News / Landlords | 18 Mins Read

The Benefits of Using a Property Management Company in Central London

Name: The Benefits of Using a Property Management Company in Central London
Brand: Plaza Estates
Rating: 5 (61 reviews)

By Maurice Shasha | Created on 15th April 2024

Investing in property is undergoing its most radical reform for decades. The long-term investment prospects in Paddington, Fulham, Knightsbridge and surrounding areas

remain the same – excellent. What is changing is the Renters’ Rights Act 2025. The benefits of using a property management company have never been clearer, with legal compliance and landlord responsibilities shifting into new territory.

should i use a property management company

That shouldn’t put buy-to-let landlords off. A good property manager will take care of almost everything, creating a hands-off investment in central London. If you self-manage, are wondering what do property management companies do or would like help navigating the new private rental sector landscape, read on.

What Is A Property Management Company?

Property management companies specialise in tenant management, handling all aspects of marketing, collecting rent, dealing with maintenance and repairs, and keeping buy-to-let properties compliant with existing and incoming laws. All of this saves you time and gives you peace of mind that your property is in good hands.

What Do Property Management Companies Do?

When you engage with property management services, you tap into a wealth of knowledge and expertise that’s industry specific. The main benefits of using a property management company include:

Property marketing: visiting your rental property to take photographs and measurements, listing your property on the major portals, contacting a database of waiting tenants, minimising void periods, and handing enquiries and viewings.
Tenant sourcing & referencing qualifying the best tenants via referencing and credit checks, collecting and protecting deposits, and creating the APT (assured period tenancy) agreement.
Rent collection & arrears management: collecting rent, transferring the rent to the landlord, chasing late payments or arrears, and advising on action should large defaults accrue.
Legal compliance: ensuring all safety inspections are conducted and certificates issued, including gas, electric, smoke alarm, carbon monoxide detector and legionella. Complying with local licensing requirements, the Renters’ Rights Act 2025 and all preceding legislation.
Property inspections & inventory management: organising a pre-move in inventory and condition report. Booking check-in handovers and scheduling property inspections.
Maintenance coordination & emergency repairs: providing support for tenants, often on a 24/7 basis. Scheduling planned maintenance, including any work required to improve energy efficiency for EPC ratings, and property standards for the incoming Decent Homes Standard and Awaab’s Law.
End-of-tenancy management: handling notice periods, booking a check out date and key handover, comparing the condition of the property with the inventory and any inspections, and handling deposits deductions.

Who Should Use A Property Management Company?

Property management companies can be particularly useful to landlords who have a property portfolio in central London, or don’t have the availability to manage the day-to-day running of a buy-to-let. Accidental landlords who have inherited a property can also benefit from a property manager as soon as they take ownership of the buy-to-let, especially given they may inherit the property with tenants in situ.

Want to know more? Read about our landlord inventory template and find out what expenses you can claim as a landlord.

The Benefits Of Using A Property Management Company

1. Fewer Legal Problems

Legislation and legal compliance governing private rentals is increasing, thanks to the Renters’ Rights Act 2025. There is a greater emphasis on knowing a landlords’ right – and the new rights of tenants. It is the job of a property manager to keep up with changes, understand them and implement them on behalf of the landlord.

Incoming changes are impacting evictions, rent rises, rental bidding, tenancy agreements, how landlords handle pet requests, renting to tenants with children and those receiving benefits, notice periods and selling buy-to-let properties. Soon there will be a compulsory ombudsman and a landlord database to join, which a property manager can help landlords with.

This is in addition to existing laws and landlord responsibilities, including

Regular gas and electrical checks
Provision of smoke and carbon monoxide alarms
Fire safety regulations
Legionella risk assessments
Checking a tenant’s right to rent in the UK
Holding your tenant’s deposit in an approved scheme
Providing a safe, hazard free property
Not discriminating against tenants with protected characteristics
Serving tenants prescribed information
Holding a valid EPC

Failure to comply can result in hefty fines or even imprisonment. Non-compliance may mean you lose your legal rights and valid grounds to evict tenants.

2. Help With Property Administration

Administration must be carried out correctly but keeping up with inspections, rent and day-to-day communications can be time-consuming. Your property management service can alleviate the stress and hands-on work by carrying out and tracking property inspections and inventories, taking care of changes in rent and communicating with the tenants. You will have a dedicated, experienced property manager to handle your property following a proven system of management.

3. Find Tenants Quick & Onboard Them Easily

A management company can help you find tenants quickly, so you have fewer void periods. They will help you get your property ready, take professional photographs and ensure it is listed on all the big property portals so that as many prospective tenants see it as possible.

Your manager will have processes and procedures to check the previous tenants out of the property speedily so the new tenants can move in straight away.

4. Find Better Tenants For Your Rental

The screening of prospective tenants is essential. Property management services include a robust tenant vetting process that will weed out unsuitable prospects to find quality tenants who will pay rent on time. Unsuccessful applicants occasionally take issue with the outcome of the tenant screening process. In this instance, your property manager will deal with any discrimination challenges from rejected tenants.

Happy tenants are loyal tenants, and loyal tenants are more likely to stay for longer, helping you avoid the costs associated with high tenant turnover.

Because good property management companies follow a detailed tenant selection process, communicate well with your tenants and keep on top of repairs and maintenance, you’ll have content tenants who want to stay put.

5. Maximise Your Rent

Property managers will know the ins and outs of your local rental market and can advise on achievable rents for your property. As a third party, they are better placed when it comes to re-negotiating rent with your existing tenants. They’ll also work within the new laws that limit rent rises to once per year, in line with market rents, and decline rental bidding propositions.

6. Helps You Branch Out

If you want to diversify your property portfolio by moving into a new sector, such as HMO or commercial property, an experienced property manager can offer support and market knowledge. Your property manager can develop a strategy that’s right for your London location, and offer guidance on legal issues such as licensing.

7. Helps You Build A Valuable Property Portfolio

One of the best benefits of using a property management company is having access to experts who recognise a good rental opportunity. Speak to your property manager if you’re looking to expand your portfolio. They can often use their connections to find a potential investment property within their network. If you want to proceed with a purchase, they can carry out negotiations to help you secure a good deal.

8. Efficient Rent Collection

A property management company can act as a useful buffer between the landlord and tenants. In our experience, tenants are less likely to miss their rent payments when paying a company, rather than an individual landlord. A property management company will manage all aspects of rent collection and, if necessary, can start the eviction process on your behalf. This will be in line with the revised grounds set out in the Renters’ Rights Act 2025.

9. Lower Maintenance And Repair Costs

Hiring a property management company allows you to tap into their network of trusted contractors. Because they are dealing with a large volume of units, property management companies can often negotiate discounts, so you pay less. Their contractors are also more likely to be able to attend your property at short notice.

10. Increase The Value Of Your Rental Property

Good maintenance and repairs are the key to upholding the value of your rental property. A property management company will conduct regular inspections and spot potential problems early. They will also be able to suggest improvements that could increase your rent.

11. Less Stress, More Free Time

As a landlord, you need to be available for your tenants 24 hours a day, 365 days a year. Property management companies have a 24/7 emergency line for tenants, so you won’t be bothered at unsociable hours or on holiday.

If you have ever managed your own properties, you will know how time-consuming it can be. Hiring a property manager frees up your time, allowing you to be present with family and friends. Depending on the level of input you agree, you can authorise your agent to carry out emergency repairs without disturbing you at all.

12. Local Market Expertise

Central London is made up of multiple rental microclimates. Demand and types of tenants will vary postcode to postcode. A local property manager will know the nuances when it comes to the style of property the best tenants like (and will pay more for), and the behaviour traits they usually exhibit, for the most prudent management.

13. Peace of Mind for Overseas and Portfolio Landlords

Entrusting a buy-to-let to a property manager is often the only way an overseas or portfolio owner can sleep easy. Whether you’re short on time or enjoy a long-distance relationship with your property investment, a management company will create a passive investment that performs at arm’s length.

benefits of using a property management company

What to Expect from a Property Management Company

There are good companies and there are excellent ones. Here’s what to expect from a property management company:

Transparent fee structure with no hidden costs
A dedicated property manager as a single point of contact
Regular property inspections and evidenced reports
Prompt response to maintenance issues
Clear communication and monthly statements
Membership of a professional body, such as ARLA Propertymark
Use of a Government-backed deposit protection scheme
Alignment with The Property Ombudsman or The Property Redress Scheme

Is a Property Management Company Worth the Cost?

You will be charged a monthly fee, typically 10–15% of the monthly rent, for using a property manager. That, however, is a small price to pay compared to financial penalties for non-compliance and the erosion of a property’s value through mismanagement. And remember, professional management fees are tax deductible.

When managed properly, a buy-to-let will experience fewer void periods, less severe property damage, a decreased risk of fines for compliance breaches and tenants who can be relied upon to pay the rent. All of these are amplified when landlords have high-value properties and premium rents in central London.

Want to find out more? Take a look at what an Energy Performance Certificate is and how to start a property portfolio.

How to Choose the Right Property Management Company

Check if the company is a member of ARLA Propertymark
Ask to see a copy of its client protection insurance
Request details of the deposit protection service used
Ask about their experience with similar properties in your area
Understand the fee structure and what is included
Ask for references from current landlord clients
Look for a company with expertise in the London areas where you have properties
Read Google reviews

What Else Does A Property Management Company Do?

Property investors who use a property management company can benefit from its knowledge of legal expectations, experience of common problems, landlords’ duties of care, current health and safety standards, tenant sourcing and the administrative side of renting out a property. They can also take care of the unwanted side of the job, handling problems with the rent, tenant behaviour and eviction proceedings with professionalism.

Landlords must follow property laws and ensure tenants are taking care of their property. This is all made easier when professionals are involved, lending their expertise to these areas.

Property advertising – advertising on local boards and major portals like Rightmove and Zoopla, as well as using local contacts.
Tenant sourcing – experienced property managers can reduce void periods and improve tenant retention by attracting good quality, long term tenants.
Repair supervision & management – keeping on top of maintenance and repairs by arranging for trusted contractors to carry out repairs (and taking care of time-consuming scheduling).
Tenant checks – running Right to Rent and credit checks, uncovering criminal convictions, collecting landlord references, and carrying out income and employment checks.
Recommending & managing insurance – advise which landlord insurance cover is appropriate and collect your insurance premiums.
Advice on property law – advise on common legal issues for landlords to protect your rights and avoid a legal dispute with tenants.
Inventory management – preparing a detailed inventory for your property at the start of the tenancy, ensuring your tenant checks and agrees it, and ensuring it’s reviewed during inspections.
Vacant property assessment – assessing the vacant rental property between tenancies to plan maintenance and repairs before onboarding new tenants.
Tenancy agreement prep – knowing what to include in the new period tenancy agreements, clarifying deposit terms, who takes liability and rules for the rental property.
Tenant deposit protection management – landlords have a legal duty to place tenants’ deposits in a Government-approved deposit protection scheme, and your agent can arrange this.
Property inspections – carrying out property inspections during the tenancy and at the end, saving you time and lending a professional eye.
Delivering notice to tenants – managing any eviction required, in line with the new grounds and notice periods in the Renters’ Rights Act 2025.
Dealing with complex issues – handling legal aspects of the tenancy and the property, including complex problems such as harassment claims, illegal subletting and problems with squatters.

FAQs: Property Management Services in Central London

Is a property management company different from a letting agent?

Yes, though the terms are sometimes used interchangeably. A letting agent typically focuses on finding and placing tenants, marketing the property, conducting viewings and handling the initial tenancy setup.

A property management company takes on ongoing responsibility once a tenancy is in place, handling everything from rent collection and maintenance coordination to legal compliance and tenant communications. Some agencies offer both services under one roof; others specialise in one or the other. When choosing, clarify exactly where their service begins and ends.

Can I switch property management companies mid-tenancy?

Yes. You can change property managers without the tenancy needing to end. You’ll need to review your existing management agreement for notice periods, typically one to three months, and ensure all documentation (tenancy agreements, deposit protection certificates, inspection reports, compliance certificates) is transferred to the incoming company. Tenants must be notified in writing of the change and given new contact and payment details. A good incoming agency will manage most of this transition for you.

What happens to my tenant’s deposit if I use a management company?

By law, all tenancy deposits must be held in a Government-approved deposit protection scheme within 30 days of receipt. Your management company should handle this on your behalf and provide tenants with the relevant Prescribed Information. It’s worth confirming which scheme they use (DPS, MyDeposits or TDS) and ensuring the deposit is held in trust rather than in the agency’s general client account.

How does the Renters’ Rights Act 2025 change what a property manager does?

The Act introduces significant procedural changes that directly affect day-to-day management. Fixed-term assured shorthold tenancies are being replaced by periodic tenancies, meaning evictions can no longer rely on Section 21 ‘no-fault’ notices. Grounds for possession under Section 8 are being reformed and extended. Rent increases are restricted to once per year via a formal process.

Managers must also navigate new rules around pet requests, discrimination protections covering those with children or benefits, and new requirements around a landlord database and compulsory ombudsman registration. A property manager working in compliance with the Act needs updated tenancy documentation, a clear arrears and eviction process aligned with the new grounds, and internal procedures that reflect these changes.

Do I still need landlord insurance if I use a property management company?

Yes. Property management companies manage your property, they don’t insure it. You’ll still need buildings insurance as a minimum, and most specialists recommend landlord-specific cover that includes contents (for any furnished items), liability cover and rent protection or guarantee insurance. Your manager can advise on appropriate cover and some will arrange it on your behalf, but the policy remains your responsibility as the property owner.

What is a void period and how does a property manager reduce them?

A void period is any time your property sits empty between tenancies and generates no rental income. While you’re still liable for council tax, utility standing charges and mortgage payments during this time, you’re receiving nothing back.

A proactive management company reduces voids by marketing the property before the existing tenancy ends, maintaining a database of prospective tenants, conducting viewings efficiently, and turning around end-of-tenancy work quickly so the property is ready for occupation with minimal delay.

Can a property management company handle an HMO in central London?

Some can, but not all. HMOs (Houses in Multiple Occupation) are subject to additional licensing requirements, stricter safety standards (including fire door regulations, room size minimums and communal area standards), and more complex tenancy arrangements. If you own or are considering an HMO in a London borough, confirm that your management company holds relevant HMO experience and that they are familiar with the licensing conditions specific to that borough, as these vary across London.

What is the difference between full management and a let-only service?

Let-only means the agent markets the property, finds and references tenants, sets up the tenancy agreement and collects the initial deposit, then hands back responsibility to you. Full management includes all of the above plus ongoing rent collection, maintenance coordination, legal compliance, inspections and end-of-tenancy management.

There are mid-tier options too, such as rent collection only. Full management commands higher fees but creates a genuinely hands-off investment, particularly valuable for portfolio landlords, overseas owners or those with demanding professional lives.

Are property management fees tax deductible?

Yes. HMRC allows landlords to deduct allowable expenses from rental income before calculating tax liability, and management fees paid to a property management company qualify as an allowable expense. This applies to the ongoing monthly management fee as well as any let-only fees or other legitimate charges. You should keep records of all fees paid and include them in your self-assessment return. It’s worth speaking to an accountant who specialises in property to ensure you’re claiming all legitimate deductions.

What questions should I ask before signing with a property management company?

Beyond the standard checks (ARLA Propertymark membership, client money protection, deposit scheme affiliation), ask: How many properties does each manager in your team handle? What’s your average void period for properties like mine? How do you communicate with landlords, and how often? What’s your process for chasing arrears? Do you have experience managing properties in my specific area? What does your fee actually include, and what triggers additional charges? The answers will quickly separate companies with genuine operational depth from those who sell well but underdeliver.

We Can Help

Property management in London is evolving at pace. It’s never been more important to understand legislation and know everyone’s rights. When you are operating within housing law, buy-to-let in areas like Primrose Hill, Swiss Cottage, Kilburn, Fitzrovia, Regent’s Park, St. John’s Wood, Maida Vale and Pimlico remains a rewarding investment. And it can be almost completely passive when you work with a professional property management company. Contact us today to get compliant and stay that way.

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Maurice Shasha

The Property Industry has always and continues to interest me, and after joining Plaza Estates in 2008 I have experienced a market which has taught me alot. In my role advising clients on their purchases (together with our sales teams), managing the refurbishments for them (together with our management and design team), preparing the property for rentals (together with our rentals teams) or sales and being responsible for the Companies digital marketing I have seen the market from various aspects. The market is always changing and it is essential we constantly adapt, which since Plaza Estates was established in 1972 is something the company has always done. We pride ourselves in the personal relationship and service we have and give all our clients and being part of a company which is "big enough to cope and small enough to care" is something I really enjoy.

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The Benefits of Using a Property Management Company in Central London

What Is A Property Management Company?

What Do Property Management Companies Do?

Who Should Use A Property Management Company?