DIY Letting vs Estate Agents/Letting Agents

i4U

Hello All,

Can someone tell me what would be the difference or major issues with letting a property out yourself against using a letting only service through a letting agent/estate agent.

The way I see it, if were to let it myself, then I would advertise it, then interview the possible tenants, reference them. A letting agent would do the same. Do lettings agent's credit reference the candidates? I also understand that individuals are not now allowed to hold deposits is that correct?

Thank you.

adg1

The major difference, other than the obvious costs, would be the backing of an Estate Agent over just yourself. Picture a worst case: If a tenant moves in and stops paying you rent then then it is up to you to chase them, offer any notices to evict etc and find your own legal advice.

If you use a lettings agent to find you a tenant then they will normally collect the rent on your behalf and notify you if there is a late payment/non payment. Most lettings agents will have people who will chase overdue rent on your behalf and approach the tenant etc. They can also help you on the legal side of thing etc if this were to happen.

A rental contract can vary hugely. I rented privately before and the contrct was 4 pages long. I work in the industry and we use a 15 page contract, with 8 pages of tenants obligations, a few for the landlord and the general stuff about notices and procedures if anything untoward happens as mentioned above.

Also, in answer to you last question, you are partially correct. You need to register yourself as a landlord to hold a deposit now, though you can be an individial as far as I'm aware. You must register yourself with the landlords association, set up a separate account (probably a stakeholder one meaning you can't touch the money and it has to stay in one 'lump'). This money is then registered with whichever scheme you chose, and this is then government backed. This stops the risk of the tenant losing any money from their deposit (lets remember that it is only for damages and unpaid rent) to an unscupulous landlord who fancies a holiday.

kenyon_2

My advice would be to use an agent. Beware and read the small print and do not use Reeds Rains they are terrible. Also read the small print on "rent protection" scheme if you decide to take that out too. It doesn't pay out like they tell you it does.

Peter

Delenn

Yes I do this and its been fine.....

You can credit/reference check the Tenants for £25 (each) using a site like the National Landlord's Association. However, If you are going to find and rent out the property yourself I suggest you join a Landlord''s association yourself, as then you get free access to legal advice, and standard Tenancy Agreeements, inventory templates, discounts on Landlords & Contents insurance for the property etc.

Some tips:
If you are going to rent it out yourself - find out the prior Landlord of the Tenants and talk to them about their experience with them. Did they pay on time, were there any issues etc, would they recommend them as tenants.

You need a good plumber and electician, and you need to understand your legal obligations (annual Gas safety checks, your responsibility to maintain heating & hot water supply etc etc), and play this by the book, including protecting their Deposits through an approved scheme etc.

Please be aware though that with or without a Lettiing Agent you could get stuck with a Tenant that does not pay, wrecks your property, and you cannot get them to leave for months! Insurance and enough funds to cover the mortgage for 6 months would be sensible, though I know that's a bit of a stretch. I've been lucky so far - but have heard horror stories from others.


Good luck!

Snakeeyes21

dont use a letting agent, the majority of people i know use private landlords due to the excessive fees charged by letting agents.
drop your rent by 5 or 10 percent, which you would have to pay to the letting agent, keep fees you charge at what they cost you and you will have good honest tenants knocking down your door wanting to rent.

confused31_2

kenyon wrote: »

. Also read the small print on "rent protection" scheme if you decide to take that out too. It doesn't pay out like they tell you it does.

Peter

It does pay out if you do read the small print, thats what its all about reading the small print, as long as the correct references, have been passed the rent guarantee will kick in after the first month.

You go on about if tenants dont pay the rent do you think a lettting agent will do all the legal stuff to remove them for free?

All insurances are the same if someone thinks they are going to get a tenant of the street with no references and then expect the insurance company to pay out when they dont pay the rent, do you blame them?

I personally wouldnt use a letting agent, has someone said before its money for old rope.