Most people have some level of vested interest in managing their property; however, landlords who put their homes on the rental market share an even more significant concern for their property’s well-being.
Unfortunately, not all landlords have the necessary time to manage their properties. This task becomes even more complicated when it involves multiple properties; this is why most landlords consider hiring a rental agent to manage their properties on their behalf.
Relinquishing control over your property is a daunting task for many concerned landlords, and there is no investment without risk. However, before entering into any legal contract, you must consider the following tips to decide on the best rental agent for your property and maximise the return on investment.
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When hiring a rental agent to manage your property on your behalf, you should consider your options; do some research and see which rental agents are most popular in your area. Some essential questions to ask include:
You can ascertain which rental agent is best for you and your property by asking the right questions and gathering vital information. If you are still uncertain, you could take extra precautions and visit consumer complaints sites to screen them properly before you hire them.
Furthermore, it would help to consider recommendations from family or friends who have direct experience with the rental agent in question.
Once you have done the necessary research, you should make some calculated comparisons between your available options before hiring a rental agent to manage your property.
Much like when you purchase your first property or take out car insurance, you should always compare the offers from each rental agent before you decide to hire. How rental agents manage their portfolios can differ significantly from company to company and person to person. For example, some rental agents may have a dedicated maintenance department that repairs properties on your behalf. In contrast, others may only report the damages to you and leave all repairs to your discretion.
Some rental agents operate under similar fee structures, while others may charge differently depending on the services they provide. By making calculated comparisons between your options, you can narrow down the perfect rental agent to look after your property; this will also give you much-needed peace of mind.
Remember that you can often negotiate a better rate if you own several rental properties that require management.
Taking out an insurance policy is an intelligent precaution when hiring a rental agent to manage your property on your behalf.
We recommend taking out this policy when drawing up a lease to provide your property with additional protection if any damages occur. This policy also covers legal issues and unpaid utility bills should your employed rental agent evict a tenant due to unforeseen circumstances.
In most property insurance policies, the tenant pays 10% of the monthly rental fee to cover the insurance premium instead of the deposit; this is a win-win scenario for both parties as paying a deposit is often costly.
Once you have chosen to hire a rental agent to manage your property, you will need to sign an agency agreement or letting mandate; this legal document outlines how the agent will manage the property and receive your monthly rental. It also states how the agent will allow the property out to prospective tenants on your behalf.
You should read the entire document and give your approval before signing it, as this is a legally binding contract between you and your rental agent. You should also review the lease agreement your agent will sign to ensure it complies with all the necessary legislation that affects landlords and tenants.
Hiring a rental agent to manage your property on your behalf is a nerve-wracking experience for any landlord, especially under harsh economic conditions. By following this checklist of valuable tips, you can hire the best possible rental agent, afford yourself the necessary peace of mind, and prioritise spending time with your family or friends.
If you would rather sell your property than rent it out, then you might consider making some home improvements before putting it on the market.