There used to be a terrible time in history when portfolio landlords – especially those with properties scattered all over the place – were limited to either self-managing their own portfolio of rental properties, or using multiple high-street letting agents to do so on their behalf.
The reality of either solution has always been less than ideal, because self-managing multiple properties around the country can be a royal pain in the ass (least of all practical), and using multiple agents can be chaotic and devastatingly expensive.
Fortunately, in today’s digital age, technology has been able to provide a third option, which allows portfolio landlords to use one management agency to manage their entire portfolio for a lot less.
Welcome to the world of online lettings agents [portfolio management edition].
Table of contents:
The dramatic switch to Online Services
The whole “online letting agent” phenomena isn’t a particularly new trend anymore, in fact, landlords have been ditching traditional high-street letting agents for online agents for the past decade, and saving a buttload of money in the process (the primary basis of their appeal). However, while many of us have been won over by online agents, it hasn’t stopped them from evolving, bridging the gap on the products and services that only high-street agents were once able to provide.
If you’re scratching your head, blissfully unaware of what an online letting agent is, I encourage you to read my comprehensive guide on online letting agents.
The earliest iterations of the online letting agency model was purely for the average, every day self-managing landlord, who simply requiring ‘tenant find’ services, with the primary feature being a quick and easy way of getting their rental advertised on Rightmove and Zoopla in order to generate enquiries from prospective tenants.
But today, there are online agents that have taken giant leaps forward, and are able to provide all the services that you’d expect from a local high-street agent offering fully-managed services, plus more, including:
Essentially, online agents are able to provide services from A-Z, making their service suitable for not only those that want a cost-effective tenant-find solution, but also a fully-managed service, which is why they’re now becoming incredibly popular amount portfolio landlords.
What is a portfolio landlord?
Okay, just so there’s no confusion, the general consensus is that a ‘portfolio landlord’ is someone with four or more rental properties. Although, I have seen definitions which insist it’s five properties. Either way, the difference is trivial.
Why Portfolio Landlords use Online Letting Agents
Ultimately, there are three bold reasons for why portfolio landlords are using online management solutions:
- One online agent can manage all properties across the country
- Online agents can offer a wider range of flexible packages, loaded with tonnes more features
- Much cheaper than traditional high-street agents. Online agents generally charge fixed monthly fees as opposed charging a percentage of the rent, which also seems to be very appealing.
- Unlike with high-street agents, you won’t be tied into any lengthy contracts, because they operate on monthly contract agreements. Yup, that’s a beautiful thing.
I won’t cover why those perks are possible with an online agent, because I’ve already covered it in the guide I linked to earlier, but know that it’s real.
But I will say one thing to those that want to swerve the in-depth guide, and aren’t entirely sure how online agents works: the premise is that online agents work from a central office, they don’t have a high-street presence (i.e. a local branch you can walk into), instead they operate from one centralised office, and make all their sales via their website and over the phone, and also provide all their support to landlords and tenants over the phone and email. Ultimately, that means they have much lower overheads compared to high-street agents, which is precisely why they’re able to provide a nationwide service, and offer much cheaper solutions for managing properties. Like, massively cheaper.
Online Property Portfolio Management Companies
There are quite a few online agents offering managed services these days, but just to give you an idea of what you can expect, I have hand-picked a few varying levels of packages offered by what I believe to the best online agents currently around. I’ll be sure to keep the list updated if anything changes.
These agents and packages aren’t just exclusive to portfolio landlords, they’re suitable for any residential landlord, from one property to hundreds.
Howsy |
Rating TrustPilot Reviews |
Duration Month by month |
Notes / Includes
Full Management Service
Optional Extras
Pricing & Discount explained *£41pcm price is based on one years’ fee and with the usage of the discount (which qualifies you for 30% discount). Normal price is £59pm. *£62pm for properties inside of the M25 with the usage of the discount (which qualifies you for 30% discount). Normal price is £89pm. **Sign up via this link to claim your 30% discount – mention you came from Property Investment Project. |
Price *£41pmInc VATPrice shown with exclusive discount! Discount available |
Visit Website**30% discount using link above! |
99 Home |
Rating TrustPilot Reviews |
Duration Month by month |
Notes / Includes
Full Management Service (Silver package)Will market your property on Rightmove, Zoopla + more.
Optional Extras
*Includes exclusive £40 discount on setup fee: 99PIP40 |
Price *£39 setup fee + £45pmInc VATNormal price: £79 setup fee + £45pm Discount available |
Visit Website |
Letting A Property |
Rating Review Centre |
Duration Month by month |
Notes / Includes
Complete PackageSolution for Rent Collection & Guaranteed Rent, Home Emergency Cover and Legal Cover!
*Landlord pays one-off £149 upfront, and then £99 per month. |
Price *£149 setup fee + £99pmInc VAT Promo running |
Visit Website |
Please note, I try my best to keep the information of each agent up-to-date, but you should read the T&C’s from the agents’ website for the most up-to-date information.
If you have a particularly large portfolio, I would take the prices shown above as guide prices only, because you’re likely to benefit from additional discounts if you contact the agents directly (you may even get a better discount if you mention that you were referring by PropertyInvestmentProject. Just saying).
Do you really need to use a portfolio management service?
It depends!
I guess it really boils down to your personal circumstances and your appetite for graft.
If you’re currently at the cross-roads and contemplating whether you should or shouldn’t use a portfolio management service (whether it an online solution or local management agency), perhaps it’s also worth going over some of the advantages of self-managing (since I’ve covered the advantages):
- The obvious benefit is the thousands and thousands of pounds that will be saved annually on management fees (of course, everyone’s time and energy should also have a price, and that’s something you shouldn’t neglect).
- Managing your own properties will give you more control and often result in better decisions!
- If you like keeping busy and being in the thick of your empire, then there’s no better place than sitting at the helm!
However, it’s also worth asking yourself the following questions before making your decision:
- Can you afford to employ a management service?
If you’re running on super tight margins, you might be better off doing it all yourself.
- Do you have the time?
Managing a large portfolio of properties ain’t no joke! It can be pain-painstakingly time consuming, so it’s worth considering whether a) you have the time to manage the properties and b) if you’re prepared to spend less time on other activities that you may enjoy more. - How will managing a portfolio of properties impact the quality of your life?
- Does it make more sense to split the responsibility?
If you own a particularly large portfolio, it might be worth relinquishing control of a small portion of your portfolio to an agency and then assessing the situation.This drip-feed approach will allow you to determine whether you want to unload more responsibilities, or even claw some back, depending on finances and other extenuating circumstances.
An alternative solution to outsourcing is to actually employ someone local to manage all of your properties. It could be cheaper (depending on the size of your portfolio) and also working with one in-house agent would allow for a much more controlled and streamlined operation. Once again, it’s about weighing up the costs and being able to find the right person for the job.
Right, I’m done!
Your thoughts and questions welcome!
Disclaimer: I’m just a landlord blogger; I’m 100% not qualified to give legal or financial advice. I’m a doofus. Any information I share is my unqualified opinion, and should never be construed as professional legal or financial advice. You should definitely get advice from a qualified professional for any legal or financial matters. For more information, please read my full disclaimer.
