Not every landlord needs to manage their property in the exact same way. Some are blessed with the time necessary to manage their properties and tenants with their fullest attention. Others simply have too many demands on them – does that mean they shouldn’t be landlords?
Not at all.
Fully managed letting services are one approach to property letting that can help landlords cope with the demands of rental property management.
Let’s look at why they might want to consider these services and what they offer.
What is fully managed letting?
Fully managed letting involves a comprehensive package of services provided by letting agents towards a landlord’s property. This includes not only sourcing and processing tenants for the property, but the ongoing management of the property as a whole.
This contrasts with something like a let-only service, which stops after the tenants have officially moved in. An estate agent performing a let-only service will source a tenant(s) for the landlord, arrange references and the first bundle of payments, and then their involvement is effectively finished.
Let-only estate agent services might also entail guidance and advice in the initial set up of a rental property, but they won’t assume the responsibility like in a fully managed letting service.
What is included in fully managed letting?
In lettings, ‘fully managed’ means that the estate agency in question is willing to take on all of the responsibility of effectively running a property. They will do everything on behalf of the landlord that they’re legally able to, and this could entail anything from collecting the monthly rent to arranging inspections and organising emergency callouts when things go wrong.
Letting management can also include dispute resolution. Not only can this be a useful buffer between landlords and disgruntled tenants, but it can also help resolve issues between tenants sharing the same property. Newer landlords with less experience may find this particularly welcome as letting agents with a track record in managed lettings will handle it better.
Fully managed letting services ultimately take the stress of property management away from a landlord without fully wresting control from them. If a landlord chooses to sell the property at any time, that’s still their choice.
Fully managed letting service vs let-only service
These are the two options that a landlord will generally need to choose between when seeking an estate agent’s assistance with the property. For the landlord, the choice will mostly rest on how much time they have to dedicate to their property’s management and whether they’re likely to have that time reduced in future.
Fully managed services give landlords the whole package of management, which can make the difference between a nightmare and a lucrative investment. Many investors have employment separate from their investment activities, especially when getting started out.
Letting management is useful enough when things are relatively smooth to manage, but it particularly proves its worth when problems arise like organising maintenance and chasing rent arrears.
Letting agents will also be sure to keep careful records of things that landlords might neglect or forget to keep track of, such as keeping inventory. When landlords are putting their own money into furnishing a place, it’s important to make sure that these expenditures aren’t getting lost, stolen, or damaged without replacement.
Landlords can still have decisions run by them if they’re not happy to leave complete control in the hands of the estate agent. This may be the best compromise for many landlords because there is a record of agreement whenever work is needed, and costs need to be paid.
For landlords who live overseas or deal with a property that sees many short-term residents (such as running an Airbnb), full management is ideal. It additionally creates a safety net for landlords who aren’t completely up to speed with all their legislation and legal knowledge.
Having a team of experienced individuals helping with an investment means that landlords can rest assured they’re fully compliant.
Let-only services are cheaper and entail fewer services to reflect the smaller fees. This form of help from letting agents is best for landlords that have the time and energy to dedicate to their property and actively manage it.
Even if estate agents aren’t overseeing a property’s rental lifespan with let-only services, they still give landlords a strong basis to start from. Letting agents offering let-only services will give advice and guidance on matters such as:
- Rent – a property evaluation will ensure that the rent is fair and reasonable in reflection of the property itself. Good estate agents will pitch the rent payments at just the right level to get an ideal tenant but not so much as to be unfair and unattainable for the majority.
- Marketing – finding tenants means getting a property out into the loud and competitive property market. Professional photography and listing on popular property websites go a long way to getting the property in front of potential renters.
- Insurance – ensuring that your property has the necessary contents insurance is essential. This is something your letting agent could potentially recommend providers for and help you out with the application process.
- Agreements and references – to know that your tenant can deliver on rent payments and that they are who they claim to be, references are often collected, and credit searches may be necessary. Your agent can help with this, as well as drafting tenancy agreements and collecting the first rent payment and deposit.
How much is a fully managed letting service?
A fully managed letting service will typically be charged as a percentage of monthly rent. The average range of fees is between 10 and 20 per cent, with some agents offering more or less than others for their ‘full’ services, so shopping around is worthwhile.
Mistoria Estate Agents Salford can provide landlords with help for their rental properties, whether it’s a let-only service to get things off the ground or full management to take the strain from your time and energy.
To learn more about our services for landlords in Salford, contact us today.