A lot of landlords considering letting a home, prefer to use a letting agent who can directly deal with a tenant, can assist in finding a suitable tenant and deal with important financial matters such as handling a deposit.
They do, however, charge a certain amount of fees for this significant service. When selecting a letting agent, it is important to ensure that they are members of one of the leading trade bodies for the sector of property rental. Examples of these property rental sectors are the following: National Association of Estate Agents, Association of Residential Letting Agents, and the National Approved Letting Scheme. This guarantees that they will abide by a strict code of conduct.
Advantages of Hiring a Letting Agent
- Letting agents can be responsible for tenancy agreements and handle advertising for the property.
- Letting agents that are already registered in trade association also have to make sure that their staffs are skilled, well-trained and that they could deliver an efficiently fast service.
- Letting agents can create a service to best suit your requirements and needs, including checking and finding a suitable tenant, handling the property, organizing insurance, as well as dealing with maintenance and repairs.
- Letting agents that are members of the aforementioned trade bodies are registered to the scheme of The Property Ombudsman; which offers the landlord a significant right of reparation if maladministration takes place, if the letting agent acts unfair, or if disputes arise with the tenant.
Disadvantages of Hiring a Letting Agent
- If you do not use a trustworthy agent and the agency goes bankrupt, then the landlord will still be accountable to the tenant for any unsettled amount of money due to the tenant, such as their deposit.
- Payments can be prohibitive for some landlords, who may feel that they can solely carry out certain tasks such as looking for a tenant and creating a contract on their own. The usual fee charged by a letting agent for handling the property matters can be around 10 percent to 17 percent of the monthly rent.
- Hiring a letting agent can generate an extra layer in the landlord-tenant-relationship which can somehow slow down the communication at times.
A recent online survey conducted by the ‘Citizen’s Advice Bureau’ discovered that 73% of tenants were discontented with the services delivered by their letting agent. This can eventually intensify the risk of a tenant choosing to move out and find another property to rent.
Table Of Contents
- Landlords Home Letting guide Intro
- Responsibilities Of A Landlord
- Landlords and Houses In Multiple Occupation
- Letting A Room In Your Own Property
- Contracts With The Tenants
- Pros And Cons Of Hiring A Letting Agent
- Landlord Letting Insurance
- Tenancy Deposit Schemes
- Evicting Tenants
- Difficulties That May Arise With Tenants