While some landlords choose to look after every aspect of their Buy to Let themselves, the vast majority use an agent for at least part of the process.
There is a huge amount to know and do when it comes to letting a property legally and managing a tenancy properly from beginning to end, and that’s the overarching benefit to using the services of a professional agent like Reeds Rains: it gives you peace of mind that your property is in the hands of people who are experienced in the business, properly trained and supported by a self-regulating industry body.
So, what services do agents offer landlords and what are the particular benefits of each?
To start with, it’s important to be aware that a property has to be let legally and safely. The laws enabling this are constantly changing and already translate into hundreds of rules and regulations from the Housing Health and Safety Rating System to new rules around damp and local ones around licensing.
Whatever service you choose, having a qualified agent check your property is legally and safely let means you are less likely as a landlord to unknowingly let a property illegally.
Letting and managing agents typically offer three levels of service:
- Tenant find
The agent will handle the process from advertising and marketing your property, right through to the signing of the tenancy agreement. You get the benefit of:
- A wide marketing reach that it would be very hard to match as an individual landlord
- The agent’s experience when it comes to how your property should be presented to attract the best tenants and secure the best possible market rent
- Professional accompanied viewings and constructive feedback
- Efficient vetting and referencing of prospective tenants, including right to rent checks
- Ensuring all the correct ‘prescribed’ information is provided to your tenant
- A legally sound tenancy agreement
If you would also like the agent to take care of having an inventory prepared and checking the tenant into the property, these services are usually available within or for an additional fee.
It’s worth noting that some agents charge for everything within their set fees, so might charge a higher percentage of rent, while others charge a lower percentage, but charge for services you need to let the property.
To truly compare one agent’s fees versus another, do look at the costs on an annual basis and also to re-let the property.
- Tenants find and rent collection
In addition to the services above, the agent will collect the rent and pass the balance on to you (less their fee). If the rent doesn’t arrive on the day it’s due, they will chase up the tenant and move to recover any debt on your behalf if necessary, saving you the hassle and making sure if you collect rent yourself and are away or not very well, you don’t end up missing a payment.
- Fully managed
Our fully managed service is where the agent looks after every aspect of the tenancy, managing both the property and the tenant on your behalf. The service includes:
- Carrying out periodic inspections to check the property is being looked after
and legally and safely let - Arranging gas safety and electrical checks
- Organising maintenance and repairs
- Responding to tenant and property emergencies
- Reviewing the rent (usually annually)
- Serving the appropriate notices as and when necessary
As well as greatly reducing the risk of falling foul of the law (remember, your local council can fine you up to £30,000 without taking your to court), and encountering problems during the tenancy, having a properly qualified managing agent means you benefit from their:
- Knowledge and experience around what needs doing and when
- Expertise in communicating and negotiating with tenants
- Roster of good quality contractors and service providers
You are also much less likely to get a rogue tenant or one who falls into serious rent arrears, as these types tend to prey on self-managing landlords, who may not have such robust referencing and management processes. And having a consistent service through the year means you don’t have to worry about finding cover when you’re busy or away on holiday.
If you are a Reeds Rains landlord you will also have access to our landlord portal, where individual landlords can keep and access all the information and documentation relating to their tenancy 24/7, making it easy to find everything you need to complete your self-assessment tax returns.
The only ‘downsides’ to using an agent are:
- There is a cost involved - however, you need to weigh that up against the time and effort it saves you. Also, agents will often be able to secure a higher monthly rent for your property because of their market knowledge and tenancy negotiation skills, which offsets at least some of the cost. And remember that an agent’s fees are tax deductible!
- If you don’t carry out proper checks, there is the risk that you could put your property in the hands of a lower quality agent, or even fall victim to a criminal enterprise.
How to identify the best agents
The best agents will take good care of your investment and do all they can to ensure you’re not left exposed, legally or financially, and will belong to one of the industry’s self-regulating bodies:
- Propertymark (launched in 2017, combining ARLA, NAEA, NAVA, ICBA and APIP into one brand)
- UK Association of Letting Agents (UKALA)
- Royal Institution of Chartered Surveyors (RICS)
- Safeagent (formerly the National Approved Lettings Scheme)
Only Propertymark and RICS have formal qualification requirements for their members, while UKALA offers training and courses and Safeagent takes agents through an accreditation process.
At Reeds Rains, we’re members of ARLA Propertymark, which requires our Principals, Partners and Directors to achieve various formal qualification levels in residential lettings and our team members to undergo regular training. It provides legal support and ensures all agents have Client Money Protection and professional indemnity insurance, membership of a government-approved redress scheme, and adhere to a strict code of conduct.
Finally, here are the key checks you should make with an agent before signing an agreement for their services:
- Are they a member of one of the bodies above – ideally Propertymark or RICS?
- Do they have Client Money Protection and professional indemnity insurance?
- Are they a member of The Property Ombudsman or Property Redress Scheme? (This is a legal requirement for all agents.)
- What are their fees? Details should be easily available via their website or office.
- How much will it cost to let through an agent on an annual basis and to renew a tenancy agreement?
- What does the service you’re taking include and what is an optional extra, and therefore charged separately?
- Do you understand their terms and conditions (Ts&Cs)?
- What is their complaints procedure?
To discuss any aspect of our own landlord services, just get in touch with your local Reeds Rains branch and one of the team will be delighted to help.
The Reeds Rains Content Marketing Team
