Over recent years the private rental sector has enjoyed unprecedented growth, encouraged by favourable legislation, government policy, and strong market forces, not least of which has been the massive popularity of buy-to-let as a long-term investment medium. With low returns and prospects from the stock market, pensions and savings, people have invested massively in property, to provide a combination of both income and capital growth.
On the other side of the coin, there is constant and steadily growing demand for property to rent, for a variety of reasons: Nowadays our population is far more mobile, and people need to rent privately due to short-term employment contracts, training, uni studies etc. Also the trend these days for many individuals is to live alone thus increasing demand for smaller units of accommodation.
A further reason for growing demand for rented homes is the increase in population as a result of immigration. And of course lets not forget that many people are unable to obtain a mortgage in the current economic climate.
We are now entering a recession, we have a 'credit crunch', and the property selling market is in the doldrums. However, unlike the property sales market, which has always been cyclical (subject to boom and bust), the rentals market continues to enjoy steadily growing demand and supply.
Everyone has to live somewhere, so those who cannot obtain a mortgage, as well as others who have their homes repossessed, become renters. And every cloud has a silver lining - canny landlords are already buying up repossessed properties at auction to expand their portfolios. Furthermore many owners who cannot sell are deciding to rent out their properties instead.
The majority of landlords have minimal or no experience, or indeed interest, in letting and managing their own properties. What they seek is an income and growth on their investment with the minimum of input. So they (very sensibly) rely on the services offered by Letting and Property Management Agents.
The Letting and Managing Agent’s role is to bring together the two parties – property owners (landlords), and people seeking somewhere to live (tenants), and then, usually, to 'manage' the tenanted property on behalf of the landlord. The property itself may be anything from a studio flat to a large country house.
What Does Running a Letting Agency Involve?
Much of the Letting Agent's work is office-based and centred around the telephone, and consists of:
- Taking property details from private owners and investors
- Listing tenants’ requirements and matching them to suitable properties
- Straightforward paperwork and record keeping, and overseeing the tenancy.
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Trips out to take on properties and meet tenant applicants for viewings add interest and variety. The Lettings Business has a respectable and professional image, no manual work is involved, and you don't physically collect rent. You'll find the work pleasant and satisfying because everyone involved benefits:
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- Landlords let their vacant properties through your service
- Tenants are grateful for your help in finding them a suitable home
- In the process you’ll earn substantial fees and commissions, and build a steadily expanding
portfolio of managed properties.
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