A letting agent helps landlords manage their property and rent it out to tenants. They will help with the advertising, conduct viewings and carry out referencing as well as drafting the tenancy agreement.
Letting agents are also experts in the laws that govern private rentals and can provide landlords with guidance on their responsibilities. They can also advise on the rental figure based on market conditions.
Tenant-find service
As the name suggests, this type of service enables landlords to find their own tenant for a property. This involves the agent producing letting particulars, conducting and attending viewings, references and Right-to-Rent checks and setting up an Assured Shorthold Tenancy agreement for the landlord to sign.
If you opt for this level of service, ask the agent what their fee is and how long they expect it to take to find a tenant. Agents are required by law to display their fees and it’s also worth asking if they have Client Money Protection Insurance in place.
Some agents specialise in hard-to-let properties and will use their knowledge and experience to quickly secure a new tenant, even for the most awkward of properties. They will often have contacts for tradespeople like plumbers and electricians and will be able to advise on what works are needed to ensure the property is compliant.
Check that the agent you choose is a member of one of the government-approved redress schemes. This will protect you if something goes wrong, and is another important indicator that they are professional and serious about their business. They should also have public liability insurance and professional indemnity insurance in place. This will cover you if they are sued, for example by a tenant who has been let into your property and damaged it.
Tenant-manage service
Letting agents Dundee are often hired by landlords who wish to manage their own properties but would like a professional to find and vet tenants as well as carry out some of the day-to-day tasks. This is generally known as a "tenant-find" or "tenant-manage" service and can include services such as listing and marketing the property, conducting viewings and reference checks, creating an inventory checklist, and setting up the tenancy agreement. It may also involve collecting rent and managing the account, carrying out inspections, arranging maintenance and dealing with tenant disputes.
Letting agent fees for this level of service can vary widely and landlords should carefully consider their options before choosing an agent. Agents should clearly display their fees in branch and on their website, and landlords are encouraged to shop around and compare costs before making a decision.
Landlords should also check that the letting agent they are considering is a member of a government-approved independent redress scheme such as ARLA Propertymark and has Client Money Protection (CMP). Failure to provide this information should be regarded as a red flag and the agent should not be retained. It is also advisable to review the terms and conditions of any contract before signing, and in particular the clauses around tenant placement and deposit protection. Some agents are required to protect deposits in a government-approved scheme, while others may choose not to.
Fully-managed service
A letting agent’s job often doesn’t end once they’ve found a tenant. Some will offer a fully managed service, which is perfect for landlords who are too busy to deal with day to day issues themselves or who want the peace of mind that their property management is in safe hands. They’ll collect rent, deal with any questions or concerns that your tenants might have and arrange maintenance work using their preferred contractors.
If you’re considering a fully managed service, ask your agent what they can do for you, including how much it costs. You should also work out how many hours you can afford to spend managing your property on a part-time basis and see whether it’s worth your while paying someone else to do it for you.
Letting agents are experts in their field and they should be able to keep abreast of the latest legislation on renting out properties. They can also help you to understand the rules and regulations, which are often complicated and constantly changing. They can be a great buffer between you and your tenant, especially if you’re new to being a landlord or if the relationship with your tenants has become difficult. They can also take away the stress of day to day lettings issues, which will give you more time to relax and enjoy your investment.
Find an agent
A letting agent can take on a full range of tasks for the landlord including marketing the property, conducting viewings, carrying out referencing and checks on tenants, drawing up a tenancy agreement and preparing an inventory. They will then collect rent from the tenant, deal with any maintenance issues that arise and manage deposit disputes. They can even offer insurance that covers rent in the event of non-payment.
The service level required by a landlord may vary depending on their experience, how hands-on they are and how many properties they own. Ask letting agents about their fees and how they work with clients - they should be happy to discuss them with you in detail. It’s also a good idea to make sure they belong to a professional body like ARLA or UKALA as this will mean they have to operate under certain rules and regulations.
Letting agents have the best interests of their client at heart - the landlord. They will do everything possible to ensure their clients’ property is let quickly and efficiently and that they are meeting their legal obligations as a landlord. This means advising them of any changes to legislation, recommending tradespeople to carry out repairs and maintaining contact details for tenants to answer queries and requests. It’s also in their interest to find reliable, trustworthy tenants who will take good care of the property and pay their rent on time.
Letting agent fees can often be very costly for landlords, especially if the letting agent isn’t charging fair prices. Landlords should always ask for a breakdown of the costs of the services provided and compare different letting agents’ charges before choosing one. They should also find out whether the letting agent offers insurance that covers rent guarantee and legal expenses for evictions.
