The amount of time involved in letting and managing a property can be underestimated, and while cost savings are at the forefront of everyone’s mind not using a reputable letting agent can in fact be cost detrimental.
There are many reasons why an investment landlord should use a letting agent. “Most landlords already have full time jobs with little time to dedicate to the successful managing of their rental property,” said Linda McCallion, lettings manager with Sherry FitzGerald Kavanagh. “Using a reputable letting agent can be more economical to ensure the smooth running of the tenancy as it is their profession and they have time and experience to act in your best interests.”
The knowledge and experience that comes with being a good letting agent will invariably save the landlord money. When a maintenance challenge arises the letting agent will be able to act more swiftly than the landlord having reliable tradespersons on hand, reducing any additional costs.
Ms McCallion has noticed that landlords who deal directly with tenants form a relationship and can then find it difficult to be objective. Letting agents act as a buffer zone between the landlord and tenant which can allow the landlord to make informed decisions and be removed emotionally from the tenancy. You will very rarely hear from good letting agents unless there is a major expense that needs authorisation from you as they deal with the mundane tasks of the tenancy on your behalf.
“Using a letting agent can save you money, when you take into account the cost of having a property vacant,” she said. “A good letting agent will commence marketing of your property on websites, usually at a reduced cost, approximately four weeks prior to the termination of the existing tenancy. They will carry out viewings on your property after hours with more urgency than a landlord with other obligations.” In addition a good agency will have a database of tenants actively looking for properties, all of which reduces the time your property is vacant.
Letting agents also become familiar with the traits of a good tenant, requesting references and previous tenancy details, and this removes the likelihood of problem tenants. Reputable tenants always prefer to use a letting agent than deal with a landlord directly, and this can save the landlord time and money in non-payment of rent and related issues. Refunding of the security deposit can also be an area where the independent landlord can lose money through failure to deduct for cleaning, damage, rent outstanding, and other bills. A trusted letting agent will not make any refunds until the property is handed back in the condition it was give with fair wear and tear excepted. Having carried out routine inspections on the property during the tenancy, which Sherry FitzGerald Kavanagh insists upon, there shouldn’t be any unforeseen problems on the final book out.
As letting agents work on commission it is in their interest to achieve the best possible rent for your property. With their knowledge of the local market they will advise you what rent you can expect and how best to market your property. This is invaluable to the investment landlord who is not local to the area.
Choosing to use a letting agent to maximise the profit on your investment property where costs are tax deductible is easy. Choosing the right letting agent can be slightly more difficult as many new firms have set up in recent years having little or no knowledge of the letting profession. “You should look for an agent with experience, knowledge of the local market, who is accessible, and most importantly one you can trust,” Ms McCallion advised. “Meeting with the agent is a good idea as you will be able to judge more in person than over a phone. What services do they provide, how they deal with challenges, and what advice can they offer you are all questions you should ask.”
With the end of the academic year advancing and an oversupply of property in the rental market a given, there has never been a more relevant time to maximise the potential of your investment property by instructing a trusted letting agent on your behalf.
Full details available from Sherry FitzGerald Kavanagh on 091 569123.
