Self-managing an HMO can save the landlord a regular management fee, but it also means personally taking responsibility for tenant enquiries, rent collection, inspections, maintenance, compliance and problems within the house.
Using an HMO managing agent adds another operating cost. In return, the agent should take over much of the day-to-day workload and provide systems for managing the property consistently.
The right choice depends on more than the monthly fee. Your available time, experience, proximity to the property and ability to manage several unrelated tenants all matter.
Not sure which approach is right for your property? Sturstons can review your current setup and explain what professional HMO management would cover.
What does self-managing an HMO involve?
Self-managing an HMO means the landlord retains responsibility for the property’s daily operation rather than appointing an agent to act on their behalf.
For a typical five-bedroom HMO, this can include:
- Advertising individual rooms
- Responding to enquiries
- Conducting viewings
- Referencing prospective tenants
- Completing Right to Rent checks
- Preparing tenancy documents
- Protecting deposits and issuing the required information
- Collecting and monitoring rent
- Dealing with arrears
- Managing tenant changes
- Arranging inspections
- Coordinating repairs and contractors
- Managing cleaning and utilities
- Handling complaints between housemates
- Monitoring safety certificates and licence conditions
- Keeping financial and property records
HMOs generally produce more management activity than a property occupied by one household. Five rooms can mean five separate tenant relationships, different move-in dates and several opportunities for a room to become vacant during the year.
Self-management is therefore not simply collecting the rent and calling a contractor when something breaks.
What does an HMO managing agent do?
The precise service varies between agents, so landlords should always check what is included in the quoted fee.
A full HMO management service will commonly include:
- Marketing available rooms
- Handling enquiries and viewings
- Tenant referencing and Right to Rent checks
- Preparing tenancy documentation
- Collecting rent
- Following up late payments
- Managing tenant communication
- Conducting routine inspections
- Coordinating maintenance
- Organising check-ins and check-outs
- Handling deposit administration
- Monitoring key compliance dates
- Helping maintain the property’s licence requirements
Some services, contractors or renewal work may carry separate charges. Landlords should confirm whether the quoted management fee includes VAT and whether tenant-find, inventories, inspections, maintenance administration or tenancy renewals cost extra.
Our guide to how much HMO management costs explains the different fee structures in more detail.
Self-management versus using an agent
| Area | Self-managing | Using a managing agent |
|---|---|---|
| Monthly cost | No agent management fee | Regular percentage or fixed fee |
| Tenant contact | Handled by the landlord | Primarily handled by the agent |
| Room advertising | Landlord prepares and manages listings | Usually managed by the agent |
| Viewings | Landlord attends or arranges access | Usually completed by the agent |
| Rent collection | Landlord monitors payments | Agent collects and monitors rent |
| Maintenance | Landlord finds and coordinates contractors | Agent coordinates approved contractors |
| Inspections | Landlord schedules and records them | Agent completes and reports on them |
| Compliance administration | Landlord monitors every requirement | Agent may assist and maintain records |
| Control | Direct control over most decisions | Some daily control is delegated |
| Time commitment | Potentially substantial | Usually considerably lower |
| Emergency response | Landlord must be available | Agent normally provides a reporting process |
Appointing an agent does not remove the property owner’s legal responsibilities. The landlord should still understand the service, review important decisions and make sure the property is being managed correctly.
How much can self-management save?
The most obvious benefit of self-management is avoiding the management fee.
Suppose a five-bedroom South East London HMO produces £4,500 in gross rent each month. If full management were charged at 12% including VAT, the fee would be approximately:
- Gross monthly rent: £4,500
- Management fee: £540 per month
- Annual management cost: £6,480
On paper, self-management saves £6,480 a year.
However, that figure does not account for the landlord’s time or any additional costs caused by slow room re-letting, missed rent follow-up, weak administration or delayed maintenance.
For example, one £900 room remaining empty for an additional month reduces the apparent saving considerably. Frequent travel to the property, paid listing upgrades and outsourcing individual tasks must also be included in a fair comparison.
The management fee is only part of the calculation. The better question is: how much does each option leave the landlord after fees, vacancies, operating costs and the value of their own time?
Read our full guide to the cost of running an HMO before comparing management options.
The advantages of self-managing an HMO
You avoid the management fee
For landlords with good systems and sufficient time, self-management can improve operating profit by removing one of the property’s regular expenses.
You retain direct control
You choose the tenants, contractors and timing of non-urgent work. You also see tenant feedback and property problems without information passing through another party.
You develop detailed knowledge of the property
Regular involvement can help you understand recurring maintenance issues, tenant demand and the features that make particular rooms easier to let.
It may suit a local, experienced landlord
A landlord who lives close to one HMO, understands the regulations and has reliable contractors may find self-management entirely manageable.
The disadvantages of self-managing an HMO
It takes more time than many landlords expect
Tenant enquiries often arrive during evenings and weekends. Viewings may be cancelled, maintenance issues can be urgent and room changes do not always happen at convenient times.
The workload may be unpredictable even when the property is generally performing well.
HMOs have additional management requirements
An HMO must meet the relevant safety, amenity and management standards. A mandatory licence is generally required where five or more people forming more than one household share facilities, while councils may operate additional licensing schemes covering smaller HMOs.
Landlords must check the rules applying in the property’s borough. Lewisham, for example, operates additional licensing for certain smaller HMOs as well as mandatory licensing. The council also considers whether the landlord or managing agent is suitable and whether appropriate management arrangements are in place. Check Lewisham’s current HMO licensing requirements.
Managing several tenants can be demanding
Cleaning, noise, guests, heating and shared facilities can create friction between housemates. The landlord may need to intervene without appearing to favour one tenant over another.
Poor systems can become expensive
Missed inspections, incomplete records, delayed repairs or an overlooked certificate can expose the landlord to financial and regulatory consequences.
Landlords remain responsible for matters including property safety, deposit administration, Right to Rent checks and relevant documentation. The government provides an overview of current landlord responsibilities in England.
The property can restrict your availability
A self-managing landlord needs a plan for holidays, illness and periods when they cannot attend the property. Tenants must still be able to report urgent problems and receive an appropriate response.
The advantages of using an HMO managing agent
Less day-to-day involvement
A managing agent becomes the main point of contact for tenants and contractors. This can be particularly valuable for landlords with demanding jobs, family commitments or several properties.
More consistent administration
A specialist agent should have established processes for enquiries, referencing, rent monitoring, inspections, maintenance reports and tenancy records.
Local knowledge
An agent operating in the area should understand local room demand, achievable rents and the features tenants expect. This can help when positioning and advertising an available room.
Easier coordination of tenant changes
Room-by-room HMOs can experience several move-ins and move-outs in one year. Managing listings, viewings, references, deposits and inventories repeatedly can become a significant workload.
A professional point of contact
Some landlords prefer tenants to communicate through a business rather than contacting them directly. This can make boundaries clearer and create a consistent process for reporting repairs or raising concerns.
A good agent should not simply forward every issue to the landlord. They should gather the relevant information, assess the situation and recommend the appropriate next step.
Sturstons manages HMOs across South East London, including tenant sourcing, rent collection, inspections, maintenance coordination and compliance administration. Request a free HMO management appraisal to compare the likely cost with your current setup.
When is an HMO managing agent worth the cost?
Professional management is more likely to be worthwhile when:
- You live a significant distance from the HMO
- You have limited time during working hours
- You do not want tenants contacting you directly
- You own several rental properties
- The HMO experiences frequent tenant changes
- You are unfamiliar with HMO management requirements
- You do not have reliable local contractors
- Administration is becoming inconsistent
- You want the property to operate more independently of you
An agent may be less necessary where the landlord has one nearby property, relevant experience, strong systems and enough time to respond consistently.
Neither route is automatically correct. A good agent should make the property run more reliably as well as reducing the landlord’s workload.
Can you use an agent for only part of the work?
Yes. Some landlords retain the ongoing management but use an agent for tenant-find services.
A tenant-find service may include:
- Preparing the room listing
- Handling enquiries
- Conducting viewings
- Referencing the applicant
- Completing Right to Rent checks
- Preparing the tenancy
- Arranging the move-in
Afterwards, responsibility returns to the landlord.
This can suit experienced landlords who are comfortable with maintenance and tenant management but do not have time to advertise rooms and conduct viewings.
Landlords should establish exactly when the agent’s responsibility ends and which documents will be handed over.
Questions to ask an HMO managing agent
Before appointing an agent, ask:
- Do you specialise in HMOs or mainly manage standard tenancies?
- Is the management fee fixed or percentage-based?
- Does the fee include VAT?
- Are tenant-find and referencing included?
- How frequently will you inspect the property?
- How are maintenance costs approved?
- Are there additional charges for renewals, check-outs or deposit disputes?
- How do you deal with rent arrears?
- Who handles out-of-hours emergencies?
- How and when will rent be transferred to me?
- Can I see an example management statement and inspection report?
- How easily can the agreement be ended?
The management agreement should clearly explain the agent’s authority, charges, responsibilities and termination provisions.
Frequently asked questions
Is it difficult to manage an HMO?
Managing an HMO can be more demanding than managing a property occupied by one household. There are usually more tenant changes, more intensive use of shared facilities and additional licensing, safety and management requirements.
Can I manage my own HMO?
Yes. A landlord can manage their own HMO provided they meet the relevant legal requirements, comply with licence conditions and have suitable management arrangements in place.
Do I need a managing agent for an HMO?
There is no general requirement to appoint an agent simply because a property is an HMO. However, the council must be satisfied with the property’s management arrangements when assessing a licence application.
How much do HMO managing agents charge?
Fees vary according to the property, location and level of service. They may be charged as a percentage of collected rent or as a fixed monthly amount. Always check whether VAT and tenant-find services are included.
How much do agents charge for managing a rental property?
Managing agents commonly charge a percentage of the monthly rent, although some offer a fixed monthly fee. The total cost depends on the property, location and service level. Landlords should check whether VAT, tenant-find, inspections, tenancy administration and maintenance coordination are included.
Is a managing agent the same as a management company?
Not necessarily. A managing agent is appointed by a landlord to manage a rental property and its tenants. ‘Management company’ is a broader term that may describe a letting and property-management business or a company responsible for managing the shared areas of a block.
Can a letting agent enter your property without you being there?
A letting agent can attend while the tenant is absent, but they should normally give at least 24 hours’ written notice, visit at a reasonable time and obtain permission to enter. Having a management key does not allow unrestricted access. Immediate entry may be justified in a genuine emergency, such as a fire, gas leak or serious water escape. In an HMO, access arrangements for communal areas may differ from access to a tenant’s private bedroom. Read the government guidance on access to rented properties.
Does an HMO agent deal with maintenance?
Full management will normally include coordinating maintenance, but the landlord usually remains responsible for the contractor’s invoice. The agreement should state whether the agent can authorise work up to a specified amount without prior approval.
Does using an agent make an HMO more profitable?
Not automatically. Management fees reduce operating profit, but efficient tenant sourcing, rent collection and maintenance coordination may improve performance. The result depends on how effectively the property would otherwise be self-managed.
Can I switch from self-management to an agent?
Yes. The landlord will need to provide the agent with tenancy records, deposit information, safety certificates, licence documents, tenant balances, contractor details and information about existing maintenance issues.
Is HMO management tax-deductible?
Management fees incurred wholly and exclusively for the rental business will generally be treated as a property expense, subject to the landlord’s circumstances and current tax rules. Obtain advice from a qualified property accountant.
Self-manage or appoint an agent?
Self-managing an HMO can work well for an experienced, organised landlord with sufficient time and a reliable local network. It offers direct control and avoids a regular management fee.
Using an agent is more suitable when the workload, distance or compliance administration is becoming difficult to manage consistently. The fee should be assessed against the complete service provided, not treated as a straightforward reduction in rent.
Sturstons provides specialist HMO management across South East London, including tenant sourcing, rent collection, inspections, maintenance coordination and compliance administration.
Request a free HMO management appraisal or call Sturstons on 0208 108 5974 to discuss your property.
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