Both have advantages and disadvantages
Lettings agent:
Can be member of an industry regulatory body – if so they are likely to have higher standards of service – likely to have a much larger number of enquiries - will advertise and actively market your property to potential tenants, and can be selective about the type of tenant they market to – will try and maximise your rental income – can manage the property on your behalf – will vet potential tenants and carry out checks including credit checks, references and may insist on a guarantor – will deal with any problems and arrange any legal requirements such as gas safety certificates – can provide insurance against loss of rent as a result of the property not being let for a while, if the property is damaged or the tenants refuse to pay the rent – experience in dealing with tenants - all extra measures that protect a landlord
But - will charge a fee, typically 15% of the rental income – you will probably not meet the tenants before they move in – high administrative fees charged by agencies can put off many tenants.
Private Letting:
Can meet and vet the tenants yourself – retain control over the property - receive 100% of the rental income – much cheaper than lettings agent – can advertise more widely – can insist on guarantors if you want
But – will involve a lot more work – if there is a problem with tenants then it will be down to you to deal with it – all risk rests with you; if the tenants don’t pay their rent and damage the house then you will have to pay for it – will have to make sure that you are complying with all legal requirements – will have to market the property yourself and pay for any advertising – will have to pay for any unlet periods
Choice comes down to convenience versus cost – if you don’t mind paying what can be very expensive agency fees for peace of mind and a potentially hassle free let then go with an agency – but if you don’t mind spending the time and accepting more risk then you can save a lot of money – also bear in mind that if the profit margin on the property is small then it may not be worth the extra cost
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