Page 32 - Redbrik: Property and Lifestyle Summer 2018

32
GETTING THE MOST FROM YOUR AGENT
A recent report by home.co.uk has revealed that there has been a 12% drop in rental listings over the past 12 months, which is creating somewhat of a ‘rental drought’.
While stock levels have reduced, Tenant demand remains as high as ever, and this means in the short and medium term, the lettings sector is expecting to see a surge in rental prices, indicating a higher return
for Landlords. However, numerous Landlords are missing out, because they are either not getting the best advice from their Agent or are choosing to manage their property themselves.
Many Landlords manage their property entirely on their own and do it very well. However, others find it far more convenient and cost-effective to employ a Letting Agent.
Considering what your Landlord responsibilities are, and whether you feel able to manage all of them alone, should help you to figure out whether you want to use an Agent or not.
So why do Landlords use letting agents, and could it work for you?
In this article Peter Lee, Director responsible for Lettings at Redbrik discusses the pros and cons of using a Letting Agent and offers advice on how to choose the one that is right for you.
You may want to use a Letting Agent if:
• You do not have a lot of spare time
• You would prefer for someone else to deal with Tenants’ queries and to handle their problems
• You are a new Landlord and want some professional help
• You are not aware of all relevant Landlord regulations and legislation
• You are letting a property out in a different area from where you live
• You want to ensure you are achieving the market value year on year
Letting Agents typically offer three levels of service:
1. Finding Tenants and arranging
the let: for a one-off fee, a letting agent will find Tenants for your property. Once they have found potential Tenants, they will also collect references, carry out credit checks, collect deposits and draw up tenancy agreements and inventories. The fee will be negotiable, but usually it will be anything up to a month’s rent.
2. Rent collection: the Letting Agent will collect the rent from your Tenants each month and chase any late payments. A typical fee for this service is 7% of your monthly rent.
3. Full management: the Letting Agent manages all aspects of the rental and are the point of contact for both Tenant and Landlord. This includes not just the rent collection but also dealing with maintenance and repair work and carrying out regular inspections. You can typically expect to pay between 10 and 15% of your monthly rent for this service.
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LETTINGS