Choosing a Letting Agent
Many landlords lead very busy lives and even experienced ones often choose to use the services of a professional letting agent. Employing an agent to let and manage a property can remove all the stress from the letting process and has many additional benefits including:
- Online marketing – reaching a far larger audience than the usual private landlord ad in the classified section of the local paper.
- Accompanying viewings – so you don’t have to!
- Ensuring your property complies with the latest legislation.
- Credit checking and referencing tenants.
- Complete and up to date documentation such as tenancy agreements and inventories.
- The tenant calls the agent – not you if maintenance issues arise.
There are, however, often dozens of agents to choose from in most areas, so it is not always easy to pick one. A word of mouth referral from someone that is using a particular agent is normally a good place to start.
Is the highest price always the best?
A letting agency may be: an Estate Agent with a lettings department, a franchise, an independent, a multi-branch national chain etc. Most offer very similar services but will often have different fee structures.
Traditionally, most agents charge a one-off fee for a let only service (usually around 50% + VAT of the first months rent) and a regular monthly fee for the full management service (usually between 8 and 12.5% + VAT of the monthly rental income). In addition they may charge set up, renewal and additional fees for inventories etc. Typically letting agents with premises in prominent locations charge the highest fees. Traditionally, this is because the only way people used to be able to find property was to visit the branch and therefore, the best locations produced the most footfall. However, with the advent of online portals such as Rightmove and Zoopla, most people now search for property from their armchairs initially. Therefore, most branches receive very few visitors and their high fees are no longer justified. Their fees now have to cover high overheads in redundant shop fronts.
So high fees don’t always mean the best service, however, I would recommend not going with the cheapest, as you really do get what you pay for. It is always wise to shop around and not to make a decision on price alone. Go with a competitively priced agent that fulfills the other points below.
Large national chain or small independent?
Independent agents usually advertise the “personal touch” which is a strong benefit as a large percentage of the agents job is diplomacy and managing relationships with people. Larger chains may offer a higher marketing and brand prominence but may suffer from being inflexible and slow to respond. From experience, the smaller independents usually work harder and charge more competitive fees.
What do I get for my money?
When comparing prices and services remember to ask what is included and what extras have to be paid. The hidden extras can often add up and do you really want to use the services from someone that is not up front and transparent with their fees? If you have to ask because all the fees are not openly displayed then ask yourself what else they aren’t telling you!
Professional or Cowboy?
Licensing is voluntary for letting agencies. You would not book a holiday from a travel agents with out an ABTA membership, so look for an agent with membership to either the National Approved Letting Scheme (NALS) or the Association of Residential Letting Agents (ARLA). These bodies both regulate agents and provide an independent route for complaints as well as ensuring member agents’ client monies are insured.
In summary, we recommend using an independant letting agent with membership to one of the professional governing bodies for the industry that openly display their fees and services and have competitive rates. The agents should market heavily online to attract tenants globally and provide a flexible service. Word of mouth referrals are a good indication of service.
Article by Steve Martin – Director Martin Property Management
Letting Agents with property to rent in Leamington Spa
Letting Agents with property to rent in Coventry
