What’s The Difference Between Letting and Property Management?
Letting agents and property managers are hired to preserve the value of a property and represent the owner with tenants.
A letting agent’s main goal is to help establish a vision of the premises being the perfect home, with the intention to fill the vacancy of the home. Similarly, a property manager’s aim is to find the ideal tenant as well as, focus on the process and maintaining the property that follows after the lease is signed.
What is property management?
A property manager is paid by the landlord to find a suitable tenant for occupancy. The agent is also responsible for assisting with monthly rent collection, property maintenance issues or contract renewals.
During a tenants occupancy, they can report to the property manager with any queries regarding the home or rental agreement. The property manager will act as an intermediary between the owner of the building and the tenant – referring to the landlord for any issues and then providing the tenant with feedback.
Property managing agents responsibilities
It is common for some homeowners to have many properties and only be interested in earning profit from them due to lack of time or expertise.
To maintain these homes, the owner will hire a property manager to take over a range of responsibilities such as:
- Preventing any gaps in occupancy
- Reference checks
- Rent collection
- Actioning eviction procedures if needed
- Creating and confirming leases on behalf of the owner
- Property maintenance
Lettings management 101
The main object of a letting agent is to fill a property’s occupancy as quickly as possible on behalf of the homeowner.
Even though a letting agent is hired to find suitable tenants on behalf of the owner, it is ultimately up to the landlord who will be able to move into the premises.
Once a property is leased with new tenants, the letting manager will no longer be involved, making the landlord responsible for any inquiries or issues the tenant might have.
Letting agents responsibilities
The letting agent is tasked with finding the perfect occupant for a property in the shortest amount of time possible.
Other responsibilities of a letting agent include:
- Credit checks of a potential tenant.
- Provide the tenant with a means of contacting the owner.
- Finalise rental agreement by liaising with tenant and homeowner.
Letting vs property management
All this being said, the landlord is always in control. If you are unhappy with the current agent, you are able to contact the landlord directly as all standard tenancy agreements state that agents must provide a tenant with a contact method for the landlord.
Why deciding between using the services of a letting agent or a property manager, it all depends on whether the owner is able to maintain their properties themselves, in which case a letting agent would be suitable. However, if a property owner is uncertain of how to rent a property and the process thereafter, hiring property management would be a better fit for the owner.