Should Landlords Use Lettings Agents or Manage Their Properties Themselves?

For landlords, one of the biggest decisions they will make about their property business is whether to use the services of a letting agent for property management, or if the better option is to manage their portfolio themselves.

Both options come with clear advantages and challenges, and a quick scan of the popular online forums reveals that when it comes to using a letting agent or not, opinions for and against either option are often presented as right/wrong.

Like most things, in reality, it’s not quite that straightforward, however, a little research and forward planning can help landlords to make the right decision for themselves and their tenants.

How to decide between letting agent vs managing yourself

If you’re currently in the process of making a choice between using the services of a letting agent, or managing your portfolio yourself, check out our pros and cons of each option below to help guide you through.

Letting Agents

Letting agents provide a professional property management service, which can handle everything from sourcing tenants, through to rent collection and property maintenance.

The expertise of a skilled letting agent can be a huge benefit to both the landlord personally, and their property business, particularly if they have a larger portfolio, or don’t have the time required to adequately manage properties themselves.

Letting agent = less landlord time required to manage properties

Letting agents will take care of things including tenant inquiries, viewings, maintenance requests, and legal compliance items like sharing EPC certificates at the start of a tenancy. All of these activities being looked after by a letting agent allows landlords to use that time that they would otherwise be spending on these items however they want, maybe on other ventures, or focusing on personal projects and interests.

Expertise and legal compliance

Property laws are often complex, and changes happen regularly, with varying levels of impact. The UK rental legislation is currently undergoing a significant overhaul with the introduction of the Renters’ Rights Bill, which has many upcoming amendments that will change the way that landlords manage their properties, and some may prefer to have the guidance and support of a letting agent rather than the commitment of having to stay up to date on their own. Another proposed change is EPC rating requirements for landlords.

togetha stays on top of all the upcoming legislative changes and proactively builds in features and functionality to our all-in-one property management platform that help navigate changes, giving both landlords and letting agents peace of mind.

Efficient Tenant Screening and Rent Collection

Experienced letting agents have established vetting procedures, ensuring landlords secure reliable tenants who can meet rental obligations. Agents also enforce rent collection processes, reducing the risk of arrears and managing eviction proceedings if necessary.

Maintenance and Repairs

Letting agents often have access to trusted tradespeople at competitive rates, ensuring that property repairs are handled efficiently. They manage emergency maintenance calls, saving landlords the hassle of dealing with unexpected issues at inconvenient times.

Some landlords have expressed concern about letting agents adding high fees on top of contractor costs, for arranging work, however, the general consensus is that negotiation often allows for a rate everyone is happy with.

Local Market Knowledge

Agents provide valuable insights into rental market trends, helping landlords set competitive rents, minimise void periods, and maximise returns. They can also assist with marketing strategies to attract quality tenants quickly.

The Downsides of Using a Letting Agent

Despite the advantages, using a letting agent comes at a cost, which is typically between 10-15% of the monthly rent for full management services, and even up to 20%+.

Some landlords have shared that they don’t feel comfortable without full control over their properties and that they experience frustration if the agent's service does not meet their expectations.

If a letting agent has outdated practices of managing processes in isolation, like one process for rent collection and chasing on one software, another process for maintenance via emails and phone calls, and compliance document sharing from desktop folders into a single person’s email account and sent to a tenant, it can make for a very disjointed, inefficient property management process that is difficult to get clarity on for audit trails and reporting, often sitting on colour coded-spreadsheets that don’t present the information in the most productive way, with a high margin for error.

Savvy letting agents will have processes all brought onto one, streamlined property management software, that allows them to effectively manage properties for landlords, whilst providing an excellent tenant experience and a transparent audit trail, like togetha. togetha works with letting agents across the UK, Dubai, South Africa, Nigeria, and Zambia, managing portfolios of dozens to thousands of properties.

Why Many Landlords Manage Their Properties Themselves

Many landlords prefer a hands-on approach to managing their rental properties. This can be particularly beneficial for those with the time, knowledge, and willingness to engage directly with tenants and property maintenance.

Benefits for landlords managing property themselves

Cost Savings

One of the biggest motivators for self-management is financial. By not having to pay letting agent fees, landlords can significantly increase their rental income. For landlords with multiple properties, these savings can be substantial.

Greater Control Over Property Management

Self-managing landlords maintain direct relationships with tenants, which can help promote better communication and problem resolution. They also have full control over property maintenance decisions, ensuring that work is carried out to their standards and budget.

Maintenance is one of the key areas that landlords and letting agents can experience a gap between expectations and reality. togetha offers a comprehensive maintenance feature, empowering tenants to report maintenance requests directly within the tenant portal, for the landlord or letting agent to manage, from start to finish, all through the togetha platform, keeping everyone informed about updates, appointments, and when the work is completed, whilst providing a full audit trail to help with reporting.

Book a demo to see how easy maintenance is with togetha.

Direct Tenant Interaction

Building a good landlord-tenant relationship can lead to longer tenancies and fewer issues. When tenants deal directly with the landlord, many landlords feel they may be more willing to communicate openly and respectfully, resulting in a more harmonious rental experience.

Flexibility in Decision-Making

Landlords who manage their properties themselves can make quick, informed decisions about rent increases, tenant selection, and property improvements without waiting for an agent’s approval.

Learning and Experience

Managing properties can be an invaluable learning experience. Over time, landlords become well-versed in tenancy laws, property maintenance, and market trends, equipping them with skills to grow and optimise their portfolio effectively.

The Challenges of Self-Management

While self-management offers financial and operational control, it comes with significant responsibilities. Landlords must stay informed about legal requirements, handle tenant issues, and be available to manage repairs and emergencies. This can be overwhelming, particularly for those with a large portfolio, or full-time jobs.

Leveraging Property Management Software for Self-Managing Landlords

For landlords looking to self-manage without becoming overwhelmed, togetha property management software serves as a virtual management team. togetha is the all-in-one property management platform that streamlines administrative tasks and enhances efficiency, saving time and money on those essential tasks. Some key features include:

• Automated Rent Collection

• Tenant Referencing

• Maintenance Tracking. The togetha platform allows landlords to log and track repairs, assign tasks to contractors, and maintain records.

• Legal Compliance Management. No more headaches trying to stay on top of when to send which document and to whom; togetha can send reminders for gas safety certificates, EPC renewals, and deposit protection.

• Accounting and Reporting. togetha’s AI-powered financial tracking and reporting tools help landlords monitor income, expenses, and can help provide data to make better decisions when it comes to revenue generation.

Which Option is Best?

The choice between using a letting agent and self-managing ultimately depends on a landlord’s personal circumstances, goals, and experience.

Letting agents are ideal for landlords who prioritise convenience, legal compliance, and professional management and are willing to pay for these services.

Self-management is best suited for landlords who have the time, knowledge, and willingness to be hands-on while maximising rental income.

By carefully considering what matters most, and what they are and are not comfortable handing over to a letting agent, landlords can determine the best approach to managing their rental portfolio effectively and profitably.

If you are a letting agent or landlord, togetha is the all-in-one property management platform helping you to manage from 1-1000+ properties, effortlessly. Book your no-commitment demo today to see how we can help you save time and money.