Are you planning on launching a property management business in the UK? This can be a smart business move as there is always good money to be made in property management, but it is also important that you understand the key steps, regulations, and financial considerations of launching a property management company in the UK before embarking on the journey. This post will tell you all you need to know and offer practical insights on areas such as legal compliance, budgeting, and staffing. Read on to find out more.

Understanding the UK Property Management Landscape in 2025

Before launching a business, you first need to have a strong understanding of the current landscape. Of course, a lot has changed in recent years in the UK with COVID-19, Brexit, and high levels of inflation, but the UK property management sector remains resilient due to high rental demand and a growing need for professional management services, with many landlords opting for hands-off investment opportunities.

There are a number of areas that are experiencing strong growth in rental yields in recent years, including Birmingham, Manchester, and areas of Scotland. As always, London remains a steady market. 

It is also helpful to understand the typical duties of property managers. Essentially, this involves being a middleman between the landlord and tenant(s), which can involve tasks such as rent collection, maintenance coordination, and handling tenant communication. The costs involved in starting this type of business can vary by region, with estimates up to £20,000.

Legal, Licensing, & Compliance Requirements

There are various legal, licensing, and compliance requirements you will need to be aware of before launching in order to operate legally and without any issues. This includes steps such as registering with Companies House, applying for anti-money laundering (AML) supervision through HMRC (property managers are classed as high-risk), and joining a government-approved redress scheme, such as the Property Ombudsman. For those handling rent or deposits, you must obtain Client Money Protection (CMP) to protect client funds. 

As with any type of business, you will also need insurance for financial protection, including public liability and professional indemnity cover. Finally, be sure to familiarize yourself with landlord-tenant law, including deposit protection, eviction procedures, and the recent Renters’ Rights Act 2025 . 

Building a Strong Foundation: Finances, Team, & Growth Strategy

Finally, there are a number of practical steps to get up and running. These involve:

  • Opening a business bank account
  • Choosing software for property management
  • Creating marketing plans
  • Hiring key roles – using an accountancy recruitment firm is smart for building your team

As with any new business, financial planning is key, so you need to prepare a cash flow forecast to prepare for fluctuations and plan tax obligations. 

For those planning on starting a property management business in the UK in 2025, the advice in this post should help you set up and hit the ground running.