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Property management tip: Do you need a letting agent or should rent out your property yourself?

by , 04 March 2014

One of the biggest mistakes people make when investing in property is not considering how much time it actually takes to manage a rental property. That's where a letting agent can help. But do you actually need one?

How to tell if you need a letting agent to manage your rental property for you

According to Francois Joubert, author of Become a Master Property Investor in 90 Days, there are a number of factors to consider when deciding whether you want to have someone collect rent on your behalf or whether you want to do it yourself.

So consider these three factors before you decide on your rental property management plan. 

Consider these three property management factors BEFORE you become a landlord

1. How much time do you have?
If you’re close to retirement, you’re about to have a lot more free time on your hands. In this case, collecting rent and managing your rental properties might be a good thing to keep you busy.

If, on the other hand, you already have a day job that takes taking up ten hours of your day, it might be less trouble to get a letting agent to collect rent for you.

2. How many properties do you plan on owning?
If you only want to own one or two properties and you don’t plan to buy more, it’ll be worthwhile to manage them yourself. After all, it won’t take up lots of time and the management fees you’ll pay will reduce your rental yield.

If, however, you plan to become a property tycoon with five or even ten properties, it’ll take up significantly more time to manage them. Getting a letting agent to manage them for you will be worth it. When you have more properties, letting agents are also usually more lenient about negotiating better rates.

3. What are your skills?
To be able to let your property yourself, you’ll need to have some sales and negotiation skills. You’ll also need to be able to work with people.

If that’s not for you, get a letting agent to manage things for you.

Bottom line: Keep this property management tips in mind before you decide on how you’re going to manage your rental property. They could be the difference between success and failure.

Property management tip: Do you need a letting agent or should rent out your property yourself?
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