The cost of DIY landlording vs. using property management software

Advise

Rentila

9 min read

02 Dec 25

Letting agents used to be the crutch to support landlords in running an efficient rental property. But with UK landlords now facing higher taxes, many are turning to DIY solutions to boost their bottom line.

DIY landlording means doing everything yourself – from tracking expenditure and submitting tax returns, to preparing new leases and handling tenant relationships.

But there is a middle option – one that saves on letting agent fees, but isn’t as cumbersome as a fully DIY method. That is, utilising property management software (which is exactly what a letting agent uses).

In this article, we’ll compare the costs of doing everything yourself (AKA DIY landlording) vs investing in property management software (in place of a letting agent) to see if it can save you time and money.

What are the direct costs of DIY landlording?

As a DIY landlord (who doesn’t use property management software or a letting agent), you may still have to pay one-off fees, like advertising costs or standalone services, and run the risk of being liable for fines if something goes wrong (letting agents typically cover this).

Typical costs of DIY landlording include:

Advertising listings manually

Letting agents offer “tenant-find-only” services, which cover marketing, viewings, and setting up new tenancies. These usually cost around £500-£1,500, or a percentage of the rental income.

Advertising your rental property yourself as a DIY landlord can be cheaper, but it depends. Listings on social media (like area-specific rental Facebook groups) are free, but require good vetting and administration.

Listing on property portals can range between £40-£150 per property listing, plus the costs of professional photos (usually around £100-£500), bringing total costs between £140-£650.

Paying for standalone services

Landlords may also pay for specific services, like tenant background checks, or invest in lower-level support from a letting agent.

Paying for additional services as a DIY landlord can include:

• Tenant background checks: Between £15-£40 per tenant (via an agency), or between £50-£150 (via a letting agent)
• Rent collection from a letting agent: Between 5-8% of the monthly rent
• Inventory fees: Between £100-£250 per property to manage inventories and keep records
• Tenancy renewal fees: Between £100-£250, or 5% of the monthly rent

Some of these costs can be saved when using a property management software. For example, you can extend a tenancy agreement yourself via the platform using professional templates and manage digital inventories.

Legal/administrative mistakes

There’s a risk of making mistakes when managing a rental yourself. Even the most organised person could miss a certificate expiry date here and a rent reminder there – especially if you have multiple properties.

Some oversights have severe implications, like a poor audit trail or inappropriate documentation for tenant evictions, and not performing the Right to Rent check or handling deposits within the designated timeframe.

As an example, penalty fees landlords can face include:

• Failure to handle deposits appropriately within 30 days: Up to three times the deposit amount (as much as £5,512.50, based on average UK rent deposits)
• Incorrect eviction procedures: Unlimited fines and imprisonment
• Operating with the correct, in-date licenses: Up to £30,000 per offence
• Performing Right to Rent checks: Up to £3,000 per tenant
• Health and safety breaches: Heavy fines (depending on the breach severity) or prosecution

Mistakes can be costly, and, unfortunately, it’s easier to make errors when managing a property without the help of a landlord or property management software.

What are the hidden costs of DIY landlording?

When doing everything yourself, there are some hidden fees to take into account. For example, the implication of heavy administrative burdens, or the increased risk of rent arrears.

The main hidden fees landlords face includes:

Time spent on admin tasks

A huge majority of private landlords in England either work full-time (30%), part-time (10%), or are retired (35%) (source). In all scenarios, time is limited. Spending hours on administration reduces the hours you can work, earn self-employed income, or enjoy the niceties of life.

For some, managing a property DIY isn’t a huge time burden, and there are no cost implications. Yet for others, it can impact both your income and your work-life balance, and it’s important to keep this in mind when deciding whether to make the switch.

Missed rent or late payments

In an ideal world, tenants always pay on time. In reality, data shows that nearly 60% of landlords have seen a rise in late/unpaid rent payments in recent years, with landlords seeing an average of almost 3 late payments per year (source).

You can’t always avoid tenant arrears, but you can mitigate the risks as much as possible.

Sending payment reminders to tenants, maintaining excellent relationships, and staying on top of maintenance can all reduce the risk of missed payments (all of which are easy to set up and maintain via property management software).

Stress and burnout

Managing a rental property should be lucrative, profitable, and as close to a passive income stream as you can get.

There will always be some administrative tasks associated with running a rental property, but no landlord wants the job to tip them over the edge.

Stress and burnout cost businesses billions of pounds each year, and when you’re a self-employed landlord, poor health can lead to increased costs and income loss in some way or another.

What are the costs of property management software?

Property management software is generally inexpensive, usually costing landlords between £50-£120 per year, depending on the features you need and the number of rental units you manage.

For example, based on Rentila’s pricing model (as of 2025):

You can usually access property management software for free if you manage just one rental property, and you can typically enjoy a free trial to test the full features for a limited time.

For example, Rentila offers a free subscription for the limited management of one rental property, with the ability to upgrade at any time.

Learn more about Rentila pricing.

Overview of included features

Depending on the tier you choose, you can get the following from a property management software (like Rentila):

• Unlimited tenant user accounts and direct platform messaging
• Digital inventories and an audit trail of changes
• A library of compliant templates, including tenancy agreements and rent increase notices
• Tenant reminders (e.g., rent payment reminders, missed payment reminders, upcoming inspection dates, etc.)
• Helpful reminders for landlords (e.g., certificate expiry dates, scheduled work reminders, tenancy renewal dates, etc.)
• Back account imports, allowing you to manage finances, track expenditure/income, and export data easily for tax returns
• E-signatures, allowing digital signatures for both landlords and tenants when signing/updating agreements
• AI assistant and priority support to help you manage your rental properties in an organised, compliant manner

Learn more about the features of property management software.

Approximate annual cost for DIY vs. software

As a DIY landlord, you may still need to invest in one-off services to support the efficient management of your rental property.

Compared to using a property management software (which handles much of this for you), the costs can add up, leaving you with higher bills to pay each year.

For example:

• DIY landlord: Up to £1,000 per year for one-off services, like rent collection, inventory fees, and tenancy renewal fees. Plus, there’s a risk of financial penalties due to poor audit trails or missed actions.
• Property management software: Less than £100 per year, saving on inventory and renewal fees, and lowering the risk of fines. Plus, you save time, achieve better peace of mind, and reduce errors.

Overall, using property management software can be cheaper and more predictable compared to investing in one-off services while managing properties yourself.

FAQs

Are property management software costs tax-deductible?

Yes, the monthly or annual costs of property management software are deductible from your self-assessment tax returns, which benefits landlords financially by maximising profit margins. Learn more about tax deductions landlords can claim.

Is the investment worth it?

Investing in property management software can be worth it when you consider the benefits and its low cost. It can help with organisation, time management, tenant relationships, and achieving a better work-life balance.

Even if you don’t use the software on a daily basis, it can be useful for audit trails and filing annual tax returns, especially if you ever get investigated or brought into legal proceedings by your tenant.

Plus, there are potential savings when it comes to using property management software. It could save you from potential fines, rent arrears, late payments, and costly legal proceedings.

Is it cheaper to use a letting agent vs proptech?

It’s significantly cheaper to use a property management software compared to a letting agent. 

Letting agents generally charge a percentage fee depending on the monthly rental income. This structure can make forecasting costs/profits unreliable, as raising rents will have a direct impact on letting agent fees.

Example: Full management fees (covering rent collection, tenant relations, inspections, compliance, etc.) can cost between 10-15% of monthly rental income. For a rental property with £1,500 monthly rent, the costs can be as high as £225 per month, or £2,700 per year.

Compared to a property management software (like Rentila), costs can be as little as £10 per year per unit for mid-tier subscriptions, and up to £100 per year for unlimited rental units/tenants/properties.

Things to remember: When is software worth the investment?

• Property management software can save actual cash by reducing the need for inventory services, tenancy renewal services, rent collection services, and even tax/financial management.
• It can also make being a landlord easier through reduced admin, lower risks, and more peace of mind over running a complaint rental.
• Software is cheaper compared to using a letting agent, with lower monthly and annual fees and no percentage charges per unit, making costs more predictable during rent rises.
• The money you spend on software is a deductible expense on tax returns, which can reduce your tax liability and increase profits.