Guide On Picking The Right Letting Agent
Written by The Landlord on 23 Aug 2009I’ve had experiences with about 4 or 5 different letting agents, so I know how important it is to pick the best out of a rotten bunch. The consequences of working with the wrong letting agent can be on the same par as a slow and painful death, if not worse. That’s precisely why it’s crucial for landlords to sustain the pressure of convenience by not choosing a letting agent just because they’re located outside your front door.
I personally haven’t used a letting agent in 3 years because I’m a pimp and I like managing my own shit. But I understand that managing a property can be a busy and demanding job. Advertising the property, arranging viewings, organising the necessary agreements, carrying out inspections, and maintenance all takes time. And with many landlords also working another part or full time job, managing a property can be out of scope.
Before choosing to work with a specific agent, you may want to investigate if they comply with the following…
Image is everything
I hate to be the kind of brother to stereotype, but I gots to be that kind of brother. Most agents are complete and utter greaseballs- they will stab their nans’ for a buck.
Go with your instincts and decide whether your agent presents well and seems like a standup person. Be wary of agents that wear too much aftershave and gel. I don’t know why, but they’re usually cunts.
Different levels of service
A good agent will offer different levels of service, from fully-managed to tenant-only. Each level will have it’s own price tag.
Just because one agent doesn’t offer a package that best suits your requirement, it doesn’t mean another won’t. The services available are very much based on an agent by agent basis. Use an agent which offers a service that best suits your needs.
Agent should be able to cover A-Z
Letting agents should have the contacts and resources to handle the entire A-Z for a landlord. That means handling the finer details from arranging all the necessary contracts to arranging a Energy Performance Certificate (EPC).
Seems pointless using a letting agent if they require you to do some of the legwork e.g. arranging an EPC.
Ensure letting agent is registered with an approved redress scheme
As far as I’m concerned, this is the most important prerequisite- there is no substitute.
Any agent that’s worth pissing on will be registered with an approved redress scheme (these agents are approved by the Office of Fair Trading (OFT)). Agent members of a scheme are required to abide by a code of conduct; failing to do so can have the consequences of financial compensation to the consumer.
More details: Use Letting Agents That Are Registered With An Approved Redress Scheme For Consumer Protection
Agent will offer a wide range of contracts
Besides from the Assured Tenancy Agreement (AST), an agent should also be able to arrange other useful contracts such as Property Inventory Form and Tenant Guarantor Form.
Flexible pricing structure
In this current climate, letting agents have to be flexible with their pricing structures because everyone is trying to keep costs low. An agent should be prepared to break down costs and give you the opportunity to craft your own package. For example, if finding a tenant costs £200 of the total package price, arranging a tenancy agreement costs £50, and managing the property for the year costs £600, the agent should be prepared to slash the £200 if you’re prepared to find the tenant yourself.
Average time to fill vacancies
A good agent will have a quick vacancy fill rate.
It’s probably worth calling around a few agents and investigating how long it’s currently taking them to fill vacancies. The agents may pull a figure out of their baggy arseholes (and most likely will), but it’s always good to get a benchmark figure. If an agent predicts 2 weeks, and it takes them substantially longer, it won’t reflect well on them, consequently it should be in their best interest to meet their targets and improve on their average.
Reputation
An established agent WILL have a reputation, whether it be good or bad is another question. If possible, talk to other landlords that have used local agents to receive feedback. Moreover, I can almost guarantee that if an agent supplies a poor enough service, someone would have written about it on the internet somewhere. Ahhh, the power of the internet. Use Google to hunt down reviews of your local letting agents.
Advertising presence
A good agent will have a powerful marketing presence both locally and on the internet. Find out which mediums’ the agents are utilising. Most of the best agents are spread across local newspapers and the internet (e.g. rightmove.com and findaproperty.com).
Personal website
A letting company who are serious and professional about property management should really have their own website. It probably won’t be as kickass as this website, but something is better than nothing.
Hidden costs
Be wary of hidden costs- letting agents seem to love planting them in the contracts.
Honourable letting agents should be upfront and honest about their price tag by breaking down each cost. Generally there is a one off fee for the property management service then the company will take a percentage of the monthly rent of the property. These can vary but you should assess the fee against the level of service you will receive.
A lot of agents have recently been stuffing their contracts with “renewal fee” clauses, which has left a bitter taste in many landlords’ mouths. This is when an agent will charge you (again) for retaining a tenant they found you AFTER the initial fixed period in the contract has run its course. A good agent will NOT force this charge because it’s, simply, ridiculous (in my personal opinion). Always find out what the deal is with renewal fees.
Competitive rates
It goes without saying that the best agents will be competitive with their rates. Get quotes and find the best rates. Bear in mind, agents are prepared to haggle, so take advantage.
Promotional offers
A lot of agents offer promotional deals, so it might be worth enquiring because that could be the clincher.
I once used an agent that was offering free “landlord rental insurance” If my tenant defaulted on rent payment, the insurance policy would cover the cost of lost rent and legal costs. Amazingly enough, that particular tenant actually did fall into arrears, so it was a stroke of orgasmic luck.
Anyone else got any suggestions?
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4 Comments - join the conversation...
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Google a few key phrases and see where an agent comes up. Are they 100% reliant on battling it out in property portals with every other cat or do they seek all that extra traffic available from search engines?
This will also indicate whether they are proactive in their marketing strategy.
www.musthavepads.com
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Why not a better protection for landlords?
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I initially started this website because I wanted to document my every step from property idiot to property landlord,
in hope that people would find my site and help me along the way. I literally didn't have a clue about being a landlord
when I started this website.
My understanding is that agencies now have to make this fee abundantly clear if they do use it, otherwise they're breaking the law. Personally, I don't use a letting agent, but it's always good to be aware of their pricing practices.
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