PIMS Tips: Should you use a Letting Agent?
Posted : 31/01/2017 | By Amanda Hosking Editor: Hayley Cowburn
Video Transcript
Should you use a letting agent?
Letting agents can take a lot of stress and pressure away from the Landlord. But are they really worth the investment?
What exactly does a letting agent do for the landlord?
There are various levels of service that you can get from a letting agent. Many landlords use a letting agent to just find new tenants, collect rent or some may opt for full management.
The decision often comes down to how many properties you have and how much time you can dedicate to property management.
Here’s the initial process that you will typically go through with a letting agent.
1. The letting agent will visit your property and calculate the rental income.
2. The agent then advertises the property and will show prospective tenants around.
3. As the landlord, you will be updated with information on viewings and offers made. Allowing you to make the decision.
4. Agents can also act as an intermediary during negotiations (for example, if the potential tenants put in a lower offer).
5. Once you and the prospective tenant have come to an arrangement, a tenancy agreement will be provided by the Letting Agent.
6. This legal contract is then read and signed by both parties.
Other letting agent services include: Tenant Vetting, Inventory Checking and dealing with day-to-management such as repairs.
So…what are the pros and cons of using a letting agent?
Starting with the pros...
Letting agents take on the responsibility of ensuring the tenancy agreement is completely watertight.
It is the Letting agent’s job to find reliable tenants. They use strict tenant vetting processes to ensure you have suitable tenants.
With an established agency, your property is likely to be advertised more effectively and therefore occupied quicker.
Letting agents take care of advertising the property, tenant sourcing and viewings which saves you a lot of time and stress.
Agents have a lot legal knowledge and are experts on property rental legislation which can be difficult to keep up with. They also offer management services, which involves taking care of maintenance and repairs.
If tenants become a problem agents can lend a helping hand. They will have experienced dealing with disputes before and will be able to advise on what to do and how to evict if needed.
What are the cons of using a letting agent?
Lettings agents will charge a fee for their services, so it will cost more than going at it alone.
You will have reduced control as the letting agent will take care of most aspects of the renting process.
Some agents have a bad reputation and potential tenants will not use them – so make sure you select an agent carefully.
Having an intermediary means there could be a potential for slower communication between you and the tenant.
So…are Letting Agents worth the money?
Think about how each of the pros and cons are likely to affect you.
Talk to a reputable letting agent and find out the different levels of service available to you.
You may find that the end cost will be worth the extra help and the time you save to spend on other projects or areas of your life.
Alternatively you may find going at it alone is achievable as part of your weekly routine.
If you do decide to go at it alone, PIMS is here to help. We provide all PIMS members with all the legal documentation you will need as a landlord: from tenancy agreements to section 21 notices.
We also provide free credit checks, update you on the latest news and legislation affecting landlords and provide further guidance over the phone on our helpline.