July 6, 2022
Sometimes, you just want to feel like you’ve got things covered. If you’re a landlord, with all the responsibilities that come with the role, that can count for quite a lot.
But when should you use a letting agent, and how do you know if it’s the right time to get one?
As someone whose long career in the buy-to-let property sector has included time as a letting agent, I feel I’m well placed to help you decide when a letting agent would be suitable for you.
It’s mainly a question of personal circumstances – there are no set criteria that determine whether you should use a letting agent or not. As with so many choices though, it’s easier to make a decision when you’re fully informed.
With that in mind, here are some important points to consider. But first…
Why do people use letting agents?
While buy-to-let is generally acknowledged as a sound source of income, it does come with important responsibilities: reviewing and collecting rents, maintenance and repairs, checking on works carried out, compliance and also inspections to name a few.
If you’re a landlord with one or two flats, this really impacts on a busy lifestyle. Between work and family commitments it can often feel like you’re playing catch up, and it just makes sense to hand over the work to a professional.
If you are a professional landlord with several lets, you can imagine how much time all these responsibilities will take, and the amount of coordination needed to make sure that all the repairs and maintenance alone are carried out is extensive.
Letting agents, as well as substantial experience of buy-to-let properties, have a well-connected network of contractors who can be contactable at short notice should you need them, saving you a great deal of time and hassle.
You should probably use a letting agent if…
You like the idea of tax-deductible fees
This is always a positive perk, and will keep your accountant happy. Letting agent fees are counted as a work expense so will count towards your tax deductible allowance at the end of the financial year.
Letting agents will also send you statements monthly and annually, which is also quite handy for your tax returns.
You don’t want to deal with repairs
Letting agents will have a list of approved contractors who are much more likely to show up promptly due to having a good relationship with the letting agent and may even offer favourable rates – although unfortunately that’s not a given.
Some of you like to know exactly who their contractors are and prefer to oversee repairs yourselves, while others take a more relaxed approach. If you’re in the latter category and can trust someone else to deal with the issue, it makes sense to use a letting agent.
You are not easily contactable
Most formal working situations don’t easily allow for unexpected phone calls, and if you’re taking a much-needed break the last thing you want to hear about is a burst pipe at 3am. Letting agents are on call 24/7 and can take the pressure off.
Since a good deal of the compliance is time sensitive when it comes to buy-to-let, you don’t want to find out that you’ve missed an important deadline or a call from the plumber to say he can’t access the property.
Talking of compliance…
You don’t have the time to keep up with compliance issues
Your letting agent isn’t just responsible for attending to compliance matters in a timely manner, but it is also them to keep up with any changes in legislation. So you can forget about the worry of keeping up with safety certificates.
You can also be confident that you’ll be kept informed if you need to take any action over compliance issues.
You need someone else to market the property and find a tenant
As you can appreciate, there’s quite a complex process involved in successfully getting a tenant for your buy-to-let property.
An estate agent has to market the property online, making sure it’s accurately represented by photographs and description, deal with enquiries once the ad goes live and conduct viewings by interested parties. And then…
Once the search for a new tenant is over, references have to be obtained and checked before the tenancy agreement can be drawn up and signed. The final step is moving the tenant in and checking they have keys and any other essential items.
You have a busy lifestyle
Sometimes you just don’t have the time or energy to deal with the issues that can pop up without warning. It’s rare that unexpected repairs happen at “convenient” times and between work, family and friends it’s difficult to make time for dealing with emergencies.
With so much legislation and procedures around buy-to-let now, being a landlord can feel like a full-time job in itself, so outsourcing the process, from interviewing tenants right through to dealing with the exit inspection, can feel like a weight off your shoulders.
You might prefer to self manage if…
You like a more hands-on approach
Many landlords have a buy-to-let because they like the idea of providing a home for others alongside an income for themselves and their family. As such, they treat their tenants more like friends and take a personal interest in their well-being.
This was especially evident during the pandemic, when many landlords took the decision to pause or reduce rent payments as a response to how much their tenants were struggling. It also, let’s face it, makes sense to look after the welfare of reliable, long term tenants.
You have a more personal connection to the property
Some landlords prefer to self manage because the property represents more than business interest. Maybe you’re more of an accidental landlordthan a professional one, and the property was your childhood home or your starter flat before marriage or cohabitation.
There are many reasons to self manage, but mainly it is a personal choice to oversee and look after the welfare of your tenants, and that’s absolutely fine.
Advice from the property pros
It goes without saying that the advice above isn’t prescriptive – and, at the end of the day, the choice is completely yours – and yours alone.
Whether you choose to use a letting agent depends entirely on your personal circumstances. It’s not just about being a remote landlord; many landlords who live in the same city as their buy-to-let properties will use a letting agent.
If it comes down to cost, it is worth remembering however that your agent is managing the property 24 hours a day, 7 days a week, 365 days a year. That’s an amazingly high level of attention and availability for less than the price of a cup of coffee a day.
Letting agents also have to adhere to a code of practice, so check that they are qualified to manage your property while you are doing your due diligence. Once you check reviews and testimonials, this all adds up to greater peace of mind.
If, after reading this, you come to the conclusion that you can self-manage and don’t need a letting agent, it’s a good idea to consider joining the Scottish Association of Landlords (SAL) where there is a wealth of information and advice for you.
In summary…
If you’ve got this far, thanks for reading! I hope this blog has been useful in helping you decide whether it’s right for you to use a letting agent or not.
Both sides have their pros and cons, and some people like to make a career out of taking on and fully managing properties. Others prefer a more hands-free approach, which is also absolutely fine if you already have a busy lifestyle.
What are your thoughts on this subject – anything we’ve missed? Let us know in the comments!
Also, if you’re looking for advice on investing in tenanted property – or even just want to know more about the benefits – don’t hesitate to get in touch! We’re always happy to help!
Written by Ross MacDonald, Director of Sales & Cofounder of Portolio
Get in touch on 07388 361 564 or email to [email protected]
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