What is a managing agent: A guide for landlords

Published: 20/07/2026

Effective property management goes beyond keeping a building in good repair. It also means complying with strict safety standards, managing finances, and assessing and managing risks. As a landlord, you may choose to self-manage your property or outsource it to an agent.

In this guide, our private rented sector experts outline the main responsibilities of a managing agent, considerations to keep in mind when deciding whether to use one, and how to choose a reputable agent.

If you’re a first-time landlord, why not check out our landlord starter pack?

What is the difference between an agent and a landlord?

A landlord is the person or company who owns a property. An agent is someone authorised by the landlord to act on their behalf.

The agent may act and take binding decisions on the landlord’s behalf, including signing contracts.

As the agent’s decisions bind the landlord, it is important to choose a trustworthy agent who understands what is required of them and when they need to ask your permission to act.

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

Letting agents provide a range of different service levels to landlords. These are typically:

Tenant-find only where the agent finds a suitable tenant for the landlord and the landlord manages the property afterwards.
Rent collection the agent finds the tenant and is also responsible for collecting rent and helping to chase non-payment of rent. It usually also includes managing the deposit and the check in/out inventory.
Full management is where the agent is also responsible for managing the tenancy. This includes all of the above, and any repairs that are needed, ensuring legal compliance, inspecting the property and managing relations with the tenant.

In the private rented sector, letting agents who are fully managing the rental property are typically referred to as managing agents.
For leasehold properties, a managing agent is the company employed to handle the day-to-day of property management on behalf of the freeholder. This can include maintaining the building's structure and common areas, arranging insurance, and looking after finances. While they are most commonly associated with blocks of flats, managing agents can also be used for privately rented properties.

Who pays the service charge, a landlord or tenant?

Who pays the service charge on a rented flat is a common question asked by landlords and tenants alike.

As the leaseholder, you are legally responsible for paying the service charge directly to the freeholder or management company. You may then choose to absorb this cost yourself or seek to recover it through your rent.

Managing agent in private rented properties

If you do enter in a full management agreement, you should always check exactly what services the agent has agreed to undertake. However, you can usually expect it to cover:

Rent collection and chasing late payments
Handling check in and check out of the property
Finding suitable tenants and arranging the tenancy agreement
Handling rent increases
Arranging for the gas and electrical safety certificates
Protecting the deposit
Arranging for repairs and maintenance to be performed. This will sometimes require your permission where costs may go above pre-arranged limits.

Managing agents for leasehold properties

A managing agent's responsibilities often include:

Finances: Managing a property’s finances, including collecting service charges and ground rent, paying bills, arranging buildings insurance and budgeting for maintenance and substantial works.
Compliance: Ensuring the building meets strict health, safety, and fire regulations, and adhering to any specific maintenance requirements set out in the lease.
Risk management: Organising specialist fire risk assessments, legionella, and other health and safety checks to ensure the building remains safe and habitable.
Maintenance: Scheduling planned and routine maintenance and redecoration for communal areas, dealing with major works, and arranging emergency repairs as they arise.
Leaseholder liaison: If you are a freeholder for a number of leasehold properties, they may field enquiries from leaseholders, including acting as intermediaries in issues and disputes.

It’s important to note that while a managing agent can manage compliance on your behalf as a landlord, the legal responsibility remains with you, meaning you are still liable for potential prosecutions or fines if your agent fails to comply with the law.

As a landlord, do I need a managing agent?

There is no legal requirement to hire a managing agent, and if your portfolio is small, you may want to manage the properties yourself. However, you may prefer to outsource the work to a managing agent if:

You don’t have the time to manage your properties.
You would like specialist help with compliance and financial considerations.
You own many properties that would be difficult to self-manage.
You do not live locally to your properties.

How to choose a managing agent

Managing agents are often responsible for keeping your tenants safe and happy, and for keeping your building structurally sound and in good repair, so it’s key to appoint a company you can trust.

You are responsible if they fail to act appropriately, so it is critical to do your research to find a reputable agent. You should:

Check that the company or agent can fulfil every item on your brief.
Check the qualifications and level of training of individuals at the company
Ask other landlords for recommendations or read online reviews to make sure previous customers are happy with the service.
Check that the managing agent has adequate professional indemnity insurance to cover you if they act negligently or incompetently.

How much does a managing agent cost?

This depends on the level of services you’ve asked your managing agent to carry out. Ensure you have a clear understanding of their costs and payment terms, any hidden charges, and how and when costs may increase before signing an agreement.

It is usually also a good idea to compare with other local agents to check the charges are reasonable.

How to find a managing agent

To find a property managing agent, you should:

Create a list of services you would ideally like a managing agent to carry out.
Invite a short list of prospective agents for an informal meeting to talk through what you would like them to manage, any problems you would like them to solve, and to hear their approach.
Whittle the list down to two to four potential companies and invite them to a formal tender.
It’s advisable to choose a Propertymark-protected or TPI-accredited managing agent.

Managing agents and the Renters' Rights Act

Since the Renters’ Rights Act took effect in England on 1st May 2026, managing agents have more heavily regulated responsibilities, including ensuring full compliance with the abolition of Section 21 evictions, moving tenants onto rolling periodic tenancies, and complying with the Decent Homes Standard to address hazards like damp and mould. Find full details on our Renters' Rights Hub.

How we can help you

Not sure whether a managing agent is right for you? Our members have access to a suite of resources and guides, licensing support, and specialist telephone advice from our private rented sector experts to help with questions like these and many more.

Not already a member?

Many of our resources for managing properties are for members only. To access these and our extensive member discounts, including our FREE expert landlord advice line and FREE property management software, join the NRLA today and be part of our vibrant landlord community.

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Managing agent FAQs

What happens if my managing agent isn't performing?

If you’re unhappy with your current managing agent, you should use their complaints procedure, including escalating to their redress scheme if required.

All managing agents in England must legally belong to a government-approved independent redress scheme, and they must advertise which one they belong to on their website.

Alternatively, for serious failures you may be able to seek damages in court or terminate the contract early. However, you should seek legal advice to check your position before acting.

Can I switch managing agents mid-tenancy?

Yes, it is possible to switch managing agents mid-tenancy, however you’ll need to ensure you comply with the termination clauses in your management agreement. You’ll also want to consider your current financial position, organise a handover schedule, and understand any outstanding issues on the account before doing so.

Do I remain legally responsible if I use a managing agent?

Yes, as the property owner, you retain ultimate legal responsibility for adhering to safety regulations and legislation, including deposit protection. This means that your tenant may be able to seek compensation direct from you for an agent's wrongdoing.

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

A managing agent is a company that oversees the management of a property. A coverholder is an insurance specialist authorised to issue and manage a property’s buildings insurance policy on behalf of an underwriter.

Are managing agent fees tax deductible?

Yes, management fees are considered allowable expenses by HMRC and can be deducted from your gross rental income.

Do managing agents need to be qualified/accredited?

At the moment, agents in England don’t require any qualifications to become managing agents. However, qualifications may be required in the future, and many managing agents already undertake training from providers such as the NRLA.

Agents in Wales are required to undertake training and be licensed by Rent Smart Wales if they are managing a property.