NEW PODCAST: I tried to sell a property at auction – this is what happened
NEW PODCAST: I tried to sell a property at auction – this is what happened
Weekly data-led tips, local hotspots, and what actually moves the market.
When you buy your first rental property, one of the biggest decisions you’ll face is whether to manage it yourself or hand it over to a letting agent. It’s not a trivial choice – get it wrong and you could end up stressed, out of pocket, or both.
In our experience, property owners tend to fall into two camps. There are “landlords” who enjoy the hands-on aspects—dealing with tenants, sorting out maintenance issues, and being involved in the day-to-day running of their properties. Then there are “investors” who see property purely as a numbers game and want to delegate everything so they can focus on finding the next deal.
Both approaches are perfectly valid – but whichever approach you take, you need to understand what’s involved in managing a rental property. Even if you hand everything over to an agent, the ultimate legal responsibility remains with you.
Before you can decide whether to do it yourself or delegate, you need to understand what you’re signing up for. Managing a rental property isn’t just about collecting rent and calling a plumber when the boiler breaks.
The full list includes:
That’s a lot to juggle, especially if you’ve got multiple properties or a demanding day job.
Self-management means you handle everything from advertising the property to dealing with that midnight call about a burst pipe.
The main advantage? You save on agent fees, which typically range from 8-15% of your rental income. On a property generating £1,000 per month, that’s £80-150 that stays in your pocket.
You also have complete control, which means no waiting for an agent to get back to you, no miscommunication, and no wondering whether your property is being prioritised. When something needs fixing, you can sort it immediately.
But there are definitely some downsides: It’s time-consuming, especially in the early stages when you’re finding tenants and will need to be available for viewings (often evenings and weekends), handle all the paperwork, and build a network of reliable tradespeople.
Most importantly, you need to know what you’re doing. Property law is complex and constantly changing – forget to provide the right certificates or serve the wrong notice, and you could find yourself unable to evict a problem tenant. You stand to lose thousands if you don’t follow the correct procedures.
Letting agents offer different levels of service, and it’s important to understand what you’re paying for.
Let-only service covers finding and vetting tenants, handling the check-in process, and registering the deposit, but once the tenant moves in, you take over. This typically costs around 8-12% of the annual rent, often taken from the first month’s payment.
Fully managed service means the agent handles everything. They find the tenants, collect the rent, arrange maintenance, conduct inspections, and deal with any problems that arise. Expect to pay 10-15% of your rental income for this level of service.
A good agent can be worth every penny – they save you time, have established networks of contractors, understand the legal requirements, and can often spot problems before they become expensive headaches.
The key word there is “good”, because a bad agent can make your life miserable. We’ve heard horror stories of agents who don’t return calls, take weeks to arrange simple repairs, or fail to chase rent arrears properly.
Your rental income gets added to your other income and taxed accordingly. Sounds simple enough, but there are some important nuances.
The basics: You pay tax on your rental profit – that’s your rental income minus allowable expenses like letting agent fees, repairs, insurance, and accountancy costs.
The mortgage interest headache: This is where it gets complicated. Until a few years ago, you could deduct all your mortgage interest from your rental income before calculating tax. Not anymore. Now you get a 20% tax credit instead, which is often much less generous, especially if you’re a higher-rate taxpayer.
This change has made buy-to-let much less attractive for higher earners owning property in their own names, which is exactly what the government intended.
Consider your time and how you value it. If you earn £50 per hour in your day job, and managing your property takes 5 hours per month, that’s £250 of your time, so if an agent hypothetically charges £150 per month, they’d actually be saving you money.
Think about what you enjoy. Some people find property management satisfying, so if you’re one of them, self-management might suit you. But if the thought of dealing with tenant complaints fills you with dread, delegation might make more sense.
Be honest about your knowledge and confidence. There’s a lot to learn, and mistakes can be costly – so if you’re not prepared to invest time in understanding the legal requirements, using an agent is probably safer.
Consider your location. If you live 200 miles from your rental property, self-management becomes much harder. Emergency repairs can’t really wait for your next visit.
If you do decide to use an agent, choose carefully. Don’t just go with the first one you speak to or the cheapest quote. Check they’re members of a redress scheme (this is mandatory) and preferably a professional body like ARLA Propertymark. Ask for references and speak to other landlords they work with.
Most importantly, meet them in person if you can. Property management is a people business, and you need to feel confident they’ll represent your interests properly.
The truth is, there’s no universally correct choice. We know successful landlords who do everything themselves and others who wouldn’t dream of getting their hands dirty, so both approaches can work.
You might also start with one approach and change your mind about it. Many landlords start by self-managing to learn the ropes, then switch to an agent once their portfolio grows, while others go the opposite direction, using an agent initially and then taking control once they’re more experienced.
Whatever you choose, remember that you remain legally responsible for your property and your tenants. Even the best agent can’t absolve you of that responsibility, so whether you’re hands-on or hands-off, make sure you understand your obligations.
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