business insurance do I need?
• Should I start a property management business?

There is often some confusion around the differences between landlords, letting agents, and property managers. A property management company acts as the professional bridge between a landlord (the property owner) and the tenant (the renter). You’re the landlord’s eyes, ears, and pair of hands — managing everything that comes with renting out a property so they can enjoy their investment without having to sort out things like leaky taps. 

A property management company’s core services usually fall into three key areas:

1. Financial and legal: This includes rent collection, chasing arrears (late payments), providing legal notices (like eviction notices), and making sure the property is following housing safety rules 

2. Tenant management: You’ll find and review new tenants (this is also called being a letting agent), handle property check-ins and check-outs, manage any complaints, and organise lease renewals

3. Maintenance and repairs: A big part of property management is organising repairs, coordinating contractors (like plumbers and electricians), carrying out property inspections, and managing safety certificates (like gas and electrics)

The key difference is that a landlord owns the property (the asset) and takes the main financial risk, while the property management company handles the day-to-day work, the admin, and the tenant relationship.

Property management is a service-based industry which keeps the barrier to entry relatively low. You don’t even need an office these days, but you do need some essentials to get going:

• A reliable vehicle. You’ll be moving between properties a lot
• A dedicated business current account. This is essential for collecting and handling your client’s fees correctly
• A secure laptop or desktop and appropriate software for tracking rents and maintenance (reputable providers include Reapit and Payprop)
• Professional indemnity insurance. This isn’t a legal requirement, but you need it to join a redress scheme — more on this below
• Registration with a government-approved redress scheme. Redress schemes are dedicated to resolving disputes between consumers and property agents in the UK — joining one is a requirement for all UK property managers

You don’t legally need formal qualifications to start a property management company in the UK. However, that doesn’t mean you can wing it. There are a few skills and qualities that the most successful property managers have in common:

• Organisation: This is so important because you’ll be tracking multiple rent due dates, safety certificate expiry dates, and repair jobs across several properties at one time

• Communication: You’ll need to strike a balance between firm and fair with tenants and always show professionalism with landlords, contractors, and local authorities

• Tech savvy: Knowing how to use property management software to manage maintenance, finance, and tenant portals is important — so take some time to get comfortable with these systems 

• Legally aware: Property management comes with a lot of responsibilities. You must be up-to-date on the Tenant Fees Act, deposit protection schemes, and HMO licensing regulations (especially things like the Building Safety Act)

Starting a property management company is a straightforward process. There’s a bit of admin involved and some boxes to tick, but if you follow these steps, you’ll be set up for success.

1. Choose your niche 

The property market is huge. To stand out, it helps to specialise. Your niche influences everything from your fees to your target market, to the skills you need for success, so choose wisely. To help, here are some areas you could focus on:

• Residential homes: This is where you’ll manage typical family homes or flats for private, individual landlords. This is the most common starting point for a lot of property managers 

• HMOs (Houses in multiple occupation): You’ll manage shared student or professional housing, which means dealing with complex licensing and strict safety rules

• Luxury or high-end: This is where you manage premium properties. Generally, you can charge high percentage fees for a high level of service

• Short-term rental property management companies: Here, you focus exclusively on managing holiday lets and serviced accommodation (like Airbnb), which is complex but offers high fees based on booking revenue
  

2. Write your business plan 

This is your most important document because it provides a roadmap for your company’s growth, operations, and financial management. 

Having a business plan increases your chances of success because it acts as a guide for everything: from day-to-day tasks like rent collection and tenant screening to your long-term goals and financial planning. Putting this plan in place means you’re thinking about every element of your business, and it gives you the chance to change or improve your operations before you spend a penny. 

So, what should your business plan include? 

• Executive summary: A brief overview of your property management business, highlighting key goals, services and financial projections
• About: State your mission, vision, values and your company’s unique selling point
• Services: Provide a detailed list of your services 
• Target market: Include your market research and competitor analysis, and industry trends you’ve identified, before defining your target demographic 
• Marketing: Outline the marketing strategies you’ll use to attract your target demographic, like online advertising, networking, and local directories 
• Operations: Detail what your day-to-day operations look like, including the property management software you’ll use and, importantly, how you plan to manage any emergencies, operational disruptions, and disputes
• Financial planning: Give a breakdown of where your revenue is coming from and how you will ensure profitability. Provide some concrete numbers, like the amount of properties you need to break even
• Fee structure: State how you plan to charge your clients — will it be a flat fee, a percentage of the rent, or a combination?
• Growth: Provide some details on how you plan to grow your business. For example, you could outline your plans for hiring staff, offering additional services, or expanding your client base
  

3. Decide on your business structure

Most property managers choose between becoming a sole trader or setting up a limited company. This choice influences how you pay tax and the financial protection you have. Let’s look at the key differences:

• Sole trader:

Pro: Simple to set up — you just register with HMRC for self-assessment. 

Con: However, you and the business are legally one entity, which means if your business runs into debts or experiences legal trouble, your personal assets, like your home and car, are at risk

• Limited company: 

Pro: When you register a limited company, it means your business is a separate legal entity to you. This is because limited companies come with limited liability. This protects your personal assets if the business faces debts or legal action, which is a big benefit in a high-liability industry like property 

Con: Setting up a limited company does come with some extra admin, like filing annual accounts and confirmation statements with Companies House, but the extra legal and financial protection often makes it worth it 

4. Register your property management company

If you decide to go the limited company route, you’ll need to officially register your property management company with Companies House.

You can do this yourself on the Companies House website (there’s a £50 fee) or you can use an official company formation agent like Countingup. Our company registration service costs just £12 — it’s quick, easy, and our team handles the application for you. You just need to provide us with a few details, including:

• Your unique company name: Use our company name availability checker to see if your preferred name is available and meets Companies House requirements 
• Registered office address: You need an address in the UK for all your company mail to be sent to, including government and HMRC correspondence 
• Business details: Basic details about your new property management company 
• Personal details: You’ll need to provide your full name, date of birth, nationality and proof of identity 

On the other hand, if you decide to set up as a sole trader, you just need to register for self-assessment with HMRC. This tells HMRC that you’ll be filing your own tax returns.
 

5. Get insured 

Before you can apply to a redress scheme, you need insurance. Insurance isn’t a legal requirement for property managers in the UK, but it’s a mandatory step in the redress scheme application process. 

Don’t worry, it’s an easy box to tick. The essential insurance you need is professional indemnity insurance. This protects you if a client claims they lost money because of a mistake or bad advice you gave them. For example, they might say that you advised them on a contract that did not comply with housing rules. 

There are a lot of professional indemnity insurance providers out there, so it’s a good idea to do some research and find a policy that suits you. 

6. Register for a redress scheme

This step is required by law for all property managers and letting agents in England and Wales — so mark this step as highly important! By law, you must join a redress scheme if you’re:

• An estate agent managing residential properties
• A letting agent or property manager in England or Wales

So, what is a redress scheme? Essentially, if a client files a complaint about your service that you cannot resolve between yourselves, they can submit the complaint to a redress scheme, who then investigate it and provide an unbiased outcome.

There are two government-approved redress schemes: The Property Ombudsman and Property Redress Scheme. Both of these schemes handle complaints from landlords and tenants, acting as a middle ground for disputes. 

Remember, if you’re in one of the above camps and you don’t register with a redress scheme, you can’t legally trade.

7. Build your client list and get trading 

It’s hustle time. Your first clients will likely come from local networking. Focus on attending landlord forums, talking to letting agents, and even building relationships with local mortgage brokers. 

When you start trading, it’s a good idea to consider setting up two different accounts:

• Client money account: This is a requirement if you hold any money on behalf of a landlord or tenant (like rent or deposits). You must also be registered with a client money protection (CMP) scheme to legally hold this money
• A separate business current account: This is where your fees and profits go into and where you pay your business expenses from. A smart business current account can also help with your tax deadlines, financial reporting and transaction management

Once those first contracts are secured and your bank accounts are set up, you’re officially ready to trade — congrats!

You can start a property management business without spending much money — you can work from home with just a laptop and a phone. 

The key is making sure you have the money for the mandatory compliance and insurance costs, which protect you and your clients.

There are basic costs that every property management company needs to consider: 

Expense category	Ballpark cost	Details
Company registration	£12 – £50	Includes limited company formation
Redress schemes	£160 – £300 annually	Includes redress scheme registration and fees — costs vary depending on membership tiers (e.g. entry level or enhanced)
Professional indemnity insurance	£90 – £350 annually	Cover against claims of bad advice or negligence. Costs depend on the level of cover needed (starting policies are cheaper)
Legal/contract templates	£300 – £800 one-off	Use a solicitor to draft compliant contracts (tenancy agreements, management agreements) to protect you from risk
Software	£20 – £60 per month	For property management software to manage maintenance, finance, and tenant communication
Brand and website	£100 – £500	A simple, professional website to list services and build trust — includes a logo and basic brand assets
Fuel, vehicle costs and maintenance	£100 – £300 per month	Covers fuel, plus routine wear and tear

These basic costs apply to everyone, but the type of property you manage will impact your needs, and therefore your costs. Let’s look at a couple of examples:

Residential long-term property management 

This focuses on managing assured shorthold tenancies (ASTs), which usually last at least six months. Your costs stay low, but there are a couple of extra bits to budget for:

• Inventory clerk fees: If you decide to outsource professional and impartial check-in and check-out reports (which help to prevent deposit disputes), you will need to budget for this service. 

Estimated cost: £100 – £250 per report

• Legal training: To keep updated on tenancy laws (like how to give notices, eviction rules, etc), many property managers take a legal course, which looks good to clients and also offers peace of mind.

Estimated cost: £100 – £400 per course (usually online)

Short-term rental property management company

This type of property management focuses on managing Airbnbs and holiday lets. It operates more like a hospitality business, so there are a few different costs to consider.

• Dynamic pricing software: This software automatically adjusts prices based on demand. It helps property managers generate more revenue during busy periods or popular locations, for example, during events like the Edinburgh Festival.

Estimated cost: £30 – £150 per month

• Cleaning and laundry services: You need professional and reliable cleaning and laundry after every single stay, which is a major cost to factor in.

Estimated cost: £40 – £80 per clean

• High-quality photography: To advertise properties and stand out on popular sites like Airbnb and Booking.com, you need professional, preferably stunning photos for every property.

Estimated cost: £150 – £300 per property (about half a day’s work with a photographer)

Technically, there’s nothing stopping you from starting a property management company if you’re a sole trader. You can run your business from home, rely on word-of-mouth for your first clients, use your existing car and phone and even create content for social media. 

However, you’ll encounter some legal restrictions quite quickly. You need to pay the redress scheme fee, and for that, you need to purchase professional indemnity insurance.

So, while the costs are still quite low, we strongly advise you to budget at least £500 for initial setup, insurance, and legal fees.

If you don’t have that money ready, here are a couple of simple financing options to help:

• Startup loan: The UK government-backed Start Up Loans scheme offers personal loans for business purposes, usually from £500 to £25,000. These types of loans have fixed interest rates and come with free business support
• Business credit card: You could explore getting a business credit card with an introductory 0% interest period (usually 30 days). Then, you can pay for your insurance, registration, and legal contracts upfront. Just make sure you pay off the card before the introductory period ends

Property managers in the UK typically charge a percentage of the monthly rent, ranging from 8% to 20%, though this can vary based on:

1. Property location: Prime areas, like in London or big cities, often come with higher management fees because the property value is higher 
2. Property type and size: A one-bed flat is cheaper to manage than a five-bed townhouse, and luxury homes need more frequent inspections and higher upkeep
3. Level of service: This is split into three categories: let only, let and rent collection, and full management

Let’s look at the level of service in more detail because this is where costs really differ:

Level of service	Typical cost to the landlord	Details
Full management	8% – 20% of monthly rent	Covers everything: tenant find, rent collection, maintenance, and compliance. Higher fees (15%+ ) are common in London and for luxury/short-term lets
Let and rent collection only	3% – 8% of the monthly rent	You only handle collecting the rent and chasing arrears; the landlord manages everything else
Let only	One–off fee	A single one-off fee (usually £400 to £1,500) for marketing, screening, and placing a new tenant

Example: If you offer a full management service at 10% and the property’s rent is £1,200 per month, you’ll charge the landlord £120 per month for your service. The landlord receives the remaining £1,080 (minus any maintenance costs) in their account.

The property industry is heavily regulated to protect tenants. To become a property manager, you don’t need a business licence, but you must join specific schemes.

• Redress scheme: As mentioned, you must register with a government-approved redress scheme. This is a must-do for any agent involved in lettings management in England and Wales
• Client money protection (CMP): If you hold client money (like rent or deposits), you must become a member of a CMP scheme. This protects your client’s funds if your business falls into debt 
• Deposit schemes: You must register all tenant deposits within 30 days of receipt with one of the three government-backed tenancy deposit schemes (TDPs). These are: Deposit Protection Service, mydeposits and Tenancy Deposit Scheme

As a property manager, you can’t risk being uninsured. In the property industry, even the smallest mistakes can lead to disputes. It’s best to make sure that you, your clients, and your business are protected. Let’s look at the options:

Level: Legally required
These types of coverage are legally required for your membership into necessary schemes (like a redress scheme). 

• Professional indemnity insurance: This is the big one, because you can’t trade without it. It covers claims made against you for negligence, mistakes, or bad advice. For example, a landlord might say that you advised them on a contract that did not comply with housing rules, which led to a fine or legal action
• Employers’ liability insurance: This is legally required in the UK the moment you hire staff, even if they are part-time or temporary. It protects you if an employee is injured or becomes ill as a result of working for you

Level: Recommended

• Public liability insurance: This type of insurance covers claims if a member of the public is injured or their property is damaged due to your business activities. For example, if you trip and break an expensive piece of furniture during a property inspection, this insurance is here to protect you 

Level: Optional (extra peace of mind)

• Cyber liability insurance: If you store a lot of sensitive client or tenant data online, this insurance covers you against costs arising from a data breach or cyber attack, which is a growing risk for all businesses
• Legal expenses insurance: This can be bought as an add-on to cover the legal costs of defending your business in certain disputes that aren’t covered by professional indemnity insurance and public liability insurance.

Only you can answer that. But if you’re passionate about the property market, organised, personable, and keen to be part of a growing industry, starting a property management company could be worth it. Let’s weigh it up.

Pros of starting a property management business	Cons of starting a property management business
Low barrier to entry: You can get started on a small budget	High liability: You’re responsible for making sure your company operates within the law
Recurring income: If you offer a full management service or work with luxury properties, you can create stable monthly revenue	Always on service: If you manage tenants you may be sorting out property issues, maintenance emergencies (and a potentially angry landlord) outside of your 9-to-5
High demand: Landlords are increasingly reliant on professionals to manage complex property regulations	Regulation is complex: You must be constantly up-to-date with housing and safety law, which changes frequently

For many, the benefits of starting a property management company easily outweigh the cons. The stability of recurring revenue, the variety of work, and the freedom of running your own business make it a truly rewarding sector to work in.

If you’re ready to take the leap, we’re here to help.  Our business current account is built for sole traders and limited companies just like yours. 

It automatically categorises transactions and tags expenses, making tax preparation and invoicing simple — it’s like having an accounting assistant in your pocket. 

If you’re looking for more startup advice, head over to our resource hub, where you’ll find industry-specific guides, like how to calculate the yield of a property as a private landlord (could be a good one to share with new clients), as well as tax tips and the latest business insights.   

Best of luck with your property management company — we know you’ll be great!