Why should you use a lettings agent?

Why should you use a lettings agent?

The experts from Belvoir give their tips on why savvy landlords use a property management agency… and why it’s good for their tenants too!

With a rapidly growing lettings market and ever increasing legislation it’s easy to understand why more and more landlords are putting their properties in the hands of an experienced lettings agent.

For a small one-off fee a letting agent can help find you a tenant - or for a percentage of the monthly rental payment (usually between 10-17%), they can take on the full management of the property.

But do they provide a value-for-money service? Is it better to put your property in the hands of an agent than go it alone?

The answer is YES!

Here are the top five reasons why taking on an agent can benefit you as a landlord - and five reasons why it’s better for your tenant too…


[PANEL ONE] Minimising the risk for landlords:-

1. Tenant trouble?
An agent will have a large portfolio of prospective tenants and, if they haven’t already got the perfect match for you, they’ll soon be able to find one!
An agency is often the first place potential tenants look, plus most agents extensively advertise on their own websites and elsewhere. Once found, the agent will vet the tenant for you, performing credit checks and taking up references.
As well as finding you a suitable tenant they will also be able to help out if a good tenancy turns bad. An agent can help chase rent arrears and even help guide you through the eviction process if necessary.
2. Vital viewings
All properties will have dozens of viewings during their periods as rental investments. An agent can save you considerable time by arranging those viewings, as well as accompanying potential tenants during their visit.
3. Making a deposit
All rented properties need to have a full inventory of contents and furnishings, and an agent will take this on for you. A complete list of the contents and their conditions will be drawn up at the beginning of the tenancy for the tenant to sign and will be thoroughly checked at end of the tenancy too.
An agent will also be able to help with the legalities of claiming damages and help you deal with deposit retention if necessary.
“An agent can help a landlord go through the proper channels when claiming damages from the deposit,” says Kate Jackson, proprietor of Belvoir Bournemouth. “As from 1st April 2007 the deposit now has to be put into a government-run scheme and, as such, has to be managed through the scheme. It is now down to the landlord to prove why a tenant should not receive the full deposit back if indeed this is the case.
“By using an agent the landlord has access to a professional inventory with supporting photographs so the landlord’s property and possessions are protected. Also in the event of a dispute an agent can perform the administration required by the scheme to prove why a tenants’ deposit should be held.”
4. Insurance insight
Your agent will be able to supply you with good value insurance against regular rental claims, such as tenants who cause accidental or malicious damage and any unknown person who causes malicious damage. Plus, an accredited agent will have Professional Indemnity Insurance and Clients Account Protection Insurance.
“Belvoir’s home and content insurance is very good value for money,” says Terry Lucking, proprietor of Belvoir Peterborough. “And, what’s more, the excesses are unusually low for the rental industry.
“As a group our block insurance scheme covers close to £0.5 billion of residential properties so that makes us a very attractive customer to underwriters and enables Belvoir to negotiate a service level agreement that provides fast and comprehensive repairs carried out by professional tradesmen for its clients.”
If something does go wrong, or emergency repairs are needed, an agent will have many local contacts and will be able to arrange for repairs to be made on your behalf.
5. Navigating the legal maze
As well as organising a legally current lease agreement to be signed by the landlord and tenant, an agent will also be able to keep you up-to-date with current changes in legislation, including the forthcoming EPCs.
“The skill of being a professional property manager goes far beyond simply finding landlords a tenant,” says proprietor of Belvoir Sheffield, Rick Flay. “Keeping abreast of changing legislation is a major headache for private landlords - in the last few years alone we have seen changes to laws, such as HMOs, Tenancy deposits and Energy Performance Certificates to name only some of them. Belvoir offer a free legal helpline to all landlords and such are able to minimise the risks of landlords being fined.
“Another big issue is to ensure that the lease document being used is both legal and up-to-date - at Belvoir we constantly get updates so are able to offer our landlords the best protection.”

[PANEL TWO] Maximising the ease for tenants:-
1. Starting the search
A lettings agent will have many properties available so the potential tenant will have plenty to choose from without having to scour the property ads in the local press or search the internet. The agent will also be able to point the tenant towards the right property for their needs.
“An established agency will have a selection of properties to offer,” says proprietor of Belvoir South Hampshire, Paul Cartwright. “There are many variables looked for by prospective tenants including, but not limited to, location, age of property, condition and running expenses. A professional agent will take all these factors into account before showing a tenant a property – from their point of view it is a direct business cost to show tenants around unsuitable properties.
“For tenants, viewing unsuitable properties is a frustrating waste of their time. A private landlord will show a tenant their property and attempt to persuade them to take it – often making promises they will not ultimately deliver.”
2. Quality quarters
Properties advertised through a lettings agent have high basic minimum standards with a guaranteed programme of maintenance, so a tenant is likely to find a good quality home.
Plus, an agent will always have an expert on hand should the tenant develop a problem with the property or the landlord later in their tenancy too. If renting from a private landlord, the tenant has no third party to turn to should they have a substantial breakdown in relations.
“From a tenant’s perspective it is better to live in a property that is managed by a lettings agent,” says proprietor of Belvoir Sheffield, Rick Flay. “They can always be assured of having any issues dealt with quickly and in a professional service like manner.”
3. Money matters
An agent fully understands the local market and will not be able to overcharge on the going rate for properties in their area.
Private landlords can make up their own prices and thus, while you may sometimes get a bargain, you could just as easily end up paying more than you bargained for!
4. Covering that contract
An agent will be able to sort out the contract, make sure the landlord has fair expectations of you as a tenant and talk a novice tenant through what those expectations may be. They’ll be able to answer any questions tenants may have and alleviate any fears too.
A lettings agent will also take care of all the legal elements. “All properties on the books of a professional agency will comply with current HHSRS (safety) laws and, if it’s a House in Multiple Occupation (HMO), it will be correctly licensed,” says Paul Cartwright of Belvoir South Hampshire. “They will also legally deal with the deposit by holding it in a Government approved scheme; as part of this they should supply a comprehensive inventory of the property and have a full understanding of what can and what cannot be legally charged to a tenant following move out at the end of the tenancy.”
5. Emergency services
With their list of local tradesmen, and some even with their own maintenance team, a lettings agent can give tenants the confidence that repairs will be made quickly if an emergency should happen. They sometimes have a 24-hour emergency number too.
“At Belvoir we have contact numbers in place with local contractors in case an emergency should arise,” says Susie Geddes, office manager of Belvoir Corby. “Repairs can then be made quickly and easily for the tenant and with minimal disruption to the landlord.”
It’s impossible for private landlords to be on hand 365-days a year – for example, what happens if a tenant’s boiler blows up while their landlord’s on holiday? A lettings agent is always on hand to help.

• For more information on how renting could work for you or your family, visit the Belvoir website at http://www.belvoirlettings.com/ Please feel free to get in touch. Contact Belvoir central office on 0845 331 2741.