In his everyday life, a single person can make a lot of transactions. How much more when you count a transaction made by a certain group of people in a given time? The point is, making transactions is one of the most common things that people do every time. And before making a transaction, you may need a piece of property advice.
Now, when we talk about properties and property management, you will have to think of transactions first. When you have either asked a person to manage your property or you hired a company to do it, there must be a transaction to be done. These transactions are done by three different parties. Let’s take for example the apartment business. When a tenant rents an apartment, there will be an agreement between the tenant, the landlord and the letting agent. What is a letting agent?
In the United Kingdom, the term Letting Agent is used to refer to a person who will serve as an initiator of a certain agreement. For example, a tenant wants to close the renting deal for a certain property to the landlord or the owner of the property. The Letting Agent will seal the deal and will stand as witness to the transaction. Letting agents are commonly found in companies who already have them in hand. And you can be sure that these letting agents from certain companies are those who have proven themselves effective.
Without a doubt, these letting agents are required to be paid. And the paying process of these agents is based on the rental given by the tenants to their landlords. This means that there will be a certain percentage allocated for the letting agent based on what has been agreed upon. But most likely salary agreements are commonly settled in an annual basis with the percentage of 10%-20% of the tenant’s rent.
If anything, it is still up to you if you would hire a letting agent to formalize a deal. And if you will hire someone, it is your choice to choose someone from a reputable company or an individual.
Letting Advice for Tenants- The Benefits
Business owners have their own way of running their businesses. Of course, because they know the business that they are into, it follows that they know how to manage it. But there are certain businesses that do not need much strategy but a lot of effort.
These businesses may have started from scratch or can be a family business passed on from generation to generation. You cannot avoid this business or turn it into another business that you want. That is why in these cases, you need to hire someone who can handle the job, someone who can also give letting advice for tenants.
Managing a property can only apply when you have a house rental business where you have tenants that are very hard to handle. These people are the ones who need to be forced into paying their dues. If you don’t want to handle this part, then you may consider hiring a letting agent to take care of everything. These are the benefits that you can have from a letting agent when you have a house rental business:
- Maintenance – You will be 100% sure that our place is taken cared of even if you do not visit it for several months. Taking care of your property is now the responsibility of your letting agent. It is his job to maintain the cleanliness and have all the repairs needed so that people or future tenants can stay in a place that is in good condition and is ready for any renting purposes anytime.
- Collecting Rentals – the most important thing in your business is the monthly or regular payment of the tenants. This is not a problem because this is included in your letting agent’s job, to collect the monthly and regular rentals. It is the agent’s problem if he does not give a full report or liquidation of the monthly collection of rentals.
- Future Tenants – Nothing is permanent as everyone says. No matter how long your tenant is renting your property, there will come a time that he will leave. It may depend on the tenant’s decision or the contract that you signed together. The point is the work of the letting agent here is to advertise or promote the place to future tenants. It is also on the agent’s job description to find possible tenants who will be renting the vacated house or apartment.
When someone is available to do all of these tasks for you, then you should not be having problems with your house rental business. As the owner, all you need to do is choose the right agent: the one that you will have no problem getting along with, the one who knows what he needs to do and all of his tasks and most of all, the one that can be trusted with your business.
Buy-To-Let Explained: An Attractive Income Investment
Buy-to-let may not be the top property in past years but it has recovered in current times. It is considered as an income investment for those who are able to raise a huge deposit; thus, buy-to-let explained that it looks more attractive compared to the volatility in stock market and low rates in savings.
Currently, the market value of houses is low, rents are increasing and mortgage deals are improving. These reasons tempted investors to reinvest in buy-to-let. There are no guarantees; however, investors are attracted to invest than to buy shares and stocks. Here are the things to consider before investing:
- Be knowledgeable of the positive and negative sides of buy-to-let. It may look attractive because of a faster return of investment at a rate of 5% as compared to long-term investments. Always remember that there are no guarantees.
- Selecting a good site is a plus factor. It will be easier to find tenants if the amenities are on their doorstep. Look for locations that have excellent transport links, outstanding schools and universities, and presence of shops and cafes too.
- You need big savings. Investing in buy-to-let requires payment of rental amounting to 125% of repayments for mortgage and an additional 25% to protect the investor from abrupt price changes. Also, prepare an emergency fund in the event of cancelled rent and repair and maintenance work.
- Invest your money wisely. Do not be deceived by those articles that buy-to-let will make you a millionaire in an instant. Currently, the prices of properties are falling but what if the price of your property falls too? Invest your money for long-term income.
- Negotiate with the seller. You should appraise the value of the property before negotiating. It will give you an idea of how much you can offer. Make your offers low and increase this incrementally.