The Top Pros and Cons of Being a Self-Managed Landlord

Buy-to-let property investment can be a lucrative way to create a regular income, whether it’s to top up an existing salary or pension, or to act as a main source of revenue. But if you are considering becoming a buy-to-let landlord, the question is, should you go self-managed, or hand over to a property management service to handle everything for you? To make that decision, it’s important to know the pros and cons involved in being a self-managed landlord.

Self-managed landlord or property management service?

There are two distinct methods of managing your buy-to-let property on a daily basis:

Self-managed – this is where you will be responsible for 100 per cent of the property management tasks. This means it will be down to you personally to source and reference tenants, prepare your property for let, take care of all the legal and regulatory compliance aspects, arrange check-in and check-out reports and mid-term inspections, deal with day to day maintenance issues, collect the rent and deal with any rent arrears issues.

Property management service – whether you use a letting agent or some other form of property manager, you will be able to hand over some or all of your landlord responsibilities. A let only service will usually cover sourcing and referencing tenants and ensuring the successful let of your property. A full management service is more comprehensive, and usually covers up to 90 per cent of your landlord responsibilities.

What are the benefits of being a self-managed landlord?

If you have the time available and are a naturally organised person, being a self-managed landlord shouldn’t pose too much of a challenge. Providing you take the time to understand your responsibilities and legal duties, you should be able to make a success of your buy-to-let investment.

One of the key benefits of being a self-managed landlord is that you don’t have to spend money on a property management service. On average, depending on the type of service you use and the charges made, this could save you in the region of 50 per cent.

Naturally though, you will need to keep a tight rein on expenses, maintenance costs and other fees, otherwise your outgoings could soon mount up. As long as you have a strict structure in place to keep costs under control, and you are prepared to take charge of everything from emergency maintenance requests to regulatory compliance, you may well benefit from being a self-managed landlord.

Managing your property yourself will also allow you to personally choose your tenants and directly control the terms of the tenancy agreement.

What are the disadvantages of self-managing your buy-to-let property?

One of the biggest downsides to being a self-managed landlord is the sheer volume of administrative formalities that are involved.

There are many rules to adhere to if you are going to avoid fines for non-compliance with lettings legislation. And your repair and maintenance responsibilities as a landlord can be quite extensive too. Late night emergency callouts are not unusual, and dealing with rent arrears, which are especially common during times of economic downturn, can be very stressful.

If your buy-to-let investment is more of way to top up your income, then you may not have the time to give over to managing your property. It is important to never underestimate the time it can take to deal with the day to day running of a rental.

Looking for a property management service with added benefits? Look to homes2let.

If you have decided that being a self-managed landlord is not for you, and you are weighing up your options in terms of property management services, why not take a look at what we have to offer here at homes2let?

We offer a fully comprehensive property management service, with an added benefit. Unlike a traditional property management service, the homes2let guaranteed rent scheme returns a higher yield, whilst cutting your investment risk by ensuring your rent is paid on time every month, even during void periods.

Everything is covered, meaning you won’t have to worry about the likes of sourcing and referencing tenants, preparing your property for rent, meeting regulatory and legal compliance requirements, organising property inspections and dealing with day to day maintenance issues.

Why not talk to homes2let to learn more? Our helpful team has particular expertise in the South London property investment market, and is on hand to share a wealth of knowledge to help you draw the most out of your rental income. We welcome you to get in touch today.