l e t t i n g p r o p e r t y
Getting Organised
Renting your property can be both time consuming and expensive.
There are a number of options and these are discussed in some detail
below:
Letting Agents
Letting and property management agents provide a number of different
types of services to landlords.
The level of service will very often determine the amount they
charge. Charges are usually commission, based on the annual rental
income of your property. You should therefore discuss and compare
the charges of different agents in your area. Typically rates vary
between 8% and 15% plus VAT. Some agents deduct the commission upfront
whilst others make a deduction as they collect the rent.
- Introduction Only: The introduction service offered by letting
agents very often gives landlords the most basic of all services
available. It consists of finding suitable tenants for your property,
applying for references, preparing the tenancy the tenancy agreement
and collection of the first month's rent and deposit. The letting
agents' charges are deducted from the first month's rent and deposit.
As landlord you will be responsible for the deposit and for all
future property management issues.
- Rent Collection: The rent collection service includes all the
services offered under the introduction only service, together
with a rent collection service. Once rent is collected the letting
agents' rent collection commission is deducted and balance is
paid to the landlord. The landlord is expected to arrange to inspect
the property and deal with any repairs under the terms of the
agreement. The issue of notices to quit are normally dealt with
by the letting agent but the landlord will need to make his or
her own arrangements to deal with all aspects of the tenant moving
out.
- Full Management: The fully managed service offered is the most
comprehensive and deals with almost all the issues of property
management required on a daily basis. Urgent repairs will be undertaken
as needed by the letting agent and quotes will be obtained for
other non-essential matters. The payment for any expenditure will
be deducted from rents collected before any payments are made
to the landlord. For landlords who working or living abroad this
service is essential as all matters are left in the hands of the
letting agent
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