Setting up a company to manage my own properties – is it worth it ?

Reply to the comment left by greg inns at 19/02/2026 – 13:50
At one time it was possible to contact members privately through 119, but I can no longer find that facility. I am reluctant to publish contact details publically because of the many scams prevailing.

Could someone from property 118 please advise?

Reply to the comment left by The_Maluka at 19/02/2026 – 15:35
We reluctantly withdrew the PM function because we couldn’t find a reliable way to stop spammers abusing it. Sadly, AI automation is smarter than we are in that regard (for now!).

I do have a suggestion though.

Would you consider sharing your business model by submitting an article? If so, please use the link below:

https://www.property118.com/readers-questions-2/

In answer to the origional Readers Questions, there are two important factors for you to consider very carefully.

The first is the Transfer of Income Streams legislation – please see https://www.legislation.gov.uk/ukpga/2009/10/schedule/25

The second is far more complex, in the form of DOTAS legislation. But for the tax advantage, why would you do this? If the main benefit and/or the sole purpose of the arrangements are to avoid tax, and the planning is designed to provide a tax advantage, the scheme might well need to be notified to HMRC under the DOTAS legislation.

Reply to the comment left by Mark Alexander – Founder of Property118 at 19/02/2026 – 17:10
My mode of working does not avoid any tax, as far as I am aware the tax is identical. All it does is separate management from ownership.

I will consider writing an article explaining my business model.

Reply to the comment left by The_Maluka at 19/02/2026 – 17:41
I was not suggesting that your business model had anything to do with tax.

My comment posted at 17:10 PM, 19th February 2026 was in response to the published Readers Question, in particular, the following points:

“I’m toying with the idea of setting up a service company to manage the properties and charging say 15% to 20% of gross rent to do so. My thinking is I can then take this income as dividend and thus reduce overall tax.

2) is it worth it ?”

I have, as you requested, shared my business model by submitting an article.
In answer to your two questions:-
1) I, and several accountants over the years believe it is legal, all I can say for certain is that it has never been questioned by HMRC.
2) Yes it is definitely worth it as it separates management from ownership, vital with the RRA.

Reply to the comment left by The_Maluka at 20/02/2026 – 11:27
Your article has been received and will be published later today.

Believe it or not, your structure is a very well trodden path and is commonly known as a PropCo OpCo structure.

Where the operational aspects of the business and ownership are separated between two Limited Companies this is not a tax play. It can be if the properties are owned by individuals and let to a Limited Company which sublets them, but that doesn’t appear to be your model – which is a good thing!

Yes, you can do this. I have done so for the past 20 years. My LTD company (which has properties) manages the properties for the properties I have in a partnership with my wife.

Not only that but my LTD company also charges another non property company I own management charges for managing that company as well.

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