Should You Rent Out Your Property Yourself Or Use An Agent?
4 minute read
One of the biggest decisions you will make when you decide to become a landlord, aside from which is the best property and which buy to let mortgage is right for you, is whether to manage the rental of your property yourself or to instruct an agent. There are a number of things that will need to be managed, from the marketing of your property, to tenancy contracts, management of any repairs, and handling of tenant deposits and rental payments. A letting agent can handle all of these things for you for a fee. As the landlord you need to consider the right set up for your property.
The Just Mortgage Brokers team have put together a list of a few things that you will need to consider when making this decision:
Time and inclination
If you are looking to make a move into being a ‘full time landlord’ with a number of properties, and you already have experience in the industry, you may want to consider managing the whole process yourself. You could also make the decision to go down this route if you are renting out a single property and want to learn the ropes of the letting industry, or have the time to manage things yourself.
However, if you are working full time and juggling a busy family and social life, instructing a letting agent may be the most sensible way to earn income from your investment without having to worry about managing it. It all depends on the time that you have available to manage the marketing of your property and then the administration that comes with having tenants. You might also have no desire to manage this process yourself which is where instructing a letting agent can be a great investment.
Obviously a letting agent will charge you a fee for the management of your property, from the initial marketing and viewings, to dealing with tenancy agreements, rental payments, and property inspections. Something you will need to consider is how much will this cut into the profit from your investment property or portfolio, is the expense worth it? Make sure that you shop around for the best deal.
On the flip side you will need to calculate the cost of managing the property rental yourself, what is your time worth, how much will marketing your property effectively cost you, how much will it cost to get the tenancy agreement drawn up etc… You might find that managing the rental yourself is more expensive in the long run.
How much do you know about being a landlord? There are a number of things that you will need to have in place, from a watertight tenancy agreement, to the correct account for holding rental deposits. Getting something wrong could be a costly mistake, something you can avoid by instructing a letting agent. However, if you have friends or family members who are available to offer advice, or you are confident in your knowledge, and you can be sure that everything is set up correctly, you may have no need to appoint a letting agent.
If you live within close proximity to the property you are renting out then that can make self-management easier, you are there if something goes wrong, can respond to tenant enquiries easily; manage viewings and inspections. If you are based some way away from your rental property then instructing a letting agent can make the process of being a landlord easier.