Tips For Landlords That Use Letting Agencies
Written by The Landlord on 01 Feb 2007These are a few things Landlords should consider when dealing with Letting Agencies.
Choosing the right Letting Agency
Unfortunately, a large portion of letting agents are clueless cowboys that carry no expertise whatsoever. I advise not to opt for the cheaper option, but to work with the agents that come most recommended. Do some research on Letting Agencies and find out what current and past landlords have to say.
I advise utilising Google and searching for any passing comments anyone may have said about the agents you’re considering on using. Believe me, if a lot of people have been served a poor service by a particular agent- someone, somewhere would have said something about it online.
Letting Packages
In general, most letting agents offer 3 levels of services.
1. Let Only
This will typically include the following:
- Tenant find
- Accompanied viewings of the property
- Tenant referencing
- Deposit and first month’s rent collection
- Tenancy Agreement provided and signed by both parties on commencement of tenancy
Some sneaky agents will often charge a contract renewel fee. Basically, if you decide to keep the tenant after the contract has expired, they may require further money. I advise all landlords to be extremely cautious of this clause.
2. Rent Collection
This will typically include the following:
- Tenant find
- Accompanied viewings of the property
- Tenant referencing
- Deposit and first month’s rent collection
- Tenancy Agreement provided and signed by both parties on commencement of tenancy
- The collection of rent every month
3. Full Management
This will typically include the following:
- Tenant find
- Accompanied viewings of the property
- Tenant referencing
- Arranging Inventory check in
- Deposit and first month’s rent collection
- Utilities hand over
- Tenancy Agreement provided
- Rent collected monthly
- Periodic inspections of the property
- Any maintenance required carried out on behalf of the landlord
- Detailed accounts of the property prepared monthly
- Arranging Inventory check-out at end of tenancy
- Utility re-instated to landlord’s account at end of tenancy
For those with very little Landlord experience, the latter 2 options may be more appropriate. However, be warned, the last 2 options aren’t always cheap. It’s always worth trying to haggle with agents on the fees.
Calculate costs
Work out how much your Letting Agency will take from your monthly rental fee, and decide whether it’s cost effective. Some of you may be willing to pay the extra costs for the sake of having a less stressful landlord experience, while others just can’t justify the letting agencies costs. Essentially, you need to decide two things a) do you need the middleman (can you cope without their assistance) b) can you afford the middleman.
Letting agents can be expensive. In fact, from my experience too expensive. Just to find a tenant they charge in average 8-10% of your yearly rental income. For the full-management (premier) service, they can charge anywhere between 12-16%, that’s a huge cut of your profit. Of course, working with agents do have their advantages; they eradicate a lot of the stress. You just need to ask yourself if their pricetag is worth the service…
a)Accepting the right Tenant
Remember, this is your property, your investment, so you can have complete control over who stays in your investment. The agency will tell you when someone is interested in letting your property. They should do credit and reference checks on the potential tenant. However, by no means is their word gospel. Find out everything you can about the person/people they suggest. Find out why they’re renting, where they work, what they do, how much they earn, how many kids they have..etc.
b) DSS tenants
DSS Tenants are those that are receiving financial support from the government to help fund their living costs. A lot of Landlords don’t accept DSS Tenants for various reasons (More About DSS Tenants). In fact, a lot of Letting Agents are starting to refuse their assciation with them as well. However, for those agents that do offer you a DSS tenant, make sure you do your research so you know exactly what giving tenancy to a DSS Tenants entails.
5) Be Wary Of Letting Agents personal subcontractors
If anything needs fixing in your property, like electrical failures or plumbing problems, the Letting Agency will inform you. They will suggest their own sub-contractors to do the work. They are often extremely expensive, and have a hefty callout charge, let alone service charge. I recommend you use your own reliable contacts, and refuse their subcontractors. Or at least get quotes from the agent before agreeing to any work.
6) Assured Shorthold Tenancy Agreements
Letting Agents will generally use a template Assured Shorthold Tenancy Agreement that they use with all their landlords/tenants. All of the terms & conditions may not suit your requirements, so it’s important to read the contract carefully before signing.
Clauses in the AST can be ammended as long as they don’t conflict with the landlords or tenants statutory rights. Clauses can also be added and removed. Make sure you’re happy with all the T&C’s.
Next Article
Letting Agents Tenancy Renewal FeesRelated Articles
19 Comments - join the conversation...
Did the letting agent hand it back to you in a mess after a tenant had occupied the property?
Kind regards.
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If the property isn't in the same condition as you handed it over in, you're entitled to use the security deposit to get it back in shape.
Do you still have the security deposit?
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The majority of letting agents fail to do routine checkups on properties when they're meant to. They charge an extortionate amount for extremely little work.
It's been an ongoing problem, and that's why the Tenancy Deposit Protection Scheme was introduced this April, to protect tenants and landlords. Unfortunately, that won't apply to you, because your contract was formed before April. Landlords by law have to sign up to the scheme now.
Unfortunately anyone can be an estate agent and/or letting agent, and there is no legislation. So there is very little consumer protection. However, if the letting agent you used is a member of the National Association of Estate Agents (NAEA) or Royal Institution of Chartered Surveyors (RICS), you can make a complaint. More details here
I hope i've been of some help.
Good luck.
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Josie
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ALL agents ask for references from all tenants (at least they should). That doesn't just apply to people on housing benefits.
Kind regards.
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The agent decided that they cannot replace me with another tenant unless I pay another years fee and they cannot refund me any money, so Am left with only 13 days rent out of a months. The tenant breach their contrat in the frist place and am entitle to get one months notice also.
It wasn't the tenant I was having problem with, it's the letting agent want to take the rest of the money for themselves, so it's very hard to think that the security deposit is safe, it's not, neither in some Landlord's hand or the agent.
Am looking for a tenant my self and it's hard to generalize where DSS is concern,because there are vrey good DSS people out there, but is to find then, the reason landlord find it hard to let place to DSS is for the fact that if they damage your property and causing problems to neighbours and so forth, it's very hard to get them out of the property.
Although private tenant can causes the same problem. but it much easier to get them out so I think thats where the problem comes in. As we all know that security deposit is important but that money does NOT belong to the landlord, it only a form of money to repair damages or rent arears and so forth, but am totaly against landlord taking peoples money for minor damages, like wear and tears of poperty.
People should all allow their conscience to be their guide, Ibelieve that a tenant should be happy where there are living and the landlord should be happy knowing that the rent is been paid on time, a little late of a day or two with the landlord knowing should not hurt, but it all boils down to people been unfair, greedy, unjust and have no conscience.
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I've know of cases that the tenant uses the landlord's money to keep big party and told the landlord that he has to wait until she have it to pay him. Which I think is very unreasonable and unfair,most people have to pay mortages and that's the reason they let their properties out, as one can see the reason why landlords don't wants to rent to some DSS tenants.
I know that there are a lot of good DSS and pravite tenants out there, but the bad ones makes it difficult for the others. I've heard a landlord saying that he would rather to have his house locked up than to give it to a DSS tenant because of the damage they do to it, hence pravite one does the same thing but it's pure luck when you get a good one.
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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.
Where do you go if you have a dispute with the letting agency?
specifically - if they return your property to you in a mess?
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