Letting Agents: Are They Worth It?

Introduction

For landlords — whether you're just starting out or managing a growing portfolio — one key question often arises:
"Should I use a letting agent, or manage my property myself?"

Letting agents can provide convenience, expertise, and peace of mind — but they also come with fees and limitations. This blog explores the pros and cons of using letting agents, the different types of services available, and alternative approaches like SmartLetUK’s LetDirect model that offer the best of both worlds.

What Do Letting Agents Do?

Letting agents offer a range of services designed to help landlords let and manage their rental properties. These usually fall into three categories:

• Tenant-Find Only: The agent markets your property, conducts viewings, finds a tenant, and handles the initial paperwork.

• Rent Collection: In addition to tenant-find, the agent collects rent and handles arrears.

• Full Management: The agent oversees everything — from compliance and repairs to tenant communication and renewals.

Pros of Using a Letting Agent

• Time-Saving: Agents handle viewings, referencing, compliance, and tenant issues, saving landlords time and effort.

• Expertise: They understand rental legislation and can help keep you legally compliant.

• Marketing Power: Agents list on major portals like Rightmove and Zoopla, helping fill vacancies faster.

• Tenant Vetting: Professional referencing can reduce the risk of problem tenants.

• Hands-Off Option: With full management, you can enjoy rental income with minimal involvement.

Cons of Using a Letting Agent

• High Fees: Some charge 10–15% of monthly rent for management, on top of setup or renewal fees.

• Lack of Control: You may feel distanced from your property or tenant decisions.

• Inconsistent Service: Not all agents deliver the same quality — service can vary widely.

• Limited Flexibility: Some agents are tied to long contracts or use outdated systems.

• Hidden Costs: Charges for inspections, maintenance mark-ups, and renewals can add up.

What Are the Alternatives?

Some landlords choose self-management, especially those with just one or two properties. This can work well if:

• You live near the property.

• You understand lettings legislation.

• You’re comfortable handling maintenance and tenant issues.

Others are turning to innovative alternatives like SmartLetUK’s LetDirect model, which blends the benefits of professional management with fixed, predictable income.

SmartLetUK’s LetDirect Model vs Traditional Letting Agents

FeatureTraditional Letting AgentSmartLetUK LetDirectMonthly Fees% of rent (varies)None – fixed agreementTenant ManagementVaries by packageFully handled by SmartLetUKVoid Period RiskLandlord bears riskWe cover voidsLegal ComplianceAgent may adviseWe ensure full complianceIncome StabilityRent depends on tenantsGuaranteed fixed rentLandlord InvolvementVariesTruly hands-off

So... Are Letting Agents Worth It?

It depends on your needs. If you value time, compliance, and support, agents can be helpful. But rising costs and service inconsistencies mean many landlords are reconsidering.

If you're looking for simplicity, stable income, and a fully managed experience without hidden fees, LetDirect by SmartLetUK could be a better fit.

How SmartLetUK Can Help

We work with professional landlords who want a better way to let their properties:

• Fixed, guaranteed rent — no more chasing payments or dealing with voids.

• No fees or commissions — what we offer is what you earn.

• Total management — from compliance to maintenance, it’s all handled.

• Stress-free lettings — enjoy peace of mind and steady returns.