Managed or self managing rental property?

“My question is, are tenants less likely to default on the rent if managed by a letting agent?”

NO!

One of my managing agents these steady stream of deadbeats.

The job of an agent is to find a renter and match them with a landlord. The quality of tenant is secondary.

Personally, now is not the right time to be building a property portfolio. Rent reform, Section 24 tax ( unless you are buying under a limited company) Tenant Fee Act 2019, loss of Section 21 eviction powers, and an increasingly toxic anti- landlord environment from all parts of the political spectrum. We are selling as they come empty. Once Labour get in things will be even worse. If it can get any worse.

But in answer to your question- having been a portfolio LL for over 20 years, and a letting agency owner, it matters not if you self- manage competently and effectively or use an agent.

By managing effectively I mean chasing tenants for rent after 1 day, 7 days, 14 days etc. Having rent insurance, and properly referencing and vetting tenants before they move in. Not being ” mates” with your tenants. They are
” tenants” Don’t invite familiarity. It breeds contempt.

If you are not going to do this, then go with an agent and manage them the same way. Also be aware that many agents do not look after the property like you will.

Good Luck.

I self-managed for 10 years without a problem. The only time I had a major tenant problem was with a managed property, which resulted in eviction in 2021… after 20 months without rent, major repairs, damaged furniture, and no chance to recover the money.

The was the end of my enjoyable 25 year landlord journey.

I self manage, I prefer it. Although I do use agents for the initial find. Not had a bad tenant yet (keeping fingers crossed).

I have 12 properties and they are all managed a mixture of HMO Residential and DSS HMO.
I previously worked 60 plus hours a week in my own business and even when on holiday my phone would be constantly ringing with work related problems so once I had built a portfolio up when I was in position to take it easy I didn’t want want the grief of HMO tenants not getting burst pipes at midnight etc I choose my agents well once who produce great adverts with walk around videos and who take care of the ever changing regulation and for this they charge 10% even the HMO’s. I wouldn’t ever change my sister has 4 places and self manages and has more hassle than I have with 12 not paying etc I have another friend with 16 and all he ever does is moan about tenant issues. The agents I use have great value handy men mainly older one man band types that are not vat registered. For instance I had a broken double glazed window handle the agents handy man got a replacement for £5 on e bay and fitted it for £10. Why bother doing it yourself for me I am going to get more now and as I use agent I can buy where you get best return rather than just buying locally. I get more money per room
on my HMO’s because the agents produce high quality adverts I get rooms being reserved without a viewing from the walk around videos my sisters hmo’s are similar and she is getting less per room its hard to see why she bothers doing it herself.

See it as a business. No a job. Get an agent. A good agent, so that you are getting a manager, a service. I’ve had a bad agent before who didn’t pay the rent and I had to take them ti court, I won and they closed down their business. I’m making the world a safer place for everyone. But current agents now are fantastic and I have better things to do than be a social worker, shrink, debt counsellor etc., too many people got issues these days. I don’t want tenants having any contact with me. I don’t want to meet them. My job is to provide secure decent housing. My agent ‘manages’. I’m staying in my lane. Some people enjoy it. Not me.