A guest blog by The Letting Partnership
The role of a residential landlord has changed considerably over the years. What was once a relatively straightforward means of generating income from property has become increasingly complex due to the ever-growing web of regulations. In the current climate, those landlords who are not leaving the sector are looking for ways to save money, and will be contemplating whether enlisting the services of a letting agent is an avoidable expense.
As a letting agent, your mission is to illustrate the real value you offer to potential clients by emphasising the benefits of your services.
Letting agents have the power to make a landlord’s life significantly easier. By effectively articulating these key selling points, you can make a compelling case for why your services are worth every penny.
Using a Letting Agent Reduces Risk
It begins with finding the right tenants in the first place. Tenant selection is not just about filling a vacancy; it is about ensuring the longevity of the property investment. This is where letting agents have the experience and resources to find and screen potential tenants, reducing the risk of problematic renters.
Letting agents can provide:
- Comprehensive Background Checks: As well as verifying income and general affordability, this includes checking credit history, rental history and right to rent. A history of missed payments, an unpaid IVA (Individual Voluntary Arrangement) or payments to debt collection agencies can all be potential causes for concern. By identifying red flags early on, a letting agent will help landlords avoid problematic tenants.
- Quality Tenants: Letting agents use their experience to identify quality tenants i.e. those who are likely to pay rent on time and respect the property. This results in less disputes and lower turnover rates.
- Minimal Vacant Periods: Letting agents can minimise income loss by swiftly filling vacancies through their network of potential tenants and their access to major property portals, benefiting landlords financially and ensuring the security of their properties.
Using A Letting Agent Means Efficient Property Management and Maintenance
As a letting agent you understand how time-consuming, and often stressful, property management can be; dealing with everything from routine maintenance to addressing tenant complaints and emergency repairs. Letting agents can take the burden off landlords’ shoulders by managing the property for them – ensuring a well-maintained and compliant property.
Landlords can be assured of:
- Timely Repairs and Maintenance: Letting agents have a network of trusted contractors who can quickly address any issues that arise. This ensures the property remains in good condition and tenants are satisfied.
- Legal Compliance: The UK has many laws and regulations that landlords must adhere to, from safety standards to tenancy agreements. Letting agents’ knowledge and understanding of these regulations ensures that landlords are not caught out – reducing the risk of legal issues and financial penalties.
- 24/7 Emergency Support: Property emergencies can happen at any time. Letting agents offer ‘out of hours’ emergency support, ensuring any urgent issues are dealt with promptly.
- Regular Property Inspections: Under a full management agreement, letting agents will conduct regular property inspections. This helps spot any potential problems before they become an issue.
- Pre-checkout inspections: Letting agents will give the tenant the opportunity to rectify anything which might otherwise be picked up only after they leave. This reduces claims from the deposit and potential disputes.
The value of a landlord’s time (and peace of mind) cannot be overstated
Letting Agents Can Manage Client Money
One crucial aspect that often leaves landlords feeling uneasy in residential lettings is the responsibility of handling their tenants’ money, encompassing deposits, and rent payments. This is precisely where the expertise of letting agents becomes indispensable.
By engaging a letting agent, landlords can entrust the collection of tenant funds to professionals who ensure impeccable handling. Not only can agents safeguard the tenant’s deposit, but they also diligently adhere to all financial regulations.
Contractors and other regular associated bills will be paid in a timely manner, and the landlord will be provided with regular rent statements showing a breakdown of income and expenditure for their records.
Another source of anxiety for landlords is rent arrears. As a professional agent you can alleviate this stress by incorporating rent collection into your management agreement.
To demonstrate your professionalism make sure you are displaying your CMP certificate and details of your redress scheme, plus membership of any other industry trade bodies, on your website and in your office.
A letting Agent Provides Time and Stress Savings for Landlords
Being a landlord involves wearing multiple hats, which can take its toll on time and stress levels when dealing with administrative tasks and day-to-day management of a property.
With this in mind, here are some other key benefits of a landlord using a letting agent:
- Marketing Expertise: Letting agents have the marketing expertise to help a rental property stand out in a competitive market. From professional photos to compelling property descriptions, agents know how to attract potential tenants effectively.
- Legal Expertise: Navigating the legal intricacies of tenancy agreements, evictions, and property rights can be daunting. Letting agents offer expert advice and guidance on these matters, ensuring landlords can make informed decisions.
- Tenant Communication: Letting agents act as intermediaries between landlords and tenants, handling communication about repairs, rent payments, and other concerns. This minimises direct involvement for landlords, allowing them to focus on other aspects of their lives.
- Tricky Situations: Late rent is just one issue; others may include antisocial behaviour and evictions. Letting agents can handle these challenges for the landlord effectively and with professionalism.
- Insurance: Professional agents will have industry specific insurances in place to protect their clients and their business. These include Client Money Protection (CMP) and Professional Indemnity (PI). Your membership of a Redress Scheme should also put a landlord’s mind at rest as it gives them added protection.
Why Letting Agents Are Invaluable To Landlords
In the dynamic and fast-paced world of residential lettings and property management, letting agents play a crucial role in simplifying the lives of landlords.
From expert tenant screening to efficient property and client money management, agent services offer a myriad of benefits. By leveraging letting agents’ expertise, landlords will save time, reduce stress, and enhance the value and profitability of their property investments.
This article is intended as a guide only and does not constitute legal advice. If in doubt seek professional legal advice.
Originally published on The Letting Partnership’s news blog
The views expressed in this content are solely those of the author alone and do not necessarily represent the views of TDS, its officers, or employees.
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