Property journalism ~ Diary of a landlord III

Being the agent of your own success

The Observer

Agents? Who needs agents? 'Actors, authors, pop stars and TV presenters - that's who,' said my friend over our weekly pint at the Golden Unicorn. 'And property landlords,' I added quickly.

'Landlords? They're the scum of the earth. The only agents they ever need are secret ones who sniff out their dodgy little deals and scams.' There was no answer to that, so to speak, and I moved quickly on to lighter topics such as the latest rugby results and summer breaks in the Med.

However as I started for home I pondered our little chat. Almost half of the UK's 235,000 private landlords use an agent to manage their investments. Most agents charge 9-10 per cent of your annual rental income to find and sign up tenants and 15-16 per cent for full management. You can negotiate a discount for several properties.

When I bought my first two-bedroom flat, in 1990, I used a south-west London agency to find me a pair of tenants and paid a highly competitive 8 per cent for the privilege. After a year, the two young IT men were relocated to Leeds. I then decided to look after the flat myself, and promptly bought another to celebrate. And, I'm pleased to add, I've enjoyed managing ever since.

Psychology manuals would probably say it's all to do with 'dynamics' or being hands-on. That's fine with me. I certainly like finding, interviewing and dealing with people (most of the time), a little bit of organisation, and, dare I say it, getting a reasonable return on my investments. And my tenants say they like the personal touch - even if one or two weren't quite so enthusiastic when I lived in the same block.

If you happen to be an absentee landlord living overseas or a fair way from your holdings, a lettings agency is essential. It can draw up your tenancy agreements, run up inventories on furniture and fittings, call on reliable plumbers, electricians and builders, and replace tenants as and when needed to. There is also a respected advice forum known as Arla, the Association of Residential Letting Agents.

So, if Mary and I ever move away, we'll get an agent. But not the agent provocateur of my friend's wilder musings.

Landlords dodgy and devious - what's got into him?

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