Agency versus own rental management

G

Gaules

Registered User
Messages
13
Imagine that I want to rent my property to other people and use an agency, and that agency charges me 7% to do the rental and its management.

Since I can claim back those 7% against the profit the propperty is doing (together with interest, insurance, etc), what is the advantage to do it myself versus thru an agency??

I do not really see any advantage, so I do not understand why some people would do it themselves (apart from if they are not claiming it to the Revenue) - can someone clarify please?
 
If you do it yourself and assuming tax at 42%, you still get in your pocket 58% of the 7% that you are not paying to an agent.
(for simplicity, i have not taken into account other taxes and other taxe deductible expenditures in following example)

Say rent is €500
Fee (7% to agent) = €465 taxable
tax at 42% = €269.7

Now, say rent is €500
Fee (0% DIY) = €500 taxable
at 42% = €290 so you get more money in your pocket...
 
Most of it is down to the cavalier approach of agents.

They don't care who goes into the property. If the rent is not paid, they don't care either (only getting few percent in any case). They don't assist in evicting or chasing defaulting punters.

Basically, it is money for old rope. For a bit of effort on your part, you can get a good quality tenant yourself. When it is your house you are damn sure you will care about it and are far more careful who you would let in the door. It is a powerful incentive for doing it yourself.
 
Agree 100% with Budgie.

Have used agents over an 8 year period when we lived abroad and it was an absolute nightmare. They don't care about you or your property. They'll take the first tenant they can get just to get the fee. They don't check references or the inventory properly when tenants leave and authorise repairs and maintenance willy nilly as the money is not coming out of their pocket.

Just my own experience, others may have had a different one.
 
Thanks Budgie and Delgirl for the wise comments! - would make a difference the agent appointed?

The 7% mentioned is for SherryFG, which seems to be quite reputable in the market place. Or would your experience says that does not matter,and they are all S*ITE?
 
I wouldn't say that they are all bad, but, IMHO, no-one will do a better job at looking after your property than you will yourself, provided you have the time.

There's a lot of very useful information about letting on this website and if you're unsure about something, you can always ask.

My personal view is that I would never use an agent again, unless it was absolutely necessary.
 
You must log in or register to reply here.
Back
Top