| You're a new landlord or maybe an existing landlord | | | | and what exclusions apply? |
| thinking of instructing a new agent. What are the | | | | - Can I compare my household insurance with yours to |
| questions you should be asking of any agent you are | | | | see how it protects my asset against accidental |
| considering instructing to look after a major asset you | | | | damage, malicious damage caused by the tenant or |
| own? | | | | the tenants guest or a third party? |
| The most frequently asked question letting agents are | | | | The tenants may have paid a damage deposit. The |
| asked is "what are your management fees". Unless | | | | deposit will be protected if the tenancy is an Assured |
| the agents answer is what you are expected to hear | | | | Shorthold. So regardless of how much deposit you |
| or lower than what you expect the relationship has | | | | have you will need to prove and justify any claim for |
| started off on a bad footing. | | | | damages. If your agents failed to record evidence at |
| The amount of money a landlord can save by | | | | the start and end of tenancy you will land up footing |
| reducing management fees is very small. The question | | | | the repair bill. |
| is most often asked because landlords new or existing | | | | The fact is we live in a time where more people |
| are not aware of just how much money can be lost | | | | blame someone else for their own actions/mistakes. |
| or saved by controlling many other extremely | | | | So unless your agent is tenacious in identifying the real |
| important aspects of the letting process. | | | | course of a fault/leak or damage and able to provide |
| The maximum amount of money that can be | | | | strong evidence that helps establish responsibility you |
| generated is quite easy to define. Lets work on a | | | | will be exposed to incurring costs that should have |
| monthly rent of £600. The gross annual rent will | | | | been charged to and paid by the tenant. |
| be £7200. Unless letting rooms this is the | | | | My advice to anyone carrying out research for |
| maximum rent that can be generated (subject to a | | | | selection of a property letting agent should spend time |
| rent review during the 12 months). | | | | reviewing the questions above and not focus on the |
| Most likely the largest of any expense will be the | | | | management fees alone. |
| mortgage. The annual spend on a mortgage is outside | | | | A 1% difference in management fee on a monthly rent |
| the control or influence of a letting agent. | | | | of £600 is only £72.00 per year. |
| The questions you should be asking a letting agent you | | | | Is it really in your interest to instruct the cheapest agent |
| are considering instructing are: | | | | or the property letting agent who can prove they will |
| - How do you ensure maintenance issues reported by | | | | help you keep more of the annual rent? |
| the tenant are not caused by the tenant? | | | | You may feel good pushing the letting agent in to |
| - How do you record evidence and recovery losses | | | | submission and dropping their rate by 2% or |
| for damage caused by the tenant or the tenants | | | | £144.00. |
| guests? | | | | But is it not better to have a highly motivated property |
| - How much does your rent insurance cost and what | | | | lettings agent to work for you knowing they will earn a |
| exclusions apply? Compare the costs and cover | | | | healthy profit and be proud to provide you with a |
| offered the variations can run into £100's. | | | | Service Level that will protect your asset and your |
| - How much does your legal expense insurance cost | | | | annual rent? |