How to Start a Property Management Business in the UK

Are you thinking of starting your own property management business? With the demand for rental properties increasing at one of the fastest rates in recent years, there is a very clear need for skilled and committed property managers, however, this is a competitive market, and you’ll want to make sure you’ve done your research and understand what is involved, to set yourself up for success in the property management industry.

togetha was made by landlords, for landlords, and we’ve been there and done that when it comes to purchasing investment properties, and setting up a rental property management business. Check out our top tips for getting started below.

Research the market

Who is your target market? Is it students? How about luxury rentals? Or maybe family homes are the niche you’re interested in targeting? Take the time to understand the area you want to operate in, and become familiar with local rental trends, the average property prices in the area, and what the tenant demand is looking like. Make sure you take the time to understand your competition as well!

Develop a Business Plan

As with any business, developing a well-structured business plan is essential.

Your plan should include:

• Your business objectives
• A clear breakdown of your target market and customer demographics.
• Specifics of the services you intend to offer, for example, if you plan to offer a full property management service, vs a more select approach, like tenant-find only.
• A marketing strategy. You don’t need all the details here, but you do need to have a plan for how you’re going to connect with your target audience.
• Financial projections and any funding requirements you might have.
• Any legal and regulatory considerations for setting up and starting trading.

Including all of the above in your business plan not only helps you to be confident you’re taking all the right steps, it also helps to attract and secure funding if you need it.

Register Your Business

You’ll need to register your business with HMRC, and confirm what type of structure your business will be - sole trader, partnership, or limited company. Make sure your desired business name is available both as a domain for your website and a business name before making any final decisions.

Obtain The Correct Licenses and Certifications

Whilst there is no professional industry-specific qualification required to set up and operate a property management business, there are several legal obligations you’ll need to comply with, and with the upcoming Renters’ Rights Bill legislation changes, you’ll want to make sure you have everything in place:

• You’ll need to sign up to a membership with a government-approved redress scheme, such as The Property Ombudsman, or The Property Redress Scheme.

• Insurance in the form of the Client Money Protection Scheme.

• Professional indemnity insurance.

There are bodies that are optional to join, like the National Residential Landlord’s Association (NRLA), who will not only help you stay up-to-date with industry regulations, they will also help to boost your credibility within the marketplace.

Source Properties and Build Relationships

Network with local landlords, property developers, and investors, to source properties for your portfolio. Your success will depend on the number of properties you manage, so make sure you build relationships that will last, and consider how to attract new landlords through offers and a competitive pricing model.

Your properties will require regular proactive maintenance, and the occasional emergency maintenance visit, so connecting with reliable contractors for plumbing, electrical work, and cleaners, will help you to proactively manage properties effectively. We’ve put together a comprehensive approach to maintenance guide for landlords, which you can check out here:

Be Confident About Your Legal Responsibilities

Legal responsibilities exist to protect you, the tenant, and the industry as a whole. Be confident about what your responsibilities are and know what you need to do to comply with them. Be familiar with:

• Right to rent checks
• Deposit protection schemes
• Energy Performance certificate (EPC) requirements
• Health and safety regulations
• Tenancy agreements and eviction processes (which are due to change in 2025)

Invest in Property Management Software

Property management software can streamline your processes and operations, automating tasks including rent collection and chasing, maintenance requests, sending out compliance certificates, and more.

togetha customers save 20 hours of admin time every week on average, using togetha to lift the burden of manual task execution, and allowing you to focus on tasks that maximise revenue and business growth. See how easy property management tasks can be made using togetha, on a no-commitment, free demo. Book your demo here:

Market Your Business

Find the right mix of word-of-mouth referrals, local, and digital marketing, to generate leads and promote your business.

Focus on Excellent Customer Service

As with all businesses, what will really set you apart from the rest is providing a customer experience that is second-to-none. If you can find a way to keep both landlords and tenants happy, your business will go from strength to strength.

Setting up a property management business isn’t for the faint-hearted, but finding the right approach and setting up with strong foundations can allow you to build a business that grows and thrives for many years to come.