Should you be a DIY Landlord & Avoid Paying A Letting Agent?

One reason a lot of landlords hire a letting agent is to help with inconveniences of tenant & property issue. The downside to this is paying agent fees that cut into your profit.

Whether you can’t afford an agent or simply want to avoid paying fees, this section is for you. Here we’ll give you insights on renting your property without the help of a letting agent and paying them fees.

Finding tenants yourself without an agent

This is the first step, and often the most difficult, for any landlord. While your property might attract dozens of interested tenants, not all of them will be a suitable fit.

Start by advertising your rental in local stores and shops. Grocery stores and markets generate a lot of foot traffic and usually offer a business board or other area to post items for sale or rooms for rent.

You can also post an advertisement in your local newspaper. Be sure to include quality photographs and a detailed description of the property. List other important information like your name, contact number, the property’s location, price, and availability.

Unfortunately the popular property portals don’t let landlords advertise on their portals. This privilege is only for letting agents.

However sites like OpenRent allow landlords to post on the big property portals via their platform for as little as £50

Costs for finding a tenant without a letting agent

Posting an ad at a supermarket/shop: £10 a week

Newspaper ads: £10 a week

Using OpenRent: £50

Tenant referencing

Once you choose a desirable candidate, it’s time to start referencing them. This includes checking their history as a tenant, finances, and credit.

If possible, contact previous landlords to find out what type of tenant they were. Did they pay rent on time or were they late? What condition did they leave the property in and why did they end the agreement?

You also need to check their income and other finances. This is an important step in the process. If the tenant you choose has poor credit or a track record of debt, they may not be able to pay their rent on time, forcing you to start the process all over again.

Depending on how stringent you’d like to be, landlords need to pay between £10 to £100.

Conduct your own viewings

Interested renters want to see your property in person. This means conducting and hosting viewings and showings.

You need to answer and address all inquiries about the property and schedule viewings that are convenient for both you and the prospective tenants. Once you decide on a date and time, it’s your job to walk them through the property and answer any questions they might have.

This is difficult for some owners who are emotionally invested in the property. You need to approach viewings as a neutral, unbiased third party. Try to be objective and avoid getting offended by any negative comments the candidates might make.

Also, don’t be afraid to tell them you’re unsure of an answer and will get more information. It’s better, to be honest than to make up an answer or give false information.

Costs of conducting viewings on your own:

Time and a few scheduling headaches!

Writing a tenancy agreement

Now that you’ve chosen a tenant, it’s time to write up the official contract. This paperwork protects both you and the renter and includes information like the length of the tenancy, terms, the price of rent, and when the rent is due. If you’re renting out a furnished space, you also need to make an inventory list including detailed descriptions and pictures.

For this tenancy agreement to be legal, it needs to include and follow all local laws. This includes placing the tenant’s deposit in an approved government scheme without 30 days and not taking on additional administrative fees.

Both you and all tenants must sign and date the agreement for it to be legal. It should also include information about how to legally end the lease early to protect both parties.

The costs of a tenancy agreement without a letting agent can be free, there are an abundance of tenancy agreement templates available online.

However if you need to customize templates for bespoke changes, to ensure you remain on the right side of the law you may need a solicitor that could cost £300+

Collecting rent yourself

Next to finding and referencing tenants, collecting rent is often reported as one of the most stressful things about being a landlord. When tenants don’t pay on time, it’s your job to confront them and collect the entire, agreed-upon amount

This can get uncomfortable, especially if you’ve developed a friendship with your renters. Some tenants will try and take advantage by asking for an extension or only paying a portion of the rent.

As a landlord, it’s important to keep your emotions out of things. Set a specific date for when rent is due and hold them to it. Standing orders and direct deposit work well for this, preventing late payments and helping you avoid unwanted conflict and confrontation.

Costs of collecting rent yourself

Potentially a tonne of headaches and difficult conversations

Renting out your property doesn’t have to be complicated. While using a letting agent can cut down on some of your stress, it can also cut into your profit. With these tips, you can rent your property yourself, taking care of all the major steps without losing out on any of the revenue.