Letting Agent or Property Manager?

Letting Agent or Property Manager?

14 Mar, 2021

Do you know the difference between a letting agent or property manager?

Whilst there may not appear to be a distinction between residential letting and property management, it’s important to understand the difference.  For buy-to-let Landlords, whether self managing or using a property management agency, both involve legal responsibilities. Depending on your needs, you may look to change property manager.

What is Lettings Management?

A Letting Agent is paid by the owner of the property to find suitable tenants, advertise the property and filter applicants.  The Landlord makes the final decision on who can move into the rental property.

Once the tenant has moved in, a Letting Agent is no longer involved.  Any repairs or maintenance is dealt with by contacting the Landlord direct.  Also, any renewal of terms at the end of a contract period, is also dealt with by the Landlord.

What is Property Management?

The process mentioned above is followed, however the crucial difference is the Property Manager will remain engaged with the tenant throughout the tenancy, deal with repairs and maintenance, tenancy renewals, rent collection and issuing monthly rent statements and generally dealing with any other issues that may arise.

It’s important for Tenants to know, if not satisfied with the service, they are allowed to contact the Landlord direct.  All standard tenancy agreements state tenants must be made aware of who the Landlord is and be providing with a method of contacting them, if needed.  By law, an Agent must provide the details within 21 days of the request.

Landlord responsibilities

A contract signed is between a Landlord and Tenant. Agents are paid to act on behalf of the Landlord. A Landlord pays for the service of an Agent managing their property during a tenancy.  An Agent is responsible, as a representative of the landlord, to protect the Landlord’s best interest.

A Landlord is ultimately responsible for ensuring their legal duties relating to the property are upheld during the Tenancy.  An Agent is simply employed to carry out these duties on their behalf.  This will include things like providing deposit protection, dealing with safety certificates, following terms stated in contract amongst other things.  A Landlord’s responsibility is stated within the Tenancy Agreement which should be read and understood before signing.

Any new Landlord should ensure they are aware of all legal responsibilities before signing any legal document, failure to do so can have severe consequences.  If in doubt, we recommend instructing a qualified Property Manager, not only will it can take the hassle and stress away of managing your rental property, it can save you money long-term. If your looking to switch letting agents, get in touch.