Tenant Find vs Fully Managed: Which Is Right for You?

When letting a property, one of the first decisions a landlord needs to make is how involved they want to be once a tenant moves in.

Some landlords are comfortable managing the tenancy themselves and simply want an agent to find the right tenant.

Others would rather hand over the day to day management of the property and have an agent deal with the tenant, rent, maintenance and ongoing compliance.

Neither option is necessarily better for every landlord.

The right choice depends on your experience, how much time you have available, where you live and how involved you actually want to be.

At Willmott & Lake, we offer both Tenant Find and Fully Managed services to landlords across Bishop’s Stortford, Stansted, Sawbridgeworth, Takeley, Great Dunmow and the surrounding villages.

Here is how the two options compare.

What Is a Tenant Find Service?

Tenant Find is designed for landlords who are happy to manage the property themselves once the tenancy begins.

The agent handles the process of getting the property onto the market and securing a suitable tenant.

At Willmott & Lake, this includes marketing the property, handling enquiries and viewings, negotiating terms, carrying out tenant referencing and Right to Rent checks, preparing the tenancy documentation and arranging the check in process.

Once everything is complete, we package the tenancy information together and hand the management over to the landlord.

From that point onwards, the landlord becomes responsible for dealing directly with the tenant.

Our Tenant Find fee is three weeks’ rent plus VAT.

What Happens After the Tenant Moves In?

This is the important distinction.

With a Tenant Find service, the landlord takes responsibility for the tenancy once the tenant has moved in.

That means dealing with rent collection, maintenance requests, inspections, compliance, tenant communication and any problems that arise throughout the tenancy.

For an experienced landlord who lives locally and is comfortable dealing with these things, that may be completely manageable.

For somebody with a busy job, several properties or limited experience of lettings, it can become much more time consuming than expected.

What Does Fully Managed Mean?

Fully Managed means the agent remains involved throughout the tenancy.

Rather than handing everything back to the landlord after move in, the managing agent continues to deal with the day to day running of the property.

At Willmott & Lake, our Fully Managed service covers the initial letting process as well as the ongoing management.

We deal with tenant communication, collect and process the rent, manage maintenance, arrange contractors, carry out routine inspections and help keep on top of the relevant compliance requirements.

Our Fully Managed fee is 10% plus VAT of the monthly rent.

What Is Included in Fully Managed Lettings?

Our service starts before the tenant moves in.

We market the property professionally, conduct viewings, negotiate applications, reference prospective tenants, complete the relevant Right to Rent checks and prepare the tenancy documentation.

Once the tenant moves in, we continue to manage the property.

Rent is processed through PayProp and landlords receive clear statements showing the money received and any deductions.

If the tenant reports a maintenance problem, they contact us rather than the landlord.

We assess the issue, arrange the appropriate contractor where required and keep the landlord informed.

We also carry out routine inspections approximately every six months, helping us identify visible maintenance concerns and keep an eye on the general condition of the property.

Do You Charge Extra Administration Fees?

No.

Our Fully Managed fee is 10% plus VAT and we do not then add separate setup fees, marketing fees or ID check charges on top.

We also do not add a percentage onto contractor invoices.

If a contractor charges £150 for a repair, the landlord pays £150.

We believe management fees should be straightforward and landlords should understand what they are actually paying.

What About Inventories?

We arrange inventories through an independent third party inventory provider.

There is an additional cost for this, but the landlord simply pays the amount charged by the inventory company.

We do not add a markup.

For a typical two or three bedroom property, the cost is often somewhere around £100 to £150, although this depends on the size and type of property.

We prefer using an independent provider because it gives both the landlord and tenant an impartial record of the condition of the property at the beginning of the tenancy.

If there is ever a disagreement regarding the deposit, independent evidence can be particularly valuable.

What Other Costs Should a Landlord Expect?

Whichever service you choose, the property still needs to meet the relevant legal and safety requirements.

Depending on the property, this could include a Gas Safety Certificate, Energy Performance Certificate and Electrical Installation Condition Report.

These are property compliance costs rather than additional agency fees.

If we arrange them for a Fully Managed landlord, we simply pass on the contractor’s charge without adding a management percentage.

Who Is Tenant Find Best For?

Tenant Find can work particularly well for experienced landlords who already understand the legal responsibilities involved in managing a tenancy.

It may also suit somebody who lives close to the property, has reliable contractors available and is comfortable dealing directly with tenants.

If you are organised and genuinely want to remain involved, there may be little reason to pay for management you do not need.

However, it is important to be realistic about what managing a tenancy involves.

It is not simply receiving the rent each month.

Who Is Fully Managed Best For?

Fully Managed tends to suit landlords who want the property to be as hands off as possible.

This can include first time landlords, accidental landlords, people who live away from the area, landlords with demanding jobs or investors with several properties.

It can also be useful for landlords who simply do not want tenants contacting them directly every time something goes wrong.

A managing agent becomes the main point of contact and deals with the issues that naturally arise throughout a tenancy.

What Happens When Something Goes Wrong?

This is often where the difference between the two services becomes most noticeable.

If the boiler stops working under a Tenant Find service, the tenant contacts the landlord.

The landlord then needs to understand the problem, find a contractor, arrange access, approve the work and make sure it has been completed.

Under Fully Managed, the tenant contacts us.

We manage the issue, coordinate the appropriate contractor and keep the landlord updated.

For relatively simple problems this may not seem particularly important, but more complicated maintenance issues can involve several phone calls, contractors and visits before they are resolved.

What About Rent Arrears?

With Tenant Find, monitoring and chasing rent becomes the landlord’s responsibility once the tenancy begins.

With Fully Managed, we monitor the rent account and can act quickly if a payment is missed.

Early communication is important when dealing with arrears because it allows the reason for the missed payment to be established before a larger debt builds up.

If formal legal action ever becomes necessary, we can help coordinate the next steps with the appropriate professionals.

What About Compliance?

Landlord legislation has become increasingly complicated.

Gas safety, electrical safety, deposit protection, Right to Rent, property condition, smoke and carbon monoxide alarms and the changes introduced by the Renters’ Rights Act all need to be considered.

A landlord using Tenant Find remains responsible for keeping on top of these obligations throughout the tenancy.

With Fully Managed, we help monitor the relevant requirements and arrange certificates or works where necessary.

The legal responsibility ultimately remains with the landlord, but having somebody managing the property day to day can make keeping on top of things considerably easier.

Is Fully Managed Worth the Extra Cost?

That depends largely on how you value your own time.

For example, on a property renting for £1,800 per month, a 10% plus VAT management fee would be £216 per month including VAT.

The question for the landlord is whether the time saved, ongoing support and reduced involvement are worth that amount.

For some landlords, the answer will be no and Tenant Find will make more sense.

For others, having somebody deal with the tenant, rent, maintenance, inspections and compliance for the equivalent of around £7 per day represents good value.

Which Service Should You Choose?

If you already have experience managing property, live locally and are happy dealing directly with tenants, Tenant Find may be all you need.

If you want the tenancy professionally managed from start to finish and would rather somebody else handled the day to day work, Fully Managed is likely to be the better option.

There is no need to pay for a service you do not need, but equally landlords should not underestimate the amount of work that can be involved in managing a property properly.

Tenant Find and Fully Managed Lettings in Bishop’s Stortford

Willmott & Lake offers both services across Bishop’s Stortford, Stansted, Sawbridgeworth, Takeley, Great Dunmow and the surrounding villages.

Our Tenant Find service is three weeks’ rent plus VAT.

Our Fully Managed service is 10% plus VAT of the monthly rent.

There are no setup fees, marketing fees or ID check charges, and we do not mark up contractor invoices.

If you are unsure which service would suit you best, we are always happy to have a conversation about the property and explain the differences without any obligation.

To arrange a rental valuation or discuss your options, contact Willmott & Lake on 01279 801165.