Letting agents can provide a range of services depending on your requirements. These include practicalities such as: preparing the property prior to renting it out; marketing and advertising; performing safety and other property inspections; vetting tenants; drawing up the lease and inventory; managing the deposit; collecting rent and chasing unpaid rent; and organising repair and maintenance matters.
Deciding whether to use a letting agent is a personal decision but it could be dictated by circumstance if you do not live close to your buy-to-let property. Outlined below are some of the benefits and drawbacks of using a letting agent.
Advantages
• The stringent use of vetting and referencing procedures means you're more likely to attract reliable tenants.
• Letting agents can be a valuable source of advice and information.
• Letting agents can deal with placing your tenants' deposit in a secure deposit protection scheme.
• Letting agents can handle all of the paperwork in relation to your property.
• Local letting agents can take care of the day -to-day issues that arise if you do not live near the rental property.
• Letting agents are knowledgeable of market conditions and demand.
• Experts in their field, letting agents will probably be able to achieve a higher rent than you would.
• Letting agents are aware of the relevant legislation affecting landlords.
• Letting agents act as an objective and impartial buffer between you and your tenants.
• Letting agents can reduce your workload (and possibly stress and anxiety).
• Your tenants will be clear who to contact if necessary.
• Letting agents may be able to offer legal, Landlord Insurance and tax advisory services.
Disadvantages
• Letting agents come at a price. Typically, they charge between 5% and 15% of the rental income. The more you require them to do, the more they'll charge.
• Generally, if you use a letting agent you won't have any direct contact with your tenants.
• If there are any problems, using a letting agent will result in extra administration and paperwork.
• As a landlord you will probably still have to pay for repair costs and if the letting agents have arranged the repair work on your behalf you are likely to be charged an arranging fee.
Questions to ask letting agents
1. Is the letting agent a member of a professional body such as The Association of Residential Letting Agents, The National Association of Estate Agents or The Royal Institute of Chartered Surveyors?
2. How does the letting agent find tenants?
3. Who will maintain the property?
4. What service packages does the letting agent provide?
5. What charges will be incurred?
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