Why use a Letting Agency?

 

Introduction

 

This article will be useful reading for all landlords who are considering using a letting agent.

 

The main reason and advantage of using a letting agent is that it saves you time, offers you peace of mind and ensures you stay on top of the law.

 

Letting a property may not be as easy as many think.

 

Here’s why

 

·         They know the market, have specialised knowledge and can simply probably do a better job.

·         It is their primary employment – however, you most likely have another job to maintain and perhaps can’t give it all the required time. It therefore saves your valuable time.

·         They have access to thousands of clients, looking for accommodation.

·         They have advertising resources and funds.

·         They have a brand name that you tenants will recognise and trust.

·         They have more access to the law – and can ensure that you and your property are compliant.

·         They can put you in contact with other well regarded service providers such as conveyancers.

·         They are more likely to get tenants in more quickly than you can, thus you receive income faster than going it alone. This is especially important if you have mortgaged the property and are paying a large sum of money every month to pay it off.

 

And how can they do it so well?

·         Your home will be appraised by the agent and you will be advised about local market conditions and provide an accurate assessment of the correct marketing price. This will attract potential tenants quickly.

 

·         Agents employ specialist trained staff, and are often open for extended hours throughout the week and at weekends.

 

·         They can erect a ‘For Let’ board to market the property to passers buy.

 

·         They can present your property to its fullest potential online, using floor plans, brochures, virtual tours and other marketing tools. They simply have more resources and finance available.

 

·         You can be put in touch with many other important services through estate agents such as financial advice and conveyancing.

 

·         Letting agents have a register of tenants who are looking for property locally.

 

·         Lettings agents can prepare a detailed inventory of the property and its contents which you and the tenant will be asked agree to. This is especially important since the Rent Deposit Regulations took effect.

 

Finding an Agent

Look for a local agent who is a member of relevant trade associations or accreditation schemes. The following associations or accreditation schemes are recognized by the lettings industry:

 

• ARLA - Association of Residential Letting Agents
• NAEA - National Association of Estate Agents
• NALS – National Approved Lettings Scheme
• RICS – Royal Institution of Chartered Surveyors

 

Duties as members of these schemes:

The benefit of knowing that your agent is associated with one of these schemes is that you know they will have to meet certain standards, this you are rewarded with peace of mind. The agent will have to:

 

• have to abide by a code of conduct;
• have client money protection;
• keep client monies in a client account;
• and maintain Professional Indemnity insurance.

 

Of course if things go wrong and there may also be some recourse through their association.

 

Can you keep afloat of the law?

 

One reason we mentioned was that by using a letting agent, you can stay ahead of the law. As a you are rewarded with peace of mind.

As a landlord, you must comply with extensive legislation. Failure to comply could give rise to possible litigation and fines. Professional letting agents keep up to date with all the relevant legislation and can provide suitable advice and guidance. For example, do you know all about the Unfair Terms in Consumer Contracts Regulations 1999; the Furniture and Furnishings (Fire) (Safety) Regulations 1988 (amended 1989 and 1993); the Gas Safety (Installation & Use) Regulations 1998 and the Electrical Equipment (Safety) Regulations 1994 and Smoke Detectors Act 1991. ut

 

How much help?

You can choose how much help you would like. An agent will happily do absolutely everything for you in relation to letting the property (‘full property management’), or alternatively, you can reserve some things for yourself and perhaps ask them to ‘tenant find’ only. Of course fees range from a set cost for specific individual services to a percentage of the monthly rent for a full management service. Some agents also provide valuable guidance and advice on insurance and other risk management matters

 

When things go wrong!

Of course some things go wrong no matter what you try to do to prevent them. This is when an agent is especially useful – they are experienced with the challenges involved with property letting, so can help you to move swiftly and guide you personally if you have problems. Agents can also put you in touch with third party specialists and may be able to reduce the rates that the third parties charge seeing as you are affiliated with the letting agent. Thus, you reduce your potential costs in the process.

 

 

Which letting agent?

Use an estate agent who has been recommended to you personally or an estate agent who you have used previously.

 

The fee isn't the most important factor in choosing an estate agent. A good estate agent will give you great service, keep you informed throughout the process and negotiate the best deal on your behalf.

 

Landlords and Homeowners often have full time jobs as well as buy to let investments, it is therefore frequently the case that with so many demands on their time they cannot always be available to handle day-to-day events connected with their property.

 

If this sounds like you then using a letting agent offering full property management could be an essential and economical way of ensuring the smooth running of a tenancy, while protecting the property and still making a profit.

 

Whilst letting your property through a specialist letting agent is not strictly necessary, a good agent will take some of the effort out of the job of finding and selecting tenants, drawing up tenancy documents, and the day-to-day maintenance of the property.

Advice from Net Lawman; Suppliers of Legal Agreements and paid for Advice to users of INEA.