Are you considering using a real estate firm?

At Happy Homes TT we provide a range of services which can be tailored to our landlords requirements. These include:

• Preparing the property for rent
• Marketing and advertising
• Screening tenants
• Providing legal documents and support

Some Pros and Cons of using an agent include:

What does landlord property management include?

What is the typical fee of a renting agent?

What contract agreements will there be between the letting agent and landlord?

The main agreement is Owner/Agent Agreement for rentals - This agreement is between landlord and agent where the agent will find a suitable tenant but the landlord manages the property thereafter.

The agreement should cover all contractual areas with the agent, and landlords should ask agents to take them through this so they understand each section. For example:

• What the agent is responsible for
• What the landlord is responsible for
• How the landlord/ agent relationship will work
• What fees and charges apply
• How the agreement can be terminated

Other things to look out for:

• Deposit iss – landlords should be clear about who is protecting the deposit If the agent will be responsible for this, the landlord should know.
• Fees – some agents will have all-inclusive fees while others will charge for add-ons. Landlords should be clear on exactly what is included.
• Rent – when and exactly how will this be paid to the landlord?
• Termination – it iss not unknown for agency agreements to be heavy on fees and light on how to terminate the agreement. Landlords must be clear exactly how the agreement can be ended, and how much notice is required.
• Clauses – landlords should beware of clauses which mean they must give two months notice or more if they wish to cancel the agreement. Three months is suggested as a reasonable cancellation period. Also watch out for clauses which suggest the agent be paid commission on renewals of the tenancy with the tenants they found, whether or not they are actually managing the property (some of these clauses may be invalid). If a landlord is not happy with any clause in the agreement, it should be crossed out and both agent and landlord should initial the crossing out to make it clear that this clause is not included. Landlords must ensure they are provided with a copy of the agreement after they have signed it.

What other costs would I incur as a landlord?

The maintenance of a property can be costly. So it pays to keep on top of small everyday jobs to avoid them becoming larger and more expensive tasks. As well as renting and management fees, landlords need to consider the following:-

• Landlord Insurance
• Refurbishment and decoration
• Repairs
• Exterior maintenance – window cleaning, gardening
• Cleaning costs
• Loss of rent from a vacancy loss
• Tax on any profit made from rental income

Are there instances where the agent would not pay rent to the landlord?

If an agent is collecting rent from the tenant on behalf of the landlord, this should be passed on to the landlord as per the date specified in the agreement. Reasons for not passing the rent on may include:

• Agreed fees being deducted from the first months rent
• The agent has deducted the cost of refurbishment or maintenance from the rent

In both these instances, there should be written communication to prove that this was agreed between both parties.

Summary

The services of a renting agent can be essential for landlords who are very busy, have properties far away, dislike dealing with the stress of tenants, poor screening and selection skills, have very little experience of the industry or have a large portfolio to manage. It can be tempting for landlords to cut costs and go it alone. But for those who arent fully versed in what is involved, how much time it takes and the responsibilities involved, my advice is to seek professional help. In the long-run, it will be well worth it, particularly if you use a good reputable agent who supports your investment.