Why you SHOULD still make use of an agent when letting out your property
Many people enter the property market with the desire of letting out the property or properties they have invested in. Others have acquired a new residence; that due to changing circumstances better suits their needs with the implication of now having an additional property that can supplement their income by letting it out.
With the dynamic of advertising one's property having dramatically increased from just placing an ad in the local paper to now including a variety of online sales platforms; the home owner or lessor has more options when letting out their property privately.
But is this the safest and surest option when letting out such a major financial asset?
Seeff Strand here highlights why it is still the best option to make use of a rental agent when letting out your property.
Rental agents are registered with the Estate Agency Affairs Board (EAAB) and as such have to have a valid Fidelity Fund Certificate for the current year. Rental agents should also have undergone training to attain their NQF4 level in property, qualifying them for the function that they perform in the industry.
With training and experience agents also gain a thorough knowledge of the various laws that govern the rental side of the property industry which best enables them to implement best practice, give the right advice and avoid the pitfalls so many owners encounter when trying to let out their investment themselves.
With this said, rental agents are uniquely qualified and equipped to offer lessors informed advice relating to the letting out of their investment. This includes valuating the property to ascertain the correct rental amount and conducting the necessary inspections to establish that the property being rented out is in the correct habitable condition.
Real estate agencies have a wider scope when advertising property that reach a greater part of the market and may give the lessor more considerations when deciding on the person that will occupy their investment.
These measures might include traditional media platforms such as print ads & in-house magazines, social media platforms such as Facebook, Twitter, Instagram & LinkedIn and digital media platforms such as online magazines-and newsletters.
Vetting and pre-screening
When a potential tenant applies to rent a property, the rental agent has the ability to screen such a person on when conducting comprehensive industry related checks.
The agent could conduct a credit check on the person to ascertain if they are a financially viable candidate to rent the property. Most agencies also make use of Pay Prop which can be used to draw a credit profile, if the prospective tenant has rented through an agency that uses Pay Prop.
The agent may also ask for and approach contactable references to establish a character profile of the person applying to rent a lessor's property. This could sometimes give insight into the habits that would cause the lessor to think twice before letting their property to an applicant that seeks to rent their investment.
The finer aspects of managing a property in terms of rental can be daunting to say the least. One of the main benefits that a lessor still maintains by using a rental agent, is being relieved of the direct management of the property and also contact with the tenant renting it.
The first of these include the signing and implementation of the rental agreement that the rental agent, as an industry expert, has an expert knowledge of.
Rental agents also manage aspects such as seeing to maintenance and providing owners with comparative and affordable quotes when repairs or maintenance are performed on a property.
The financial aspects of letting out a property is also managed by the agents & these include amongst others collection of the rental amount and payment of levies, rates, utility bills and/or municipal accounts.
The agent also streamlines the contact between tenant and lessor whether the parties are re-negotiating the rental amount or entering into disagreement. The agent also deals with the cancellation, termination and/or eviction process that is always a matter best handled by experienced industry experts.
Any person who owns a property with the goal of supplementing their income needs to seriously consider the financial, time and logistical aspects when considering the marketing and successful letting of their property.
With so many processes that need to be followed and laws that need to be adhered to, the best choice; if basically just for convenience sake, is still to make use of an agent when renting out your investment.
Contact one of our expert Seeff Rental Agents TODAY to see how we can add value to the managing of your investment.
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Author: Seeff Strand