Work with an agency or work alone?

Choosing to act as a private landlord or team up with an estate agency can be a daunting decision, particularly as a first-time investor. There are freedoms and restrictions with both that may appeal or deter and even if you already have your feet in the market, figuring out how to manage your first or even your fourth property isn’t a choice to be taken lightly. How you proceed can mean a weight off the shoulders, or additional stress if left in the wrong hands. To ensure you’re doing what’s right for you, check you’ve considered the following.

Marketing: It can be all too easy to fall at the first hurdle without sufficient guidance and failure to accurately advertise the property you’re renting or selling can stall the process. An estate agent can offer an appropriate valuation and negotiate for you to ensure the process is as smooth and swift as can be. Traction for your property is not guaranteed and working with people that are familiar with professional marketing and what is required to garner interest may be something worth considering. Although, it doesn’t necessarily mean self-advertising isn’t beneficial! For one, you won’t have to pay for the promotional services, there are online resources to find prospective tenants that could work out cheaper if successful, and if letting your property, you can personally vet tenants to ensure you’re picking someone suitable.

Cost: What you need to decide as a landlord is whether you want to earn and involve yourself less, or the opposite. Most estate agents will offer tiers that can differ the percentage they deduct from whatever you make, with this amount determining how much support they provide. Considering the stress your agent will alleviate as they manage contracts, maintenance issues, acting as a mediator for yourself and your tenant, it’s no surprise that many gravitate towards a higher deduction, so more is taken care of on their behalf. Not to mention, it could become more costly handling things yourself if you’re not careful. But, if you want to make investing your priority, already have a good network of contractors and solicitors, and want to be kept in the know as much as possible, you could benefit from self-managing.

Experience: Having background awareness doesn’t always mean you’ll have an easier time taking on this sort of responsibility, but the knowledge, connections, and confidence that you’ll undoubtedly have if you’ve been long involved in this sector, could mean you feel capable enough to deal with the entirety of your property. It is imperative to regularly update yourself on all the bits and bobs that you should know to be certain you don’t miss anything vital, leaving you in an avoidable situation. For some, that worry alone might be enough to divert the duty to an agency with the training and skills to keep everything in working order.

Efficiency: Letting agents handle a multitude of elements that allow for an efficient process, leading up to, and throughout the tenancy. For example, they find a suitable workman when maintenance is required, obtain quotes, and sort a time for the repairs to take place, all without you lifting a finger. However, some might view this as less efficient in these situations, as you might prefer to remove the middleman and instead, establish direct contact between yourself and the tenant. Depending on whether you prefer knowing the ins and outs, and acquiring quotes and such yourself, you might want less of a backseat when it comes to certain aspects of your property.

Legalities: Despite all the online advice available, it’s quite easy to end up confused with some of the language used in property management. If you aren’t well versed in the world of real estate, with links to lawyers, you have to be incredibly careful when reading or writing contracts. An estate agency can offer you security, ensuring all your legal obligations are tended to, saving future unnecessary headache. Important requirements to comply with include Gas Safety Certificates, Electrical Installation Condition Reports and Energy Performance Certificates and failure to maintain your duty of keeping these in date, will cause you some trouble. An agency can sort this for you if you don’t feel confident in doing so, and it is better to be safe than sorry concerning the legal parts, especially.

Ultimately, you understand your property better than anyone, and particularly, the kind of management it will require. Not every agency is the same, so if you do decide to partner with one, do your due diligence and analyse each of them thoroughly to prevent you heading into business with one that won’t meet your needs. It is also imperative that you evaluate whether you, yourself, have the time, resources and, above all, ability to provide your property the attention it requires if you wish to self-manage. Assess your circumstances, feelings, and confidence to make a decision that suits you and your property.

Maya