Buy to let mortgage guide: letting agents
What are the pros and cons of letting agents?

By the time that you've found the right property and the right mortgage; you'll probably be ready to hand everything over to a third party. Letting agents offer a variety of services aimed at taking the hassle out of being a landlord, but of course you'll have to pay for their services. If you're concerned about the calibre of your potential lettings agent ARLA affiliation (Association of Residential Letting Agents) should give some peace of mind.

Banks and building societies generally require properties to be let on an Assured Shorthold Tenancy for either six or twelve months. The first hurdle you'll face is finding the right tenants. Even if you're planning to manage the property yourself it may be wise to enlist the help of a letting agent to vet potential tenants. Rather than relying on the pot luck of placing an advert in the local paper, letting agents combine years of experience with a portfolio of handy computer programs (such as credit and criminal record checks) to make sure that they get the best clients.

Letting agents are also ideally placed to deal with the legal paperwork, including drawing up the all important contract. They will also take care of the financial aspects of the letting by setting up monthly direct debits. The most basic level of service offered by lettings agents (as outlined above) will cost anywhere between 7-12% of the rent. If you want the full management service you'll have to pay another 4-5% and you should be able to more or less forget about the property, although you'll still have to pay for any repairs carried out. If you live locally and your property is in good shape then it's well worth considering managing the household repairs and maintenance yourself. You may well find that twelve months sail by without having to do anything; of course the opposite is equally as true.

 

 

 

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