In a recent survey by Uswitch, two-thirds of UK landlords suggested they are considering switching to a managed let.
More than 2000 landlords, who took part in the survey, were asked how likely it is that they’d use a letting agent to look after their let in the future. From the 63% who answered yes, the most popular reasons for making the change included:
- No longer having to deal with repairs (32%).
- No longer having to find tenants (30%).
- No longer dealing with legal requirements (30%).
- Not having a strong enough knowledge of the market (29%).
Due to the upcoming changes to lettings’ legislation, it’s now more important than ever for landlords to focus on their let. In this guide, we’ll run through what’s included in a managed let, how they work and the advantages of leaving the everyday running of your property to the experts.
Find out about our managed lettings’ packages
What exactly are property management services?
Property management services are designed to help landlords look after their rental properties. A fully managed let will include a range of property management services, which may include:
Tenant find
Tenant-find services may include marketing a property, conducting viewings, qualifying and referencing tenants, and preparing an up-to-date tenancy agreement.
Usually a tenant-find service will also include conducting an inventory at the start and end of a tenancy and collecting the first month’s rent and security deposit, which is then protected, as required by law, in a government-licensed scheme.
Some agents may also liaise with utility companies for things like final meter readings and new tenant details.
Should I use a tenant-find service?
30% of landlords have cited the hassle of finding tenants as a reason for using a letting agent. Furthermore, 27% of landlords would make the move to avoid scams and fraud. This suggests that using an agent to set up your let would be a great help to landlords.
It is revealing that almost all professional landlords have rejected a tenancy application at some point, while only 88% of letting agents have done so. It’s likely the effective screening process estate agents have when they qualify tenants has something to do with this.
As well as providing a full referencing service, agents will credit check tenants and request a guarantor to avoid any surprises later down the line.
Find out about our tenant-find service
Rent collection
Rent collection usually includes everything that’s offered in the tenant-find service, along with a few other things, such as:
- Collecting the rental payments from tenants and paying this into the landlord’s bank account.
- Chasing any missed payments or payments in arrears.
Additionally, a rent-collection service may provide a rental review each year so landlords will know they’re charging an appropriate rent for their property. It will also handle any tenancy renewals and changes, as and when they occur.
Should I use a rent-collection service?
If you want the benefits of a tenant-find service, with the security of an ongoing relationship with your agent, rent collection could be for you.
With rent collection, the only things your agent won’t look after are maintaining your property or safeguarding you from any changes to legal legislation.
Fully managed let
A fully-managed letting service includes everything mentioned so far, along with legal protection and most repairs and maintenance.
The benefit of no longer having to deal with repairs was the leading reason landlords gave for considering a switch to a letting agent. As well as being time-consuming, property maintenance can be expensive. It’s estimated that repairs and maintenance updates consume one-fifth of landlords’ income and is the second most common reason landlords give for selling their property.
A fully managed lettings’ package comes with an assurance that your agent will keep you apprised of the latest lettings’ legislation, so you can make the necessary updates to your let.
Should I use a fully-managed letting service?
To remain compliant with ever-changing lettings’ legislation, landlords should use a managed letting service with an agent that they trust.
Keeping up with changing rental legislation and not having a strong enough knowledge of the lettings market are two of the key reasons landlords gave for considering the switch to a managed let. Therefore, it’s important to work with a letting agent who is confident in both.
We offer our agents some of the best training in the industry and each branch has the support of a national network of agencies, each equipped with the latest market data, so you’ll always know that you’re getting the most from your let.
What are premium managed lets?
Some agents offer a premium managed letting service, which goes one step beyond the standard managed let.
As well as guaranteeing your rental income - even during void periods - your letting agent will take responsibility for every aspect of your let, enforcing and safeguarding your legal rights, and offering legal protection in the case of any disputes.
To find out about our range of managed letting services, get in touch with your local branch today.
