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How do I make the leap from Letting Agent to self-managing my property?

Started by Betty, July 27, 2021, 09:09:05 AM

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Betty

Hi all - hope you're well.

After using Estate Agents for two years to rent my property out. I've come to a point where after this current active tenancy I'm thinking about managing the property myself.

If my current tenants would like to stay in the property, how would I go about making the change from Agent to self-manage?

Do I go through the Agent to do this (as all comms have previously gone through Agent) or contact the tenants directly?

What happens to the tenants' deposit which was administered by the Agents?

Any advice you can kindly give is much appreciated.

Many thanks,
Betty.


eps501

I self managed after years of using agents. Firstly you need to check your agreement/contract with the agent. Sometimes there are clauses to obviously make it difficult for the Landlord to end the contract. I would also make sure to register with the ICO and other Landlord bodies so that you can be up to speed with the wealth of information out there, learning about what you have to do now and anticipate/plan for any future legal requirements to ensure compliance. I don't know how many properties or the type of tenants you have but try to be realistic and practical about the time you can devote to self managing. I have quite often had to deal with problems over weekends/late evenings and Christmas Eve. Also some tenants really don't want to deal directly with their Landlords and prefer agents (that's why I always meet prospective tenants because if they don't want to deal with me directly for whatever reason or if I feel they're not going to be happy dealing with me, then it's a non starter) IF everything works out so far, you can talk to the agents about your intentions and give them the appropriate notice in writing as per your agreement and contract. Make sure they transfer the deposit to you asap (you need to register with one of the approved schemes) and issue all required prescribed information etc in the correct time frame. You need to let your tenants know in writing what's happening with dates. I'm not sure about doing this while their tenancy is in force because I started with new tenants so the agent I used prepared the AST with my details. So as you are planning to wait until the end of the active tenancy and if your tenants wish to continue, you would have to give them a new tenancy. However, I am not sure if to be completely on the safe side if you need to re-reference check and re-do an inventory even if they are the same tenants? This is just my own experience and I'm sure I must have forgotten something important but hopefully it gives you an idea and I'm sure others will have better guidance.

Hippogriff

Quote from: eps501 on July 27, 2021, 09:52:49 AM...Also some tenants really don't want to deal directly with their Landlords and prefer agents (that's why I always meet prospective tenants because if they don't want to deal with me directly for whatever reason or if I feel they're not going to be happy dealing with me, then it's a non starter)...

There is a rather pervasive and perverted reason for this that all stems from basic misunderstanding. A lot of Tenants are under the misapprehension that it is their Agent. They don't understand that the Agent works for the Landlord and is supposed to solely look after their interests. When things are working properly the Agent should (just like the Landlord) be looking to exploit the Tenants as far as is possible... but I have always found it weird that there are plenty of Tenants out there who think the Agent protects them from the dubious intentions of the money-grabbing Landlord... and doesn't realise it's nearly always the money-grabbing Agent they should be wary of. They think that having an Agent involved in the setup improves professionalism. When, as we all know, most times nothing could be further from the truth. I have even had conversations with Tenants who didn't believe me that the Agent was not their Agent, but the Landlord's Agent... they felt the Agent was "looking out for them". They, for sure, couldn't demonstrate how... but that's just another level of basic misunderstanding. Have a conversation with a Tenant, you'll hear them even say things like "my Agent told me"... at best it should be "the Agent" and correctly "the Landlord's Agent".

heavykarma

As mentioned there may be some penalties involved if you take over with the tenant still in situ.It can be easier to escape from The Moonies than some letting agents.I did so in one such case because they had made so many mistakes they realised I was in no mood to back down.I got them to return the deposit to the tenant.I did not ask her for another deposit,after 8 years I trusted her. The AST was long since periodic,so it carried on. Much depends on how the current tenants have been behaving.It would certainly simplify matters if they stay on. If they have been the sort to pester the agents over trivial matters,and the agents have colluded with them,I would start afresh.

Hippogriff

It feels like we're talking about a single property here. First thing is to read the Terms of Business you have signed with the Agent in detail. We cannot advise on what your particular arrangement will be, just on what kind of lock-in tricks we have seen tried over the years... mostly these amount to extortionate termination fees or an attempt for the Agent to consider the Tenant their Tenant, not your Tenant, and insist that if the arrangement between you ends, then the tenancy ends... and that doesn't just mean on paper, they would ideally like the Tenant to vacate.

This is not conducive to a good relationship, but we've seen it tried. When I talk about extortionate fees I refer to things like a full three months of rental payments (not management payments) or a year of management payments. Some will be better than others, so you need to pore over your Terms of Business. If you have nothing to-hand, then you're going to have to give them a heads-up as to your intentions... and this will either get them scurrying around trying to hold onto you... or turn them nasty... or they might not give a crap. If you are serious about this then try to ensure you've chosen one of the Deposit Protection Schemes and register as a Landlord... either way, this is going to involve some admin. for plenty of parties, which might not be appreciated.

You might be better waiting until these current Tenants move out of their own accord... then start afresh without continuing a business arrangement. It depends on what your impetus is behind your desire. Obviously I'm not going to assume you're just bored and fancy interacting with some people? Most likely it's cost savings? In that case, why not consider imposing a rent increase? That will bring you more income instead, and it might have the unintended effect of accelerating the Tenant's departure (of their own accord).