Should Landlords use a Management Agent?fjpinvestment
When landlords are deciding on their investment goals and what strategies they will use to achieve them, an important aspect of this will be whether to be a hands-on or hands-off investor, or perhaps a combination of the two. There are pros and cons to both approaches, and in this article, we will look at what the benefits are for landlords that hire the services of an property management agent to manage their investment properties on their behalf.
Use of a leasing agent may help you avoid many of the pitfalls that come with renting out a house, which can be a time-consuming and complicated procedure. This is especially so for new or inexperienced landlords who have yet to settle into how the letting industry works. Though most leases go off without a hitch, you may be able to increase your profit and rent to a higher quality tenant with the aid of a professional agency. If you end up with a challenging tenant, you’ll quickly learn the importance of having a reliable rental agent working on your behalf.
Are property agents affordable? Is it possible to cope without having to hire one?
Some may consider that hiring a property agent will eat too much into their profits, and so they won’t even consider this as an option for managing their lettings without looking deeper into the details. However, when weighed against the time and stress they’ll save you, the cost of hiring an agent can actually be rather low.
If you’re just starting out as a landlord and have the following needs and wants, an agent can be a lifesaver for most:
- To alleviate anxiety and difficulties
- Guidance on all aspects of letting
- In the event of difficulty, someone who can help
- If the property is far from where you live, they can help with this. It also allows for investors to look further afield for the right properties since they won’t be tied to locations near where they live.
- Separation from the tenants and yourself
- To avoid wasting time
- Legal issues are addressed, as are deposit schemes, among other things.
In the first step, a professional rental agency will provide you with an informed opinion of the market and an estimate of the typical monthly rent that may be expected for your home. The sort of tenant to whom your home is most likely to appeal might also be discussed with you. Advice and guidance on this one issue alone can be hugely beneficial to landlords and target the right market.
A savvy realtor will be familiar with the ins and outs of the area’s rental market and can attest to the rent that similar homes in the area have brought in. While it is true that landlords can take the time and effort to do their own research in this regard, sometimes the intricate and specialised knowledge in the specific area that comes from agents working in the field can see seemingly minor details but may well have significant bearing on your unique property and the rent you can charge.
What to expect from a real estate agent
If you want to maximise your rental income, consulting with a professional letting agency can go a long way towards helping you achieve this. Based on previous experience and knowledge of what tenants are looking for, they will give you advice on how to increase your property’s appeal and how many people will likely come to see it when you put it up for rent.
A professional rental agent can handle all of the details, such as arranging for professional photos and floor plans, to help you advertise your home in the best light possible and attract the best potential renter.Tenants may obtain a better sense of the property’s layout with the aid of a floorplan, which in turn can reduce unnecessary viewings and thus save you and them time by shortlisting the best choices.
There are a lot of legal pitfalls in the rental market right now, so working with an agency is a good idea to help you navigate all the legal obligations that a landlord must adhere to. There are a lot of details to think about, such as the Energy Performance Certificate (EPC), gas safety certifications, the right to rent, and deposit protection, and if you are unsure of the difference between Section 21 and Section 8, you should consult a local expert.
Once a renter has been found for your property, it is crucial that they have good reference checks carried out. A property letting agency may do professional tenant reference checks and provide guidance on issues like rental insurance and guarantor requirements. Not all tenants are the same, and a competent agent will be able to give advice on each unique tenant, such as whether you need to charge extra to cover pet insurance against property damage.
Also, letting agencies will safeguard you from any penalties associated with failing to register the tenant’s security deposit with the proper organisation. While the vast majority of landlord-tenant interactions go off without a hitch, you may rest assured knowing that if you have any complaints about your letting agent’s performance, you can always use their redress scheme.
Because they know what constitutes a reasonable request from a renter and what may be politely declined, agents are well-equipped to defuse any small tensions with your tenants. A competent and skilful agent can prevent a disagreement about the rent from growing into a major legal battle. If payments are late or there are problems, you can be sure that your legal rights will be protected and that you will have the best chance of getting the rent or getting back the property if you hire a good agent to do it for you.
As should be evident from the above, there’s a lot more to renting out a home than just mending the boiler if it breaks down. However, the importance of having a centralised point of contact for all maintenance concerns is often overlooked. Agents usually have strong connections to reliable local contractors who can carry out tasks quickly and affordably. They may also be able to strike a good deal for their services since they use the same contractors for all their properties.
In order to reduce the likelihood of void periods, it is important to choose a reliable local agent who can successfully manage the relationship with the renter. For the same reason, a proactive agent will move rapidly to re-rent your home if your tenant gives notice. They can also handle any disagreements about deposits, which makes it more likely that reasonable deductions for damage will be made.
From an investor perspective, having the extra time available by not having to manage your own properties will also be extremely useful in freeing up time for researching the best properties to grow your portfolio. This means that you can focus on the investor side of your business and let an agency focus on the management side.