Is a Property Management Agency Worth It?.

In this article, I thought we would talk through the differences between self-managing your portfolio or outsourcing it to a management company, and the pros and cons around each of those.

In this article, I thought we would talk through the differences between self-managing your portfolio and outsourcing it to a management company, and the pros and cons of each.
When I started in property, I self-managed. Then I outsourced it. Now I have my own letting business that’s completely outsourced, with a joint-venture partner who handles the day-to-day management, allowing me to focus on what I’m best at, which is finding great property deals and securing them for my portfolio.

A property management agency is a company that handles the day-to-day running of rental properties on behalf of landlords. This includes finding tenants, collecting rent, handling repairs, ensuring legal compliance, and managing tenant communication. The aim is to completely remove the investor’s workload while ensuring the property is managed professionally and in line with current regulations.

When I first jumped into property, I had this "I'll do it all" mentality. Sourcing the deals, project managing the refurbs, chasing the tenants - you name it, I was doing it. I really thought I was being smart by skipping the management fees and keeping that extra cash in my pocket.
But here’s the reality check: you aren’t saving money; you’re spending your life.
Time is your only non-renewable resource. We all get the same 24 hours, and if you’re spending yours fixing a leaky tap or responding to an admin email, you aren’t being a business owner but an employee of your own company.

Smart investors understand the value of outsourcing routine tasks. Stop draining your most productive time on work that is better and more cost-effectively handled by others. By delegating the day-to-day noise, you free yourself to concentrate on activities that genuinely drive your business forward: networking, securing investors, and expanding your portfolio.

The real cost of self-managing your property business is:

The takeaway: To successfully build a property empire, you must transition from managing the small details to strategising the big picture.

Here’s a list of some of the things I did managing my property business when starting out:

At first, I thought that being both an investor and a landlord required me to shoulder all responsibilities and manage everything on my own. However, I quickly recognised a crucial difference between these two roles. My focus was mainly on being a landlord, handling the day-to-day operations of the property, while my true goal was to embrace the investor mindset.

It's important to note that sometimes it's not solely about saving money. Often, the challenge lies in learning how to delegate tasks effectively and trusting others to handle responsibilities. It is possible to believe that no one will perform the job as well as you. However, the reality is that others may approach the tasks differently, and their methods can turn out more efficient and ultimately more profitable.

An investor focuses on finding property deals and outsourcing the rest, while a landlord typically handles everything themselves.
For me, my job today is to find great deals and raise the capital to fund them. Since I moved away from self-management, I have been able to complete more deals. Not only did I have more time, but I also gained mental clarity to plan strategically for the future of my business.
However, this does not mean self-management is always bad. There are real benefits, especially when starting out.

One of the most important benefits of self-managing is learning what letting agents are supposed to do. I managed my properties myself for a long time, and although it was time-consuming, it was extremely valuable. I recommend every investor self-manage at least once.
When you self-manage, you will:

Tenants should be treated as clients. You are providing accommodation and a service, and self-management teaches you the quality of service expected.
It also gives you insight into how agents work. Later, you can hold them accountable because you understand the processes and standards.

Many landlords focus on saving management fees, but they should not be the main reason to self-manage.
The main purpose is to gain experience so that you:

You also get the opportunity to choose your tenants. But the real advantage is learning how property management works in practice so you can scale your portfolio intelligently.

 
The agencies do quite a significant amount of work. And then, if there are any issues with the tenant, where they don’t pay their rent, then there are the rent chase-up letters. Maybe even organise and take them to court if you unfortunately needed to do an eviction. That’s not a regular thing with property in all of my years in the property business. I've only had to take a tenant to court once. In that instance, the tenant didn't even appear, so the Judge immediately granted me possession. Although the tenant had already vacated the property by the time I went to serve the possession order, they still caused me the expense of the court process.

 
But the agents can sometimes help prevent that for you, because they know how to deal with tenants in those situations. So, they can remove them from the property and help do it in the right way legally. Stuff that maybe is not your skillset, but you can shadow the agent, and learn all of this stuff in the background. So, you become knowledgeable on what they do.

Not all agents are the same. There are good agents, bad agents, and agents who specialise in specific property types. Managing a single-let property is completely different from managing a multi-let property.
Many agents who are excellent at single lets fail at multi-lets because the tenant profile, marketing, and management processes are different.

I once helped a mentee who owned a six-bedroom HMO struggling to find tenants. He had handed the property to a local agent but had not checked whether the agent had experience with multi-lets.
When I visited the street, I immediately saw the issue. The board outside said “For Rent” instead of “Rooms for Rent". This mistake led potential tenants to assume it was a full house rental.
After stopping and speaking to locals and placing a targeted sign in a shop, we were able to quickly secure tenants. In fact, one of the first tenants moved in within a few days.
The lesson is clear: outsource, but ensure you choose an agent who is specialised and experienced in the type of property you own.

If you choose to self-manage, the first questions people ask are usually the following:

For my first ten properties, I used Microsoft Excel. That is all you need. Many new investors waste time and money on expensive property management software before they have enough properties to justify it.
Focus on getting properties first, then optimise systems later.

Start by using Excel for your first few properties. Track rent payments, tenant details, and maintenance schedules. You do not need fancy apps for one or two properties.
Once your portfolio grows beyond ten properties, consider property management software such as Arthur or GoTenant. These systems allow you to:

I personally use Xero for accounting, which my bookkeeper manages. This is not necessary when starting out, but as you scale, it becomes useful.

Eventually, self-management becomes impractical. At that stage, you can either outsource to another agency or bring management in-house.
A few years ago, I never imagined I would own a letting agency. As our portfolio grew, it became the logical next step. By building our own agency and taking on other landlords’ properties, the management fees from those properties cover our staff. This allows my own properties to be managed effectively without additional cost.
Instead of hiring a lettings manager on a salary, I partnered with a local agent who already managed fifty properties. We structured it as a fifty-fifty joint venture. He runs the operations, and I provide the office space. It was a win-win and allowed me to scale without handling daily management tasks.

If you are just starting out, here is a practical approach:
Give your first one or two properties to an agent. Observe their processes. Learn how they find tenants, lodge deposits, and manage compliance.
Take notes and ask questions to understand how the system works.
Once you have three or four properties, self-manage one of them for six to twelve months.
Gain experience with tenant interactions, maintenance issues, and compliance.
Use that experience to make informed decisions about whether to continue self-managing, outsource completely, or eventually build an in-house agency.
Letting agents handle marketing, viewings, tenant references, contracts, deposit protection, inventories, inspections, rent collection, and sometimes even court proceedings. Understanding the workload gives you perspective and helps you scale effectively.
The ultimate goal is not simply to own property. The goal is to build a scalable property business.
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*I do not give financial advice, I just share my 20 years experience on what has worked for me, & I warn you about & openly share what has not. I do not do get rich quick, I do get richer for longer. No schemes, just strategies. I am not an IFA, and I do not give professional advice, I simply educate entrepreneurial people who are smart & make their own decisions. I regularly suggest you do your own due diligence & research before making your investments. And I am here to help. To see our legal disclaimer, click here