If you've purchased an investment property, you may find that there are several advantages to using an agent, rather than managing the property directly.
Private owners are bound by the same legislative requirements as agents in their dealings with tenants. This means that if you are taking the task on yourself, you will need to stay up to date with constantly-changing legal requirements.
This is just one of many reasons why choosing an agent to manage your investment property can be a wise decision that may save you time and money over the long term.
Advantages of using an agent
When you choose an agent to manage your investment property, they can act as an intermediary between you and the tenant. This is particularly useful in the event of any problems that arise during the tenancy - your agent can help to moderate the situation and prevent any ill feeling over late or unpaid rent and repairs.
We are able to access valuable information about your prospective tenants' previous rental history and other information to help you make an educated decision.
Professional real estate agents - including your local team - are also often able to negotiate more attractive rates with tradespeople/repairmen/contractors when work needs to be done.
Agents tend to generally wield a considerable amount of influence over tradespeople due to the sheer volume of work they supply them with. They can therefore be a very useful connection to have when a repair needs to be attended to urgently or after hours.
In addition, you may find that using an agent allows you to qualify for a high-quality landlord protection insurance policy, which may not otherwise be available to private investors.
You will also find that in most circumstances, any management fees that you pay to an agent are tax-deductible.
Legal points to consider
As mentioned previously, there are several legal scenarios that can arise from property management.
From the very beginning of a tenancy, your agent will ensure the correct processes are carried out to help put you in the best possible position.
The condition reports and lease are likely to be the most important documents in the entire tenancy process. Choosing to use an agent can ensure all the initial paperwork is prepared correctly.
Your agent can also take quick, effective action should any legal issues arise during the rental period.
These can include handling complaints from neighbours, taking the necessary steps to avoid vacant possession if necessary, serving notices if a tenant does not pay rent and a variety of other situations.
As a landlord, you may find that disputes over late rent - or situations where rent has not been paid at all - have the potential become difficult and emotional if you are dealing directly with your tenant. Your agent can work to help diffuse these situations and come up with fair, objective compromises and solutions that take the needs of all parties into account.
In the event your property has been damaged and you need to appear before a tribunal, having an experienced agent in your corner can make a world of difference. An agent can either handle the matter on your behalf or work with you to achieve a satisfactory outcome.