Using a Rental Agent? Which Service Should I Go For?

admin    Landlords     agents, letting agreement, Service, tenancy agreements

Is this your first time letting out a property? Maybe you’re planning on using an Agent but you really aren’t sure what service you should be using. They generally fall under 3 different types of service categories.

Introduction Only or Let Only

As you can imagine from the name, this is the basic service that will market your property for you and be available for potential tenants to view the unit. The Agent would then take references, for which the prospective tenant would most likely be charged for this service. Once a suitable tenant was found, you would probably pay extra to your agent to have the tenancy agreement written up and signed. As soon as the tenant moves in the agents service is complete and the responsibility for collecting rent and taking care of the property falls back to you – the Landlord.

Rent Collection

Most agents will market this service as an add-on to the Let Only model, but is again a basic service that has its limitations. The agent will collect the rent on your behalf by setting up a standing order with the tenant’s bank account to have the monthly rent transferred into a rental account which would then be transferred to you. This is not a rent Guarantee. The agent will most likely have a few standard letters that would go out to remind the tenant that the rent is due, should they go into arrears, and he might even make a few calls on your behalf. If however the matter becomes a court situation in order to collect back rent, this would become your responsibility. If you want to save the 2 – 3% that the agent would charge, it would be just as easy for you to set up the standing order yourself.

Full Management

This is the hardest decision to make; do you want to manage the property yourself or hire an agent to do this for you. There are several things you should consider before making this decision.

If for example you do not live locally, it would be quite impossible for you to be there quickly should there be an emergency, or to do check ins and outs, or for periodic inspections.

How knowledgeable are you about repairs and maintenance? You need to have a basic understanding to be able to figure out what was wrong, and either how to fix it or who you should call. And without the basics, it becomes more likely that you could be taken advantage of by some unscrupulous tradesman. This is where an agent would have the advantage, especially if they have several properties they are managing. They would hopefully have a good team of tradespeople they could call on, and if they are giving them steady work, the tradespeople have a tendency of putting letting agents in priority sequences.

And the most important question you need to answer is: do you have the time it takes to manage the property yourself? Problems have a way of occurring at the worst possible time and could interfere with your other commitments, such as family. Your tenant doesn’t care what he’s interrupting; all he knows is that he has a problem and wants it fixed – now!

If after reading this you’ve decided that managing the property yourself is just not worth it, try to negotiate with the letting agent about their management fee. Most agents like the benefits of managing the properties such as receiving repeat let only fees so they are more likely to be flexible when charging a management fee. Let Only fees are usually paid up front whereas the management fee would be received monthly.

In order to find the right letting agent for you, why not let ‘Letting Links’ help you find what you are looking for? We can even match you up with some potential tenants, so check out our services.