The different services agents offer: Pros and cons for landlords

There’s a huge amount to know and do when it comes to letting a property legally and managing a tenancy properly from beginning to end. So, although some landlords choose to look after every aspect of their buy to let themselves, most use an agent – at least for part of the process.

One key benefit of working with a qualified agent like Your Move is that they will check whether your property is being legally and safely let – or not.

There are hundreds of rules and regulations to abide by, including the Housing Health and Safety Rating System, and new laws on damp and local licensing. A good agent will know all of these and help you make sure your property is let properly from the start.

Letting and managing agents typically offer three levels of service. Here’s a summary of what’s included in each, and the benefits to landlords:

1. Tenant find service

This covers the process from advertising and marketing your property, through to the signing of the tenancy agreement. By using an agent, you benefit from:

• A wide marketing reach that it’s almost impossible to match as an individual landlord
• The agent’s experience and advice when it comes to presenting your property so it attracts the best tenants and you get the best possible market rent
• Professional accompanied viewings, with constructive feedback from the agent
• Efficient vetting and referencing of prospective tenants, including right to rent checks
• Provision of required prescribed information
• A legally sound tenancy agreement

For an extra fee, agents will usually also take care of preparing an inventory and checking the tenant into the property.

When comparing agents fees, its important to do this over a 12 month period and include the cost to re-let. Some agents charge for all the services you need in their commission, others will charge a lower commission, but then charge separately for key features such as a tenancy agreement.

2. Tenant find and rent collection service

As well as everything outlined above, the agent will collect the rent and pass the balance on to you (less their fee). If the rent isn’t received on the day it’s due, they will follow up with the tenant to make sure it’s paid. If necessary, they will also move to recover any debt on your behalf. This service saves you the time and hassle of checking and potentially chasing rent each month.

3. Fully managed service

Here, the agent looks after every aspect of managing the property and the tenant on your behalf. This includes:

• Carrying out periodic inspections
• Arranging gas safety and electrical checks
• Organising general maintenance and repairs
• Responding to tenant and property emergencies
• Reviewing the rent each year
• Serving the appropriate notices

You benefit from:

• The agent’s legal know-how and a greatly reduced risk of falling foul of the law – remembering that your local council can fine you up to £30,000 for breaches, without having to take you to court!
• Their knowledge and experience around what needs doing and when
• Their expertise in communicating and negotiating with tenants, meaning there’s far less chance of problems arising during the tenancy and having to evict a tenant
• Access to reliable contractors and service providers that are experienced in working on buy-to-let properties
• Peace of mind that your tenancy is being taken care of year-round, so you’re free to spend your time as you choose and don’t have to worry about finding cover when you’re busy or away on holiday

You’re also much less likely to get a rogue tenant, as they tend to prey on self-managing landlords, who may not have such robust referencing and management processes. If you are a Your Move landlord you will also have access to the landlord portal, where you can access all the information and documentation relating to your tenancy 24/7, so it’s easy to find everything you need to complete your self-assessment tax returns.

What are the downsides to using an agent?

There are two main ‘downsides’ – although they’re more just things you need to consider:

1. There is a cost involved, which will vary depending on the level of service. However, you need to weigh that up against the time and effort it saves you. And bear in mind that agents can often secure a higher monthly rent for your property because of their market knowledge and tenancy negotiation skills, which should offset at least some of the cost. Plus, remember that their fees are tax deductible!
2. If you don’t carry out proper checks, you risk putting your property in the hands of a low quality agent, or even a criminal enterprise.

How to recognise the best agents

Having a professional agent gives you peace of mind that your property is in the hands of people who are experienced in the business and will do all they can to ensure you’re not left exposed, legally or financially.

The best agents 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)

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 Your Move, we’re members of ARLA Propertymark. That means:

• Our Principals, Partners and Directors are required to achieve formal qualification levels in residential lettings
• Our team members undergo regular training
• We have legal training and support
• It’s a requirement for us to have Client Money Protection, professional indemnity insurance and membership of a government-approved redress scheme
• We adhere to a strict code of conduct

Key checks to make before signing an agreement for an agent’s 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.
• 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 landlord services, just get in touch with your nearest Your Move branch and one of the team will be very happy to help.

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