Cost of letting agents offset by benefits

Landlords have been advised to take on letting agents in order to maximise the potential return on their property, rman.co.uk reports.

Richard Donnell, from property analytics firm Hometrack, has explained that using the services of a letting agent may boost the earning potential of a property; provided landlords budget properly.

Donnell suggested that paying for the services of a letting agents can put off some headstrong landlords who feel capable of doing everything themselves. Letting agents, however, could provide the knowledge and expertise needed to maximise returns on a property.

Admittedly, expenses such as fees, service charges and buildings insurance could eat in to total yields - although the potential for earning that a professional letting agent can offer could offset this.

One of the biggest expenses for landlords, however, can come in the form of void periods; wherein the property is left empty, therefore not bringing in money. This can be minimised if a landlord is confident their property is being properly advertised and tenants can be shown around at any time of day.

Speaking to propertybubble.co.uk of the advice, Donnell explained: "Investing in residential property is all about ensuring that the property is occupied and rental income is maximised to meet outgoings and mortgage payments where a buy-to-let mortgage is used."

Posted 07-08-2012
Author: David Howells