Do you have a property you want to lease but are too busy or don’t know how? Well, hiring a letting agent could be the best option for you. These agents can make your life easier by managing your property. You can earn extra money by having them without worrying about what will happen to your property.
There are two types of letting agents: let only and fully managed. Let only agents will look for tenants, assist them when they move in, and then the landlord will handle the rest. Agent fees with this service typically range from 5-8% of the annual rent. Meanwhile, fully managed agents take care of everything that comes up while the tenant is at the property. This is typically in the range of 8-15% of the annual rent.
One of the advantages of using a specialist company, such as letting agents in Northampton, is not having to go a long way to negotiate with tenants because the letting agent is the one to set the table for you, respond to all their needs, and find the best tenants for you. Another thing is that it’s cheaper and time-saving, especially if you have a busy work or family life and limited free time to meet and vet potential tenants.
Here are some of the tasks that a letting agent will typically take on for you:
- Do the negotiations on your behalf
- Find tenants
- Deal with queries
- Inspect properties
- Handle maintenance agreements
- Negotiate contracts and agreements
But before you deal with letting agents, you should do some background checks to make sure that everything is fine. It is important to find a good agent to avoid scams or fraud, and if you want to know more about finding great agents, keep reading this article.
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Do They Have The Proper Licenses?
The first thing to look for before dealing with a letting agent is if they have a license. The letting agent should have a certification from ARLA (Association of Residential Letting Agents) or other letting agents organizations to prove that they are certified members of this firm. Having this certification will ensure that they are well assessed and properly oriented in this business.
It is also important to ask several questions before closing the deal with an agent. Examples of key questions to ask include:
- Ask for legally-required documents
- If they conduct Regular Safety Inspections
- Company website, if they have one
- Client Money Protection Scheme
- What if I need to regain possession of my property?
These questions will help you find the right letting agent to manage your property.
Ask For Proof Of Previous Work
It is best to ask letting agents to show you their portfolios before you entrust your property to them. Remember that you are talking about your property, so make sure everything is fine before securing the deal. Aside from portfolios, you should ask for photos of properties they are handling and documents that prove they are legitimate agents, especially their license and proof of identity.
Know Your Payment Options
The most important thing about the negotiation between you and a letting agent is the payment terms and conditions. Make sure that the profit will benefit both the parties and that it will not go to bankruptcy.
You should also clarify the terms on how to pay the agent. First is how much would be the payment for the letting agent. Then, you can choose if it will be monthly, quarterly, or annually depending on what you both agree to. This will help you manage your expenses properly. There are also some financial factors to consider in this business, like maintenance costs and tax fees. Make sure that the rental fee will cover these expenses so you will not lose profit.
Consider Your Location
In considering your location, please note that the leasing cost depends on how good the location of your property is. Prices may change accordingly according to their location and appearance. Make sure that this will be properly discussed between you and the agent.