General (main property discussion here) - Advice

As an inexperienced investor I need some advice.

What are the most important points to consider when choosing a letting agent?

What is the normal percentage they take of rental income?

Thanks.

Owen,

For me the most important thing is that the agent has a good reputation.

Also an agent that may seem inexpensive is not necessarily good one and not necessarily cheap in the end.

Make sure you understand: 1. Structure of their fees (all inc. advertising, inventory etc.) 2. Is VAT included? 3. How well staffed they are?

Typical fees are 10-14%.

Julian

Owen,

If you want advice on agents it is worth using forums to get feedback from other investors first.

Bob

Bob,

Agreed.

Julian

But be careful to try and find out about the poster responding to your query.

Mark,

Too true.

Joanne

I am a landlord and run a small lettings agency. I think as a landlord you should do as much as you can to look after your own business. You could probably say I am shooting myself in the foot. but most people i deal with do not live in the area they own property. Bascially if you get involved in all the stages you end up getting better tenants. And in turn they tend to respect you a bit more.

Paula,

Thanks for the refreshing honesty. This market has become over run by sharks.

FS

As a letting agent I find this forum very helpful, apart from anything else it can give me some idea as to what landlords want and in what areas they are dissatisfied.

As I have a public sector background (NHS) I am used to clarity and honesty along with 'upfrontedness' so find some of the slightly covert messages around 10th and 17th October a little alarming - obviously there is a significant degree of dissatisfaction with letting agent services - I would suggest that landlords say what they think and be up front - some agents are not sharks and want to provide a good service for an appropriate fee - so let the comments, good and bad, flow freely!!

Martyn Eaves Abode Redidential Lettings Limited Bognor Regis 01243 860000

Hi Martyn, good to have your input.

I think the others would agree when I say we rely on agencies to handle extremely valuable investments, and when they fall short it can be extremely costly and so landlords rightfully air their views.

It's always refreshing to run into true professionals in this field, and rest assured we try to shout as loudly when people perform well!

Will

martyn,

i agree to some extent but i think that unfortunately the amount of money pouring into property has meant that 'sharks' have been enable to de-stabilise the band wagon (though some have yet to realise this!).

also as property is far less regulated that financial products the law does not protect private investors.

lastly, i think in general it is not the letting agents that have acted badly more the sourcing agents, portfolio building companies....but some agents have grown to quick to capitalise on the btl industry.

overall, i have had great experiences with letting agents but i know some have not.

jo

As with any market there are good and bad service provider. Need to be careful.

Don't EVER use Singlepoint as a mobile provider. EVER.

It took me 8 months to cancel a contract from australia - imagine the hassle. I was charged for line rental no matter how many times I told them to cancel it.

Feel very strongly about that still!!

I own The Think Tank Group - started in Leeds, but also now in London and Manchester - and our business has grown from word of mouth.

We started the business, as likemost people were fed up with the terrible service.

The main points to consider when speaking to an agent is :

1) Are they always contactble (I phoned one agent in Leeds at 6.15pm on a Friday night and I heard a voice saying "I cant believe someones phoning at this time .... hello, such and such company how can I help you ...!" - I was in shock and ended up just putting the phone down - guffawed is the word I would use !!!

2) Do they do viewings when people want them, and at short notice. (We did a viewing last night at 9.30, and they phoned at 8pm - we dont always do it, but if someone is desperate enough for a viewing at that time, then we will!)

3) Fees a) Do they charge renewal fees for renewal of tenancy agreements (sometimes charge both the tenant and the landlord for the same thing)

b) Do they charge you a signing up fee that pays for marketing of the property etc ? (we don't, we believe its down to the agent to get the tenants, simple as that - and we only get paid once we have found a tenant)

c) What other charges may you get hit with ? (inventory fees, for example?) The jury is out on this one, and we cant decide whether to charge an inventory fee (an inventory by the way, properly done, take about an hour to an hour and half) - at the moment we dont charge.

3) Marketing - where is it marketed - paper, online, etc ? We get 9,000 unique visitors currently, each month (thats unique visitors,not hits) and we generally have a suprlus of tenants (getting the landlords is the hard part for us -surely thats the wrong way round?)

4) Staff attitude - if its not a can do attitude, then you dont want them. Likewise you dont want someone who will agree with everything you say just to get the business. Thats why youre using them, because they have the expertise, and arent afraid to discuss a better way of doing things.

I hope some of the above helps - have a look at our site - there are newsletters, etc on there too

http://www.thethinktankgroup.co.uk

http://www.furniture-packages.co.uk

kind regards,

Daniel Latto