An increasing number of landlords independently managing their properties

by Jason McClean

11:55 AM, 14th September 2016
About 2 years ago

An increasing number of landlords independently managing their properties

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An increasing number of landlords independently managing their properties

An increasing number of buy-to-let landlords are becoming ‘self-sufficient’ by letting and managing their own rental properties, according to a new report.penguins

Two thirds (65%) of landlords have an active role in the maintenance of their property and deal with any tenant issues independently without the assistance of a letting or managing agent.

41% of landlords manage everything to do with their buy to let property by themselves whereas 35% use an agent to do everything.

24% use an agent to find suitable tenants and then manage the property themselves.

The report analysed over 10,000 addresses and has revealed that a fifth of landlords live within a mile of the property they rent out and 46% live between one and 10 miles away.

The close proximity of landlords and their buy to let properties could explain why many are now able to independently manage their investment, without the help of agents.

“There is a vast amount of information available for landlords across different platforms such as the Property 118 website and our Landlord Zone, which is helping landlords become increasingly savvy,” said a spokesperson for Property 118’s landlord insurance provider Discount Insurance.

“In addition to having more know-how, if a landlord lives close to their buy to let, it is much easier for them to manage the property because if an emergency arises and something needs to be repaired quickly, the property can be reached relatively easily,” added the spokesperson.

The majority of landlords own just one home, with 45% of those polled owning a single rental property.

40% own between two and five properties and 15% said they have a portfolio of more than five properties, the report by Simple Landlords has revealed.

65% of landlords have made a conscious decision to invest in buy to let property, however 17% identify themselves as ‘accidental landlords’ who decided to rent out a property that was inherited or were unable to sell their home.

9% of landlords bought their property specifically for a family member to live in, such as for a child when moving to university.

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Comments

Neil Patterson

11:57 AM, 14th September 2016
About 2 years ago

You can also now get full management online for only 4% >> https://www.property118.com/letting-supermarket-full-management/68829/

Steve From Leicester

12:28 PM, 14th September 2016
About 2 years ago

I've run a successful letting agency for the best part of 15 years, currently managing around 500 properties.

When one day I eventually retire there is no way on this earth I will manage my own modest portfolio. I will find a good reputable agent and place my properties in their hands because I know how much value a good agent adds. Managing a property is dead easy when all goes to plan, but can be one heck of a headache when something goes wrong.

Its fair to say that with my own "inside knowledge" I'm also well aware that a minority of agents have limited knowledge / skills / experience, or are just plain bad at their jobs, and I'll have the advantage of knowing how to spot and avoid those agents. (I hope so anyway 🙂 )

Neil Patterson

13:49 PM, 14th September 2016
About 2 years ago

Reply to the comment left by "Steve From Leicester" at "14/09/2016 - 12:28":

Hi Steve,

I agree, because the vast majority of costly mistakes that I see at P118 are from self managed landlords especially accidental ones.

The article by Jason is reporting on the statistical trends and not a recommendation to go it alone without experience.

Gary Nock

17:40 PM, 14th September 2016
About 2 years ago

I agree wholeheartedy with Steve. A good agent is well worth the 10%. I stress the "good". I used to let via agents. Then I realised I could do a better job than the ones I used. Some bloke called Mark Alexander showed me how. (Thanks Mark)

A good agent makes letting pain and risk free. I started letting my own properties and then through word of mouth let others. Whilst not in Steve's league I now have an expanding lettings business. Landlords use me because I offer free rent insurance and legals on all packages. It is not difficult to manage your own properties. What is difficult is getting all the paperwork right to start with so if it goes before a Judge for an eviction it all goes through as it should. I get calls from self let and self managed landlords to sort out their problem tenants. Invariably the paperwork is deficient in some way. No EPC served. No gas cert served. Incomplete deposit protection paperwork. No inventory. And then I have to unpick the mess and get the tenant out.

So yes - agents are worth their weight- if they know what they are doing. And at the risk of cutting my nose off to spite my face - a landlord with one or two properties provided they put their time in on training and due diligence can manage their own properties. But if you try and "wing it" by using a downloaded TA from some uncredited source and take a deposit without registering it - then as they say in Game of Thrones" - "Winter is Coming"

Huw Francis

9:44 AM, 15th September 2016
About 2 years ago

Quote: "The majority of landlords own just one home, with 45% of those polled owning a single rental property."

Eh? Is that like the majority which voted Remain??

Yvonne Francis

17:42 PM, 15th September 2016
About 2 years ago

Reply to the comment left by "Gary Nock" at "14/09/2016 - 17:40":

Oh dear Gary I do think you over estimate agents and really treat self managing landlords as fools. I've self managed my two large properties for thirty five years. I'm well informed, professional and really care about my properties which is confirmed in the problem free tenancies followed by good remarks left by tenants when leaving. A long time ago I did have a reputable agent manage one of them for two years but when the opportunity came I could not wait to get rid of them. A property I gave my son is managed by the same agent much to my displeasure. I could manage the property with not one but two hands tied behind my back much better and more profitable if only my son would let me.

I'm elderly now and extremely arthritic and have discussed the possibility of handing them to agents. However I feel I would be on a slippery slope. I really can't see how an agent can possibly have the standards or interest I have. When one of these agents called he said how surprised he was to find a landlord who had self managed but had spent so much money on the property, meaning presumably landlords who self manage do not want the extra expense. Perhaps I'm exceptional: I really hope not.

Gary Nock

18:03 PM, 15th September 2016
About 2 years ago

Yvonne I had no intention of disparaging self managing landlords- I am one myself. And I have qualified it by saying – "a landlord with one or two properties provided they put their time in on training and due diligence can manage their own properties". In fact I know landlords who have 20 plus who do a really good job.

Paul Shears

12:38 PM, 16th September 2016
About 2 years ago

Reply to the comment left by "Yvonne Francis" at "15/09/2016 - 17:42":

Yvonne
Your experience entirely matches my own despite the fact that I started out with what was, and still is, the best agent in the area.
The two biggest challenges that I have found throughout my years of experience have been:
1. Maintaining the standard of tenant.
2. Finding competent tradesmen.

Karen Medd

8:52 AM, 17th September 2016
About 2 years ago

I self manage and all mine are several hours away from where I live. A good agent is worth their weight in gold but I've never found a good one. I am quite happy managing them all myself and have done for many years. At least I can sleep at night knowing everything has been done properly. Only time I ever had problems was when an agent was involved using their tenant find service so I find my own tenants instead.

Adrian Jones

9:37 AM, 17th September 2016
About 2 years ago

Morning. Has anyone been through the registration process for Rent Smart Wales?

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