Managing a portfolio of properties or a residential block requires specialist knowledge and systems. This guide explains how professional portfolio management works and what to expect.
When a landlord crosses the threshold from one or two properties to five or more, the management challenge changes fundamentally. What works for a small portfolio becomes unmanageable at scale — which is exactly why professional portfolio management exists.
What is portfolio management?
Portfolio management is a comprehensive property management service covering all aspects of running multiple properties: tenant finding and referencing, tenancy agreements, rent collection, maintenance coordination, property inspections, legal compliance and financial reporting — all coordinated through a single management partner.
Unlike managing each property separately with different agents, portfolio management provides consistency of approach, economies of scale and a single relationship to manage.
What is block management?
Block management applies specifically to residential blocks of flats or apartment developments. In addition to the services provided for individual properties, block management covers communal area maintenance, building insurance, service charge administration, ground rent collection (for leasehold properties), and liaising with freeholders, leaseholders and residents' management companies.
Block management is a highly regulated activity in England and Wales. Managing agents have obligations under the Landlord and Tenant Act 1985, the Commonhold and Leasehold Reform Act 2002, and (from October 2023) the Building Safety Act, particularly for higher-risk buildings.
The cost of professional portfolio management
Traditional letting agents charge a percentage of each month's rent as a management fee — typically 8-12%. On a portfolio of 10 properties generating £15,000 per month, that's £1,200-£1,800 per month in management fees.
At Arete Lettings, our portfolio management charges zero percentage commission. You keep every penny of your rental income. We cover our costs through our guaranteed rent and other service arrangements rather than commission structures.
What to expect from portfolio management
A professional portfolio manager provides a dedicated point of contact, monthly rent statements and financial reporting, coordination of all maintenance across the portfolio, regulatory compliance monitoring (gas, electrical, EPCs), tenancy renewal management, and regular portfolio review meetings.
Is professional management right for you?
The break-even point at which professional management pays for itself — in saved time, avoided mistakes and professional expertise — is different for every landlord. For landlords with day jobs, properties spread across a wide area, or more than five properties, the case for professional management is usually compelling.
Contact us to discuss how Arete Lettings can manage your portfolio professionally with zero commission.