Should I manage my buy-to-let property myself?

Becoming a buy-to-let landlord remains a lucrative business. Rental demand in the UK has always been high, and with a recent survey revealing that over 60% of tenants expect their next move to be to another rental property, this demand isn’t expected to disappear any time soon, which equates to healthy and consistent buy-to-let returns for landlords.

Purchasing a buy-to-let property at exactly the right price in exactly the right area however is just the beginning. To make those returns really stack up, you’ll need to manage your property and the tenants within with the bottom line firmly in your mind. There are after all many costs that go hand-in-hand with being a landlord – you can discover more about those here.

In this blog post, we take a closer look at the most effective and cost-efficient options for managing buy-to-let properties.

Self-management

The first, and often quickly written off, option is self-management. Contrary to popular belief, managing your own buy-to-let properties is possible. While it’s not suitable for everyone, it can save buy-to-let beginners a lot of cash.

There may be no legal reason why you can’t manage your own buy-to-let, but gaining a solid understanding of the legalities that impact your role as a landlord is vital. This isn’t difficult or expensive to achieve as The Independent Landlord explains:

“I’d like to stress how important it is that you educated yourself about your landlord obligations. This applies even if you use letting agents, as the buck ultimately stops with the landlord. However, there is no need to go on an expensive training course. You can become an Accredited Landlord with the NRLA after taking their Landlord Fundamentals module. The standard price is £88 for members, and membership comes with lots of other benefits.”

Full management

Many landlords, especially those with large or growing portfolios, choose to skip the training courses and recruit professional help from a letting agent. There are countless letting agents that can be accessed up and down the country, and their services offer great peace of mind for landlords and tenants alike.

Their full management services are often the most comprehensive (and expensive) options available, but for most landlords the added outlay is worth it. With full management, your agent will handle almost every aspect of property management on your behalf. This includes preparing your rental property, finding tenants, completing all the necessary paperwork, collecting rent, and undertaking maintenance and repairs.

Letting only

At the other end of the spectrum is an agent’s letting only service. With this service, you’ll get the assistance you need marketing the property (including advice on rental values), sourcing tenants and providing tenancy agreements, but that’s where the support ends. As a result, letting only services are generally offered for a one-off fee, which is usually equivalent to one month of rent.

Letting and rent collection

For ongoing assistance that’s not quite at the level of full management, an agent’s letting and rent collection service should be explored.

While initial support and advice is given for a one-off cost, the letting agent will assist with the ongoing collection of rent for a recurring percentage fee. With this option, you’ll get the best of both worlds, and retain full control of your buy-to-let interests.

Are you a buy-to-let landlord a little earlier in your journey or perhaps you’re keen to grow your portfolio with another property purchase? Call on our experts for help. We can assist you in finding a buy-to-let mortgage that’s right for your circumstances, whether you’re just starting out or an experienced investor.