#ad

Many people purchase properties to let.  It is a popular way to invest money and see a steady return over the years.  Although my family let out our properties ourselves not everyone has the time, energy or inclination to do this.  The reality is that many are not aware of the law surrounding lettings, contracts that are required or even specifications for building regulations etc.  In addition, screening prospective tenants isn’t always an easy feat.  In the past, we had a room let by a letting agent and were not happy with the tenant they found.  It’s not always about getting people in quickly, it’s important to find the right people so you avoid potential problems and not end up with the need to find new tenants a few months on.

Finding the Right Letting Agent

The right letting agent isn’t always easy to find.  Let’s face it, estate agents and letting agents are not the most trusted professions.  In fact, it came in as number 7 out of 10 of the least trusted professions in the UK.  We weren’t particularly surprised at this having used a letting agent for a property letting due to time restraints.  Rather than ensuring they found us a good tenant, they brought in an individual that caused a multitude of problems.  Needless to say, we were pleased the tenant didn’t stay long.  Now one might think the letting agent would have wanted to create a good relationship with us by finding a good tenant, but, it became apparent soon enough that they were more interested in their commission fee.

We never used them again!

That isn’t the case with all letting agents but helps highlight the fact that you should do some research prior to choosing who to trust to let out your property.  Choosing the wrong person can result in excessive unnecessary stress, time wasted and financial loss.

Introducing Rent Round

A relatively new startup with a great idea.  Rentround is a comparison site for property managers and letting agents. Created by Raj Singh who has a background in the finance industry (and a lover of martial arts) this company is now creating new partnerships with some of the largest property managers in the UK.  The aim is to expand their network of property manages as far and wide as possible to reach landlords nationwide.

What to Look For When Choosing a Letting Agent

Is the Agent Regulated?

As of the 1st October 2014 it became a legal requirement for letting agents to become a member of at least one of three government authorised consumer redress schemes.  These include; Ombudsman Services Property, Property Redress Scheme or The Property Ombudsman.  These schemes help to increase our protection as landlords by making sure agents follow a code of conduct and stick to the regulatory requirements.

Using a site like Rent Round means as a landlord I can search for letting agents in my area, compare their fees, see how well they are doing in the local area as well as which schemes they are a member of all in one place.

How Well Established is the Agent?

The idea when letting a property is to find a good tenant as quickly as possible.  The longer the property is empty the more it costs the landlord.  Finding an agent with a good marketing strategy is important.  It makes sense for landlords to look for letting agents that are featured heavily on the biggest named portals Rightmove and Zoopla.  They are able to provide clients properties with the most exposure to facilitate a speedy let.

Newer agents that are not well established may not use these portals so will yield less exposure for your property.  In addition, it is harder to gauge their knowledge in the field and quality of service although they may offer more attractive prices.  This is were Rent Round comes in.  Ratings will be assessed for each agent based on trust pilot, google etc.

Hidden Costs & Terms and Conditions

We all know the cheapest option isn’t always the best and this applies to many things.  Since the Consumer Rights Act 2105 a list of fees needs to be prominently displayed within all agent’s offices and also on their website.  In some cases, landlords receive bills for things they wouldn’t normally expect to be charged for.  Landlords need to look be aware of the “tenancy renewal fee” as many find after twelve months they may have to pay again for the same tenant.  Sometimes, the fees are extortionate which is why it pays to do your homework and check before signing a contract.  A good agent will be open about these fees and make sure you are aware from the start.

As well as this, you will want to make sure you agree that if an appropriate tenant isn’t found they don’t charge you.  Some agents have a non-refunable tenant finders fee.  Something to make sure you look out for when you first talk with the agent.

When given a contract, take it home and read it before signing.  Legal jargon can be complex for those that are unfamiliar with it.  Some letting agents count on this to get landlords to sign without reading them.  Look out for the exit clause and the fees that may arise if you decide to cut ties with the letting agent earlier than initially agreed or just decide to stop using them.  If there is something you are unsure of or don’t understand then ask.  Make sure you do this in writing.

Efficient & Good Quality Service

It pays to be observant when talking on the phone or arranging a meeting.  An organised, knowledgeable agent that is responsive to clients will more than likely act the same way when you have agreed for them to let your property.  It’s important to look out for the telltale signs.  It can be useful to phone local agents to see how long they normally take to find suitable tenants.  It is in both your and their interests to make sure they ensure they find suitable tenants within the period of time they’ve given.  If it sounds too good to be true it probably is.  If you are happy you are likely to use them again and recommend them to others.

Look for good quality pictures of the properties advertised by the company as well as full details and detailed plans on property portals.  Their website should be well laid out and look professional.

Where a landlord has multiple rooms or properties for rent, a discount should be available from the letting agent.  It’s important to ask about this to help reduce costs.

What Options Does the Agent Offer Landlords

With the number of agents that could be potentially vying for your business, all good letting agents will have different options available.  There are options for landlords to choose from including whether they or the agent do an inventory before the tenant moves in, who will collect rents etc.  Ideally, an agent will adapt to suit the client where they can.  Think logically when deciding what to do.  If the property is far from where you live, it may be best to have an agent close to the property to do all the leg work for you.  You don’t want a phone call telling you somethings gone wrong when you’ve just made it to the airport to go on holiday – been there, done that!!!

Finding a Suitable Tenant

Establish the type of tenant you require from the start.  Some landlords prefer not to let their property to smokers or those with pets.  Give this in writing so you have something to refer to at a later date if required.  This will help reduce the chances of getting a tenant you don’t approve of.  It is important to meet tenants the letting agent has deemed suitable before any agreements are made and contracts signed.  For homes with multiple rooms being rented out, it makes sense you find similar types of people to let to in order to reduce issues.  An experienced letting agent should know what to look for.

Tenants must have references available.  When a tenant is found the agent will do a credit history check (goes back 6 years), check their right to live/work in the UK, contact 2 individuals from those listed in the references etc.

Client Money Protection scheme (CPM)

From the 1st April 2019, it became compulsory for letting agents to join an approved CPM.  This was set up to protect landlords and tenants in the event that the letting agent went into administration.  They are required to display a certificate on their website or office stating the scheme they belong to.

In Conclusion

I hope that you have all found this post informative and useful.  If you are planning on renting out a room or property it can be easier to use a letting agent and it appears that Rent Round is a good way to compare your options.  Make sure you do adequate research before deciding who to use, all the information you need is in this post.

Good Luck!

If you had or have a room to let would you go it yourself or use a letting agent?

Enjoyed this Post?

Subscribe to Melanie’s Fab Finds RSS feed to see my latest posts. Posts will include recipes, reviews, etc. and as a result, you will hear about my new posts and competitions first!

Watch our fab product reviews on YouTube x

Written by Melanie Edjourian. Please do not copy without permission.