Lettings and Property Management: What's the Difference?

Lettings and property management sound like the same thing, but they are as different as finding a tenant and living with the consequences. One is a matchmaking service that ends when the tenant moves in; the other is an ongoing relationship that lasts the length of the tenancy. Understanding the difference between lettings and property management is what stops landlords from overpaying for a service they don't use, or, worse, assuming someone is handling repairs and compliance when no one is. Here's exactly what each covers.

Lettings management: the matchmaker

Think of lettings management as a matchmaker. A letting agent, hired by the landlord, finds the right tenant for a property: they market it, put up the listing, sift applications, run referencing, and present suitable tenants for the landlord to choose. Once the tenant moves in, the letting agent steps back, their job is essentially done. If the tenant later needs a repair or wants to renew, that goes to the landlord (or whoever is managing). This find-and-sign stage is what "lettings" really refers to.

Property management: the long-term companion

Property management starts the same way but does not stop at move-in. The property manager stays on for the life of the tenancy as the go-to point of contact: handling repairs and maintenance, collecting rent, organising inspections, managing renewals, and dealing with whatever crops up. For a tenant, that means a single number to call; for a landlord, it means the day-to-day running of the property is genuinely off your plate. This is the difference between lettings and property management in one line: lettings finds the tenant, management lives with the tenancy.

What does "lettings" actually mean?

"Lettings" is simply the business of renting out property, the activity of letting a home to a tenant in exchange for rent. When an agency advertises a "lettings" service, it usually means the find-and-reference stage described above, as opposed to the ongoing management that follows. The word is often used loosely, which is exactly why landlords should confirm what a "lettings" quote includes before assuming it covers management too.

Who holds the contract, and the responsibility

From a tenant's perspective, the contract is with the landlord, not the agent. Agents act on the landlord's behalf, they are the hands, not the principal, and the landlord pays for whichever level of service they choose. That matters when something goes wrong, because it determines who is ultimately accountable.

Legal responsibilities stay with the landlord

Whichever service you use, the landlord remains legally responsible for the property throughout the tenancy. That includes:

• Protecting the tenant's deposit in a government-approved deposit scheme.
• Keeping the property in a safe, liveable condition.
• Meeting safety duties: annual gas safety checks, electrical safety (EICR), and working smoke and carbon monoxide alarms.
• Following the correct process at the end of the tenancy.

A good property manager carries out these duties for you, but the legal buck stops with the landlord: which is why so many landlords decide that management, not just lettings, is what they actually need. Our compliance calendar for London landlords sets out every deadline these duties involve.

Which do you need, lettings or property management?

If you are confident handling repairs, rent, renewals and compliance yourself and just need help finding a tenant, lettings (let-only) may be enough, see what a let-only service should include. If you would rather hand the whole tenancy over, or you live away from the property, or you simply value your time, property management is the service that does that, and our guide to why London landlords use property management makes the case in full. The cost difference is real, so it is worth understanding the letting agent fees behind each before you decide.

How AIHPG handles both

We offer both lettings and property management, but with the services most agents bill as extras (cleaning, inventories, EICR, gas safety, EPC, decoration) included as standard in either. So whether you need a tenant found or a tenancy run, the difference between lettings and property management with us is about how much you hand over, not about which compliance costs get added back on later.