Why self-managing a property might not be the right decision for you.

Why self-managing a property might not be the right decision for you.

Are you a landlord looking to manage your own properties? Do you possess the required experience and skills to manage these properties? If yes, do you have the time? Let’s have a look at some of the pros and cons of self-managing your properties compared to using a managing agent.

Self-Managing Landlords

Pros:

For landlords who are confident they know their responsibilities in managing properties, they can save the cost of agent fees which can range from 10% – 15% of the rent

Cons:

Can require a considerable amount of time; for landlords who don’t live close to their properties or spend a lot of time away from home it will be more time consuming

May need advice from a lawyer or accountant if problems arise, which add to costs

Advertising costs to promote properties

Costs of repairs

Landlord Managing Agent

Pros:

For landlords who don’t have the time or expertise to manage their own properties, they can rest assured and leave it in the hands of an experienced managing agent such as Anthea Lettings, leaving yourselves free to pursue other endeavours

An agent will deal with all management issues from starting the tenancy, collecting rent, maintaining the properties when repairs are needed and ending the tenancy, even taking matters to court in the case of an eviction

Cons:

Lower rental income as a result of the fees paid to the agent which again can range from 10% – 15% depending on how many services the landlord needs

To make the decision easier ask yourself these few questions, think about how many properties you own; Is it less than 5? If so, you can work a little overtime and reap the extra profits if you are willing to sacrifice some of your vacation time. Do you have more than 5 properties? Do you have the time and resources to attend to all the problems that arise throughout the year? Think about all the times your boiler had a problem or when there was a leak or you lost your keys and multiply that by the amount of properties you need to manage. That covers just the basics of the many problems that arise when maintaining a suitable habitat to keep your tenants happy. Most of the time you will be saving yourself a lot of hassle by going with a professional managing agent, and it will put you at ease of mind!