Property letting options
Self-managing.
This is an option for landlords who have a clear understanding of the rules and regulations that apply to them, and their responsibilities. Recently landlords have seen more regulation and rules come into action. If you’re wanting to self manage then you have to have an ongoing interest in these.
This can be a good option if you’re time rich and want to save the money instead of having a professional deal with the property.
Letting only.
A letting only agreement is where you utilise an agents skills and resources to set your property up with tenants. The agent will market the property, advise on the rental amount, find a tenant, undertake referencing and check if required, and provide an agreement.
Once this has been completed the owner of the property (landlord) will take on the day to day management of the property.
This is a good option if you’re worried about finding a tenant and getting everything checked and set up.
Letting and rent collection.
The next level is the same as the above but also includes the collection of rental monies. In this arrangement, the agent finds the tenant as above but also collects the rent during the term of the tenancy.
Other property management tasks such as maintenance and repairs, and gaining possession of the property at the end of a tenancy are still roles that the landlord needs to deal with.
This is an appealing option if you can or if you have a good and trusted maintenance team available to you to take care of any issues, but would like a point of contact between you and your tenants.
Full management.
A fully managed service is designed to be the most comprehensive service that most letting agents offer. The agent will deal with all management, maintenance, rental collection, starting and aspects ending the tenancy.
This is designed as a one-stop-shop for landlords who don’t have the time, knowledge, or access to do a good job. They will act as a gatekeeper and often will agree on an amount for getting repairs to be done without permission as again to limit the contact needed with the landlord. For more expensive works they’d still be expected to gather quotes for the works and present the option to the landlord.
Rent to rent.
A rent to rent agreement is a relatively new strategy within the residential market compared to the above options. This is an option where the agent rents the property directly from the landlord and then sublets the property to tenants that they find.
The landlord usually takes a lower fixed renal amount compared to the other options, however, they generally aren’t charged fees, void periods are covered by the agent, and so are minor maintenance costs.
This is a great solution for those landlords who want confirmed monthly income with little to no maintenance costs, no voids, and less hassle as a result of owning a rental property. They may have to be open to altering the property to adhere to regulations and legislations if the agents use the property as a House in Multiple Occupation (HMO)
If you would like to know more about the options mentioned above or have a subject that you’d like us to cover then please contact us or comment below.