If you are new to property investing, you might've decided to simply use a letting agent to manage your property because you're new to the game, and there are just so many things that you don't know.
But what if you're a seasoned landlord with years of experience and many properties under your belt? Would you use a letting agent then? Possibly not. Because the cost of management each month eats into your valuable profit margin. And what do the agents even do for the money that you can't do yourself? You've been letting property without a managing agent for years, and you've been fine, right? Why would you give away a percentage of your monthly income to someone when you don't need to? Surely a landlord could manage their tenancies themselves?
Of course, they COULD. But they DON'T! Not properly anyway.
Even if they start with the best intentions, things will inevitably slip over time. Landlords have a life outside of looking after tenancies, and stuff has a habit of getting in the way. And if some things are left to slip, the repercussions can have a huge impact!
Imagine you forgot to update the gas safety certificate? You would not be able to enforce an eviction notice if you needed to. Or didn't inspect the property for a year, and when the tenants move out, you find that the property has been damaged?
You could find yourself in some serious hot water!
So, why should all landlords use a managing agent to look after their property portfolio?
- Time freedom. Do you want to spend your Sundays searching for a plumber to fix a leak at your rental property? Or spending time arranging and conducting an inspection visit every 12 weeks?
- Professionalism. There is a degree of separation between you and the tenant when you have a letting agent. This keeps the relationship professional and not emotional. It also will give you peace of mind that everything is being dealt with correctly.
- Experience. A letting agent will undoubtedly have seen or handled most scenarios before, or at the very least, learned about the legal whys and wherefores to navigate it correctly. For example, would you know what to do if your tenant vacated and left a scrap car in the garage?
- Legal guidance. Make sure that you and your tenancy are on the right side of the law and up to date with legislative changes.
- Holding it all together. A letting agent is a lynchpin to the tenancy. A middleman between the landlord and the tenants if things go awry or any problems occur that become heated.
So yes, it is absolutely possible to manage your own rental property. But, without experts on your side, you’re putting yourself and your investment at risk. Not to mention bothering you in your personal life, interrupting your day. Or spending time on your holiday trying to get hold of a plumber!
If you look after your tenancies yourself, then you are a landlord.
But, if you leverage professionals to do the hard work for you, you’re an investor.
An investor leverages professionals to free up their own time to search for new property investments or simply live a life of freedom.
If you have qualifications in letting law, and you have lots of free time and would like something to keep you busy, then, of course, manage your own tenancies. But, if you're simply looking for a few extra pounds in your pocket each month without any additional hassle, invest some of your income into a managing agent - you won't regret it!
Contact our experts today if you have an investment property or portfolio and want to free up some more of your time. Find out how we can help you manage things more efficiently and effectively!