From cutting down on wasted time to providing valuable connections with trusted third parties, a good letting agent is an asset, but are there more pros than cons for you? That’s something only you can decide – but we hope we can help with that decision, too.
We’ll get to the pros and cons in a moment, but before we do, we’ve put together a quick list to help you decide whether you should even be considering either self-management or a letting agent. We find that these five things are often enough to help landlords decide whether either option is viable for them to even consider researching further.
Should you consider a letting agent?
| You should consider managing your property if… | You should consider a letting agent if… |
| You have the time to deal with your tenant’s queries, problems and disputes up to and including eviction. | You would prefer someone else is available to answer tenant queries and resolve problems up to and including eviction. |
| You have a register of professionals (electricians, plumbers, cleaners etc.) that can assist when required. | You need access to qualified and trusted professionals that can help resolve problems with your property. |
| You are up to date and can remain up-to-date on the latest rules and regulations that affect landlords. | You would rather somebody else was responsible for keeping up-to-date and keeping your property up-to-date with regulations. |
| You have been a landlord previously and are aware of the various pressures and responsibilities it involves. | You are new to being a landlord and require professional assistance while you get up to speed with requirements. |
| You are letting property near where you live, allowing you to conduct viewings and inspections. | You are letting property a distance from your own that would make in person attendance inconvenient. |
The next thing for a landlord to do if they have decided that a letting agent may be an option for them is to ask the following four questions of a few different letting agents to ensure that they would be working from the best possible list of options.
The next thing for a landlord to do if they have decided that a letting agent may be an option for them is to ask the following four questions of a few different letting agents to ensure that they would be working from the best possible list of options.
Four important questions to ask your letting agent
- Do they have access to an appropriate client money protection scheme?
- How do they find their tenants, and what does their referencing process entail?
- How would your property be maintained, and by which companies?
- Can they provide a clear list of all of their services and charges on a single page?
The pros and cons of using a letting agent
| Pros | Cons |
| The vetting that agents are able to undertake is often more thorough than a landlord acting alone, and referencing procedures attract reliable tenants. | Letting agents – and the pros opposite – come at a price. While managing your own properties is free, there will typically be a percentage charged by letting agents to manage your property for you. |
| Administration of the secure deposit protection scheme is taken care of without you having to worry. | If there are problems with your property – from legal filings to evicting a tenant from a property, it will mean extra administration, paperwork and possibly cost for the landlord. |
| Agents are able to deal with the paperwork generated by your property and ensure records are kept properly and up to date. | Many letting agents, if they arrange repair work on your behalf, may charge an arranging fee on top of the actual repair costs – while this is often nominal, it is something that should be considered. |
| Rent for your property is collected (and chased for) on your behalf. | Some letting agents may apply additional charges to third party services – this can include things like organising Energy Performance Certificates, Gas Safety Certificates and legal documentation. While this is not always the case, it can be worth asking whether these charges will be made and how much they will be. |
| Letting agents will deal with day-to-day management and maintenance issues – often without the landlord needing to be involved. | |
| As experts in both their field and their local areas, letting agents can often achieve a higher rent. | |
| Letting agents have to be up-to-date with current legislation affecting landlords and can ensure your properties operate in accordance with them. | |
| In case of disputes and complaints, you have an objective, impartial mediator between you and your tenants. | |
| Letting agents are experienced in mediation and can often prevent drawn out and expensive disputes. | |
| In the event that eviction is required, letting agents know the correct legal procedures. | |
| Letting agents can reduce workload and stress of letting a property. | |
| Some letting agents can offer legal, insurance and tax advisory services. |
The long and short of much of the decision-making process in this area is going to be the value you place on your time. If you are looking at becoming a full-time landlord, or are sufficiently well connected to minimise the impact that being a landlord will have on your time, then a letting agency may not be required. If, however, you will be letting a property as a secondary endeavour and hoping for passive income, then you will definitely need to consider an agent.
The average letting agent will earn the money they cost, the best letting agents are an asset to your property, and will deliver value in the rental price they can achieve, the savings they can make in maintenance and repair and in the time and stress reduction they will provide you. Want to know more about engaging a letting agent, or to ask us some questions? Contact Us today!
