Self-Management vs Letting Agents: Which One Should You Choose?

So, you’ve secured your rental property. The location makes sense, the numbers stack up, and your investment goals are clear. But now comes the question that catches many new landlords off guard: should you manage the property yourself, or hand it over to a letting agent?

It’s not a small decision. This choice affects your time, income, stress levels, and – ultimately – the success of your rental strategy. It’s about control vs. convenience, effort vs. cost. And the right answer depends entirely on your circumstances, your mindset, and what kind of landlord you want to be.

What Does Self-Management Actually Involve?

It sounds simple: manage your own property, cut out the middleman, save money. But self-management isn’t just about collecting rent. You’re running a business – and that means you’re on the hook for everything.

• Finding and vetting tenants
• Drawing up contracts and ensuring compliance
• Collecting rent and chasing arrears
• Organising repairs and maintenance
• Keeping up with changing regulations
• Dealing with emergencies (yes, even at 3am on a Sunday)

If you’re hands-on, detail-oriented, and have the time (or proximity) to stay involved, this can work well – especially if you’re managing one or two local properties. You save on agent fees, retain full control, and build direct relationships with your tenants.

But make no mistake: it is work. And the more properties you add, the more complex it gets.

What Do Letting Agents Handle?

Letting agents offer a sliding scale of services – from tenant-find-only packages to fully managed solutions. In a fully managed setup, the agent handles:

• Marketing the property
• Vetting applicants and referencing
• Drafting tenancy agreements
• Conducting check-ins and check-outs
• Collecting rent and holding deposits
• Organising repairs and maintenance
• Managing compliance, inspections, and renewals
• Handling disputes, evictions, and legal follow-ups

For many landlords – especially those investing remotely or scaling their portfolios – that convenience is worth every penny. It turns your rental into a passive income stream (or as close to passive as property can realistically be).

Fees typically range from 8–15% of monthly rent for full management. So yes, you lose a slice of your income – but what you gain in time and stress reduction might be worth significantly more.

The Financial Trade-Off

Let’s be blunt: self-managing saves you money, but it costs you time. And time, depending on your schedule and sanity threshold, might be your most expensive asset.

On a £1,000/month rental, a 10% management fee = £100/month, or £1,200/year. Not insignificant. But if you factor in the hours you’d otherwise spend managing maintenance issues, chasing rent, and staying compliant with evolving legislation – the maths starts to shift.

There’s also a risk cost: if a tenant issue escalates (arrears, complaints, legal challenges), a good agent can act fast and protect your position. As a self-managing landlord, you’re more exposed – both financially and emotionally.

Compliance and Legal Risk

This is where letting agents earn their keep. UK rental law isn’t static – it’s evolving constantly. From EPC rules and deposit protection to Section 21 changes, Right to Rent checks, and new licensing schemes, non-compliance can lead to hefty fines or legal action.

An experienced agent will stay on top of these requirements. As a self-manager, you’ll need to do your own research, update documents regularly, and ensure your property stays within the law. Get it wrong, and it won’t matter that you saved on fees – the penalties can dwarf the savings.

When Does Self-Management Make Sense?

Self-management can work brilliantly if:

• You live near the property and can respond quickly
• You have the time (and interest) to learn the legal framework
• You enjoy being hands-on and solving problems
• You’re confident in your ability to vet tenants properly
• You’re managing a small, manageable number of units

Done right, it can boost your income, improve tenant relationships, and deepen your understanding of the property market.

When Should You Use a Letting Agent?

Letting agents are invaluable if:

• You live far from the property
• You’re managing multiple investments
• You’re short on time or have other business commitments
• You’re new to property and want support navigating compliance
• You want a passive income model with minimal day-to-day involvement

They’re also useful in high-demand urban areas, where letting cycles are faster and tenant expectations are higher – particularly in city-centre flats, student accommodation, or high-turnover areas where response times matter.

Final Thoughts

Whether you self-manage or use an agent, you’re still the landlord. The legal responsibilities ultimately sit with you. The letting agent is an extension of your role – not a shield from accountability.

That’s why the most successful landlords – regardless of management style – stay involved, track performance, and understand the numbers. They know the rent is being paid, the property is being looked after, and the tenant relationship is healthy.

So which route is better? That depends entirely on your goals, time, and tolerance. If you’re building a portfolio focused on properties with strong long-term returns and want a hands-off approach, working with a letting agent is probably your best move. If you prefer control and want to maximise income at the expense of time, self-management can be just as effective – provided you’re ready for the workload.