Property Letting Agencies and The Professional Landlord

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Property Letting Agencies and The Professional Landlord
Words: 602 | Date: Fri, 11 Jun 2010

Many professional landlords are resistant to the idea of using property letting agencies and on the face of it is easy to understand why. Who wants to spend money on a service which is not required or is thought not to benefit them? In addition to that, many business owners tremble at the thought of relinquishing control. The relationship between the landlord and these letting agency can, however, be a mutually beneficial one. It is really important for him to understand what these agencies do.

It is the job of the letting agent to find suitable tenants for the landlord. It sounds very simple but property rental can be complicated by regulations and statutes, and good tenants can take time and effort to find them. Unless you are a commercial landlord with a solid and good understanding of contract law and property law it is advisable to employ the services of a professional letting agent. Most landlords would not re-wire or put a new roof on a property themselves they would get the professionals in and the same principle applies to getting good tenants. Why not let the specialists do what they do best?

The first thing that the letting agent should do is to view the property and determine its potential rental income. This essentially is to see where the property fits within the current rental market and to assess what rental income a professional landlord could reasonably expect from it. There is often no charge for a valuation. Following the valuation you should discuss the potential rental income and agree on a figure. The next thing that should happen is that the property is advertised and there are these days lots of ways to do this. The details of the property may be advertised in the agent’s shop window and details included in the local press and on the internet.

When prospective tenants express an interest in renting your property the agent will show them around the place. They should of course feed back to you any counter offers on the rental price or any other areas of negotiation. Remember they are acting on your behalf as your agent in the process and you should always be very clear about what you will and will not accept. If you want to meet prospective tenants then you should be clear about this from the outset.

Once an agreement has been reached, the agent will produce a tenancy agreement which is the legal document relating to the rental of the property.

That is the very basic service that you should expect. Naturally many letting agents offer additional services and you may have to pay more for these so know what you are getting for your money at the beginning of the process. Many of the additional services offered can be beneficial to the professional landlord. Examples of such extras include tenant vetting services, rental collection and lease renewal, inventory checks, repair and maintenance and cleaning services. Do establish the cost first. We have all heard tales of landlords being charged ridiculous amount of money to do very small tasks like changing a light bulb. As with many things in business it is important to know what things are likely to cost before you commit. There are other cleaning and maintenance companies out there and it is your property.

With a little homework and a clear understanding of what you, as a professional landlord, need and expect from a letting agent the relationship can work well and be mutually beneficial.
Vijay K Shetty, Platinum Author.
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