The concepts of property management agency and property letting agency might be somewhat confusing, or even diffusing. Although both terms have separate definitions, they can also overlap and interlink. Thus, it may seem there is no apparent distinction between the two. However, whether you are a tenant or a landlord, it is important to understand the underlying difference between a managing agent and a letting agent.
Letting Agency
Traditionally and theoretically a letting agent is instructed by a property owner to find a suitable and vetted tenant. A letting agency will advertise the property and filter applicants. However, it is the landlord who makes the decision on who can move in. Once the tenant has been found a letting agent is no longer involved with the property’s affairs. That is to say, it is the landlord who acts as the first point of contact for the tenant regarding all property matters. Starting from maintenance and including renewals.
Managing Agency
A managing agent’s responsibilities include a letting agent’s duties, but the main difference is that a managing agent does a lot more. First of all, a managing agency is responsible for all maintenance issues. Depending on the arrangements with landlords, a managing agent can have the power to authorise and carry out small repairs. They also deal with tenancy renewals and rent collection. Additionally, a property management agency provides an array of services to the landlord specifically. For example, they advise landlords on their investments and current market situation, they provide financial year end statements, they conduct inspections and provide reports.
However, it is worth remembering that, first and foremost, a managing agent works for the landlord. Everything they say and do is to protect the landlord’s interest. Nevertheless, a tenant’s contract is with a landlord and not with the agent. Therefore, if you are not satisfied with the agent you are legally entitled to contact your landlord directly.
[ux_image id=”629″ height=”50%”] [gap]Block Management Agency
Block management agencies have a different responsibility. They work with both letting/managing agents and landlords/leaseholders. Their main point of interest are communal areas, structure, and the land a block of flats stands on. The costs of maintaining a building is recovered thought service charges. Block management agencies must also have a good knowledge of legislation and leasehold matters.
Landlord’s Responsibilities
As a tenant, you may have never met your landlord. But that does not mean your landlord has no duties and obligations towards you. To the contrary, it is the landlord who has the ultimate responsibility to observe the legal side of renting a property. Even if the property in question is fully managed by a property management company.
Overall, nowadays letting agents perform the duties of managing agents as well. The distinction between the two has, therefore, become somewhat obsolete. There is no viable reason why a letting agent cannot also be a managing agent. It often happens that a landlord searches specifically for a managing agent when their property is already tenanted, and they simply do not want the burden of managing it. Sometimes, however, a landlord is only after a tenant-finding service as it may be their wish to save some money and manage the property themselves. It wouldn’t come as a surprise, then, if in both situations those landlords end up at the exact same agency.
You can read on property law here.
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