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More and more people are looking for a place to rent. According to the Scottish government, the number of houses being privately rented has tripled since the turn of the century.
If you’re one of these people looking for a place to rent, then you’ve likely run across letting agents and property managers.
But what’s the difference? Who should you look for when you’re interested in renting a property?
There are key differences between the two, and knowing this can help as you look for a new home. We’ll explain everything below.
What does a letting agent do?
The primary role of a letting agent boils down to finding a tenant for the property. They spark the renting process by marketing the property and handling potential tenants.
Specifically, they perform the following tasks:
1. Marketing and advertising
Letting agents are the ones marketing the property. They’re the ones posting on rental sites, creating local advertising materials, or contacting their network of potential tenants.
2. Tenant screening
Of course, a letting agent won’t just find any tenant. They need to find trustworthy ones. They’re the ones conducting background checks, obtaining character references, and ensuring the tenant’s financial capabilities.
3. Property viewings
Letting agents are the ones holding property viewings. They’re the ones scheduling these viewings as well as the ones present with the viewers during them.
They need to know how to present the property in the best light and how to answer frequently asked questions.
4. Drafting initial tenancy agreements
Once a suitable tenant confirms their interest, the letting agent drafts a tenancy agreement. This agreement must adhere to all Scottish rental laws, so the letting agent must be aware of any relevant legislation.
5. Handling deposits
In Scotland, tenants place their initial deposits into a government-backed tenancy deposit scheme. Letting agents ensure that this process goes smoothly.
6. Initial inspections and handover
Letting agents conduct a final condition report before the tenant moves in. Then, they clarify the exact state of the property to the tenant to set expectations. After that, they hand over the keys to the new tenant.
Once handed over, the tenancy has officially begun and the letting agent’s role is completed. The ongoing management of the property is now under the role of the property manager.
What does a property manager do?
While letting agents focus on getting a tenant, property managers handle the day-to-day operations of the property and ongoing tenant relations.
Their key duties include:
1. Rent collection
As a tenant, you’ll mainly see a property manager whenever they’re collecting rent. They collect rent at the agreed-upon dates, handle any missed or late payments, and, if necessary, initiate eviction for non-payors.
2. Maintenance and repairs
Property managers are also in charge of handling maintenance and repairs. This includes scheduling routine inspections, responding to tenant questions and complaints, and getting contractors for repairs.
3. Inspections
A big part of property maintenance is routine inspections. Property managers will regularly check for any damages, ensure the tenants are following contract agreements, and identify potential issues within the properties.
4. Legal compliance
Property managers are typically also the landlord’s legal aid. They ensure that the operations of the property remain compliant with all relevant laws. These include things like:
- Health and safety laws;
- Energy Performance Certificates (EPCs);
- Electrical Installation Condition Reports (EICRs);
- Gas safety regulations.
5. End of tenancy procedures
At the end of a tenant’s stay, the property manager handles all necessary procedures. They conduct final inspections, return the tenant’s deposit, and arrange for any repairs or cleaning. They also often help with re-letting the property.
In essence, the property manager is the tenant’s main point of contact during their stay.
Letting agent vs. property manager: differences and overlap
In short, a letting agent is focused on the short-term task of tenant acquisition.
On the other hand, a property manager handles the long-term maintenance of everything else about the property once the tenancy has begun.
However, some people play both roles, being the ones marketing the property and maintaining it during the tenancy. This typically occurs when landlords choose only one company or person to handle both tasks.
But, more often than not, landlords want to pick someone who specifically specialises in each individual role.
Source: (pexels.com)
Tips When Dealing With Letting Agents or Property Managers
Lastly, we’d like to leave you with some lesser-known tips for dealing with letting agents or property managers.
1. List down all your questions before viewing
Make the most out of your time when viewing a property with a letting agent. Be sure to think about everything you may need or want out of a property and discuss them with the agent.
2. Inform property managers about issues ASAP
Suddenly found the ceiling leaking? Contact the property manager ASAP. Not only will this ensure that the damage gets fixed earlier, but the longer you wait, the more it seems like you caused the damage.
3. Keep data secure
Dealing with letting agents and property managers involve sending over highly sensitive information. Ensure that you’re contacting the correct number or email and use a VPN for phone interactions online to prevent data leakages.
4. Get everything in writing
All your agreements must be in your tenancy contract, so read them thoroughly. If you come up with new agreements with your property manager, get them down in writing—even an email or text message will do, but an amendment to the contract may even be better. However, as said above, make sure that your data is secure.
5. Check the property’s legal compliance yourself
While the letting agent and property manager should take care of this, there’s no harm in double-checking if the property completely complies with regulations. Unnoticed non-compliance may get you involved in messy legal issues.
Conclusion
Since Scottish rental prices continue to increase, it’s important to understand the distinct roles of letting agents and property managers when choosing a property. Knowing what each one is responsible for can help you make more informed decisions during your rental search and ensure a smooth experience throughout your tenancy. By asking the right questions upfront and building a good relationship with your property manager, you can avoid common issues and enjoy a stress-free rental process.
