As a landlord, one of the most important decisions you will make is whether to use a letting agent or manage your properties yourself. While there are certainly benefits to both approaches, it’s worth considering the pros and cons before making a decision.
Letting agents are professionals who specialise in managing properties on behalf of landlords. They handle everything from finding tenants to collecting rent to handling maintenance and repairs. While there is a fee associated with using a letting agent, many landlords believe that the benefits outweigh the costs.
So, are letting agents a safer bet for landlords than going it alone? Let’s take a closer look…
Tenant Screening
One of the biggest benefits of using a letting agent is their ability to screen potential tenants. This is crucial because finding reliable, trustworthy tenants is key to minimising risk as a landlord.
Letting agents are experts in tenant screening, and they have access to a wide range of tools and resources that can help them identify potential red flags. For example, they can conduct credit and background checks, verify employment and income, and check references from previous landlords.
Rent Collection
Another benefit of using a letting agent is that they can handle rent collection on your behalf. According to a survey by Property Week, 40% of landlords have experienced rent arrears in the last year. This can be a major headache for landlords, especially if they are managing multiple properties.
Letting agents have systems in place to ensure that rent is collected on time and in full. They can also chase late payments and handle any legal action that may be necessary to recover unpaid rent.
Legal Compliance
There are a lot of laws and regulations that landlords need to be aware of, and it can be difficult to keep up with changes to the legislation. Letting agents are experts in this area, and they can ensure that your properties are compliant with all relevant laws and regulations.
For example, they can ensure that you have the necessary safety certificates, such as gas and electrical safety certificates. They can also advise you on changes to the law, such as the Tenant Fees Act, which came into force in 2019 and prohibits landlords from charging certain fees to tenants.
According to a report by the Ministry of Housing, Communities and Local Government, landlords who use letting agents are more likely to comply with legal requirements such as obtaining gas safety certificates and protecting tenants’ deposits. In fact, the report found that 85% of landlords who used letting agents were compliant with all legal requirements, compared to 69% of landlords who managed their properties themselves.
Property Maintenance
Keeping your properties in good condition is essential for attracting and retaining tenants. Letting agents can handle all aspects of property maintenance, from arranging repairs to conducting regular inspections.
According to a survey by Endsleigh Insurance, 43% of tenants have experienced issues with maintenance in the last year, and 10% of those issues were not resolved within a reasonable timeframe. By using a letting agent, you can ensure that any maintenance issues are resolved quickly and efficiently, which can help to keep your tenants happy and reduce the risk of disputes.
Conclusion
While self-managing landlords can save money, online portals and companies are available to provide assistance with renting properties at a lower cost. However, letting agents can offer a way for landlords to stay in the market by taking on the responsibilities of managing a rental property that some landlords may not feel equipped to handle. With the upcoming Renters Reform Bill and higher interest rates, some landlords may find the coming months more challenging than usual.
While there are certainly benefits to managing your properties yourself, the data suggests that using a letting agent can be a safer bet for landlords. Letting agents can help you to find reliable tenants, collect rent on time, ensure legal compliance, and maintain your properties to a high standard.
Of course, it’s important to choose a reputable letting agent with a proven track record. Look for an agent that is a member of a professional body, such as ARLA Propertymark, which sets high standards for its members.
Ultimately, the decision of whether to use a letting agent will depend on your individual circumstances and preferences. However, by considering all factors, you can make an informed decision that is right for you.
