Letting
Should I try and let my house through a lettings agent or privately?
Both have advantages and disadvantages
Lettings agent:
Can be member of an industry regulatory body – if so they are likely to have higher standards of service – likely to have a much larger number of enquiries - will advertise and actively market your property to potential tenants, and can be selective about the type of tenant they market to – will try and maximise your rental income – can manage the property on your behalf – will vet potential tenants and carry out checks including credit checks, references and may insist on a guarantor – will deal with any problems and arrange any legal requirements such as gas safety certificates – can provide insurance against loss of rent as a result of the property not being let for a while, if the property is damaged or the tenants refuse to pay the rent – experience in dealing with tenants - all extra measures that protect a landlord
But - will charge a fee, typically 15% of the rental income – you will probably not meet the tenants before they move in – high administrative fees charged by agencies can put off many tenants.
Private Letting:
Can meet and vet the tenants yourself – retain control over the property - receive 100% of the rental income – much cheaper than lettings agent – can advertise more widely – can insist on guarantors if you want
But – will involve a lot more work – if there is a problem with tenants then it will be down to you to deal with it – all risk rests with you; if the tenants don’t pay their rent and damage the house then you will have to pay for it – will have to make sure that you are complying with all legal requirements – will have to market the property yourself and pay for any advertising – will have to pay for any unlet periods
Choice comes down to convenience versus cost – if you don’t mind paying what can be very expensive agency fees for peace of mind and a potentially hassle free let then go with an agency – but if you don’t mind spending the time and accepting more risk then you can save a lot of money – also bear in mind that if the profit margin on the property is small then it may not be worth the extra cost
Other frequently asked questions
- I live in and own my house. I want to buy another house and let out this one. What should I do? You will in all likelihood need to remortgage your existing house – most mortgages prohibit ...
- My tenants are refusing to pay their rent. What should I do? We suggest you consult a solicitor experienced in landlord or tenant law as soon as ...
- What is a House in Multiple Occupation (HMO)? Under the Housing Act 2004 if a property is let and is one of the ...
- Do I need to tell my mortgage lender if I am letting my house out? Almost definitely yes – most mortgages have strict conditions stating that the house cannot be ...
- I am letting my flat out. Do I need to tell the landlord? Very much dependent on the terms of the lease – some will have a requirement ...
- My leasehold flat is starting to develop some structural problems. Can I make the landlord pay for it? Depends on:1) Location of damage2) Cause of damage3) Type of damage Remember that the landlord paying for ...
- The hallway in my building is really dirty and in a bad state of repair. What do I do? The terms of your lease will state that your landlord has a responsibility to maintain ...
- I own a leasehold flat and have just received a massive repair bill from the landlord. What can I do? Depends – the landlord is entitled to charge you for work that has been done ...
