The buy-to-let investment has long been a popular concept as the demand for rental property remains high, giving buyers a great way of generating a steady income. But many private investors do not have the knowledge, experience, or even the time, to manage their own rental.
There are very specific management requirements pertaining to the role of a landlord – from drafting standard agreements and documents, to tenant screening to rent collection. Considering first-time landlords’ inexperience and other obligations (family, full-time job), these tasks don’t always get sufficient attention from them, and one slip-up could cost the owner dearly.
A real estate agent can take all of that pressure off by handling the business side of things. With their expertise, real estate agents will:
- accurately price the rental according to the market value in the area
- market the property on the landlord’s behalf, using sources that get more potential tenants in the door
- Screen potential tenants by carrying out credit checks, confirming employment, and checking references
- Find suitable and reliable tenants
- Communicate with potential tenants and schedule viewings
- Draft the lease agreement
- Collect rent
- Deal with any complaints or rental disputes that may arise, and facilitate mediation if need be.
With regards to the cost, there are several mandates to consider. The landlord can either choose a managed lease for an unfurnished property with full administration, a managed lease for a furnished property, also with full administration and a non-managed lease, which has no administration service offered. For the non-managed lease, the landlord pays a once-off fee, which is usually a percentage of the year’s lease amount, for advertising the property and filling the tenancy vacancy.
The agent fee is higher with managed leases, for both furnished and unfurnished homes, as agent would will be responsible for the administration of the property as well as tenant management
Remember that not all agents are qualified to manage rental properties. Landlords will want an agent who has their best interests at heart and who specialises in those transactions.
