…before you start

Are you thinking of managing your property(s) yourself as a business or just letting your house/flat out for a time while you are away or abroad?

If you are, then there are a few things to take into consideration before deciding whether to manage part, or all of it yourself, or put it in the hands of a management agency.

The first thing to understand is that managing even one property yourself can be a full-time job – that does not mean it will take up all your time, but you are potentially on call 24/7. However, if you are well organised and have all your checks and systems in place from the outset, you will soon establish a routine born of experience, and things will run themselves up to a point, but you will need to keep an eye open all the time. Research and preparation are essential before you start….

So, the pros and cons:

Cost. The first thing you will be saving on if you do it yourself is the cost of somebody else’s time, and that is the expensive bit. The cost of making sure that your property is fit for purpose, with all the correct safety checks and certificates; appliance maintenance and service; insurances etc. as well as repair and replacement, emergency call-out (hopefully very rare), plumbing, electricians, gasmen you can rely on you will be paying for anyway, but if you are employing an agent to manage this stuff on your behalf, you will be paying for their time as well – and that can cut into your profit/income big time!

Marketing. If you market your property yourself, you can choose the right profile of tenant to suit you, your property and location – without incurring high fees (letting agents tend to not only charge you, the landlord, but also the prospective tenant as well).Referencing. A letting agency will do this as part of their process, and it is essential that it is meticulous if you want to avoid any unpleasantness, after it is too late – they should be insured in the event that they get it wrong.

Referencing. A letting agency will do this as part of their process, and it is essential that it is meticulous if you want to avoid any unpleasantness, after it is too late – they should be insured in the event that they get it wrong.

HOWEVER, there is no mystery to obtaining references yourself, again, it is just a matter of setting your standards and applying to the referees your prospective tenants give you. This is one good reason for marketing your own property to the sort of target tenants you want to have, and vetting them yourself. There are plenty of standard landlord reference request documents available to download – why pay somebody else to do it when you have a queue outside, of perfectly respectable people all wanting to rent your property?

There are plenty of standard landlord reference request documents available to download – why pay somebody else to do it when you have a queue outside, of perfectly respectable people all wanting to rent your property?

Inventory. You will need to create a detailed inventory of what is in your property, and obviously that is easier if you are letting it unfurnished rather than furnished. However, once you have done it, there is no need to keep re-doing, you only need to keep it up-to-date as tenants come and go…If you are daunted by the thought of doing all this yourself, then find a competent agency and question them closely about what you will be getting for your money before committing yourself. Speak to several in the area before signing, and get references! (Page Coming Soon)

If you are daunted by the thought of doing all this yourself, then find a competent agency and question them closely about what you will be getting for your money before committing yourself. Speak to several in the area before signing, and get references! (Page Coming Soon)

BUT, if you fancy having a go at it yourself, then do not be frightened to try. Make sure you you have costed it all out both in money and in time before you start, and that the candle is worth the light, then go for it, you are now a self-employed property owner!

Remember, the most important thing is that the annual rent outweighs the annual outgoings including mortgage interest and repayments, running costs (as above), income tax (schedule A usually – see HMRC website on rental property income – excellent), so you do need to work hard at making sure you have good quality tenants all the time, and no empty months with nothing coming in. That is why it is a full-time job, but if you get it right, it is a doddle.

Why not come back to us if you want some more in-depth help with how to get going, we know where the best tips are to be found to make your property business profitable!

Good Luck
Lived There, Done That.