Why Avoid Letting Agents Fees?
When trying to find a tenant for your property, most often people will approach an estate agent, who provides a tenant finding service or a fully managed service (rent collection, property management etc), however, these services can typically cost you 6-8% of the monthly rent for the former and the latter option can be up to 15%, with London agents charging even more. Using an online letting agent can be a cost-effective alternative to traditional high-street agents.
Benefits of Finding Tenants Independently
If you’re looking to make the most out of your rental income, you may be interested in finding tenants without an estate agent. Tenants typically pay a holding deposit that is credited towards the first month’s rent. This means you can save the aforementioned fees, although you will then need to make arrangements for the tenant’s deposit (in the correct protected deposit scheme) and contracts (tenancy agreement). If you’re happy to proceed, what are your options?
- Necessary Repairs: Ensure the property is in good condition and all necessary repairs are completed. It is also important to obtain a gas safety certificate and ensure all gas appliances are inspected annually.
Preparing Your Rental Property
Before you start the search for tenants, it’s crucial to prepare your rental property to make it as appealing as possible to prospective tenants. As a private landlord, showcasing your property in the best light can make a significant difference. Here are some essential tips to help you get started:
- Clean and Tidy: Ensure your rental property is spotless, both inside and out. A clean property is more inviting and can leave a lasting impression on prospective tenants.
- Necessary Repairs: Fix any broken appliances, leaky faucets, or other maintenance issues. A well-maintained property signals to tenants that you are a responsible landlord.
- Professional Cleaning: Consider hiring a professional cleaner for a deep clean. This can make your property look and feel brand new.
- High-Quality Photos: Take high-quality photos that highlight the best features of your property. Good photos can significantly increase interest in your listing.
- Detailed Description: Write a detailed description of your property, including its location, size, and amenities. Be honest and highlight what makes your property unique.
- Professional Photography: If possible, hire a professional photographer. High-quality images can make your property stand out in a crowded market.
By taking these steps, you can enhance the appeal of your rental property and attract high-quality prospective tenants.
Marketing Your Rental Properties
Effective marketing is key to finding tenants quickly and efficiently. As a private landlord, you have several avenues to explore when it comes to advertising your rental properties:
- Online Letting Agents: Websites like OpenRent and Rentround allow you to list your properties to a broad audience. These platforms are cost-effective and can help you reach a large number of prospective tenants.
- High Street Agents: While local letting agents can assist in finding tenants, be mindful of their high fees. If you choose this route, ensure the cost is justified by the service provided.
- Social Media: Utilise social media platforms like Facebook and Twitter to advertise your properties. Social media can help you reach a wider audience and engage with potential tenants directly.
- Local Newspapers: Don’t overlook traditional methods. Advertising in local newspapers can help you reach tenants who may not be active online.
- Word of Mouth: Encourage your current tenants to refer friends and family. Offering incentives for successful referrals can be a great way to find reliable tenants.
By diversifying your marketing efforts, you can increase the visibility of your rental properties and attract a larger pool of prospective tenants.
Online Platforms for Tenant Search
Most of your options for a quick and easy tenant search revolve around the internet, with the most popular options being RoomforRent, SpareRoom and OpenRent.
These platforms offer free listings to all their users with options to buy low-cost credits/Bolt’Ons if you want to make your advert stand out. SpareRoom has a free plan, where you can list your property and reply to a certain number of messages but upgrading to the paid plan gives you premium features for your ad, such as ‘Bold Ads’ which claim to give you double the enquiries and free users will be able to contact you without waiting for 7 days. Similarly, with OpenRent a free plan is available but upgrading to their paid subscription will grant you access to other mediums, including Zoopla, Rightmove and 100+ other property partners.
Exploring Free Options
In terms of free options online, you’ll find that you will be severely limited. One of the best options if your budget is really tight could be Facebook Marketplace. You may be more used to selling a second-hand TV on Facebook’s Marketplace but every day more and more houses are being listed for both rent and sale. The benefits of selling via this medium include no commission or subscription fees but you will not be exposed to the kind of market you would be with a specialist rental service. Another added benefit, and one not exclusive to Facebook’s Marketplace, is the ability to post your property in Facebook Groups, which often have several thousand members who are looking to rent properties. Friends can tag each other in posts when they know someone who is looking for a room, and groups often focus on a specific geographic area.
Tenant Application and Screening
Once you start receiving applications from prospective tenants, it’s crucial to screen them thoroughly to ensure you find reliable and trustworthy individuals. Here are some steps to follow:
- Verify Identity and Employment: Confirm the applicant’s identity and employment status to ensure they are who they claim to be.
- Credit and Rental History: Check the applicant’s credit history and rental history. This can give you insight into their financial responsibility and past behavior as a tenant.
- Previous Landlord Reference: Contact the applicant’s previous landlord for a reference. This can provide valuable information about their reliability and conduct as a tenant.
- Proof of Income: Ask for proof of income and employment to ensure the applicant can afford the rent.
- Tenant Referencing Service: Consider using a tenant referencing service to help screen applicants. These services can provide comprehensive background checks and save you time.
By following these steps, you can minimize the risk of renting to unreliable tenants and ensure a smoother tenancy. Always remember to comply with legal requirements and treat all applicants fairly and equally.
By integrating these new sections, the article now provides a comprehensive guide for private landlords looking to find tenants without a letting agent, covering everything from property preparation to tenant screening.
Final Tips for Independent Landlords
Whatever option you decide to pursue when finding tenants without an estate agent, you should always meet the tenants in person and perform a credit check, ideally getting a reference from a previous landlord. This will ensure that you’ll have fewer headaches down the line!
