Deciding how your rental property is looked after is one of the most important choices you will make as an owner. Get it right, and the rent arrives on time, repairs are handled promptly, and your weekends stay your own. Get it wrong, and you may pay for services you never use, or discover gaps in your cover only when something goes wrong. For landlords in London, UK, the decision carries more weight this year, because the Renters' Rights Act has changed how tenancies begin, run and end. Here is how the two main options compare.
What Each Service Actually Covers
Tenant-find only is exactly what it sounds like. The agent markets your property, arranges viewings, references applicants and prepares the tenancy paperwork. They collect the first payment and deposit, and then hand over the keys. From that point, the tenancy is yours to run.
Fully managed includes all of that, then continues for the life of the tenancy. Typically this means rent collection, arrears chasing, maintenance coordination, periodic inspections, compliance tracking and deposit handling. Your tenant contacts the agent, not you.
Where Every Letting Begins: The Rental Listing
Whichever service you choose, a strong rental listing sets the tone. Good photography, an accurate floorplan and an honest description attract the right applicants and discourage the wrong ones. Pricing matters more than ever. Under the new rules, bidding above the advertised rent is banned, so the figure on your rental listing is effectively the figure you will receive. An experienced agent will price it against genuine local demand rather than optimism.
What the Renters' Rights Act Changed
Since 1 May 2026, assured shorthold tenancies have ceased to exist, existing fixed terms have converted to periodic assured tenancies, and every possession claim must prove a statutory ground. Section 21 "no-fault" notices are gone. Rent can rise once every 12 months, on two months' notice, using a Section 13 notice only, and tenants can challenge the figure at tribunal. Tenants may also request a pet, and you cannot unreasonably refuse.
Possession has become more evidence-driven, too. The mandatory rent arrears ground now requires three months' arrears, met both when notice is served and at the hearing. Landlords in London who once relied on a fixed term and a simple notice now need tidy records and correct procedure. Mistakes can be costly, since local authorities can impose civil penalties of up to £7,000 for a single breach. Whichever route you take, these responsibilities exist. The real question is who carries them.
What Each Option Costs
Fees vary, so always ask for a full schedule. As a guide, tenant-find only is a one-off charge, usually 8% to 12% of the first year's rent. Full management is ongoing: typically 10% to 15% of monthly rent plus VAT outside London, and up to 20% plus VAT in prime London. Remember that most agents add VAT at 20% on top of the headline percentage.
Here is a simple illustration for a flat let at £2,500 a month (£30,000 a year):
- Tenant-find only at 10% of annual rent: £3,000, or £3,600 with VAT, paid once.
- Fully managed at 12% of monthly rent: £300 a month, or £360 with VAT, which is £4,320 a year.
These are example figures, not a quote. Watch for extras such as inventories, renewals and inspections. Extras like these can add noticeably to the headline price. Management fees are also generally an allowable expense against rental income for tax purposes, so it is worth speaking to your accountant.
When Tenant-Find Only Makes Sense
This option suits owners who live nearby, have time to spare and feel confident with the paperwork. Landlords in London with a single, well-maintained property and a good tradesperson on speed dial often do well with it. You keep more of the rent, and you keep control.
Be realistic about what "control" involves, though. You will handle gas safety and electrical checks, deposit protection, rent reviews via the correct notice, and any possession action. If a tenant falls behind, you are the one chasing. Confidence is fine, but so is honesty about your available time.
When Fully Managed Pays for Itself
A fully managed service earns its fee in several situations. Landlords in London who live abroad or far from the capital gain a trusted local presence. Owners with several properties gain consistency and time. The same goes for busy professionals, first-time landlords and anyone who inherited a property and never planned to become one.
There is also a quieter benefit. A good managing agent keeps dated records of inspections, repairs and communications. Under the current possession rules, that paper trail can make a real difference if a dispute ever arises.
Four Questions to Settle It
Ask yourself honestly:
- Could I attend an urgent repair or a tenant call within a day, every time?
- Am I comfortable applying the current notice and possession rules myself?
- Would my time be better spent elsewhere than on landlord admin?
- Would one missed compliance step cost me more than a year of management fees?
If you answered "no" to the first two, or "yes" to the last two, full management is likely the safer route. If the opposite is true, tenant-find only may be all you need.
Speak to Bluestone Properties About Property Management
There is no single right answer, only the right fit for your property, your time and your appetite for responsibility. If you would like a clear, honest view of which service suits you, the team at Bluestone Properties will gladly talk it through. We support landlords in London, UK with everything from a carefully prepared rental listing to complete day-to-day property management, so your investment stays protected and compliant.
Ready to hand over the day-to-day? Visit bluestoneproperties.co.uk to request a free, no-obligation property management consultation, and find out how much time, and stress, a fully managed service could save you.
