The world of real estate can be a confusing and difficult place to enter. There are a lot of payments, a lot of legal requirements and a lot of different people and jobs you may encounter. A letting agent is such a role and it can be confusing as well as potentially frustrating to new landlords in having to pay out a fee to a letting agent.
Many landlords do prefer to do things themselves rather than pay someone to manage their properties for them and that is totally justified. However, as your portfolio grows and your time becomes stretched, a letting agent can be incredibly useful and allow you to make better use of your time as well as taking away some of the stress that comes with being a landlord.
What is the role of a letting agent?
The purpose of a letting agent is to find and manage properties for rent on behalf of their clients. Letting agents typically work with landlords to find suitable tenants and then manage the property on their behalf, dealing with any maintenance issues and collecting rent. This provides a hassle-free solution for landlords who do not have the time or resources to manage their rental properties themselves. In return for their services, letting agents usually charge a percentage of the rent as their fee.
What are the advantages of using a letting agent?
1. Rent is guaranteed
Even if there are things a rental agent will take care of before you pay rent, landlords frequently worry the most about it. Your financial flow may be disrupted, which may have an impact on other areas of your life, if your tenant fails to pay the rent or bills on time.
You will always have the tenancy agreement prepared, the deposit paid, and the first month’s rent collected for you in a let-only arrangement with an agent. But with a fully managed service, a reputable letting agent should ensure that you will always receive your rent.
2. Your legal requirements are taken care of
There are a number of legal prerequisites that must be satisfied before you can consider renting out your house to a renter, including gas and electrical safety, fire and safety standards, and Energy Performance Certificates.
Your letting agent will take on this responsibility for you and always stay current with any legislation changes, ensuring that your home complies with them, regardless of whether you have a let only or fully managed arrangement with them. The modest adjustments recommended by a leasing agent can make a big impact and might assist you in getting your house ready to rent. A managed service will also pay for all legal fees.
3. You won’t ever need to hire a handyman.
Since letting companies will provide a 24-hour emergency call-out service if your home is fully managed, you won’t ever have to worry about being awakened in the middle of the night by an overflowing washing machine or a broken boiler in the dead of winter.
The service handles all maintenance and repairs, saving you from needing to maintain a plumber, electrician, and builder on call.
While letting agents won’t be for every landlord (some prefer full control and that’s totally fine), they can be a very valuable investment and can produce far more revenue than their fee as well as giving you peace of mind and more time to enjoy your life and focus on expanding your portfolio.