A review of the pros and cons of letting agents
You must prepare the property for rental; market and advertise it; carry out safety inspections and other inspections; screen tenants; prepare a lease and inventory; manage the deposit; collect rent and chase rent arrears; and arrange maintenance.
It is likely that you will need full-service management if you do not live close to your rental property. The alternative is to hire a property manager to carry out tenant finding services, where they show tenants properties and recommend tenants, or they can let only services, where they find the tenants, move them in, but you manage the tenancy.
In general, Letting Agents Edinburgh has more pros than cons, so your choice may simply depend on how much you want to spend on marketing your property and your perception of value for money.
- You’ll be more likely to attract reliable tenants if you follow strict vetting and referencing procedures
- You are taken care of in terms of security deposit protection schemes
- Keeping your property in order requires the assistance of a letting agent
- Rent can be collected and reclaimed by your company
- Property management and maintenance issues can be handled by letting agents
- Knowing the market conditions and demand well, the experts have a good understanding of their field.
- The rent will likely be higher if you work with a letting agent
- Landlords are informed about current legislation concerning letting agents
- There is a buffer between you and your tenants that is objective and impartial
- Rental agents have experience resolving disputes
- Let agents know the proper legal process for evicting tenants
- Your workload (and perhaps anxiety) will decrease when you hire an agent.
- In addition to providing legal advice, landlord insurance, and tax planning, letting agents might also be able to offer legal services.
- The fees charged by letting agents are typically between 5% and 15% of the income from the rental. Consider what you will receive for the money you spend
- In the event of eviction, there will be extra paperwork, administration, and possibly costs involved
- Occasionally, letting agents will charge a fee for arranging repairs on your behalf, on top of actual repair costs
- In some cases, agents charge additional fees for third party services, such as arranging energy certificates and gas safety certificates.
Ask your letting agent the following questions if you intend to use one:
- Are you a member of an appropriate professional organization like The National Approved Lettings Scheme http://www.nalscheme.co.uk/ or The Association of Residential Letting Agents http://www.arla.co.uk/
- Clients’ money is protected by the company’s policy
- Are you thorough when it comes to referencing tenants?
- Will the property be maintained by whom and how?
- How about one page listing all of our charges and services?
These are only general informational purposes and do not constitute any advice. Although Direct Line for Business endeavors to keep the information up-to-date and correct, it makes no representation or warranty as to its accuracy, completeness, reliability, or suitability. If you place any reliance on the information, you do so solely at your own risk. This service is provided “as is” and Direct Line for Business is not responsible for any direct, indirect, special, consequential, or incidental damages.