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A new online estate agent is offering landlords a great deal. The service being offered by LetMe guarantees landlords a year’s rent in advance, free listings on two of the biggest property portals, and a promise that their property will be in the same condition at the end of the tenancy.
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And the best bit? Landlords don’t have to pay any fees up front and they are under no obligation to rent through the agent if they take advantage of the free property listings.
Too Good to be True
If this sounds too good to be true, you might be right. Even though the agent says the deal is effectively free, with landlords allowed to list as many properties as they like on Zoopla and Rightmove free of charge, the Residential Landlords Association is warning landlords to read their contracts very carefully.
“There’s nothing new under the sun. How can they promise to return the property in original condition in return for 90 per cent of rent? That’s just a typical 10 per cent agent fee deduction,” says Alan Ward from the RLA.
Cashflow Warning
Whilst receiving a year’s rent up front might sound like a dream come true, it’s not always such a great deal. Experts are warning that money up front can cause cashflow problems if a landlord isn’t careful. Mortgage payments go out monthly, but if the money has been spent, it could cause issues. This type of arrangement can work well, but only if a landlord is managing their income and expenditure sensibly.
