February 28, 2025
Investment Tips / Manchester
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Property investment in Manchester has boomed in recent years, and the reasons for this success are clear to see. It was the fastest growing UK city in 2024 and has been tipped to be the second-fastest location for employment growth between 2024 and 2027.
Additionally, Manchester’s burgeoning reputation as a fintech hub has earned it the title of “the most AI-ready city in the UK” (SAS AI Cities Index).
Renters of all ages and professions are attracted to the city, and this creates a complex and dynamic lettings market. As a landlord eager to invest in Manchester’s thriving economy, you will need to make an important decision before you welcome your first tenant.
Some private landlords prefer to handle their own tenant recruitment and property management services in Manchester. However, others may need more support to enter this fast-moving marketplace.
So, should you hire a lettings and property management agent to look after your properties, or do it alone? Here, we examine the pros and cons of getting help with your rental portfolio.
What is the Role of a Letting Agent?
Some of the agent’s most important duties relate to setting up the tenancy. Tasks include finding and referencing tenants and drawing up an inventory for the property. As well as creating a list of contents, the agent will make a careful note of the property’s overall condition. This makes it easier to identify any damage when the tenant finally leaves. The agent can also arrange for the rental deposit to be safely placed with a government-approved deposit protection service.
What is the role of the Property Manager?
It’s hard to overstate the importance of property management for busy landlords. The agency will be your tenant’s first point of contact, handling everything from out-of-hours calls to legally required gas and electricity safety checks. Regular inspections are part of your agent’s management plan, so every few months, you should receive a report on the property’s condition. At the end of the tenancy the agent will handle the return of the tenant’s deposit (if necessary, minus any amount which has been mutually agreed to cover damage).
What about Repairs and Maintenance?
Whether or not you hire an agent to manage your property, you will still need to pay for any maintenance and repairs unless you are qualified to carry out the work yourself. If you don’t have the skills (or alternatively, trusted contacts to call on), professional property managers can help. At Orlando Reid, our managers have developed a network of highly trained and reliable tradespeople. This ultimately saves you money by avoiding botched repairs ,which could lead to further issues down the line.
You’ll also benefit from the peace of mind that comes from knowing your asset is being cared for by experienced professionals. This works both ways, as your tenants will feel reassured by their contact with a manager who can respond quickly to any questions and handle maintenance issues efficiently.
Is it Good Value for Money?
If finding and referencing a tenant is the only service you require, you will make a one-off payment to the lettings agent. If you want the agent to manage your property, you’ll be asked to make regular payments based on a fixed percentage of the monthly rental charge. It’s worth noting that you can deduct these fees from your earnings when you calculate your tax for the year.
Before deciding whether or not to use an agent, it is a good idea to estimate the time and costs involved in managing the property yourself. Initial costs will involve advertising and referencing. When the tenancy starts, rent collection, property inspection and supervising repairs will take up your time and may incur travel and parking costs if you don’t live nearby.
You’ll also need to keep up to date with admin and legal compliance. It’s estimated that UK landlords need to consider over 140 laws and regulations, with more legislation in the pipeline for 2025/6. Landlords can incur hefty fines for ignoring their legal obligations, which is why so many appoint an expert manager to handle the work.
Is Manchester a Good Place to Invest?
The regeneration of Manchester and surrounding areas has created a vibrant rental sector, with 31 per cent of the city’s population currently renting. The city ranks amongst the highest in the UK for rental returns.
The ever-growing demand for rental accommodation means we see a constant stream of tenants in search of high quality homes. As a result, void periods remain relatively low: last year, the average downtime between tenants was recorded as just 17 days.
Our lettings agents and property managers have a deep knowledge of the Manchester property market based on years of experience. We are always happy to provide advice and help, so why not get in touch today?
