Having an investment property is a good thing. You can rent it out and get an additional monthly income to supplement what you already have. But what you earn largely depends on where your home is located and its size. Making money also depends on finding good renters. This is why some people work with a property letting agency.
On the other hand, finding a landlord that is the right fit can be pretty hectic if you are a tenant. You may struggle to find a home that can accommodate every family member with the amenities you need. Also, you want to rent a property whose landlord maintains a clear communication channel and deals with any issues arising in your rented property. Get started by learning about property letting agencies.
What Services Do Property Letting Agencies Offer?
A property letting agency helps landlords obtain tenants, collect rent and maintain their properties. It can mediate disputes between tenants and their landlords and ensure that repairs and maintenance problems are quickly handled. In addition, they can help tenants easily find suitable properties. Below are the four primary services a property letting agent usually offers.
1. Managing The Property on the Owner’s Behalf
Suppose you are a hands-off landlord or live far from your investment property. In that case, you can hire a property letting agent to manage the property for you entirely. The letting agents will be available when a tenant has a repair or maintenance issue.
When a new tenant arrives, departs, inquires about their deposit or faces eviction, your agents can deal with them directly. Additionally, they can carry out regular inspections while adhering to rental laws. Meanwhile, you can pursue your interests without worrying about your property.
As a tenant, you also benefit from the letting agent managing a landlord’s property. The agent can answer your questions, send requests for repairs to the landlord or maintenance crew, and provide information on your rented property, such as electrical safety certifications and operating appliances. They also perform credit and reference checks on your behalf.
2. Matching Tenants to the Property
If you struggle with finding tenants, you can hire a property letting agent to do it for you. Property letting agents can find the right tenants for your needs by advertising your property to target audiences, screening those who show interest, investigating their behavior in previous rentals and determining if they have the right to rent properties in the UK. They can ensure you adhere to laws concerning who can occupy your property. For property letting agents that provide tenant matching services, the work stops once they find a suitable tenant and set the date they move in.
If you are a tenant, you can apply for a particular type of property within your budget and ideal location, and the property letting agency can find what you need. In addition, you can access a personalized tenancy agreement that safeguards your interests.
3. Helping Tenants
Property letting agents make it easier for tenants to access the properties they are interested in and match them up with the most suitable properties for their needs. They also draw up tenancy agreements that outline what the landlord and tenant are responsible for, which guards everyone’s interests.
In addition, property letting agents have relevant connections that let them find service providers to make repairs and maintain the homes they manage. By doing so, they ensure tenants live comfortably.
While this role is tailored for tenants, it works in your favor if you are a landlord because it helps you find people who are the right fit for your property. Also, it may decrease the time you spend looking for people to rent your property while increasing business profitability. In addition, it can reduce friction between you and your tenants because the agents can handle most of the complaints concerning maintenance and repair issues.
4. Getting the Property Owner Paid
The entire point of renting out property you own is for you to earn money. You need to have a strategy to ensure each tenant pays what they owe on time. Unfortunately, rent collection is not always as straightforward as it seems. When tenants can’t pay, it is difficult for everyone. You may not have the skills to collect rent payments or agree on alternative solutions. That is where the property letting agents come in.
First, a property letting agent can make sure you follow the regulations on handling tenant deposits. When the need arises, they work with the tenants to ensure the rent arrears are paid. If you have other tenant payment issues, they can advise you on how to solve them.
You can negotiate a grace period to pay off your rent arrears if you’re a tenant. If you need your deposit back, the property letting agents can handle that for you and help you get your money faster.
When to Use a Property Letting Agency
Consider using a property letting agency as a landlord if you:
- Don’t want to manage your investment property actively
- Live far away from the rental property and can’t manage it yourself
- Lack the expertise required to run a rental property business and need professional help as you learn the ropes
- Pursue other interests, such as global travel, and need to leave your property and tenants in good hands
- Have a second job and don’t have the time to take care of tenants, collect rent and oversee the repairs and maintenance of your rental investment property
As a tenant, you might use a property letting agency if you:
- Have no idea where to find a suitable home in your preferred location
- Need a home that accommodates all your needs and those of your loved ones
- Need assurance that your landlord will offer a valid tenancy agreement that safeguards your rights as a tenant and professionally handle your requests for maintenance and repairs
Factors to Consider When Choosing a Letting Agent
Not every letting agent will do. It’s essential to choose the right one for your needs. Below are some factors to consider during the selection process if you are a landlord.
- Effective property letting agents have an excellent plan for marketing your rental property and handling the tenants afterward.
- A good property letting agent will be up front about their fees and services. Any agent that does not communicate clearly and is dishonest about all their fees will likely offer poor quality services. If they don’t fit within your budget and their services are not optimal, take them off your list.
- Good property letting agencies have many references. Read reviews, check out online ratings and contact several references to understand how various agencies work in reality. You can select the company that best suits your criteria depending on the scope of work they provide and their fees.
- A suitable property letting agent must be informed concerning the current regulations governing the rental market. Ask them how they will resolve various issues, such as deposits and tenant checks. If an agent is ignorant of or unwilling to follow the law, consider that a red flag and move on.
- A professional letting agent must belong to at least one Client Money Protection (CMP) scheme. Such schemes ensure that you will be compensated for lost rental earnings if your property letting agent absconds with your money. If a property letting agency is reluctant to inform you of the CMP scheme they belong to, remove them from your list.
As a tenant, look for these criteria:
- A suitable letting agent should be in direct contact with the landlord in case you need clarification and assurance.
- Suitable property letting agencies draw up a tenancy agreement that safeguards not only the interest of the landlord but also the tenants.
- A professional letting agent should transparently answer all your questions concerning the property for rent. They should provide that information clearly if you need relevant information concerning appliances, gas or electrical certifications, and deposits.
Whereas traditional real estate agents connect renters to landlords or buyers to sellers, property letting agents do much more. Even after finding tenants, they stick around to help tenants settle in and enjoy their stay while ensuring the landlord receives rent payments on time. In addition, they enable tenants to find the right property in their desired location and handle repair and maintenance issues afterward.
If you are looking for someone to actively manage your property after finding tenants or help you find the ideal home for your needs, partner with a good property letting agent.
