Lettings agent VS managing yourself
Managing a property well takes time and focus.
If you’re a landlord and not sure whether to self-manage or put a lettings agent in charge of your property, We’ve asked our fabulous lettings team to put together a list of factors to consider:
Julie Sullivan, Lettings Manager – Sally Ewbank, Reigate Lettings – Katy Paine, Lettings Management
Time
How much time do you have? And how do you value your time? It takes our lettings team about eight hours of work to find tenants, another two to four hours per month to manage a property, plus five or so to end a tenancy – and that’s with all the systems in place.
Over a year-long rental at £1,000 a month, a 10% fee equates to £25 an hour – and if any problems arise, it becomes even cheaper. Unless you earn less than that, live nearby and have the time and energy to deal with boilers and break clauses, a good agent is a bit of a bargain.
If you own a ‘low-maintenance’ new build? Even with no repairs, there will still be admin and contractual issues. No matter how trouble-free you think your property might be, managing it well always takes time and focus.
Cost
Usually the main reason why landlords self-manage. You will save a fair bit in agent fees, but remember that these fees are tax deductible from your rental income so the might be less than you think.
Arms’ length or up close?
Doing viewings yourself could help you find a better tenant: unspoken clues when meeting them in person tell you much more than a paper reference. You can also build rapport, which will help you get the best out of tenant.
On the other hand, a skilled agent, like ourselves could get a higher rent and defuse any disputes because they’re at arms’ length. We also are well versed in asking potential tenants the correct questions to filter out anyone that is unsuitable for your requirements. You also might want to keep your details private. Plus, you won’t field the call about the broken boiler or leaking roof on Christmas Eve (as we have), nor will you have to deal with tenants who bother you with non-emergencies at 11pm (like the one who locked herself out, called in a panic to beg for keys, then got in – but failed to update the agent who had travelled an hour to her aid).
Control
No one knows your property as well as you do. Looking after it yourself lets you see maintenance issues first-hand, so you can make the right choices and use your own preferred tradesmen.
Enjoyment
Are you forever fixing things? Do you love leaping into action to solve a tenant crisis? If that’s you, you might enjoy self-managing even if it makes little sense financially. Equally, if you’re the hands-off type who hires a handyman to oil a squeaky door, it won’t be for you.
Precision (and patience)
It’s not particularly complicated to let and manage your property yourself. However, there are lots and lots of annoying little boxes to tick. (Hey, we’ve filled a book with them.) The consequences of getting it wrong can be serious. If attention to detail is not one of your strengths, you might be better off getting an agent who knows their stuff to do it for you.
Your situation could of course change – perhaps you’ll grow to have less time and more money. The right decision now might not be the right decision in five years. Whatever you decide, don’t underestimate how much time and effort it takes to manage well.
