What are the main benefits of using a letting agent
How to avoid the hassle of property repairs, how to find a good tenant, how to manage unpaid rent and rent arrears, how to renew tenancies, how to deal with complaints about maintenance, how can you run a property portfolio without it running you…!
Whether you are a seasoned property investor or an ‘accidental’ landlord who has just inherited a property you need to consider how your property will be managed.
The first foray into the property rental world for many, will be an inherited property which is either already tenanted, or they decide to keep the property and rent it out to earn an income. The learning curve for these landlords is very steep indeed and these landlords should ideally seek the services of a professional letting agent to manage the property for them.
For more experienced property investors who know a little more than the rest, there is a temptation to manage the property yourselves, particularly if you have a few years’ experience under your belt. The temptation to self-manage, in order to save the property management fees must be pretty strong, particularly if you live in the immediate neighbourhood of your rental properties. An interest in property and what started as a bit of fun can easily turn into a major headache if the property portfolio is not managed in a professional manner however.
Key benefits of using a professional letting and management agent
Finding tenants
One of the main benefits to using a professional agent is their ability to find good quality tenants. They are able to arrange viewings, interview potential tenants, carry out the tenant referencing and credit checks. They will have an office environment geared up to carrying out these tasks. They have a website to market your property and they are experienced at their job.
Compare this to a DIY basis run from your own home!
Legal requirements
A professional letting agent will be able to advise you about any legal aspects of renting a property along with any relevant new legislation and how it will affect you. They can advise on issues such as gas safety certificates, electrical installation certificates, compulsory landlord registration (use of which is different for parts of the UK) smoke and carbon monoxide detectors, using the correct tenancy agreements and more.
Getting your rent paid on time
Many landlords have a Buy to Let BTL mortgage and need to have a regular rental income to finance the mortgage. A letting agent can manage rental payments for you so you’ll know they should be paid on time, every month. You still need to check your bank statement though, to make sure they agent has paid you!
Repair & maintenance
A letting agent will, almost always, have a network of local firms they can call on for repairs such as plumbing, electrical, painting, carpets, roofing, glazing etc. Use of these will mean the property owner doesn’t have to scrabble around seeking out quotes from different companies for a property that may be 100 miles away or more. It always pays to carry out the occasional reality check on bills however, just to ensure you are being charged a fair price by your letting agent.
Property insurance and rent guarantee insurance
Most professional letting agents will have facilities to offer landlords buildings and contents insurance and rent guarantee insurance. This is when you need to consider an alternative option and seek a quotation from a specialist property insurer. For the same reasons you should use a professional letting agent, you should use a professional property insurance broker for the landlords and rent guarantee insurance.
Conclusion
There will always be a bit of hassle if you have a rental property but use of a professional letting agent can soften this immeasurably. You won’t get a call in the middle of the night complaining about a leaking shower. You’ll have peace of mind about the legal issues, the rent being paid and the tenants looked after with no intervention needed by you. You won’t need any contact whatsoever with your tenant, leaving you more time to sit back and watch the rent coming in!