Letting agents
Choosing to lease your property through a letting agent in
order to secure a rental agreement for your property is a good precaution
against problem tenants. Every letting agent offers
landlords a different range of services, but generally you can expect
a minimum charge of 10% to find you a suitable tenant. You may also
find that some letting agents charge a further 15% if you wish them
to oversee the property management.
Before choosing to instruct a lease of your property through a letting
agent first consider how the loss of income will affect
your finances long term. If you are relying on the total of the
rental income to pay the mortgage, for instance, you may need to
consider becoming a private landlord to save on the letting fee.
If you are choosing to go down the letting agent route,
ask other landlords about their experiences with the letting
agents you are considering and compare fees and service
level between different letting agents before deciding which one
to go with.
Most letting agents work on a “no rent, no
fee basis”. In order to guarantee your property is rented put
your property on as many letting agents’ books
as possible. The most reputable agents will charge you for this service
but in the long term paying this is usually a good investment as
you are more likely to get a rental agreement.
Once instructed a letting agent will visit your
property to assess the potential rental income. The final amount
is agreed between landlord and letting agent who can then act as
the middle man between landlord and prospective tenant while finalising
the terms of a Tenancy Agreement. Finally, make sure you are given
all the correct paperwork from the letting agents before
allowing anyone to inhabit your property.