The buy-to-let market has grown exponentially over the last 15 years; so, it’s entirely understandable with so many stories circulating of people making a small fortune through renting that many people are becoming attracted to the thought of becoming a buy-to-let landlord.
Of those, most considering becoming a landlord will not just dive straight in but do a fair bit of research before they enter the market. One thing that they will quickly discover is that although letting agents can help get their property occupied, they can also take a substantial amount of the monthly rents.
With the average letting agent charging anywhere from 10 to 20 per cent of the rental income as fees, plus additional administrative charges too, it is all too easy to see how any potential profit for a would-be landlord could be severely reduced or even wiped out altogether.
In addition, some lettings agents add to landlord’s costs by employing tactics such as holding on to tenants’ rents for a couple of months before transferring to the property owner. Additionally, many agents run their own property maintenance teams that seem to carry out an excessive amount of ‘regular maintenance’ which is then added to their fees, also increasing landlords’ costs.
As a result many landlords are choosing to undertake their own letting arrangements. That works especially for those who only have one or two properties to rent out, and who can handle the time consuming management issues themselves. Alternatively, some landlords may enlist the help of a letting agent to attract a tenant, but once they are installed handle the on-going relationship and management of the property themselves.
To let property without the help of an agent, a landlord will have to advertise the property, show potential viewers around, vet tenant’s suitability and take up references. Once, the tenant is installed the landlord should be prepared to attend or arrange cover for emergencies at the property such as plumbing problems. However, as time-consuming as all that sounds, many landlords are choosing to do it for themselves.
The sheer cost of letting agents is the reason why so many are opting to go it alone, and there are plenty of places for landlords to advertise properties: newspaper classifieds, shop windows or online. There is a big demand for let property and many would-be landlords that price their property competitively should be able to rent it out easily.
Those brave landlords will only turn to a letting agent as a last resort, for example if they struggle to fill their property; when reduced rental income is preferable to no income!
Related Articles
About Buy To Let Mortgages
By: Joseph Kenny | 10/02/2008 | Finance
Many people have realized that investing in property can be extremely lucrative these days, and many landlords across the UK are making a lot of money, both in terms of rising equity levels in their properties and in terms of the rental income that they receive from renting out these...
Buy-to-let Market Thriving
By: Jemma | 27/04/2008 | Mortgage
According to the Council of Mortgage Lenders (CML) the buy-to-let market in the UK is still going strong. The UK saw the number of buy-to-let mortgage loans rise by 23%, these type of loans account for 10.3% of all outstanding mortgages in the country.
Is The Uk Housing Market Going To Crash?
By: Gordon Marsden | 21/04/2007 | Real Estate
About 20 years ago the UK housing market was booming, prices were rising much faster than inflation as people clamoured to invest in property and move from rental to home ownership. It appeared that buying property was akin to printing money, you just couldn't lose, or could you? As prices...
Presenting a Property to Let
By: jbullet | 23/07/2008 | Real Estate
Once you have made the important decision of what a realistic rental price is for your property to let investment, you now have to present the property to potential tenants. It is vital when presenting a rental property that not only is the property pitched at the right price, but offered in good order too.
Eliminating Void Periods
By: jbullet | 23/07/2008 | Real Estate
Tenanting your property as quickly as possible should be a priority when it comes to the property letting process. A key factor in finding a tenant quickly has a lot to do with the rental research which is required when investing in a buy to let property. If you have purchased a property within an area that has a massive demand for rental property then straight away you are giving yourself a better chance of eliminating costly void periods.
Some Information On Buy to Let Mortgages; Are They Right for You?
By: Michael Challiner | 09/08/2006 | Mortgage
With buy to let mortgages increasing in popularity and availability, is this a good way for you to secure a future nest egg?
Property in Romania - Guide to Buying Property in Romania
By: Les Calvert | 16/02/2007 | Ask an Expert
Thinking of buying a property in Romania? Then you need to read our useful guide to buying a property in Romania. Complete with useful country information and links to estate agents website and an insight in to the buying process of acquiring a property in Romania.
The Secret Of Remodeling Your Own House To Save Amazingly
By: Gerald Mason | 26/10/2007 | Real Estate
If you are thinking of buying an older house when you look the situation over calmly, you will see that if you must renew practically everything, it would be easier and cheaper to do it in a clean new place, unhampered by the existing structure, which you are practically tearing...
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
How do you clean a bluegill?
By: Jason | 02-07-2008
How do you clean a bluegill?
I removed 25 yr. old carpet from my porch. The ...
By: karen | 27-06-2008
I removed 25 yr. old carpet from my porch. The concrete is covered with excess glue and even fabric fragments from that old carpet. What can I use to remove the old glue? I have already tried a solvent that Home Depot recommended and hand scrapers. the porch is 21x12.
Is there any way for me to clean my antique ...
By: Lynne | 24-06-2008
Is there any way for me to clean my antique clocksmyself. the places around here charge $250. to $350. for key wound clocks.Lynne Winstenlwinsten@msn.com
I have rented my home to someone who agreed to ...
By: Melissa | 23-06-2008
I have rented my home to someone who agreed to have a couple of roommates to cover the rent, in addition my son still occupies the property. The agreed upon rent was $2100 for him and his roommates ($700 each). Unfortunately there are no signed leases as i knew this person and tried to do him a favor. They were on a verbal month to month and for the last three months have not paid the agreed upon $2100, only paying $1400. (THEY DID PAY THE $2100 FOR SEVERAL MONTHS). Since the lease was verbal, i gave them a 30-day verbal notice to vacante the property and backed that up with an email notice as well. What do i do as they are refusing to move out of my home???
Can my landlord evict me for witholding one months ...
By: carol | 17-06-2008
can my landlord evict me for witholding one months rent if he has not put my deposit in a government deposit scheme
State Of Florida Rent Incease Okay so what happens ...
By: mite luv u | 13-06-2008
State Of Florida Rent Incease Okay so what happens if the landlord fails to notify you of a rent increase prior to your renewing the lease
Q&A Powered by:
Latest Real Estate Articles
Quick Profits With a Property Tax Sale
By: Joe Cline | 25/07/2008
Different resources appear for the savvy real estate investor and to take advantage of them is to make some serious profits. Each of the resources has a different time frame involved with it and as such you have to learn which ones will produce the fast money and which require patience. The main point to be made here is the fact that you can easily turn a profit if you are involved with the right methods. This speaks to the need to learn all that you can about real estate investing resources.
Getting and Keeping Your House in Order
By: Joe Cline | 25/07/2008
Organization is, for most people, one of those lofty goals that everyone has but few accomplish. If they do accomplish it, the order is maintained for no more than a day, if that, and in the blink of an eye, chaos has crept back in. You know it’s true. You’ve been trying to become organized for days, weeks, months, if you’re honest, years. However, it seems like something that may never happen, and you’re all but ready to give up. You don’t have to. Approaching organization from the right standp
Gurgaon- Ultimate Destination for Developers
By: George Gonigal | 25/07/2008
Real Estate in Gurgaon has seen major developments over the past few years with new residential real estate market developed.
TIC Securities-Licensed Registered Representatives Can Only Handle TIC Interest Transactions
By: Kathryn Landry | 25/07/2008
there is continuing tension existing between the real estate industry and also the securities industry with regard to which industry must have control over the selling process involved in transacting TIC interests.
TIC: Qualified Intermediaries Will Complete Required Legal Formalities With Regard To 1031 Exchange
By: Kathryn Landry | 25/07/2008
TIC: Qualified Intermediaries are usually referred to as 1031 Exchange Accommodators by anyone engaged in real estate business and some even call them the 1031 Exchange Facilitator whose main functions are to complete the required legal documents so that all applicable laws as well as regulations and even rulings are complied with.
Tenant In Common: Securities Or Real Estate: A Matter That Is Open To Interpretation
By: Kathryn Landry | 25/07/2008
Mostly, people that make TIC (tenant in common) investments will have 1031 exchange in mind and even though TIC as an industry is just a small part of 1031 market, it is still increasing at a good rate and thus worthy of serious consideration.
Working With TIC: Asset Type Prognostication
By: Kathryn Landry | 25/07/2008
There are a few different real estate investments to choose from, but one that offers the most value and least risk is the TIC. The TIC or tenants in common investment is also known as the 1031 exchange, and is an essential instrument maximizing capital growth of real property assets.
Things For Buyers to Consider When Determining the Appropriate Property Value and Offer Price
By: Greg Gagnon | 25/07/2008
Determining the value of home can be sometimes a difficult task for a buyer. Just as there are many factors that can impact a home's value, the details and potential success of your offer also rely on several pieces of information. If you are thinking about buying a home, you...
More from Elisha Burberry
Tour China: Exploring the Red Giant
By: Elisha Burberry | 26/03/2008 | Exotic Locations
China's vast size and massive diversity may at first seem bewildering to the traveller, but with such a great choice of escorted tours on offer, getting the most from this fascinating land is easy.
Stay in Touch With Long Distance Video Calling
By: Elisha Burberry | 24/03/2008 | Travel Tips
It is now extremely easy to stay in touch from anywhere in the world, and thanks to free video messaging conversations with friends and family are only a click away.
Hungary for Hot Water? the Baths of Budapest
By: Elisha Burberry | 07/03/2008 | Destinations
Budapest's opulent bath houses are drawing more and more Brits who are Hungary for a hot and steamy experience in this Eastern European capital.
Call of the Clog: Holidays in Holland
By: Elisha Burberry | 06/03/2008 | Destinations
Many Brits typically head south on their holidays, hoping to escape the UK's dreary climate in search of some fun in the sun; however Holland is an excellent place to visit if you're looking for culture, nature and great cuisine.
Photography: Thanks for the Memories
By: Elisha Burberry | 05/03/2008 | Visual Art
Photography, the way it is taken and the way we use it has evolved out of all recognition since the first photograph was created in 1826.
First-time Buyer Affordability 'worsens'
By: Elisha Burberry | 05/03/2008 | Real Estate
First-time buyers are finding it harder than ever to fund the purchase of their first property. However, an internet savings account could help them save for their deposit.
Paradise Drowning: Maldives Under Threat
By: Elisha Burberry | 20/02/2008 | Exotic Locations
As the lowest country in the world, the Maldives - a collection of some 1200 islands - will be the first nation to go under as sea levels continue to rise due to climate change.
Society’s Elite Gear Up for the Gumball 3000 Rally
By: Elisha Burberry | 20/02/2008 | Cars
Since 1999 the Gumball 3000 - a 3000 mile international, transcontinental rally that takes place on public roads around the world - has been the annual adventure playground for society’s elite with celebrities racing every day and partying every night.
Finance 
