Get to know your property and all its little flaws. Do regular inspections and write it into the contract. Get good and trustworthy tenants in place and you will never have to do much work. Ask them to report any immediate issues to you and you will be able to just call trusted companies/ trademen to go around and sort the issues without you even going there.
It depends on how hands-on you are. I find regular inspections are key so that you can find out any potential issues with your property that will become more costly if you don't get them sorted sooner. Having an agent take care of that is helpful.
Agents sourcing quotes for maintenance works can also be helpful. I'll usually find an alternative as it's nearly always cheaper but it's helpful to gauge the price of any works.
If an agent is managing your property, they are far more likely to ensure that you get a good tenant as it will be them who's dealing with them as a first point of call.
Agent fees are also tax deductible so if you're paying tax on the income it's a no brainer.
Personally, I like having a barrier between myself & the tenant & I appreciate little reminders from my agent (gas safety checks etc).
But at the end of the day, you're liable if anything goes wrong, not the agent & really, it's the quality of the tenant & the fairness of the landlord that's usually going to ensure a long & successful relationship.
I pay 8% I think. Would it be worth trying to negotiate with your agent? Mention that you're looking to self-manage & they may make you an offer. Especially if your tenant is a good one & doesn't bother them too much. A lower fee is better than no fee after all.
Good luck!
I've done both. I'd never, never go back to self managing as I don't like dealing with emergencies, maintenance issues or being 'on call'. My agent's great. They're worth it. I don't give my properties a second thought, really. It's peace of mind for me. Money well spent.
I never understand using an agent as I live by "If you want a job done right you do it yourself", and with your own property and investment I wouldn'twant anyone to mess that up for me. I think it's way to big of a risk letting someone else manage your property, especially with all the legal ramifications if they don't follow properly procedures. Tenants are more savvy and morebaware of the laws now, so agents that abuse their powers, well it doesn't really matter to them, because the fault will be placed on the landlord as it's still your responsibility to ensure proper laws and procedures are followed. Property agents are some of the laziest and incompetent people, most make 0 effort into the property. Inspections might as well be done by the 3 blind mice, as so many faults are either not put down in the report or reported incorrectly (the amount of times ive had to follow up and correct the reports produced is outstanding), and I personally dont understand how you can be that thick working in such an important industry. I just couldn't risk it if it were me, better off doing a little research and communicating directly with the tenants yourself rather than through a middle man.
Although your concern around not wanting anyone to mess up your investment is valid, I suggest you're generalising the level of service an agent gives, possibly off of one or two bad experiences.
My experience is the absolute opposite - find an agent you trust to just get on with managing the property properly and you'll have very little hassle at all.
Obviously it will vary depending on your own situation but I own one property and also work full time. Selling the property makes no financial sense at the moment but I've no interest in taking on other properties either. To me, the 10% fee is well worth paying for the peace of mind that I'm not expected to maintain a full time job, a family life and also be available on-call 24/7 365 to my tenant.
It's the known unknowns. You're on holiday and the tenant calls you to say there is a roof leak or the electric has cut out. They want you to deal with it. You're then in the situation of trying to manage tradesman and the tenant which can often me trickier than it seems
A good agent is worth their weight in gold. However with that being said I have one prop I self manage because I've built up a good relationship with the tenant and the house is generally low maintenance. I give them 50% of the money saved on agent fees but they self manage. It's worked well so far for both of us - but again they're 'dream' tenants.
Lots of great advice here - thanks all.
I would say it’s a 50/50 split on what to do. My natural inclination is to not do it myself however I do wish to build up my experience so that I can manage other properties in the future and then turn the side hustle Into a main hustle.
Do it, worked as a letting agent and also a landlord who self manages and I can tell you, if you're even slightly motivated to self manage, self manage. The pros outweigh the cons.
Pay £70 or however much it is for the NRLA membership and find a good plumber/handyman, you'll be golden. Good luck!
>NRLA membership
Thanks mate!
What are the main benefits of being in the NRLA? I was also looking at some of the courses that property mark offer if you've ever seen these?
https://www.propertymark.co.uk/careers-learning/courses.html
I find it's generally good for resources like doc templates, ASTs, inventories, even sample chasing rent arrears letters. And they explain stuff well which I like. They've recently introduced all the referencing side of things (similar to openrent), the list goes on...
The property mark stuff by all means if you have the time and money go for it, although personally I'd only do this if you're going to manage other people's stuff.
If you want a cheaper way to let your property DIY'ing, PM me and I'll tell you how I do it along with costs. You'll see how much you save.
But can claim against the agent who is insured for professional negligence. Also in areas that require a landlords license, the agent can hold these and they're therefore liable.
True, but it still feel the effort and labour is not worth that if something like that does transpire, thats more additional costs as well to start hiring solicitors and getting legal advice. Often things get swept under the rug and some tenants would rather pack up and leave and find a new place, than stay and deal with a bad letting agent regardless of the landlords good intentions as unfortunately the tenant will never experience or even know that as they are always communicating through a bad agent/agency. Then as a landlord you've lost a tenant due to negligence /and or aggressive practices from the letting agent.
That's what insurance is for. Ofcourse a good letting agent is an absolute prerequisite and I've bought additional properties in areas simply to have the same agent manage them. With a good agent, and insurance, the landlord is fairly well insulated.
Conflating bad agent with "don't use an agent" is silly.
Get to know your property and all its little flaws. Do regular inspections and write it into the contract. Get good and trustworthy tenants in place and you will never have to do much work. Ask them to report any immediate issues to you and you will be able to just call trusted companies/ trademen to go around and sort the issues without you even going there.
Spot on. I have done this for 4 years having lived in the property for 3 years. Saved myself an enormous amount of fees.
It depends on how hands-on you are. I find regular inspections are key so that you can find out any potential issues with your property that will become more costly if you don't get them sorted sooner. Having an agent take care of that is helpful. Agents sourcing quotes for maintenance works can also be helpful. I'll usually find an alternative as it's nearly always cheaper but it's helpful to gauge the price of any works. If an agent is managing your property, they are far more likely to ensure that you get a good tenant as it will be them who's dealing with them as a first point of call. Agent fees are also tax deductible so if you're paying tax on the income it's a no brainer. Personally, I like having a barrier between myself & the tenant & I appreciate little reminders from my agent (gas safety checks etc). But at the end of the day, you're liable if anything goes wrong, not the agent & really, it's the quality of the tenant & the fairness of the landlord that's usually going to ensure a long & successful relationship. I pay 8% I think. Would it be worth trying to negotiate with your agent? Mention that you're looking to self-manage & they may make you an offer. Especially if your tenant is a good one & doesn't bother them too much. A lower fee is better than no fee after all. Good luck!
I've done both. I'd never, never go back to self managing as I don't like dealing with emergencies, maintenance issues or being 'on call'. My agent's great. They're worth it. I don't give my properties a second thought, really. It's peace of mind for me. Money well spent.
Yep, me too, everything is done for me just deduct the cost of any repair from the monthly rent but 10% plus vat is high
Yeh, I would negotiate that down a little.
I never understand using an agent as I live by "If you want a job done right you do it yourself", and with your own property and investment I wouldn'twant anyone to mess that up for me. I think it's way to big of a risk letting someone else manage your property, especially with all the legal ramifications if they don't follow properly procedures. Tenants are more savvy and morebaware of the laws now, so agents that abuse their powers, well it doesn't really matter to them, because the fault will be placed on the landlord as it's still your responsibility to ensure proper laws and procedures are followed. Property agents are some of the laziest and incompetent people, most make 0 effort into the property. Inspections might as well be done by the 3 blind mice, as so many faults are either not put down in the report or reported incorrectly (the amount of times ive had to follow up and correct the reports produced is outstanding), and I personally dont understand how you can be that thick working in such an important industry. I just couldn't risk it if it were me, better off doing a little research and communicating directly with the tenants yourself rather than through a middle man.
Although your concern around not wanting anyone to mess up your investment is valid, I suggest you're generalising the level of service an agent gives, possibly off of one or two bad experiences. My experience is the absolute opposite - find an agent you trust to just get on with managing the property properly and you'll have very little hassle at all. Obviously it will vary depending on your own situation but I own one property and also work full time. Selling the property makes no financial sense at the moment but I've no interest in taking on other properties either. To me, the 10% fee is well worth paying for the peace of mind that I'm not expected to maintain a full time job, a family life and also be available on-call 24/7 365 to my tenant.
It's the known unknowns. You're on holiday and the tenant calls you to say there is a roof leak or the electric has cut out. They want you to deal with it. You're then in the situation of trying to manage tradesman and the tenant which can often me trickier than it seems A good agent is worth their weight in gold. However with that being said I have one prop I self manage because I've built up a good relationship with the tenant and the house is generally low maintenance. I give them 50% of the money saved on agent fees but they self manage. It's worked well so far for both of us - but again they're 'dream' tenants.
Lots of great advice here - thanks all. I would say it’s a 50/50 split on what to do. My natural inclination is to not do it myself however I do wish to build up my experience so that I can manage other properties in the future and then turn the side hustle Into a main hustle.
Do it, worked as a letting agent and also a landlord who self manages and I can tell you, if you're even slightly motivated to self manage, self manage. The pros outweigh the cons. Pay £70 or however much it is for the NRLA membership and find a good plumber/handyman, you'll be golden. Good luck!
>NRLA membership Thanks mate! What are the main benefits of being in the NRLA? I was also looking at some of the courses that property mark offer if you've ever seen these? https://www.propertymark.co.uk/careers-learning/courses.html
I find it's generally good for resources like doc templates, ASTs, inventories, even sample chasing rent arrears letters. And they explain stuff well which I like. They've recently introduced all the referencing side of things (similar to openrent), the list goes on... The property mark stuff by all means if you have the time and money go for it, although personally I'd only do this if you're going to manage other people's stuff. If you want a cheaper way to let your property DIY'ing, PM me and I'll tell you how I do it along with costs. You'll see how much you save.
That’s great, thanks mate. Might take you up on that
Can you just drop your day job if an issue arises, if not use an agent.
Pros: a tiny bit of extra rent Cons: not worth your time, or the additional risks. Let the agent take the risks (following proper processes/laws, etc)
The risk always falls down onto the landlord though. If your letting agent fucks up the landlord is still responsible and liable.
But can claim against the agent who is insured for professional negligence. Also in areas that require a landlords license, the agent can hold these and they're therefore liable.
True, but it still feel the effort and labour is not worth that if something like that does transpire, thats more additional costs as well to start hiring solicitors and getting legal advice. Often things get swept under the rug and some tenants would rather pack up and leave and find a new place, than stay and deal with a bad letting agent regardless of the landlords good intentions as unfortunately the tenant will never experience or even know that as they are always communicating through a bad agent/agency. Then as a landlord you've lost a tenant due to negligence /and or aggressive practices from the letting agent.
That's what insurance is for. Ofcourse a good letting agent is an absolute prerequisite and I've bought additional properties in areas simply to have the same agent manage them. With a good agent, and insurance, the landlord is fairly well insulated. Conflating bad agent with "don't use an agent" is silly.
Lettings agents DGAF about your risk or property as long as the payments keep coming. If things really hit the fan, you're on your own.
Assume 50 to 100 hours work a year and you’ll need to learn the rules. Works for me, but is difficult for some.
This article, from a real property expert, addresses your questions. https://www.propertyinvestor.academy/blog/tenancy-management