Many landlords are happy to manage their properties by themselves, but there are those who would rather employ a letting agent. There are agents across Scotland, so how do you choose which one is best for you?

Here are some considerations.

1.       Decide what level of service you need

There are different levels of service offered by letting agents. Your choice will depend on how much support you think you need and how much you are willing to pay.

Each agent will have their own packages but here is a guide to the types of services offered.

• Let only is likely to cover marketing your property, viewings, tenant credit and reference checks, tenancy agreements, inventory, collection of deposit and placing the deposit into a tenant deposit scheme.
• Full management will usually cover all of the services for a let only but will also deal with ongoing management of the property. This will cover the transfer of rental income and arranging repairs and maintenance on your behalf.

Some agencies also offer guaranteed rents if your property is empty. You will need to make a judgement as to whether you will actually benefit with this type of arrangement before signing up.

2.       Ask for a breakdown of fees

Some services will have a fixed price, others may be a percentage of rent. Some have upfront fees or additional services for an extra charge. Make sure you understand the options available to you and the costs associated with each before selecting an agent.

3.       Think about the type of tenant you are looking for

Your target customer will also influence the agent you choose. Some are specialists in short-term lets, so think about how long you want to let your property for. Others are experts in student lets, so consider whether you are offering your property as an HMO.

4.       Opt for local knowledge

Choose an agent that knows your area, especially if your rental property is not close to where you live or somewhere you don’t know well. They will know the typical rental values of properties in your area and will have the network of contacts for local tradespeople too. This will be helpful if you decide to have an agent manage the maintenance of your property.

5.       Choose one that advertises on the key property portals

s1homes.com is Scotland’s biggest property site so you want to make sure to choose an agent that advertises on the website. We also have a tool for landlords to help find a letting agent in your area.

6.       Ask around

It is always good to get recommendations from other people, particularly if you are new to being a landlord. Speak to friends, family and colleagues to get a view on their experiences. Speak to a few different agents to compare their services and pricing before making a decision.

To find a letting agent in your area, visit s1homes.com

Scotland’s private rental sector faced a shake up a few years ago when the Tenancy Deposit Schemes (Scotland) Regulations were introduced, meaning that all deposits had to be paid into a Scottish Government approved tenancy deposit scheme.

Three years since the new laws came into force, I’m pleased to say the majority of the nation’s landlords now comply and use deposit schemes, meaning that when you view a rental property on s1homes.com, it should be registered with one of the three approved deposit schemes.

SafeDeposits Scotland was one of three organisations formed to hold this money, and since then we’ve had to do a lot of work in getting the message out that not only is it not optional, it’s an important part of the rental process and is in effect, a tenant’s right.

Of course, there are still some landlords yet to sign up, but failure to do so will catch up with them eventually as potential tenants now rightly expect their deposit to be protected by a neutral party with an independent dispute resolution service.

Although landlords are legally obliged to abide by the rules, the approved deposit schemes out there – ourselves included – must add real value to the rental process and make it as easy as possible if we want compliance rates to rise further.

This means doing more than just collecting the money. It’s about enhancing the experience of both the tenant and the landlord. We provide peace of mind that the money in this important transaction is safely protected and will be fairly returned or distributed.

We are there for both parties from the moment a landlord opens an account right through to a tenant moving out, whether there’s a dispute over the money or not.

The process has to be hassle free and the dispute resolution service has to do what it says on the tin, i.e. resolve disputes independently, fairly and quickly.

So far SafeDeposits Scotland has secured over £63m worth of deposits not because landlords have no choice (as they do) but because we’ve been able to prove our worth to them. There has to be a real business benefit to placing your deposits with a third party.

So whatever side of the rental market you’re on, whether you’re renting and want to know your money is in a safe place, whether you’re a landlord who hasn’t already signed up, or whether you have but want to make sure you’re getting the best service for you and your tenants, we’ll be at the other end of the phone when you need us.

Jen Paice is CEO of SafeDeposits Scotland, Scotland’s only not-for-profit tenancy deposit scheme. See www.safedepositsscotland.com or call 03333 213136 for more details.

Who is your customer?

The main consideration in your decision is your target customer. Depending on the type of tenant you expect to have in your property, they will have different requirements. Students are more likely to be looking for furnished accommodation, as are young professionals, whereas a family or older tenant is more likely to have some furniture of their own.

If you have a letting agency managing the property on your behalf, it’s worth asking them for their expertise. They’ll know what demand is like in the area and whether furnished or unfurnished gets the best response for your type of property.

Letting a furnished property

Benefits

• It can be more appealing to a tenant if they can see furniture in the room – but avoid it looking cluttered.
• There is usually more demand for furnished property so you are likely to let it more quickly and a furnished property also offers access to the short-term lets market.
• At the end of a tenancy you still have the furniture and can let your property again.
• Landlords who let furnished properties are entitled to claim a wear and tear allowance on their letting income. More information from HM Revenue & Customs.

Disadvantages

• As a landlord, you are responsible for making sure all furniture complies with legislation.
• Although not a requirement, it is sensible to insure your belongings. You should also be prepared for incurring costs for furnishings being damaged and needing replaced.

Letting an unfurnished property

Benefits

• Tenants seeking an unfurnished property may be more likely to stay – once they have moved in with their furniture it is more of an upheaval to move.
• You are not responsible for the furniture or damage to it and you can benefit from breaks in council tax when the property is unoccupied (check with your local authority as this can vary across Scotland).
• It also means that if you decide to sell, it’s much easier if you don’t have furniture to move out.

Disadvantages

• On the downside, properties can look bare and uninviting if they are viewed with no furniture.
• You won’t be eligible for the wear and tear allowance.
• It’s also worth remembering that even if the property is unfurnished, tenants will still expect some white goods to be supplied with the property, along with carpets and curtains, so you should still have landlord insurance.

There is always the option to go with part-furnished. You might want to provide the basics of unfurnished with some extras but not extending to beds, washing machines etc. Whichever route you decide to take, remember the customer’s needs are the most important consideration.

If you are looking for a letting agent to look after your property, s1homes can help you find a trusted agent in your area.