Becoming a letting agent does not require much academic qualification, but that doesn’t make it an easy job. Successful agents are known to have the ability to listen and communicate effectively. Also, they generally possess people skills.
The role of a letting agent can be summarised as bringing the landlord and tenant together. The agent doesn’t own the property, and they don’t even have to manage it. If you don’t intend to manage the tenants, you will be offered a one-time fee for finding the renting party. Most agents prefer a full management position since this will entitle them to a monthly commission in addition to the one-time finders fee.
What Does a Full-Management Letting Agent Do?
Full-management letting agents don’t just find the new tenants- they have to manage them throughout the entire period of their tenancy. Their payment is usually a percentage of the rent. If you choose to be a full-management letting agent, you can expect to earn a substantial monthly income as your portfolio grows.
The agent will usually start by evaluating the property to advise the landlord on the rent. Once the two parties have agreed on the rent, they will advertise the property on various forums. This could be the internet or even traditional newspapers.
The agent will inform the landlord of any useful offers they get. Prospective tenants may want to negotiate a lower rent. If it is a fully furnished apartment, they may want extra furniture. The landlord will be informed of these offers for consideration. Once an agreement is reached, the renting party will sign the tenancy agreement, and the letting agent will receive their finders fee. Through the entire process, the landlord will not need to meet the tenant. The legal contract will be given to the tenant by the letting agent. All other forms of communication can be carried out through the agent.
Vetting Potential Tenants
Some agents vet the potential tenants to gauge their ability to pay rent throughout their tenancy. This can be done by checking their credit or by taking up references. This service may be paid for by the prospective tenant or the landlord.
Collecting Rent and Deposit
Once the tenant signs the legal agreement, they will pay the deposit and rent for the first month. The agent has to collect the money every month for the entire duration of the renter’s stay. They may also be responsible for the cleaning of the house before the tenant moves in, and after they move out. As mentioned before, the agent will be paid a percentage of the rent.
A letting agent is tasked with the responsibility of finding new tenants. Full-management agents will take on more duties such as the collection of deposit and rent. They may also facilitate the signing of the tenancy agreement.