The main reason people love to hate property rental is because of the fees. Read on to discover more.
What Are You Paying For As A Landlord?
Letting agent fees vary greatly depending on the company and the services that they offer. It can be tempting as a landlord to dispense with these services and save yourself money. However, once you understand what exactly you are paying for you can see that it is worth the extra cost.
Letting agents fees should always be clearly stated and relate to the specific things that they will do to help you to find tenants for your property. How these fees are structured may differ between companies. For example, you may have a fixed fee for tenant services and a listing fee per property that you place on the site.
Once paid however, you get access to a range of professional level services that you would not be able to achieve on your own. For example, as well as listing your property on their website, good quality letting agents will place the property will a range of well-known property sites to increase its visibility.
The agency will also take care of communication between you and the tenant, and set up viewing appointments on your behalf. This leaves you free to concentrate on other aspects of caring for your properties and tenants.
Letting agent’s fees can also cover a number of paperwork and administration tasks. This is ideal if this is not a strong area for you as it minimises your risks of getting these important areas wrong and costing yourself more in the long run.
What Are You Paying For As A Tenant
Letting agent fees apply to tenants as well as to landlords. However, what you pay as a tenant, and what this covers are very different.
Letting agents work primarily on behalf of landlords, helping them to find suitable tenants for their properties. This means that the landlord pays fees to join the agency and possibly to list their properties. However, the costs to the tenant are very different.
Firstly, letting agents cannot charge you to register you details on their site. It is a legal requirement that tenants are able to do this for free. You can be asked for a holding fee if you are interested in a property. This ensures that no one else views, or can take the property while you finalise your decision.
However, this practice is becoming less common and it isn’t advisable. The main costs to you as a tenant relate to referencing and credit checks. The amount you are charge for the completion of these services should cover the costs to the agency.
It is not an area where they should be looking to make profit. When choosing an agency to work through ensure you check their pricing and fee structure carefully. Once you have signed your tenancy agreement you will be asked for your deposit and initial rent payment. Again, these should not be payments that the agency makes any profit on, and deposits must be placed in one of three protection schemes as soon as possible.
How To Find Value For Money
It is never a good idea to work with an agency based on price alone. Read on to find out what you need to look for in a letting agency to ensure that you are getting the services you need and that there are no hidden costs.
Research is the key to getting value for money when looking for letting agents to support you in letting your properties. Before you look at anything else, you need to check that the agency in question in registered with one of the professional letting agency bodies.
Those that are registered will uphold certain standards and will have agreed to a code of conduct that will guide their interactions with you and with tenants. As well as this you need to check exactly what it is that the letting agents offer its landlords. Do they just list your property on their website, or do they place it on other well-known property sites?
Remember you stand a better chance of letting your property with greater coverage. Also, look at what else they provide? Agents like Yellow Slate will deal with communication with tenants and arrange viewings, as well as dealing with basic queries about the property. They may also provide tenancy agreement support and deal with deposit schemes on your behalf. As well as the services on offer check the small print for additional charges. What might look like a good price may turn out more expensive otherwise.