What are the advantages of being an independent landlord?

The biggest advantage to being an independent landlord is, of course, the reduction in cost.

As a landlord, one of your few recurrent overheads will be agency fees. Most high-street agents demand a percentage of the rent generated by a property as payment for their services, meaning that the higher your rental income, the bigger their share – and additional fees can also be charged on top of this cut, such as for tenancy agreements.

Furthermore, by adopting the responsibilities usually undertaken by an estate agent, you are afforded a much greater degree of control over your rental properties. An independent landlord is free to choose their own tenants, communicate with them directly, and respond effectively to queries and concerns.

Equally, as many people instinctively mistrust estate agents (and we couldn’t possibly comment), cutting them out can make for more harmonious relationships with tenants.

What are the disadvantages of being an independent landlord?

Of course, the downside of adopting the estate agent’s responsibilities is that you take on their workload; marketing the property, finding tenants, responding to occupant queries, concerns and complaints, commissioning (or conducting) repairs and collecting rent are just some of the duties you will have to perform.

You should be prepared to receive calls at any time of day or night from tenants, and have the necessary contacts to guarantee problems that require professional input are rectified as soon as possible. If you’re travelling abroad, or won’t be in a position to respond quickly to tenant needs for any length of time, you’ll need to ensure there are people who can cover for you in your absence.

There are also a number of regulatory concerns for independent landlords, which can lead to financial penalties or even imprisonment for non-compliance. For instance, gas and electrical equipment must be checked by a certified engineer every year, energy performance certificates must be secured, furniture must be fire-safe, and landlords must register with a Tenancy Deposit Scheme.

The online benefits

While taking on the responsibilities normally delegated to high-street estate agents may seem daunting, the internet simplifies many of these duties. For instance, official documentation such as tenancy agreements can be downloaded from officially accredited websites – and the abundance of online property portals makes finding tenants undemanding. Renters are increasingly relying on the internet to find properties, and most property rental websites offer free listings.

You could also choose to outsource some professional responsibilities to online sources – for instance, online letting agents.

For more information, please consult the Your Money guide ‘six reasons you should use an online agent’.