Is It Better To Be A Private Landlord Or Use A Letting Agent?
Trying to decide between being a private landlord or using a letting agent? You’re not alone. It’s a difficult decision that many rental property owners struggle with.
The truth is that both options have advantages and disadvantages, so it can be challenging to know which is right for you.
In this blog, we’ll explore the pros and cons of being a private UK landlord vs using a letting agent. We hope this information will guide you toward the best decision.
Pros of being a private landlord
To kick things off, let’s take a look at the benefits you can enjoy as a private landlord in the rental market:
- Complete control: You can enjoy full control over your property as a private landlord. This includes choosing tenants, setting rent rates, dealing with rent arrears, handling council tax, and deciding how your property is managed.
- Cost-effectiveness: Another advantage of being a private landlord is avoiding the fees and commissions charged by letting agents. This makes it easier to profit from your tenancy agreement.
- Hands-on experience: Being a private landlord can provide valuable experience in property management, which can be helpful if you’re considering investing in more properties in the future.
Cons of being a private landlord
Whether you’re an experienced or new landlord managing your property independently comes with several challenges, including:
- Takes time and effort: Being a private landlord requires significant time and effort, especially if you’re an experienced property investor with multiple properties. You may even find the pressures of the property industry seeping into your personal life.
- Legal responsibility: As a private landlord, you’re solely responsible for ensuring that your property meets all legal requirements and that your tenants are treated fairly. This means taking care of every written agreement and keeping up with any new rules or regulations for landlords.
- No professional support: Finally, you won’t have access to the expertise and resources of a letting agent if you’re managing your property privately. This could be a disadvantage if you’re new to property management and need some professional guidance.
Benefits of a using letting agent
Let’s move on to the pros of using a letting agent to manage your property:
- Letting agents are proactive: Property agents don’t just sit back and wait for a potential tenant to call. They’re very well connected within the rental sector and reach out to their contacts to make sure as many people see your property as possible.
- You’re not on call 24/7: When you use a letting agent, you don’t have to worry about being available to your tenants 24 hours a day. Your agent will take care of repairs, maintenance, and rent collection for you
- Legal support: Agents can help ensure you comply with all relevant legal requirements, such as safety checks and tenancy agreements. They also have a vast knowledge of the housing act, the private rented sector, assured shorthold tenancy agreements and can handle a possession order on your behalf.
Cons of using a letting agent
While there are benefits to using a letting agent, there’re also some potential drawbacks to consider:
- Cost: Using a letting agent can be expensive, as they typically charge a fee or commission for their services. This can affect your profits or force you to increase your tenant’s rent.
- Lack of control: When you use a letting agent, you give up some control over the rental process. You have to rely on the agent to find tenants, manage the property, and handle any issues that may arise.
- Limited knowledge of the property: Your letting agent may not have the same understanding of your property as you. As a result, they might not be able to answer tenants’ questions about the property.
All in all, the decision between being a private landlord or using a letting agent comes down to your personal goals, preferences, and circumstances. There truly is no right or wrong answer.
Being a private landlord can give you more control over your property and potentially higher profits. But it also requires more time, effort, legal knowledge, and other important factors.
Using a letting agent can take some pressure off your shoulders and provide professional expertise, but it also comes with fees and a limited knowledge of your property.
Make being a private landlord Symple!
If you decide to take the private landlord route, Symple is here to take some responsibility off your shoulders and make your job much easier.
From keeping a digital record of all certificates to sending renewal notices and inspection reminders, Symple is your all-in-one solution for property certificate management.
Our platform makes it as simple as clicking a button to get your property certificates sorted from one place, including your EPC, gas, and electrical certifications.