Managing agent

A managing agent is a professional, either an individual or a company, appointed by a landlord to handle some or all aspects of a residential tenancy on their behalf, operating under a written management agreement that sets out the scope of their authority, their fees, and the obligations they take on from the landlord. Under the Redress Schemes for Lettings Agency Work and Property Management Work (Requirement to Belong to a Scheme) Order 2014, all managing agents carrying out lettings or property management work in relation to residential property in England must be a member of an approved redress scheme.

Service tiers: what a managing agent does

The scope of a managing agent's role varies considerably depending on the service level agreed. The three standard tiers in the UK private rented sector are:

Tenant-find only. The agent markets the property, conducts viewings, references prospective tenants, and sets up the tenancy documentation. Once the tenancy begins, day-to-day management reverts to the landlord.

Rent-collection only. The agent collects rent each month, chases arrears, and remits the balance to the landlord. The landlord remains responsible for repairs, compliance, and all direct tenant contact.

Full management. The agent handles the entire tenancy lifecycle, marketing, referencing, tenancy setup, rent collection, maintenance coordination, safety certificate renewals, deposit protection, and tenant communications. The landlord typically has minimal day-to-day involvement.

From working with self-managing landlords across the UK, we find that the distinction between these tiers is frequently misunderstood at the point of appointment. Landlords often discover that their "full management" service excludes specific tasks, such as serving legal notices or handling possession proceedings, that carry an additional fee when needed.

Legal responsibility and the agent relationship

Appointing a managing agent does not transfer the landlord's statutory obligations to the agent. The landlord and tenant relationship in law remains between the property owner and the tenant, regardless of who manages the property day to day. If an agent fails to protect a tenancy deposit within the required 30-day period, fails to serve the correct prescribed information, or fails to maintain safety certificates, the penalties and enforcement action fall on the landlord.

The agent acts as the landlord's representative. Where agent and landlord are both at fault for a breach, both can face consequences, the Renters' Rights Act makes provision for the Private Rented Sector Ombudsman to work alongside existing agent redress schemes to conduct joint investigations and issue joint decisions where appropriate.

Regulatory requirements for managing agents

Before appointing a managing agent, a landlord should verify three things as a minimum:

Redress scheme membership. All managing agents in England must belong to either The Property Ombudsman or the Property Redress Scheme. Membership is a legal requirement under the 2014 Order, and agents must display their membership prominently in their office and on their website. All managing agents handling client money in England must also belong to a government-approved redress scheme.

Client money protection. Under the Client Money Protection Schemes for Property Agents (Requirement to Belong to a Scheme) Regulations 2019, agents who hold client money, including rent, deposits, or maintenance funds, must belong to a government-authorised client money protection scheme. This protects the landlord's funds if the agent misappropriates money or ceases trading.

Fee transparency. Under the Consumer Rights Act 2015, letting and managing agents must publish a full schedule of their fees on their website and display it prominently in any office. Failure to do so carries a fine of up to £5,000 from the local authority Trading Standards team.

The fees a managing agent charges, whether a monthly percentage or a fixed arrangement, are fully deductible as an allowable expense against rental income. See the dictionary entry on agent fees for the tax treatment. For a detailed breakdown of what full management, rent-collection-only, and tenant-find services typically cost in the UK, see our guide to property management costs.

Managing agents and the Renters' Rights Act

Under the Renters' Rights Act, both landlords and their managing agents carry specific legal duties from 1 May 2026. Where a property is managed by a letting agent, the agent must also serve the Renters' Rights Act Information Sheet on each qualifying tenant by 31 May 2026, even if the landlord has already done so. Failure by either party to serve the document on time carries a fine of up to £7,000. Landlords and agents are each responsible for their own conduct, the legislation does not allow a landlord to delegate liability for their own breaches to an agent.

Landlords using August consistently tell us that switching from a managing agent to self-management, or reducing the scope of their agent agreement, is most effective when underpinned by a compliance tool that replicates what the agent was previously tracking. August's compliance checklist covers safety certificate renewals, deposit protection deadlines, licensing, and tenancy documentation in one place.

What is the difference between a letting agent and a managing agent?

The two terms are often used interchangeably, but there is a practical distinction. A letting agent typically refers to a firm that focuses on finding tenants and setting up tenancies, that is, the tenant-find function. A managing agent (or property management company) typically refers to a firm that handles the ongoing management of a tenancy after it has started. Many companies offer both services under a full management package, in which case the distinction is less relevant. In the context of block management, leasehold buildings, blocks of flats, or residential estates, a managing agent is specifically the firm appointed by the freeholder or residents' management company to manage communal areas, service charges, and building compliance.

Frequently asked questions

Can a landlord change their managing agent mid-tenancy? 

Yes, but the timing requires care. The existing management agreement will specify a notice period, typically one to three months, and may include break clauses or exit fees. The landlord must ensure continuity of compliance obligations during the transition, including safety certificates, deposit protection records, and tenant communication history must transfer to either the new agent or the landlord. Tenants should be notified in writing of the change of management and given new contact details and rent payment instructions.

Does using a managing agent remove the landlord's legal liability? 

No. The landlord retains ultimate legal responsibility for compliance with tenancy law. If an agent fails to meet a statutory obligation, the landlord can face penalties, rent repayment orders, or difficulty regaining possession. A landlord's recourse is against the agent through the management agreement and, if necessary, through the agent's redress scheme, but that does not reverse the enforcement action taken against the landlord.

What professional memberships should a managing agent have? 

At minimum, membership of an approved redress scheme (The Property Ombudsman or The Property Redress Scheme) and a government-authorised client money protection scheme. Professional body memberships, such as Propertymark (ARLA), the Property Institute, or RICS, indicate additional training and a code of conduct commitment, though they are not a legal requirement for letting and managing agents.