For many landlords, letting agents are a godsend – they give advice on market rent, property presentation, they handle tenant headaches, find reliable renters, and navigate legalities. But not everyone embraces this outsourced approach. A surprisingly significant number choose to manage their properties independently. Why buck the trend? Let’s explore the reasons landlords fly solo:
Cost-cutting crusaders: Agent fees can be hefty, eating into profits. For budget-conscious landlords, self-management represents significant savings. While time investment increases, it can be outweighed by the financial gain, especially for experienced landlords with multiple properties. Make sure you do your sums and weigh up what your time is worth. Can you afford the time to do the job properly?
Control freaks rejoice: Some landlords crave direct involvement. They enjoy screening tenants, conducting viewings, and handling repairs themselves. This hands-on approach allows them to tailor the experience to their preferences and build relationships with their tenants. This is fabulous when it is all going smoothly but are you equipped to deal directly with the tenant if things go wrong?
Tech-savvy solutions: The digital age empowers landlords. Online platforms offer tenant screening, advertising, and contract management tools. Savvy landlords leverage these resources to streamline tasks and reduce reliance on agents.
Building local connections: In smaller communities, landlords might have established networks of reliable tradespeople and potential tenants. They can leverage these connections for repairs, maintenance, and finding suitable occupants, bypassing agent fees.
Agent woes: Unfortunately, not all agent experiences are positive. Some landlords report frustration with communication gaps, lack of transparency, and feeling overcharged for additional services. This can sour the relationship and push landlords towards self-management. Just because you might have had a bad experience with one agent doesn’t mean you will with another, interview agents, they are working for you on your behalf, make sure they work in a way you are happy.
However, going it alone isn’t for everyone:
Time commitment: Managing a property requires significant time and effort. From marketing and viewings to repairs and tenant communication, the workload can be overwhelming, especially for busy individuals. Are you happy to take a call in the early hours of the morning if they are locked out or the boiler is broken?
Legal knowledge: Navigating tenancy laws, paperwork, and regulations can be complex. Landlords who lack legal expertise might face costly mistakes or non-compliance issues. The media portrays landlords as wealthy and expecting tenants to live in slums and this isn’t true. Most landlords have one or 2 properties and if the mortgage isn’t paid it hurts. However, many landlords also underestimate the laws when renting out a property. If you act illegally inadvertently you can face unlimited fines and possible prison sentences and no-one wants that.
Tenant troubles: Dealing with difficult tenants, evictions, or emergencies can be stressful. Landlords need to be prepared to handle these situations effectively, which might require professional support.
Ultimately, the decision to use an agent or go solo depends on individual circumstances and preferences. Weighing the pros and cons, considering your resources and risk tolerance, will help you determine the best approach for managing your rental property. Remember, there’s no one-size-fits-all solution, and the key is finding what works best for you and your investment.
If you are a first time landlord or a landlord with a few properties under your belt feel free to get in touch for further advice. Call Joanna Diamond on 0151 348 4527 or email jdj@northwooduk.com
