Circa London on the pros and cons of self managed or fully managed?

Published: 27/02/2024

The Pros and Cons of Self-Managed vs Fully Managed Rental Properties in central London

If you're venturing into the buy-to-let market in central London for the first time, you might think, "How difficult can it be? It's just collecting rent, right?" However, once you start dealing with late payments, tenant disputes, legal paperwork such as Right to Rent, and property maintenance, you may quickly realise the challenges involved. At this point, employing a professional property manager looks very appealing.

Whether you choose to self-manage your rental property or opt for fully managed property services, both have advantages and drawbacks. Let's explore the pros and cons of each option, particularly for landlords in prime London areas like Shoreditch, Hoxton, Old Street, Hackney, Kings Cross, and Canary Wharf.

Managing your property yourself may seem like a good way to save money, but it can quickly become time-consuming and stressful.

Pros of Self-Managing Your Property: 

• Control Over Rent Collection and Tenant Relations: As a self-managed landlord, you have direct control over your tenants and the rent collection process. If you're in a trendy area like Angel or Whitechapel, where demand is high, you might prefer to handle the selection and relationships yourself, ensuring your tenants meet your standards
• Cost Savings: By avoiding the management fees charged by letting agents, you save money. This can be appealing if you're confident in your ability to handle the administrative side of things, such as vetting tenants and organising repairs.
• Personal Touch: Suppose you're managing a property in a community-focused area you may enjoy the personal relationship you can build with tenants, which could help foster a positive atmosphere.

Cons of Self-Managing Your Property

• 24/7 Responsibility: Tenants can contact you at any time, and you may receive late-night calls about minor issues that could have been solved with a simple fuse switch. If you're managing a property in busy, high-demand areas like Old Street or Canary Wharf, the constant flow of tenants may increase the strain.
• Time-Consuming and Stressful: As a self-managed landlord, you're responsible for everything from marketing your property to handling tenant disputes. The process can become overwhelming, especially when you're trying to balance it with other commitments, like work or family life.
• Legal and Compliance Responsibilities: Staying up-to-date with ever-changing laws is one of the most challenging parts of being a landlord.
• Regulations on deposits, rent payments, and tenancy agreements can shift quickly. If you're renting in areas like Shoreditch or Hoxton, where demand is high and competition is fierce, non-compliance can lead to legal troubles and financial penalties.
• Dealing with Tenant Disputes: Managing disputes between tenants or neighbours can be uncomfortable and stressful. If you're in a high-traffic area, you may encounter more complex issues requiring your time and mediation skills.
• Maintenance Issues: As the person responsible for repairs, you'll need to juggle the maintenance of your property. For instance, dealing with plumbing issues or organising for gas and electrical checks can quickly become overwhelming, especially if you're not experienced with property maintenance.

Fully Managed Properties: Pros and Cons

Opting for a fully managed service means handing the responsibility to a professional property management team. This is an increasingly popular choice for landlords in central London, especially for those who prefer to let the experts handle the details.

Pros of Fully Managed Properties

• Expert Property Management: A professional management company like Circa London Sales & Lettings, with experience in handling rental properties and can help you maximise the potential of your property. They'll have in-depth knowledge of local property laws, ensuring you're always compliant.
• 24/7 Tenant Support: Professional property managers provide 24/7 support for tenants, handling all calls and maintenance requests. This eliminates the need for you to take calls at inconvenient hours, offering peace of mind and freeing up your time.
• Stress-Free Tenant Finding and Tenant Referencing: A well-established property management team will have access to a vast pool of potential tenants and can carry out thorough background checks, credit assessments, and reference verifications. This ensures you find the right tenants for your property, reducing the risk of rent arrears or damage.Maintenance and Repairs Handled for You: Professional managers are equipped to handle repairs quickly and efficiently. If you have a property in a sought-after area, where competition for tenants is fierce, keeping the property in prime condition is essential. A property management service will ensure any issues are dealt with promptly, preventing tenant dissatisfaction.
• Legal and Compliance Assurance: Keeping track of property laws and ensuring compliance can be daunting. With a fully managed service, you'll benefit from the expertise of professionals who stay on top of regulations such as safety checks, deposit protection, and the latest tenancy laws.
• Eviction Assistance: If things go wrong and you need to evict a tenant, property managers are experienced in handling the eviction process and ensuring that all legal procedures are followed.

Cons of Fully Managed Properties

• Management Fees: The most obvious downside to hiring a property manager is the cost. While it saves you time and effort, management fees range from 10-20% of the monthly rent, a significant expense. However, this fee can often be offset by the increase in rent you could secure from having the property professionally managed.
• Less Control: Some landlords may feel that handing over management means relinquishing control. If you're someone who likes to stay on top of every detail, a fully managed service may feel like a compromise.
• Limited Flexibility: Depending on the property management company, you may have less flexibility in managing your property. For example, Circa London Sales & Lettings, an independent agency, will offer a tailored service, but larger companies may have more rigid systems in place.

Which Option is Best for You?

When deciding between self-managed and fully managed services, it ultimately depends on your preferences, experience, and the location of your property. For landlords in high-demand areas like Shoreditch, Old Street, or Kings Cross, the stress of managing tenant relationships, repairs, and legal compliance can be overwhelming. A fully managed service ensures that professionals handle all aspects of the rental process, saving you time and mitigating potential risks.

However, if you're willing to take on the responsibility, enjoy direct involvement, and want to save on management fees, self-managing may be the right choice for you.

For those who prefer to hand over the reins and ensure their property is in safe, capable hands, contact Circa London Sales & Lettings. As independent estate agents, we offer a fully managed service that's tailored to the specific needs of landlords in central London, ensuring a hassle-free experience and maximising your property's rental potential.