“DIY” (Do it Yourself) Property management is nowadays becoming more and more present in the real estate market for both selling and letting properties. Online property management has proved to have a great potential for Landlords and property investors thanks to the increasing capacity to reach potential buyers, and the great amount of money they can save by using them.
So, why are there people still using them? It is without a doubt the traditional method through which real estate market has always operated: “I want to let/sell and you know someone who wants to let/buy”. It is understandable that until recent years, Estate Agencies have been used as the proper way to sell or let property but nowadays it is more than ever before possible to find “someone who wants to let” if you want to rent a flat.
How do estate agencies work? Let us have a quick look at how estate agencies do their work for the selling and for the letting markets:
Estate agencies visit and valuate the property in question
Give you an estimation of the selling or monthly letting price, based on the valuation
Set up a commission or agency fee that will be charged for their services which varies from 1% to 3% of the selling price, or 10% to 25% of the monthly let.
Advertise your property, manage viewings, negotiations and paperwork
Close a deal and sign contracts and arrange deposit protection. These are, generally explained, the main functions of the estate agencies.
Now, is it worth it?
It always depends on the involvement and the availability of the landlord. If there is an urge to start a letting or sell a property and lack the time to put some effort on the selling, landlords might consider using estate agencies. Below, a table summarizing the costs of estate agencies and property portals:
Being the costs of the estate agency services a percentage of the selling or letting price, the higher the price is, the higher the amount of money the estate agency will receive. If you let a flat for £2,000 though an agency you will end up paying between £200 and £500 instead a property sold through an agency for £400,000 has an agency fee of approximately £12,000 for the above displayed services. Whereas online property portals have a one-time payment either for sales/letting of £0 to £700 which are usually an extra costs (purchased by landlord to increase reach, performance but those are not mandatory costs).So why keep paying more? Online property portals are usually free to use and although they require a bit more involvement from you, they not only bring better profits and save you money, they also allow you to have a better control of your property. So make a wise move, DIY and let your flat with Mind the Flat.