Do I Need a Lettings Agent or Tenancy Management Services?
Owning rental property can be rewarding… until the phone rings at 11pm because the boiler has broken. At that point, many landlords start asking themselves: “Should I be using a lettings agent or tenancy management service?”
The short answer? It depends on your time, expertise, and appetite for stress. Let’s break it down.
What Does a Lettings Agent Actually Do?
A lettings agent can handle as much or as little of the process as you like. Typical services include:
- Marketing the property – listings, professional photos, tenant vetting.
- Tenant referencing – credit checks, employment references, guarantor checks.
- Tenancy agreements – making sure contracts are legally watertight.
- Rent collection – chasing payments so you don’t have to.
- Repairs & maintenance – arranging trades and keeping tenants happy.
- Legal compliance – deposit protection, right-to-rent checks, gas safety certificates (to name a few).
In short: they make sure you stay on the right side of the law and free up your time.
The DIY Approach: Why Some Landlords Go It Alone
Plenty of landlords self-manage their properties. If you live locally, know your way around property law, and don’t mind being on call, this can work well.
Benefits of self-managing:
- No management fees eating into profits.
- Full control over tenant choice and property standards.
- Direct relationship with tenants.
Drawbacks:
- Time-consuming (tenant calls don’t stop for holidays).
- Risk of missing legal requirements.
- Stress levels can rise, especially with multiple tenants.
The Heavy Price of Non-Compliance
Letting a property out might feel like a money-making move but missing legal boxes can backfire in a big way. Here’s what you could be risking:
Civil Penalties: No Courtroom Required, Just a Big Sticker Shock
Councils in England can slap landlords with civil penalties up to £30,000 per offence without needing to go to court. Proposed changes under the Renters’ Rights Bill could increase that ceiling to £40,000 for serious or repeat breaches.
Couple that with Rent Repayment Orders potentially doubling (from 12 to 24 months’ rent) and applying across entire landlord chains and you’ve got serious skin in the game.
Right-to-Rent Fines: Per Tenant, Not Per Property
Skipping proper right-to-rent checks? You could face fines of £10,000 per tenant for a first breach and as much as £20,000 for repeat failures.
Gas, Electrical & Fire Safety: Serious Breach, Serious Money
- Gas Safety Violations: Up to £6,000 per breach. For serious negligence, even prosecution and jail time could follow.
- Electrical Safety (EICR): Failing to secure a valid EICR can cost up to £30,000 per offence.
- Fire Safety: Installing smoke alarms and fire-safe fittings isn’t optional. Skipping them could lead to unlimited fines and even imprisonment in extreme cases.
Tenant Fees & Deposits: Penalties That Sting
- Breach the Tenant Fees Act, and you could face up to £5,000 for a first offence and £30,000 for further breaches.
- Fail to register a deposit in a government-approved scheme (or provide the correct paperwork), and the tenant can claim up to three times the deposit amount back. You also lose the right to issue a Section 21 eviction.
Real-World Wake-Up Call
Even big players aren’t immune. Lazari Properties, part of a multi-billion-pound empire, was fined £67,000 and added to London’s rogue landlord list for repeated health, safety, and licensing breaches.
When Tenancy Management is Worth It
Here are signs you should probably use a lettings agent:
You own multiple properties or blocks (time becomes your biggest bottleneck).
You don’t live near the property.
You have a busy day job (or just value your sanity).
You want professional handling of disputes and compliance.
You’d rather focus on investment strategy than fixing dripping taps.
Costs vs Value
Lettings agent fees typically range from 8–15% of monthly rent for full management. While that can sound like a lot, consider the alternative: one compliance mistake or legal dispute can cost far more.
Think of it as insurance against headaches, fines, and midnight phone calls.
The BlockLand Take
At BlockLand, we see both sides. Some landlords thrive on hands-on management. Others find that professional tenancy management is the only way to scale up without burning out.
Our rule of thumb:
Small portfolios (1–2 units): DIY can work if you’ve got the time.
Medium to large portfolios (blocks of 10+): Professional management is usually the smarter play.
Final Thoughts
You don’t have to use a lettings agent. But if you value your time, want to stay compliant, and prefer investing over firefighting, tenancy management might just be your best friend.
After all, nobody buys a rental property because they love dealing with blocked toilets.
Ready to Take the Stress Out of Managing Your Property?
Our tenancy management service helps you stay compliant, save time, and keep tenants happy — without the midnight calls.
Request a free callback and find out how we can help you manage smarter.
