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  • Why Use a Letting Agent?
  • Why Risk Management?

Why use a Letting Agency?

Letting a property may not be as simple as it seems. Whilst many landlords choose to manage their own property (ies), many use the services of a professional letting agent.

Using the services of a letting agent can offer peace of mind that your property is in safe hands. Combining the services of a letting agent and Letsure’s insurance products and services may give you an even greater piece of mind.

Finding an Agent

If you use an agent, it is best to choose one local to the property to be let. Look for agents who are members of relevant trade associations or accreditation schemes. The following trade associations or accreditation schemes as some that are recognised by the lettings industry:

• ARLA - Association of Residential Letting Agents
• NAEA - National Association of Estate Agents
• NALS – National Approved Lettings Scheme
• RICS – Royal Institution of Chartered Surveyors

Agents who are members of the above associations:

• have to abide by a code of conduct;
• have client money protection;
• keep client monies in a client account;
• and maintain Professional Indemnity insurance.

All help to protect their landlord and tenant clients. Added to that, if things go wrong and there may also be some recourse through their association with one of the above bodies.

Agents who are members of the trade associations may also have to demonstrate that their staff members are trained to a suitable standard. As a result they operate comprehensive training programmes and continuing professional development. schemes.

Landlords have to comply with a raft of legislation when letting. Failure to comply could give rise to possible litigation and fines. Professional letting agents keep up to date with all the relevant legislation and can provide suitable advice and guidance.

Relevant legislation includes:

• The Unfair Terms in Consumer Contracts Regulations 1999;
• The Furniture and Furnishings (Fire) (Safety) Regulations 1988 (amended 1989 and 1993);
• The Gas Safety (Installation & Use) Regulations 1998;
• The Electrical Equipment (Safety) Regulations 1994 and Smoke Detectors Act 1991.

Services from an Agent

Agents offer a range of services, from ‘tenant find’ only through to ‘full property management’. Fee structures range from a set cost for specific individual services to a percentage of the monthly rent for a full management service. Some agents also provide valuable guidance and advice on insurance and other risk management matters

The Property

If you are considering purchasing a property to let agents can assist. They are fully aware of the lettings activity in the locality so can advise you on local market demands such as:

• the most sought after property type (e.g. 1 or 2 bedroom properties);
• achievable rent levels;
• popular areas; and
• whether or not you should let on a furnished or unfurnished basis.

Not all mortgage companies will accept let properties. A letting agent may also be able to advise you on specialist sources of finance if you require a mortgage.

Agents can assist to get the property ready for letting by preparing a detailed inventory of the property and its contents which you and the tenant will be asked agree to. Before the tenant leaves at the end of the tenancy, the signed inventory will be reviewed by the agent and any dilapidations (damage) will be noted.

The Tenant

Agents have many properties to let on their books and a steady stream of tenants coming to them. Many tenants prefer to rent through a professional letting agent because they know that their deposit and rent will be secure.

An agent will advertise your property to ensure that a tenant is found quickly. When prospective tenant(s) have been found the agent will obtain references to assess suitability, often using a referencing service such as Letsure Tenant Assessment.

When things go wrong

Even if all the correct measures are taken in the first place, things can go wrong. Agents are experienced with the challenges involved with property letting, so will be able to move swiftly to help and guide you personally if you have problems. Agents are also likely to have access to third party specialists, reducing your potential costs in the process.

Landlords who take advantage of the services of an agent that works with Letsure will benefit in the knowledge that their properties are sufficiently insured for many of the risks involved when letting a property.