The Differences between Lettings and Property Management

Not many people may know of it, but there are actually differences between lettings and property management. Experienced landlords may recognise those terms, with the former referring to the method of hiring an agent that will handle the search for tenants, their service ending once they find the appropriate candidate. The latter approach also refers to a similar process, but with the agent's services extending beyond the tenant search.

That being said, there are other clear differences between the two methods. If you are curious to know about them, look no further than our examples below.

1. Cost


It's a widely known fact that lettings are cheaper than property management. There are various reasons as to why that's the case. To begin with, the agent's time gets broken down into the duration they spend with you and the schedule they spend finding tenants.

Since they have to do their job according to your instructions, the amount of time they spend with you would make them less efficient in finding tenants. That's why the property management fees are a bit higher, as the agent will find suitable tenants as an additional service.

2. Activities


The agent won't have to do some of the activities that the landlord will carry out. This is because the landlord will still be responsible for checking the tenant's references and the background check. Either that or other staff members may also take up those responsibilities.

On the other hand, the agent will conduct a property check and ensure that everything is in order. This will be done to determine whether the property is fit for the tenants. In this case, they will be inspecting all aspects of the property, including safety, fixtures, and furniture.

3. Outcomes


The outcomes of the two methods are the same, as there is only a difference in the fees. However, agents will find tenants for landlords so that the latter won't have to deal with the tenant search. The agent will also be in charge of arranging the tenants' visit and ensuring that all of the necessary documentation is in place.

Compared to lettings, property management is more expensive. The reason as to why that's the case is because the agent will be taking care of the tenants' needs, such as serving as a go-between between them and the landlord.

This way, the landlord will be able to focus on other matters as soon as the tenants are already taking care of the property, and the former may also maintain cash flow since the latter can pay their rent on time.

4. Types of Agent


There are various types of agents, with the main differences being their services. However, the most common types are the ones that specialise in property management. They handle everything from finding the tenants to the maintenance of the property.

Basically, it's a good idea to know about the various types of agents to have a better chance of hiring the best one for the job.

Conclusion


We hope that our article has provided you with enough information about the differences between lettings and property management. There's a lot to consider, as it's not just about the cost. There are other factors to consider, such as the activities and the type of agent to hire.

Just keep in mind that there's no right answer when it comes to lettings and property management. Thus, it's up to you, the landlord, to determine what approach to choose and which pick you think would bring you the best results.

If you are looking for letting agents in East London that will handle all your tenants and transactions, look no further than our experts here at AP Living London. We offer a wide range of services that will provide you with very reliable agents who can handle your given tasks. Call us today and allow us to provide you with the expert letting agents that you need.