It depends on the level of service you’re willing to pay for, but letting agents can take most of the hassle of being a landlord off your hands. However, there are some things you’ll still have to do as a landlord – even when you’re working with a letting agent (rather than DIY-ing it). Find out what.
What Does a Letting Agent Support With?
Here’s a quick overview of what a letting agent will support you with:
Finding good tenants
Letting agents offer tenant-find-only services, which means they’ll advertise your property, manage viewings, ‘vet’ potential tenants (via robust tenant referencing), and set up a tenancy agreement.
Many landlords use a letting agent just for ‘tenant-find-only’ and then manage the tenancy themselves – but many also use the agent to manage everything that comes next.
Guaranteeing rent
Guaranteed rent is an extra service many landlords find worthy of investing in. It essentially means that when your rental becomes vacant, a letting agent will still pay you the full amount for as long as it takes to fill the vacancy. It also means you still get paid if the tenant skips a rent payment.
Arranging insurance
Landlords should have certain insurances – from building insurance to professional indemnity. Most lettings agents will recommend particular insurances and help arrange them on your behalf.
This is often ‘free’ to arrange with a letting agent, as they generally make a small commission from recommending the product to you.
Offering high-level advice
Letting agents can be fountains of knowledge, and they’re often available to answer all your questions about becoming a landlord and how to navigate certain milestones. While they aren’t an expert in everything, they can offer as much guidance as possible.
Keeping track of expenses
Letting agents can keep track of expenses using a property management software, such as expenditures on maintenance, service fees, repairs, and letting agent fees. However, you may still need to keep track of expenditures that they aren’t involved in, such as new furnishings you’ve purchased.
What Won’t a Letting Agent Do For a Landlord?
There are still a few things you’ll have to arrange or do yourself when becoming a landlord. As an overview, here’s what a letting agent won’t do:
Manage taxes
Becoming a landlord equates to an additional income stream, which means you’ll have to pay taxes on the income you earn.
While a lettings agent can manage rent payments on your behalf, they won’t manage your tax returns or help with setting you up as a sole trader or limited company. You can, however, ask them to point you in the right direction.
Arrange buy-to-let mortgages
Letting agents have a wealth of knowledge about buy-to-let mortgages, so they may be able to point you in the right direction in terms of converting a residential mortgage into a buy-to-let mortgage.
But you’ll need to speak to a mortgage advisor for concrete advice on what to do with your existing mortgage, or how to set up a new buy-to-let mortgage if you’re buying a second property.
Becoming a New Landlord?
Are you considering becoming a new landlord? A letting agent can certainly make things easier. See if it’s right for you with our online letting agents finder.
Compare services from local lettings agents today and book a valuation with agents you’d like to hear from. Or get an instant online valuation using our professional home valuation tool.