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Pick a web-savvy agent!
Landlords often think that they can save money by appointing an agent with cheap fees. Often this is a mistake, as they are sacrificing the quality of the service offered to save money, writes Bill Sunner, director at buy-to-let mortgage advisory company Landlords Only.
Agent's fees don't vary much and the key differences lie in the services that they offer - something landlords should always research.
Fees vary from £300 to £400 per property and management fees are usually 10 to 15% of the monthly rent, but there is not a great deal of variance between these figures. Lettings agents that can let a property quickly to suitable tenants are worth their weight in gold.
Rather than just assessing the upfront costs, other factors such as management skills, property maintenance, extra services offered, marketing capabilities and local exposure all need to be considered.
So with fees aside, here are the five key criteria by which a landlord should assess a prospective agent:
Management - An agent should relieve all of the headaches that come with managing a property, but of course the ultimate responsibility lies with the landlord.
An agent should be organised and efficient, and have a management style that landlords like, as this will probably be the person who handles the day to day for their property. Landlords should also ensure they are ARLA registered.
Property Maintenance - Landlords should look at whether maintenance of the property is included in the fee, as the last thing a busy landlord wants is for a tenant to call because they have a leaking tap. Normal practice is for an agent to fix any problem as they see fit and then bill the landlord.
Once a portfolio builds up steam, a landlord's ability to handle maintenance goes downhill fast, as does spare time to arrange repairs.
Extra Services - From a letting agent's point of view, there are many services that can be offered to beat off local rivals. Offering rent guarantee insurance, prompt payment of rents and inspection services can place one agent above another. It is also worth landlords remembering that some agents offer regular property inspection as part of the fee.
Marketing Capabilities - It is essential that a landlord looks into the marketing capabilities and brand awareness that a letting agent has and also the number of registered tenants on their books. If they can't successfully promote their business, how are they successfully going to promote the properties in question?
Exposure - Does your proposed lettings agent feature prominently in local property guides, Internet search engines, regional newspapers and magazines? Are they hooked into online search facilities, such as Rightmove and Fish4?
We at Sq Ft magazine agree, and would add: with a cyber-savvy pool of tenants, it's crucial to pick web-focused agents whose website is updated daily, is navigable and has good visitor traffic. If your lettings agent steers away from questions about internet marketing and site traffic, find another one!
