The latest research by property management specialist, Rushbrook & Rathbone, has found that whilst the vast majority of letting agents believe the demands of managing rental properties have increased significantly in recent years, most continue to manage the function entirely in-house despite recognising that property management and winning new business now require fundamentally different skill sets.

The survey of UK letting agents, commissioned by Rushbrook & Rathbone* looked to understand how the role of property management has evolved in recent years, the operational challenges agencies are facing, and whether they have changed their approach to delivering management services.

The research found that 81% of letting agents believe the regulatory burden involved in managing rental properties has increased in recent years, with 44% of those stating it has increased significantly.

When asked what has driven this increased workload, compliance and legislation ranked as the single biggest factor, followed by administration and paperwork and the growing complexity of possession processes.

Recruitment is also proving increasingly difficult, with property management identified as the hardest specialist role to fill. More than half of agents (56%) said recruiting property managers has been their biggest staffing challenge over the last year, well ahead of lettings negotiators (22%), business development managers (14%) and compliance specialists (10%).

The findings also suggest that the industry increasingly views property management as a specialist discipline in its own right. More than three quarters of respondents (77%) agree that winning new landlord instructions and managing rental properties now require fundamentally different skill sets.

This changing landscape is also reflected in the day-to-day pressures faced by agencies. Winning new business ranks as the single greatest operational challenge (22%), closely followed by property management (19%) and compliance (16%), highlighting the competing demands agencies are balancing across both growth and service delivery.

Despite this, the overwhelming majority continue to deliver property management internally. Almost two thirds (63%) manage the function entirely in-house, whilst a further 19% do so predominantly in-house with only limited outsourced support.

Despite this, just 10% of respondents say they have considered outsourcing more elements of their property management operation, suggesting that whilst many agencies recognise the increasing complexity of the role, relatively few have yet explored alternative delivery models.

Roma Sharma, Managing Director of Rushbrook & Rathbone, commented:

“The findings reflect what we’ve been seeing across the industry for some time. Property management has evolved into a highly specialised discipline that demands a very different skill set to winning instructions or growing a lettings business.

Twenty years ago, property management was often viewed as an administrative function focused on rent collection and organising repairs. Today, it encompasses compliance, health and safety, contractor management, maintenance coordination, tenant communication, financial administration and an ever-growing body of legislation.

None of that diminishes the importance of winning new business, but the reality is that asking the same people within a business to excel at both disciplines is becoming increasingly challenging.

This isn’t about suggesting that every letting agent should outsource their property management. Many agencies deliver an excellent in-house service. However, every business should regularly assess whether it has the capacity, expertise and systems required to meet the increasing expectations placed upon property managers.

For some agencies, partnering with a specialist management company can be a highly effective way of strengthening their overall proposition. It allows negotiators and valuers to focus on growing the business, whilst ensuring landlords continue to benefit from experienced property managers whose sole focus is protecting their investment, maintaining compliance and delivering an excellent tenant experience.”

Data tables and sources

• *Survey of 334 UK lettings agents carried out by ProperPR on behalf of Rushbrook & Rathbone via consumer research platform Find Out Now (9th July 2026).
• Full survey results can be viewed online here

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