If you are deliberating whether to use a letting agent to manage your rental property, there are many factors to consider. For new landlords, letting agents can take care of many of the unfamiliar, complex and time-consuming tasks that are involved in renting property out.
Even experienced landlords often choose to use letting agents because they don’t have time for all the work involved in property management. Another reason landlords might choose to use a letting agent is if they do not live close to their rental property.
For example, if a landlord has a property in areas such as Wimbledon Village or Raynes Park but they live miles away, travelling to the property to do inspections or viewings will be inconvenient.
Some landlords are happy to take on the management responsibilities themselves, so it really depends on what works best for you. So, if you are wondering whether it is worthwhile using a letting agent, read on.
A letting agent manages aspects of running a rental property on behalf of a landlord. The extent of the work they do depends on the agreement, as some arrangements may only include finding tenants, while other arrangements are more comprehensive.
A full lettings management service will typically include marketing the property, viewings, referencing, arranging maintenance and dealing with tenant enquiries. An agent will also usually collect the rent, create the tenancy agreement and arrange (e.g.) gas safety certificates.
Landlords who prefer to hand the responsibilities of managing a property over to a letting agent can take a step back, safe in the knowledge that experts are handling all the management tasks and legal requirements.
These are some of the top reasons to use a letting agent:
Using an agent will usually ensure that your property is rented out quickly. Agents often have a waiting list of prospective tenants who are interested in renting a property in the area, and they have expert marketing strategies that can quickly find ideal tenants.
Agents also have an in-depth understanding of the local market, so they know exactly how to market the property to attract the type of tenant you are looking for. For example, families will prioritise quality of local schools and professionals working in the city will look for properties with good transport links.
The agent will use their knowledge of the area to highlight how the property meets the priorities of the desired tenant type. Local market knowledge can also help decide the most suitable rent amount based on the local market rates and property type.
Experienced agents have the benefit of years working in the property market and can identify properties that will provide great investment opportunities, and ensure you can maximise your rental yields. For landlords who are looking to purchase a property to rent out, agents can advise on the best areas to buy in to deliver high rental income and capital growth.
An agent can also provide advice on all aspects of letting properties, from whether home improvements will be a worthwhile investment, to which tenants to select.
Landlords have many regulations to comply with such as gas and electrical safety, fitness for human habitation and right to rent checks. The Renters’ Rights Bill is currently going through Parliament, and this includes significant changes to legislation for the private rental sector, including compulsory membership of a new Ombudsman redress scheme.
Staying up to date with the latest regulations is no easy task, but agents can help ensure compliance with all the regulatory requirements.
There are many tasks involved in property management, and it can be overwhelming as well as taking up considerable time.
Letting agents provide various levels of service, so you could ask an agent to just find a tenant or pass over the full management of the property. With the latter arrangement, the letting agent will provide a rent collection service, arrange maintenance with contractors, be the point of contact for the tenant and support compliance. A full service will include everything from making sure you’re compliant with smoke alarms’ regulations to dealing with emergency repairs.
Managing one property might not be overly demanding but if you have plans to expand your property portfolio, the amount of work could quickly escalate. A letting agent can support a growing portfolio, and your agent can even keep an eye on the market for new investment opportunities for you.
Some letting agents also offer rent guarantee schemes and landlord insurance. These can be at favourable rates compared to the general insurance market and a good letting agent will ensure that you have the right level of cover that you need.
The fees charged by agents vary depending on what services are included and the location they are based. Full management services generally range between 10-15% of the monthly rent payment. If you opt for just a tenant finding service, this may be charged as a fixed fee of around £750 to £1,500.
If you are looking to keep your involvement to a minimum, using a letting agent will more than likely be worthwhile. Managing rental properties comes with a huge amount of work and complex legal obligations, which a letting agent can take off your hands.
Agents can manage all the complex legal obligations as well as the time-consuming tasks, so if you do not have time to keep up with legislation changes, answer tenant enquiries and deal with maintenance issues, an agent will probably be a good option for you.
Yes, it is possible for a landlord to change letting agent mid tenancy. To switch agents, you will need to provide written notice to your existing agent and instruct your new letting agent to liaise with them to obtain the necessary documents and information.
When you are choosing a letting agent, make sure that they are a member of a client money protection scheme, as this protects your deposit and rent in the event that an agent misappropriates money. You should also check whether they are members of the UK Association of Residential Letting Agents (ARLA) as this will mean that the agent meets the standards set by the regulatory body.
At Robert Holmes, we have years of experience helping landlords with property management across South West London in areas like Wandsworth, Putney, Battersea, Clapham and beyond. Contact us to find out more about our services.
Ticking off the items on this list will help you keep track of your legal responsibilities when renting out a property.
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