You have purchased an investment property and now you need to decide on which route to follow to let the property out.
Here are some advantages and disadvantages when making use of letting agents. It is important to note that this is dependent on your lifestyle, schedule and needs.
Advantages when using a letting agent:
· Letting agents are qualified in their field and can foresee pitfalls.
· Letting agents have all the necessary tools to do background checks on prospective tenants.
· Letting agents know what the market trends are and what the market predicts with regards to property value within the letting industry.
· Letting agents manage all aspects of letting your property.
· Letting agents deal with attorneys every day and if problems arise they are at hand to deal with any problems.
Disadvantages when using a letting agent:
· Letting agents will manage the letting of your property at a fee, normally 10% of the rental income.
· Letting agents could fall into a trap of not keeping a hand on your investment.
· If there are problems with your investment there could be a delayed communication between the two parties.
Advantages of letting privately:
· You save costs on paying commission.
· You decide who occupies your property.
· It is advisable to build up a healthy relationship with tenants, should there be any problems they will communicate with you directly.
Disadvantages of letting privately:
· Doing credit checks on tenants could be time consuming.
· Credit checks cost money and without the right tools you could inevitable make mistakes.
· You have to deal with breakages and problems regarding the property yourself.
· If you do not keep a hand on the property, it could fall into a state of disrepair.
· As a private owner you do not always have access to attorneys if something does go wrong and this could be costly.
Visit www.myroof.co.za to find your investment property.