We wrote a blog article recently which referenced the need to choose buy-to-let investments using head over heart but even this sound advice comes with a caveat. If you truly buy with your head – so be that buying family homes when you’re young, free and single or buying in Leicester when you live in London – then you may also not be in the best position to market or manage the property.
That’s when a letting agent may be a good choice. But how best to choose a letting agent?
1. Think about the type of service that you want
Do you want the agent to manage the property fully so that you can be pretty much hands off on the day to day (suitable for properties far from where you live) or do you want a “tenant find” only service where you pay a fee to source the tenant but then you manage the process from that point. There are also services in between.
2. Consider the type of property you are letting and the area in which you would like that property marketed.
Some letting agencies will be very locally targeted and others operate nationwide (although should have local marketing strategies for specific areas). One way to get a feeling for this, if you are able to have feet on the ground, is to take a walk around the area in which you have purchased and take note of the To Let signs on display.
3. Ensure that your letting agent is signed-up to a professional standards body.
There are a few, including the UK Association of Accredited Letting Agents and the Association of Residential Letting Agents but each means that its members must operate to a set of minimum standards.
4. Establish how the agent markets your property
Ask agencies about their marketing plans, the channels they use (their website, property portals, press, online search…) and how quickly they tend to rent properties like your own.
5. Find out what they charge
It’s only at this point that price should become part of the equation. Without meeting your needs based on the criteria above, a lower price point can be a false economy. The price will vary based on the level of service you require – a letting service, rent collection, or fully managed – and then what’s included in each. For example, does your letting service include a fully managed inventory sign-off? Be careful, these inclusions can make a massive difference. Figures from Which? suggest for a letting only service, approximately one month’s rent, rent collection around 5% of your monthly rental income and up to 15% for a fully managed service. And with percentages that high, it’s definitely worth the time to find the right agency to work with.
Based on this; you can shortlist a number of agencies.
It’s then worth taking a look at each in terms of reviews or satisfaction scores. Some – Like Foxton’s – have started to publish TrustPilot scores on their homepage and this gives you an immediate level of visibility. For those who don’t, ask if you can speak to one of their letting clients. This should be viewed as an acceptable part of bringing in your property. Alternatively; you can mystery-shop the agency posing as a tenant or (if you have sitting tenants) ask them about positive letting agent experiences.
Do you have any letting agencies you recommend? How high would you go to pay for a fully managed service? When do you choose to manage your own property vs. a letting agency?
Leave A Comment