I’m an advocate for choosing the right team. Your letting agents should be looking after your best interests at all times and ensuring that your property is well advertised and let quickly.
I cam across my letting agents in London when I was advertising one of my properties on Gumtree. They approached me and said that they had potential applicants and could I get them a weeks trial at a seat fee for letting only (I would do renewals) – they succeeded and got me some excellent tenants, thus a great relationship was born.
The initial decision you need to make is whether you want to be hands on or you want an agent to look after the process. Often at seminars and events I have heard that applicants prefer meeting with a landlord at a viewing as it gives them confidence that the landlord cares about a property and therefore they are more likely to choose the flat – if you are of this opinion or you just want to be involved in viewings then services such as Upad are so helpful. They can look after the marketing, referencing and any other steps of the letting process (you choose your packaging) and you do the viewings. If you aren’t able to or don’t have the time to look after the process yourself then a letting gent is for you. On a personal note I haven’t seen much difference between handing the letting over to an agent or doing it myself – agents do however have the benefit of experience and a pool of applicants.
If you do decide to go down the letting agent route a good first step is to approach the agency that sold you the property and find out if they do lettings and what they can offer. This may prove a valuable relationship builder as you are giving them continuous business and therefore in return they may start approaching you first with any good investments that come their way.
If you can’t, or don’t want to go to the agent you purchased the property from then look at agents whom are really active in the area. Check search websites such as Rightmove, Zoopla and On The Market and look at when properties came onto the market and if they are let. It’s a great sign if properties that have only recently come to market and are already let. Choose a couple of agents and then arrange to go and see them with details of your property. Have a conversation and ask questions such as:
- What are your fees?
- How do you market the property?
- How do you conduct viewings and when?
- Who will be conducting viewings?
- What is the turnaround time for replying to enquiries?
- How long do you expect the property to be on the market?
- What fees do you charge the applicants?
You want to find an agent who is enthusiastic. You must also bare in mind the fees a tenant will have to pay to go through the letting process. No matter how good the property – if the tenant has to shell out for high agency fees this may put them off even looking. Furthermore a quick turnaround time for agents to respond to enquiries will be more beneficial for you. Tenants, more often than not, look to move quickly and therefore an agent who takes a while to respond may miss the tenants decision period as they could have already seen other properties and agreed a deal (this can happen in as little as 24 hours for some tenants!).
Weigh up the pro’s and con’s of each agent and make a decision that fits your requirements. Don’t get tied in to renewal fees if you feel its expensive and if you do opt for renewal fees then agree a discount at every renewal and that renewal fees are only paid for a certain number of years – remember you can negotiate on the terms of your contract with the agent.
Your team is important as the right people will make your investment a success so choose an agent you feel 100% comfortable with. Always ask questions and keep an eye on your agent to make sure they are doing their job. If for whatever reason they are not performing then make a change – void periods during letting can be expensive if it goes on for too long (see Bridging the Void)!
If you need any help, advice, support or just a sounding board for anything discussed in this blog then please do not hesitate to get in contact with us at NC Real Estate or via Facebook or Twitter.
NC
