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Choosing the right property management company requires you to assess different qualities and service offerings. This includes local operations, guest support, housekeeping, maintenance, pricing, reporting, contract terms, compliance, marketing reach, and property protection.
Key Takeaways:
- London landlords should look beyond a property management company’s management fee and focus on the full scope of its services.
- Prioritise companies offering local operational support, especially if you prefer short- or mid-term letting strategies.
- Check how the company manages pricing, occupancy and booking channels.
- Evaluate how companies can help with compliance and property protection.
- Choose a property management company with transparent reporting, fees, and contract terms.
Property management is the day-to-day operation, maintenance, and oversight of a rental property on behalf of its owner.
Why Do You Need The Right Property Management Partner?
A property management company can significantly impact your rental property’s profitability and overall performance. These companies offer their expertise and services to help landlords maintain their properties and ensure compliance with local regulations. They have clear guidelines that define the scope of their work while ensuring landlords stay on top of their properties without the stress of daily operations.
The right property management partner does more than just advertise the property and respond to inquiries or issues. They have operational systems seasoned by years of experience and local knowledge. They should also possess revenue-management expertise that can help landlords maximise rental revenue throughout the year.
This is particularly important in London, where landlords usually need to balance different letting strategies to satisfy the changing demand and increasingly complex regulatory requirements.
The difference between a professionally managed rental property and one personally managed by a landlord is undeniable.
For instance, we have a partner who went from stressful property management to becoming an award-winning property with back-to-back bookings. Before City Relay, they managed their property despite living 10 hours away. According to them, it was “challenging to manage guest interactions, complaints, and turnovers.” They had to find a property management company to keep their ratings and occupancy rates from going down.
After partnering with City Relay, the owner not only freed up time that had been spent managing their property. They also enjoyed an average of 5-6 bookings per month, consistent 5-star reviews, and a revenue of £200,000+. On top of that, their property was so well managed that it received a 2024 Booking.com Traveller Review Award.
This is a good example of how a property management company can help.
How to Choose A Property Management Company
Working with a property management company will benefit your rental, but only if you choose the right one to partner with. While some will focus on the fees, there are other, more important factors to consider when choosing a reputable company.
Here are the 10 things you need to look into.
1. Local experience
A management company should have a strong local presence so it can respond to issues at the property rather than relying on remote communication. For London rental properties, this means looking for a London-based property management company.
Ask them how they handle guest arrivals, emergencies, maintenance visits, inspections, and property checks. This is important, especially for short-term rentals where turnovers are more frequent and a delayed response could quickly lead to a poor review.
2. Housekeeping service
For short- and mid-term rentals, a cleaning and housekeeping service directly affects the guest experience, property reviews, and the overall condition of the rental. Some property management companies outsource their housekeeping services. Others have it in-house.
In our experience, having an in-house housekeeping and maintenance team makes it easier to maintain high-quality cleaning services between turnovers. We have created an efficient system that allows us to clean between bookings, change linens, replenish consumables, and promptly report any damage. Our proximity to local properties also ensures that issues or guest requests are addressed immediately.
Did you know…
The AirDNA Guide to Airbnb Ratings reveals that higher cleanliness ratings can increase your nightly RevPAR. Among the cleanliness standards that guests expect are spotless floors, clean corners, and fresh linens.
3. Guest communication and support
Does the property management company respond to guests outside normal office hours? Do they rely on bots to chat with guests?
These are questions you need to ask before you choose who to partner with.
A professional management company should also have a clear process for handling late arrivals, key or access issues, urgent maintenance issues, and guest enquiries. Although there’s nothing wrong with using chatbots, some guests prefer speaking with a person.
This can protect both guest satisfaction and your time as the landlord, so make sure you know what the property management company can offer.
4. Marketing channels and networks
Although there’s always demand for rentals in London, marketing through the right channels and networks can increase bookings and occupancy rates. Not only that, the property can attract the right guests who are willing to pay premium prices for a rental.
Depending on the property’s location, type, and target guests, it can be marketed through Airbnb, Booking.com, Expedia, Zoopla, Vrbo, and Rightmove. At City Relay, we also have our own channel through our website.
Now being listed on multiple platforms is only one part of the strategy. Landlords should ask the property management company how listings are optimised, how availability is synchronised, and whether the company has an existing network of corporate or repeat-booking clients.
5. Pricing and revenue management
Having a strong revenue-management strategy is a must if you want your property to maximise its earning potential. Before you choose a property management company, ask them how they calculate a property’s nightly rate.
It’s not enough to rely on a market average and then use the highest rate. A high rate could reduce occupancy if there’s no demand to support it.
Make sure to ask what data the company uses to determine the best possible nightly rate. At City Relay, we use various factors, such as seasonality, booking pace, property characteristics, local demand, remaining availability, events, and length of stay.
6. Transparent and real-time reporting
Landlords should not have to wait until the end of the month to get a report about their property. Look for a property management company that offers transparent and real-time reporting through an accessible online client portal. At City Relay, we use Opago, a smart, proprietary platform accessible 24/7, so landlords can stay on top of their properties even if they’re not involved in daily operations.
Among the crucial information to provide are income, bookings, occupancy, expenses, maintenance activities, and upcoming reservations. The more transparent the system is, the easier it will be to assess whether the company is delivering value.
7. Maintenance protocols
A good property management company should have a clear maintenance process that details how it inspects properties, reports issues, coordinates repairs, and confirms completion.
Ask them the following questions:
- Who responds to urgent maintenance issues?
- How are contractors vetted?
- Who approves larger repair costs?
- Are maintenance invoices and photographs provided?
- How are landlords updated?
Remember, fast intervention is the key to keeping a minor problem from becoming an expensive repair or a damaging review.
8. Compliance and risk-aversion expertise
The London rental market has many regulatory requirements. The property management company should always be up to date on the latest rules and regulations governing short-, mid-, and long-term rentals. These should be integrated into their operations to ensure properties they manage are always compliant with the law.
London’s 90-night short-term letting rule is a good example. At City Relay, we have a system that tracks bookings across multiple platforms to ensure properties do not exceed their limits. We also use dynamic letting strategies that prompt us to switch between short, mid, and long-term models to continue maximising profit while staying compliant.
Other regulations include the National Registration Scheme, Renters’ Rights Act, EPC, and similar laws and regulations. Your management company should understand all these and how they affect your letting model. They should help coordinate compliance by flagging any certificates or licenses that require renewal.
9. Property protection
Protecting your property happens in different ways.
First is through insurance. Find out what the company’s rules are regarding insurance policies. Your policy should allow the type of letting strategy you plan to use. Apart from that, inquire about the specific protection that the company will provide.
Second is through guest vetting. How do they assess prospective guests or tenants? This could include identity checks, booking screening, deposits, and tenant referencing or deposit protection arrangements for long-term letting.
Third is through maintenance. What are the processes for guest-related damages? They should have protocols for rule violations.
10. Cost transparency and contract flexibility
This is way down the list on purpose. For landlords looking for the right property management company, it’s easy to focus solely on the advertised commission. But once you’ve scrutinised all the other services the company provides, you’ll be in a better position to decide whether the fees are reasonable.
When you reach out to a property management company, feel free to ask what is included in their commission rate and what costs extra. Sometimes, the commission rate is low, but you’ll be charged hefty fees for cleaning, maintenance, photography, check-ins, tenant referencing, inventory services, renewal fees, and other administrative charges.
You should also discuss VAT, notice periods, contract length, exit fees, and other charges when you decide to change your letting strategies.
For instance, City Relay offer different commission rates for short-, mid-, and long-term rentals, as each letting strategy requires different property management services. All of these are discussed with landlords so they are aware of the differences, the specific services included, and what will generate additional fees.
Partner With The Right Property Management Company
The best property management company is not always the cheapest or the one that promises the highest rental income. It’s the one that offers a complete set of services, including local support, housekeeping, maintenance, guest support and communication, compliance management, marketing, dynamic pricing, and property protection.
Before signing a contract, be thorough with your questions and ask for evidence. Review case studies, understand their reporting system, check independent reviews, and request a complete breakdown of fees.
Most importantly, check for alignment. The company’s management model should match your specific property goals. Whether you’re seeking a stable long-term tenant or prefer maximum earnings through short- or mid-term letting, the company should be able to show you just how they can help you reach your goals.
If you’re ready to explore your options, get in touch with City Relay. We can sit down with you to identify opportunities to maximise your property’s performance.
FAQs
What does a property management company do for London landlords?
A property management company handles some or all operational responsibilities involved in renting out a property. Depending on the letting strategy, this could include marketing, housekeeping and maintenance, tenant or guest support and communication, viewings, check-ins, rent collection, compliance management, and reporting.
Make sure you look at exactly what services are provided so you can compare them with their commission fees.
How much does a property management company cost in London?
There’s no standard fee for property management in London. This is why it’s important to compare different companies and consider which ones align with your property goals. Make sure you compare not only their fees but also the services they provide. Do they charge a fixed commission fee? Do they have separate service charges, or is it in one fee?
Landlords should compare the total cost, including VAT and any additional charges, and obtain an itemised quote before choosing the right property management company.
What should I ask a property management company before signing?
Ask how the company handles the marketing, pricing, housekeeping, maintenance, emergency calls, guest or tenant screening, and reporting. Pay attention to their processes and ask if they have a platform you can use to monitor all these activities and your property’s performance.
You should also get details of their management fees, what services incur additional charges, contract length, and exit arrangements.
Find out who will manage your property and how they provide local support. It also helps to request case studies that are similar to yours, so you have an idea of how they work.
How will I know which property management company is the best in London?
The best property management company differs per landlord. When looking for the right company to manage your rental, you need to understand your specific property goals. Make sure they are aligned with what you envision for your property.
Inquire about their operational support, marketing reach, revenue management, housekeeping and maintenance, compliance expertise, fee transparency, and contract flexibility. You should also look at independent reviews of a company to see whether they have managed properties similar to yours or worked with landlords in the same situation as you. This will help you decide if they are the right property management company.
