Landlords increasingly plan to self-manage rental properties

Landlords increasingly plan to self-manage rental properties

More than half of landlords currently using letting agents intend to take over management themselves within two years, including compliance responsibilities, according to recent research. This shift reflects rising agent fees and growing regulatory demands on landlords.

A survey by August Landlord Survey reveals that 58% of landlords who currently use letting agents expect to self-manage all their properties in the near future. The study highlights the impact of increasing compliance obligations and the financial burden of agent fees as key factors driving this trend.

Among landlords paying for management services, 58% report fees of at least 11% of the monthly rent. For example, a landlord with five properties each generating £1,000 monthly rent could pay over £7,000 annually in management fees. This cost pressure, combined with expanding compliance duties, is motivating many landlords to reconsider their management arrangements.

Compliance workload intensifies for landlords

Richard Samuel, chief executive of August, emphasised the growing administrative burden on landlords. He pointed out that government has steadily increased landlord obligations over the past decade without fully accounting for the time required to meet them.

One notable addition is quarterly digital tax reporting under Making Tax Digital, which landlords estimate takes several hours per submission. According to the survey, 75% of landlords expect each quarterly tax update to add at least four hours of work, with 34% anticipating it will take more than a full working day.

Samuel noted that new requirements such as the landlord database, the ombudsman scheme, periodic tenancy paperwork, and rent increase notifications have effectively turned small landlords into compliance teams without staff support. This growing complexity is a significant factor influencing landlords’ decisions to either pay agents, self-manage, or seek digital tools to ease the workload.

Shifts in management arrangements reflect compliance and cost concerns

The survey of 276 landlords found that 65% had changed their property management approach in the last two years. Of these, 27% moved away from agents to self-management, while 26% started using agents after previously managing themselves.

Compliance complexity and legal requirements were cited as the most common reasons for adjusting management strategies, followed by desires for greater control, dissatisfaction with agent service quality, and high fees.

Overall, 69% of landlords surveyed expect to be managing all their properties themselves within two years, signalling a significant potential reduction in reliance on letting agents.

Context of increasing landlord regulation and costs

The private rented sector has seen a steady rise in regulatory requirements over recent years, including enhanced safety standards, stricter licensing, deposit protection rules, and transparency obligations for fees and contracts. These changes aim to improve tenant protections but have increased the administrative and financial burden on landlords.

Making Tax Digital for Income Tax Self Assessment (MTD ITSA) is a major compliance development requiring landlords to submit quarterly digital updates to HMRC. Many landlords find this time-consuming, especially those with multiple properties or limited accounting support.

Letting agents have traditionally helped landlords manage these obligations, but rising management fees—often exceeding 10% of rent—are prompting landlords to reassess the value of agent services. The survey’s findings suggest a growing appetite among landlords to self-manage to reduce costs and maintain control, despite the compliance challenges.

Practical implications for landlords and agents

For landlords considering self-management, the increased compliance workload means investing time and resources in understanding legal obligations and maintaining accurate records. This includes managing tenancy agreements, safety certificates, rent increases, and digital tax submissions.

Letting agents may face pressure to justify their fees by offering more comprehensive compliance support or technology solutions that reduce landlord workload. Agents could also see a shift in their client base as some landlords revert to self-management while others seek professional help for complex portfolios.

Digital tools and software designed to streamline compliance and property management are likely to become more important. Landlords who self-manage will need reliable systems to track deadlines, store documentation, and prepare for inspections or disputes.

Uncertainties around future regulatory changes and landlord support

While the survey highlights current landlord intentions, the evolving regulatory environment remains uncertain. Further legislation or enforcement changes could alter the balance between self-management and agent use.

It is unclear how many landlords will successfully manage the increasing compliance demands without professional assistance. The effectiveness of emerging digital tools in reducing workload and risk also remains to be seen.

Landlords should stay informed about regulatory updates and seek guidance to ensure compliance. The cost-benefit of self-management versus agent engagement will vary depending on portfolio size, landlord experience, and available resources.

Key considerations for landlords planning to self-manage

• Review current compliance obligations including safety, licensing, tenancy documentation, and tax reporting requirements.
• Assess the time and skills needed to manage these duties effectively without professional support.
• Explore digital property management and compliance tools that can automate record-keeping and reminders.
• Consider the financial impact of agent fees versus the potential costs of non-compliance or administrative errors.
• Keep abreast of regulatory changes and official guidance from government and industry bodies.
• Maintain clear records of all communications, inspections, repairs, and compliance activities to support dispute resolution and audits.

Supporting landlords with compliance and management

The Landlord Association (TLA) offers resources and tools designed to help landlords navigate the increasing complexity of property management and compliance. TLA membership provides access to up-to-date information on regulatory requirements, tenancy agreements, notices, and compliance checklists.

TLA is developing ORBIT, a new property management and compliance platform currently available in BETA testing. ORBIT aims to assist landlords and letting agents in organising property records, managing rental documents, and tracking compliance deadlines. Features in testing include document storage, record-keeping for inspections and repairs, and a property management AI assistant to support landlords in meeting their obligations.

By using TLA resources and ORBIT, landlords can better manage the administrative demands of self-management and reduce the risk of non-compliance. Membership also offers practical support for keeping up with regulatory updates and preparing for changes in the rental sector.

Explore TLA membership and learn more about ORBIT BETA access to support your property management needs as compliance requirements evolve.

Looking ahead, landlords who choose to self-manage will need to balance cost savings with the demands of increasingly complex regulatory compliance. The availability of effective tools and support will be crucial in enabling landlords to meet their obligations without professional agents.

Sources: Property118