A letting agent’s main role lies in managing private landlords’ properties. Responsibilities of a letting agent range from finding tenants to collecting rent and taking full responsibility for those tenants and the management of various properties.
Should You Use a Letting Agent?
A good letting agent can take the many responsibilities of managing your property off your shoulders for a small fee. This can sometimes be priceless along with the worry-free income that you can receive from your properties on a monthly basis.
Consider what comprises your landlord responsibilities and if you feel as though you can manage them on your own. You may want to consider a letting agent if:
- You don’t have a lot of spare time outside of your landlord duties.
- You would prefer if someone else handled tenant problems and queries.
- You are a new landlord looking for professional help.
- You don’t have a strong understanding of current legislations.
- You live in a different area than your letting property.
Letting agents are able to charge the landlords they serve fees for their services because they are contractually obligated to put the needs of their clients first. Tenants are also charged a fee of service for the duty of care.
Letting Benefits for Tenants
There are many advantages in utilising a letting agent when in search of a new property. Letting agents in Essex will have expert knowledge of the areas that they serve. This can help you save a great amount of time and effort in your search for the perfect home in tighter timeframes. Letting agents can also be a positive buffer between you and the landlord if issues should arise during your tenancy.
Letting Benefits for Landlords
Letting agents offer landlords three types of professional services.
- Finding and Arranging Tenant Contracts: This includes the initial finding of tenants and arranging the let. Typically, you can hire a letting agent to find great tenants for your property for a one-off fee. The letting agent will check references, conduct credit and background checks, collect the property deposit, and draw up letting agreements.
- Collection of Rent: The letting agent will be responsible for collecting rent from your tenants on a monthly basis and will also be responsible for chasing any late payments that occur. A typical fee for this type of service is approximately 5% of the monthly rent amount.
- Full-Time Management: Your letting agent will manage all aspects of your rental. He or she will not only collect rent but also deal with any queries and schedule repair and maintenance work. As a landlord, you can expect to pay anywhere from 10% to 15% of the monthly rent for this management service.