A letting agent or property manager can manage your property when you don’t have the time, skill or desire to do it yourself. But is this service really worth it?
It depends on the situation.
Is it worth hiring a letting agent?
Two of my three investment properties are managed by letting agents.
As an investor with multiple properties, it makes sense to hire an experienced letting agent in my team. I work full-time and do not have time to deal with ongoing property management issues. So why not work with a trained professional to fill in this gap?
Hiring an agent allows you to delegate most of your responsibilities as a landlord. You do not need to worry about property management tasks, such as rent collection, inventory control, inspections, repairs, etc. And so you save more time.
A letting agent also acts as a barrier between you and the tenant. Problems are addressed to, and solved by the agent. If you are a high stress person, hiring a professional will give you peace of mind.
When is it NOT worth hiring a letting agent?
There are instances when you do not need to hire a letting agent.
Complaints from tenants living in newly built or renovated properties are not frequent. But letting agents will still charge you a monthly management fee. This fee is either a set amount or a percentage of your rental income. Sometimes, the amount of work done by an agent is not worth the fee.
Another instance to forgo the letting agent is if your investment property is located within walking distance from your home. It is not inconvenient for you to inspect the property when a problem arises. This is why my husband and I act as property managers for our third property.
Here’s an important tip: If you manage your own property, you must build a relationship with a local builder or handyman so repairs can be done quickly.
A reckless driver reversed into the fence of our third property. We were overseas and did not have a letting agent to help us. However, we successfully coordinated the repairs, by phone, from abroad because our local builder was quick to respond and he was familiar with the structural foundation and layout of our property.
So, do you think it is worth hiring a letting agent?
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