Should landlords self-manage?
If you’ve invested in a buy-to-let property, or inherited a property and accidentally became a landlord, deciding how you’ll manage your new-found role is bound to be the first big decision you need to make.
Whilst seeking advice from letting agents in Warrington – like ourselves at Easylet Residential – is a no-brainer for many landlords, some prefer to self-manage their rental.
Here we outline the different levels of service you can expect and the pros and cons of using a letting agent versus going it alone to help you make an informed decision.
Self-managing a rental property gives you full responsibility for everything.
From marketing the property on websites such as Rightmove to screening tenants, drawing up the legally binding contract, administrating repairs and maintenance, and dealing with disputes directly – you’ll experience it all.
Pros of self-managing:
- You’ll have 100% control over your investment
- There is no middleman or third-party between you and your rental revenue
- You don’t need to pay letting agency fees
- You’ll learn a lot about the industry and gain experience
Cons of self-managing:
- It can be a very demanding job, you need to be contactable almost 24/7
- Without the proper experience, knowledge, and resources, finding prospective tenants can be difficult
- You’ll personally have to deal with rent collection and eviction issues
- Mistakes can be costly
If you’re a new landlord or don’t have the time to manage your rental, engaging a letting agency can be a smart move.
Aside from keeping your property well-maintained and occupied, they will deal with all the legal jargon to ensure that the responsibilities of both parties are upheld throughout the contract.
With a full-management package, the agent will cover everything from evaluating the property’s potential, marketing it, and accompanying all viewings right through to collecting and passing on rent, chasing late payments, conducting inspections, and handling rent increases, renewals, and more.
Pros of using a property manager:
- They market your property for you
- They can help you find appropriate tenants (completing credit checks and reference checks)
- They show prospective tenants around your property – ideal if you’re busy during the day
- They liaise with tenants throughout the tenancy
- They manage the day-to-day repairs and maintenance for you
Cons of using a property manager:
- You will need to pay letting agent fees, which are usually between 5-15%, depending on the service
- You hand over a lot of control to an external third-party
To self-manage or not to self-manage?
Self-managing a property can save landlords money, but it’s not for everyone.
Often, it depends on:
- how much time you have
- how much knowledge and experience you have as a landlord
- how involved you want to be
- how much you can afford to spend
As experienced letting agents in Warrington, the team here at Easylet offer a comprehensive range of landlord services – including a Let Only service and full-management package – and we are proud to manage more than 220 properties in the Warrington area.
We will be more than happy to talk you through the options available and advise you on the most suitable solution for your requirements. Either give us a call on 01925 633 011 or email [email protected], and we’ll be in touch.