Is It Worth Using a Managing Agent, and What Should a Good One Do?

There are many responsibilities and mandatory activities involved in letting property, such as:

• Finding suitable tenants
• Performing background checks on those tenants including “right to rent” checks
• Preparing an appropriate and effective tenancy agreement
• Preparing a property inventory
• Maintaining the property itself plus any common spaces like hallways in buildings with multiple occupancies
• Providing services agreed in contracts with tenants
• Keeping up to date with whether tenants have paid their rent
• Ensuring that tenants are not breaching terms in their tenancy agreements
• Dealing with tenant complaints or problems with the property
• Dealing with rental terminations when they arise

Many landlords decide to manage much of this themselves to cut costs. However, the reality of managing a rental property can be very strenuous, especially if you don’t live locally.

Managing agents typically charge 10-15% of the rental to take care of all of the above on your behalf. However, terms vary so you should ensure you have an agreement in writing detailing what the agent’s responsibilities are. For instance, some agencies will charge a fixed percentage for basic duties but will add extra charges for anything beyond those specified duties, for example having to visit the site more than three times in one year. Be absolutely clear on what your liabilities would be in a scenario like a problem with the property requiring several visits to resolve. You should also be confident that the agent will properly fulfil their responsibilities.

It’s worth checking whether an agent is a member of these reputable trade bodies: the SafeAgents, the National Association of Estate Agents, or the Association of Residential Letting Agents.