How much should I pay an estate agent to rent my flat?

Author: Zoopla.co.uk property news author Ewan Robertson gives rookie landlords some tips on navigating the letting process for the first time.

Renting out your home for the first time can be quite a complicated process, particularly if it’s not your ideal scenario. A series of recessions and high barriers to credit has meant that there are more ‘accidental landlords’ perhaps than in the past. If you’ve found yourself in this position, it may be a relief to enlist the help of an estate agent to help you navigate the process. Particularly when selling seems like an impossible feat, renting can be a short-term fix that is cost effective – even lucrative – when managed effectively.

Unprepared and under pressure? Enlist the help of a letting agent
Experienced landlords dedicate time to drawing up tenancy agreements, performing inventories, collecting deposits and rents and organising essential maintenance work to ensure their properties uphold their value. But for new landlords who have neither experience or the time to find suitable tenants, finding a letting agent to manage the property can be essential.

But what about the cost of paying an agent?
It may be tempting to rent out your property without paying an outside agent for their services. However, there are a few benefits that offset these costs including:

·         Full occupancy. A good agency will strive to rent out your home for 12 months of the year using their advertising reach so that you can earn as much rent as possible while the property is available.

·         Peace of mind. It’s hard to put a price on convenience, but when tenants call at 2am on a Saturday morning asking you to fix a broken boiler, you may be prepared to shell out more than you can afford to solve the problem.

·         Security. It’s also difficult to put a price on experience – whether you’re drawing up agreements or double checking tenants’ referees. It’s essential to choose tenants who will respect the property and its contents (if your home is furnished) and return it in good condition. Agents can help you separate the wheat from the chaff.

·         Time. Lettings agents can show the property to interested tenants and act as an intermediary between the two of you from that point forward. This includes handing over keys, periodic inspections, maintenance and everything else that comes with landlord duties.

Finding a letting agent in your area
There are excellent letting agencies in every UK city, but there are terrible ones, too. Start with researching your rental market, focusing on the types of properties and the price brackets and moving on to the different letting agencies. Pay attention to the range of services and charges available.

The DIY letting approach
Of course, it’s not mandatory to hire the services of lettings agents, but make sure that you seek the advice of a solicitor, accountant or at the very least, another landlord, before going ahead with your plan to rent your home. When you decide to rent the property, you must notify your mortgage lender of your intentions as this is likely to change the terms and conditions of your contract. Good luck!