Property management or a real estate agency? What matters is what happens after the keys are handed over

Once the tenant moves in, someone still has to monitor payments, deal with defects and prepare service charge statements. With a one-off letting service, this work usually stays with the landlord; with long-term property management, the manager takes it over to the agreed extent. Some real estate agencies offer both services, so when choosing, go by the content of the offer and the contract, not just the company name.

Quick answer: property management vs. real estate agency

When you order letting on its own, the real estate agency handles the agreed steps leading to a tenancy, such as advertising, viewings and the contract. Ongoing management may not be included. A property manager, on the other hand, stays with the flat after the tenant moves in: monitoring payments, dealing with defects, preparing service charge statements and finding the next tenant. Letting usually costs a one-off commission (in Prague often one month’s rent plus VAT), while management is paid as a regular fee calculated from rent actually received, excluding service charge advances (with FLAT SERVICE, 12% for Partner and 14% for Partner+). Garant has a different rental arrangement: we pay you the agreed rent, which at signing equals 82% of the estimated market rent. Always compare fees and the scope of services based on the specific offer. For Partner and Partner+, 21% VAT is added to the fee.

An agency makes sense if you want to run the tenancy yourself and only need help finding a tenant. Management makes sense if you don’t want to be on call for the entire tenancy, or if you need a secure income.

What letting and ongoing management include

A standalone letting service typically covers valuation, marketing, viewings, tenant selection, the contract and the handover. The exact scope depends on the offer. If it doesn’t include ongoing management, the subsequent communication and day-to-day running remain the landlord’s responsibility.

With long-term management, you hand over an agreed share of the work to someone who picks up where the start of the tenancy left off. They monitor payments, deal with tenant requests, organise repairs and prepare the next steps before the contract ends.

The last row is crucial. Management on its own does not mean guaranteed income. A company can organise a tenancy very well without committing to pay you while the flat is empty. A guarantee is always a separate contractual item.

A year in the life of one flat

Imagine a 2+kk flat in Prague with rent of 25,000 Kč, where a new tenant moves in in January. The following model shows the tasks that may come up over the year:

• January: handover, protocol, photos, transferring the electricity account, first payment.
• March: the tenant reports a dripping tap. Repairing a tap is a minor repair listed in Government Regulation No. 308/2015 Coll., so the tenant pays for it. But someone still has to explain this, keep track of the annual repair total and send a plumber.
• April: the previous tenant must receive the service charge statement for last year by 30 April (§ 7 of Act No. 67/2013 Coll.). The figures from the owners’ association typically arrive in mid-April, and someone has to recalculate them for the period the tenant lived in the flat.
• June: the payment arrives a week late. Is it a mistake, or the start of a problem? Someone has to call.
• September: the water heater gives up and the technician recommends a replacement for 18,000 Kč. Replacing a whole appliance due to age is the landlord’s cost; someone has to approve the quote, arrange access to the flat and check the invoice.
• November: the fixed-term contract ends in January. It’s time to decide on renewal and negotiate the rent. Under the conditions of § 2285 of the Civil Code, if the tenant continues to use the flat, the tenancy may be renewed unless the contract rules this out.
• December: paperwork for the tax return.

In this model, the one-off letting service covered the start of the tenancy. Everything else falls under ongoing management. Think about which of these tasks you want to handle yourself and which you’ll actually have time for when they arise.

Decide who handles letting, management and any income shortfall

Who finds the tenant

If you want to keep running the tenancy yourself, help with the initial letting may be all you need. This tends to work well if you have your own system, are easy to reach and the day-to-day admin isn’t a burden.

Who handles day-to-day running

Management makes sense if you don’t want to organise every viewing, phone call and repair. Often it’s less about the number of hours than about how unpredictable they are. A defect can crop up in the evening or at the weekend. A prompt response helps keep communication good and avoid unnecessary disputes.

Who bears the loss of income

This is a separate question for the contract. With FLAT SERVICE, you can compare Partner, Partner+ with the Manager’s guarantee, and Garant, where we become your tenant and sublet the flat. The scope of cover and payouts depends on the contract you choose. Letting a flat to a new tenant on its own doesn’t include these ongoing obligations, although a real estate agency may offer management as an additional service.

Compare costs over the same period

Let’s use a model with rent of 25,000 Kč a month and twelve months paid, excluding repairs, tax and other ownership costs. The landlord is not registered for VAT.

The difference is 13,310 Kč for the model year. But the services aren’t the same: in the first case you handle the ongoing running yourself, in the second you’re also paying for ongoing management. Here’s what happens in other scenarios:

• The tenant stays for four years. Agency: one commission of 30,250 Kč over four years. Management: 174,240 Kč over four years. The difference covers four years of tenant communication, four service charge statements, contract amendments, payment monitoring and record-keeping.
• Tenants change every year. Agency: four commissions, 121,000 Kč. Management: 174,240 Kč, but with no extra commission for new lettings. The difference shrinks to 53,240 Kč over four years, or roughly 1,100 Kč a month.
• One empty month per year. A 25,000 Kč shortfall hits both models equally; what makes the difference is how quickly the flat is relet. In 97% of cases, we let a flat entrusted to us within 14 days (internal data for 2026); according to CEMAP, the average listing on the market took 31 days to let.

When comparing, assume similar conditions in both scenarios. Managing the flat yourself doesn’t necessarily mean worse tenants, and professional management can’t guarantee a year without defects. But the more often you deal with new lettings or repairs, the more work you can hand over to a manager.

What the Real Estate Brokerage Act says

Act No. 39/2020 Coll., on Real Estate Brokerage, has been in force since 2020. For you as a landlord, it has several practical implications:

• The brokerage contract must be in writing (§ 9(2)). Only the client – that is, you – can claim it is invalid for lack of form.
• The real estate agency must have liability insurance with a limit of at least 1,750,000 Kč per insured event (§ 7(1)). You can ask to see proof.
• Exclusive brokerage with a consumer can be agreed for a maximum of six months; the Act also regulates its extension (§ 17).
• Escrow services may not be offered by the agent, except as provided in § 4.

Ongoing management itself is a contractual relationship under the Civil Code, for example a mandate under § 2430 et seq. If the provider also acts as a real estate broker, that activity is governed by Act No. 39/2020 Coll. So what counts is the actual content of the service. Check the contract for the activities covered, expense approval limits, statements and termination terms.

Keep key information in one place

A defect reported by a tenant isn’t just a one-off phone call. You need to know whether the item was already faulty at handover, who it belongs to, who should pay for the repair and whether it’s a recurring problem. Likewise, at the end of a tenancy you’ll rely on the original protocol, photos, payment records and agreed dates.

When this information is kept in one place, you don’t have to piece together the flat’s history from emails and photos on your phone. So when choosing a manager, don’t just ask about an emergency line – ask about day-to-day operations: how you’ll see expenses, who approves repairs, how you’ll receive documents and what happens if your main contact isn’t available.

When an agency is enough and when management makes sense

An agency is enough if most of the following apply: you live in Prague and can get to the flat within half an hour; you own one flat; you can take calls even during working hours; you can prepare service charge statements and your tax return yourself; you have a buffer for an empty month and don’t mind the risk of a non-paying tenant.

Management makes sense if at least one of the following applies: you live outside Prague or abroad; you own two or more flats; the rent pays your mortgage and a shortfall would hurt; you don’t want tenants calling you at work; you want a fixed monthly income regardless of occupancy.

Landlords who come to FLAT SERVICE often want to stay informed about their flat while handing over its day-to-day management to someone else.

How to switch from self-management to professional management

First, gather the current contract and any amendments, the handover protocol, a breakdown of payments, an overview of the security deposit, the latest service charge statement and a list of outstanding defects. Then agree on a takeover date and how the tenant will be informed.

There must be no confusion about where the rent is sent, who deals with any existing arrears and who completes the statement for the transition period. A change of manager doesn’t in itself mean the existing tenancy agreement can be changed; the tenant keeps the same rights. Switching to Garant requires reviewing how the relationships carry over, as it is a different contractual model.

We’ll agree the takeover date depending on how complete the documents are and any open issues. The tenant will receive clear contact details and payment instructions so they know from when and with whom to deal with each matter.

FAQ

Is a real estate agency cheaper than a property manager?

In our model, the one-off letting service is cheaper for the first year. But that’s not a general rule: it depends on the commission, who pays it and the scope of management. Compare costs over the same period and the work that will still be left to you once you’ve paid.

Does management mean I’ll never have to make any decisions?

No. For larger repairs, investments or changes to terms, the decision stays with the landlord. Well-set-up management will prepare the background information, propose solutions and take care of the organisation.

What if I only need a tenant?

Start with that brief and compare what different letting services include. There’s no need to order long-term management just because a company offers it. If you decide on management later, it can pick up from the existing tenancy.

Can a property manager also be a real estate agency?

Yes, and it often is. FLAT SERVICE lets flats as part of its management service and, through its sister brand FLAT SERVICE Real Estate, also handles property sales and property search. What matters is what your contract says, not how many services the company offers.

The model calculations are illustrative. FLAT SERVICE pricing reflects the public offer as of 12 September 2026; real estate agency commissions vary by agency.

Sources and terms: Real Estate Brokerage Act, rules on minor repairs, service charge statements and comparison of FLAT SERVICE services. In the cost model, the landlord pays the commission; in a specific offer, the commission may be paid by someone else.