How to Start a Property Management Business in the UK: Guide

Starting a property management business in the UK is one of the most reliable and in-demand service-based ventures today.

Whether you’re managing a handful of rental properties for local landlords or running a fully-fledged portfolio operation across short- and long-term lets, this business offers recurring income, flexible scaling, and long-term growth opportunities.

So if you want to learn how to start a property management business in the UK, this guide will cover all the info you need.

Key takeaways

• Start lean and scale gradually
  You can launch with minimal upfront costs, handling a small portfolio yourself while using smart systems to manage communications, bookings, and finances. As your business grows, you can hire support staff and expand your services.
• Compliance and professional setup are essential
  Registering your business, obtaining insurance, and following regulations builds credibility and protects you from legal issues.
• Effective client acquisition drives success
  Begin by targeting landlords you know, leveraging local SEO, social media, flyers, and testimonials. Networking through estate agents and landlord groups helps attract your first clients and build trust.
• Streamline operations with the right tools
  ANNA helps you manage invoicing, accounting, automation, and compliance in one place. This saves time, reduces admin stress, and ensures you can focus on delivering professional property management services while scaling your business.

Why start a property management business now?

Before you start thinking about how to start a property management business, you probably want to know if it’ll actually be worth it. Currently, the demand is driven by several key factors:

• Landlord compliance is increasing, making self-management more stressful (many landlords now report planning to reduce their portfolios due to regulatory burdens).
• Record numbers of tenants compared to available rental stock – today, about 19% of UK households live in the private rented sector.
• Rise of furnished holiday lets due to domestic travel growth (short-term lets saw 90.1 million guest nights in the UK in 2024).

Here are some key customer segments you can cover:

No matter the type of landlord or property, there’s plenty of opportunity to help them save time, stay compliant, and get the most out of their investments, which makes now a perfect time to start a property management business.

How to set up your property management business

Setting up correctly ensures you operate professionally and avoid costly compliance issues.

Do you need to register a property management business?

If you want to operate professionally, handle client money, and scale beyond a hobby, yes – registering a company is the best choice.

It helps you:

• Build trust with landlords
• Separate your business and personal finances
• Protect yourself from personal liability

Here are your business registration options:

Most property managers choose a limited company because of liability protection and a more professional appearance.

What about licenses and insurance?

Although property management isn’t heavily licenced, you will need several essentials:

• Professional indemnity insurance (PII): Protects you if a client claims you made a mistake, gave incorrect advice, or caused them financial loss.
• Public liability insurance: Covers you if someone is injured or if their property is damaged as a result of your work. It’s particularly important if you visit rental properties in person.
• Client money protection (CMP): Required if you handle rent or deposits on behalf of landlords. It protects landlords and tenants if client funds are misused or lost.
• ICO data protection registration: A legal requirement for businesses that handle personal data, such as tenant applications or landlord details. Ensures you comply with UK General Data Protection Regulation (GDPR) rules.
• Anti-money laundering (AML) compliance: Required in some cases, especially if you’re involved in property sales or high-risk transactions. Helps ensure you verify clients and spot suspicious activity.
• Tenancy deposit protection: If you take deposits, the law requires you to protect them in an approved scheme (TDS, DPS, or MyDeposits). This keeps tenant funds safe and prevents disputes.

Industry-specific regulations

To run a professional and trustworthy property management business, it’s important to understand the specific regulations that affect the properties you manage. Here’s what you need to keep in mind:

• Smoke and carbon monoxide alarm regulations: Landlords must install working smoke alarms on each floor and carbon monoxide alarms in rooms with solid-fuel appliances. Agents must ensure compliance before and during tenancies.
• Right to rent checks: You must verify that tenants have the legal right to live in the UK before a tenancy begins. Fines apply for failing to carry out proper checks.
• Electrical installation condition report (EICR): Properties must have an electrical safety inspection at least every five years. Agents typically coordinate the test and ensure issues are resolved.
• Gas safety certificate (CP12): This certificate is required annually for any gas appliances on the property. Agents often manage scheduling and document storage.
• HMO licensing rules: Houses in Multiple Occupation have stricter safety and management standards, including mandatory licensing in many cases. Non-compliance can lead to heavy penalties.
• Short-let regulations: Rules vary by local council, especially in tourist-heavy areas. They often include limits on annual letting days, planning permission, and safety standards.

Even if you’re not performing these inspections yourself, landlords rely on you to coordinate them, which is why knowing the rules is a must.

How to start a property management business: The financial plan

One of the biggest advantages of a property management business is that you can start lean and scale gradually. Most new operators begin with minimal overheads and add tools or staff only as their portfolio grows.

Here’s what costs you can expect:

The starting costs

To get your property management business off the ground, it helps to know what initial investments you’ll need. Typical startup costs include:

This brings us to the total typical startup budget of just £300–£1,000, depending on how lean you run.

Ongoing costs

Once you’re up and running, there are regular expenses to keep your business operating smoothly. These are the main ongoing costs you should plan for:

• CRM or property management software: Helps centralise tenant communication, maintenance logs, and rent tracking.
• Accounting software or bookkeeper: Helps streamline tax season and keep financials organised.
• Travel costs: Covers fuel or transport when visiting properties, tenants, or contractors.
• Contractor fees (passed to landlord): Covers repair or maintenance work that you coordinate but the landlord pays for.
• Cleaning teams for short lets: Provides cleaning services typically billed to landlords or included in guest fees.
• Marketing renewals: Maintains visibility through ongoing listings, SEO, or paid ads.

Total ongoing costs will vary depending on portfolio size, number of short-lets, and the tools or services you choose, but a lean operation can often run on roughly £150–£500 per month.

How to price your work

Finally, it’s important to understand how to charge for your services. Different types of property management work come with different fee structures, so you can price your services competitively while maintaining healthy margins.

Here’s a quick estimate:

Property management offers strong margins because your main resource is time and expertise, not expensive equipment or large overheads.

How to build your client base

Once you set up and decide your pricing strategy, you need to attract landlords, prove your value, and build long-term relationships that generate recurring income.

How to attract your first clients

The fastest way to gain traction is to start close to home:

• Reach out to landlords you already know – friends, family, neighbours.
• Contact local estate agents who often outsource overflow management work.
• Network in local Facebook groups and landlord forums.
• Join landlord associations and pitch your services.
• Offer a discounted “first property” rate to early clients to build your portfolio.

These early wins help you build testimonials, case studies, and credibility.

How to market your business

Once you get those first few clients, it’s important to keep the momentum going. Here are some marketing strategies you can explore:

Useful platforms

While property management has fewer dedicated platforms than beauty or pet services, there are several solutions that can still help you attract landlords and tenants:

• Rightmove and Zoopla (via agent partnerships): great for tenant-find packages.
• Airbnb, Booking.com, VRBO: essential for short-let management.
• Houzez, OpenRent, SpareRoom: for advertising rental listings.
• Local landlord groups on Facebook and Reddit: good for networking and pitching services.

These platforms help you reach both supply (landlords) and demand (tenants).

How to streamline your workflow

Running a property management business doesn’t have to be chaotic. With the right tools, clear routines, and smart delegation, you can stay organised, save time, and focus on growing your portfolio.

Here’s how to streamline your work:

Start solo

Many property managers begin alone, managing everything from landlord communications to tenant queries and maintenance coordination. This works well for small portfolios (5–10 properties) and keeps costs low.

Starting solo also helps you understand where your time is best spent before hiring support.

Scale smarter

As your portfolio expands, consider hiring support for routine tasks:

• Virtual assistants: Handle emails, tenant queries, and scheduling.
• Maintenance coordinators: Liaise with contractors and manage repairs.
• Cleaning teams: Cover short-term or holiday lets.

Use one tool to rule them all

From accounting and invoicing to automations and reminders, ANNA helps you manage your finances, track payments, and stay compliant without juggling multiple platforms.

By combining smart routines, selective delegation, and a single, all-in-one admin tool, you can streamline your workflow, save time, and deliver a professional service landlords trust.

How to stay compliant: Tax tips

Managing your finances correctly from day one keeps your business safe and stress-free. Here’s what you need to know:

• Tax obligations – Your responsibilities depend on your business structure. Sole traders pay Income Tax and National Insurance on profits, while Limited Companies pay Corporation Tax. Choosing the right setup affects liability, tax planning, and long-term growth.
• End-of-year tax filing – Sole traders file a Self Assessment, while Limited Companies submit a Company Tax Return. Accurate bookkeeping throughout the year simplifies filing and reduces the risk of errors or penalties.
• VAT registration – You must register if your taxable turnover exceeds £95,000 per year. Even if you’re below this threshold, voluntary registration can help you reclaim VAT on expenses.
• Managing invoices, receipts, and accounting software – Keep all records in the ANNA app for easy tracking, reporting, and compliance. Automating invoicing and categorising transactions can help you save hours of admin.

Ready to launch? Do it with ANNA

Starting your property management business is easier when you have the right tools from day one. ANNA Money gives you everything you need to stay organised, compliant, and professional.

Here’s what ANNA does for your business:

• Quick company registration – Register as a sole trader or limited company in minutes, without paperwork delays, so you can start trading legally and confidently.
• Smart business account – Keep all income, rent, and expenses separate from personal finances, making bookkeeping and tax filing stress-free.
• Automated invoicing – Create and send professional invoices to landlords and clients instantly, with reminders to ensure you get paid on time.
• Expense tracking and receipt capture – Snap and upload receipts on the go, automatically categorised to simplify accounts and reduce admin.
• Accounting and tax compliance in one – Monitor income, outgoing payments, and profitability while staying on top of deadlines, tracking deductible expenses, and ensuring accurate records for HMRC.

With ANNA, you can launch your property management business quickly, stay fully compliant, and focus on growing your portfolio – all without juggling multiple platforms or drowning in admin.