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Development Company, Rental Company & Management Company?!?

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Hi fellow forumers,


I'm wondering if anyone has experienced a similar set up in the past and can advise me of their thoughts. This is our first development of this type and although we have a good accountant they are not property specific so I'd be interested to hear some ideas. Here goes...


  • We have a development company and are due to complete construction of a block containing 9 apartments next year. As part of the purchase deal, the seller is retaining 2 of the apartments effectively leaving us with 7 apartments. 
  • We may sell a couple of flats but at the moment let's say we are going to retain the 7 flats and rent them out.
  • We would like to avoid estate agents fees so we would act as the agent ourselves - marketing, finding tenants, safety checks and certificates, dealing with rental payments and so on.
  • We would also act as the Management Company so in rental terms that would mean dealing with tenants, maintenance and so on. We would also be the Management Company for sold flats (including the 2 sold off plan at land purchase) so would deal with maintenance, communal cleaning, service charges etc. 
  • We want to remortgage the 7 flats (currently unencumbered) to receive some funds to move forward with our next development. 


My question is what is the best set up for this? We have 1) a development company, 2) a rental company and 3) a management company. Should we keep all of these as separate companies or should we keep them all as one company (the development company that currently exists). Is it legal/possible to do this considering requirements of a rental and management company? If we are looking to remortgage to fund the development company would lenders want everything under one company?


I'm sure there are other questions that I could raise but at the moment I'd just like to get my ahead around this. There may be someone that has a really simple answer for me, or I may be completely off track with my thinking so would really appreciate any guidance!


Thanks in advance. 

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  • 4 years later...

Hi Nick

Im just wondering how you resolved this problem?

I am struggling to find anything on this topic anywhere


Our situation is similar to your, we have bought a care home, its our first conversion. It will be 16 x 2 bed apartments, of which we will be remortgaging once finished and renting out ourselves.

My question is all around company structure, i have  setup the company as a development co with a view to adding a seperate SIC code afterwards if we do let it through this one.

But i keep reading about leasing to another letting company being the correct path.

The only thing i can find in favour of this route is avoiding ATED tax.

I would love to hear how you navigated it?

Many thanks


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