In This Guide
Administration
Being a landlord
Buy to let investment
Choosing the property
Finding tenants
Letting property
Lettings agents
Levels of service
1. Levels of service
2. Let only
3. Letting and rent collection
4. Property management
5. Added value extras
6. Cost comparison
Preparing the property
Problem tenants
Tenancy
Levels of service
Let only
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Different agents have different definitions of a let-only service. Before you enter into an agreement with them, be sure to check their schedule of service so that you are clear about the exact nature of the duties that will be performed and what is included in the price.
The activities that will normally be included in a let-only service (though some things may have additional fees attached) are:
Although the final decision rests with you, the lettings agent
will perform a Competitive Market Analysis to help you set an
appropriate level of rent for your property. Having inspected
the property and compared it to similar properties recently let
or currently on their books, the lettings manager will be in a
position to advise you of the estimated rental value. At this
stage you are not normally under any obligation to use the full
lettings service of the agent.
There are a lot of decisions ahead of you as a landlord, and much
of what you decide will have an impact on your investment and
your experience of letting property. The lettings agent is there
to help you make the right choice when faced with these decisions.
They will usually be able to offer you help and guidance on the
following areas:
- Types of tenancy.
- Legal issues that impact you.
- Obligations on landlords and tenants.
- Advise you on your obligations with regards to safety requirements and arranging gas safety checks.
- Implications for insurance and mortgages.
- Whether to offer the property furnished or unfurnished.
- Tips on décor and presentation, choice of appliances and so on, to help you attract the right sort of tenant to your property and maximise the rent against the necessary expenditure.
- Recommendations regarding fixtures and furnishings.
The goal of the marketing activity is to find a tenant at the
level of rent which you have agreed with the agent. This normally
involve a blend of advertising methods including newspaper advertisements
in national and local press, website updates, mailshots, postings
in the office window, to let boards and circulation of property
availability lists to the branch network, corporate clients, relocation
agents and any other distribution outlets. The lettings team will
also field calls relating to the let, weed out timewasters and
arrange viewings with genuine tenants.
A member of the lettings team will accompany prospective tenants
on visits to the property. As experienced negotiators, they will
work to emphasise good points and convert a viewer into a tenant.
The agent will need to be given full set of keys in order to be
able to show the property to prospective tenants. As time goes
by, they should keep you informed on progress regarding the let.
Tenants need to be vetted in order to assess their suitability.
This should include a credit check and a verification of the tenants'
references. The agent will have access to a professional credit
referencing agency, who will let them know whether the tenant
applicant has an adverse credit history. There may very well be
a separate admin charge for this.
This involves the preparation and completion of appropriate tenancy
agreements. Many lettings companies will not allow you to use
their services unless you agree to using the standard tenancy
agreement prepared by their solicitor. However, you should have
some discretion on break clauses and other details relating to
things such as pets etc. You could be charged anything up to £75
by the lettings agents for the compilation of a tenancy agreement.
The lettings agent will sometimes prepare this themself and on
other occasions it will be arranged via an independent agent.
These documents should be completed by or when the tenants move
into the property.
The agent or the third party acting on their behalf will then be instructed to re-enter the property at the end of the tenancy to look for variations from the initial report. These will then be reported to the agent and a decision will be taken as to whether or not they constitute fair wear and tear.
Once again, there is likely to be a separate charge of anything up to £100 from the lettings agent for this service.
There are a number of other administrative tasks that some lettings
agents will help you with. They can help you transfer the council
tax liability to the new tenants, as they can with utility accounts.
This will also involve arranging for the meters to be read.
Many landlords also find it prudent to arrange a variety of insurance products to safeguard their let, including rental income insurance, legal expense cover and emergency repair policies. The lettings agent should be able to either arrange these for you or at least put you in touch with suitable providers.
The lettings agent will arrange for the initial collection of
the deposit and first month's rent prior to installation of tenants
at commencement of tenancy.
A statement of account will be prepared for you in order to show
rent and the deposit received, less fees that go to the agent,
resulting in a net payment to the landlord. This also usually
involves deducting and paying tax on rental income for overseas
landlords.
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