In This Guide
Administration
Being a landlord
Buy to let investment
Choosing the property
Finding tenants
Letting property
Lettings agents
1. Introduction
2. Choosing lettings agents
3. ARLA / NALS
4. Contract with letting agent
5. Tenant's checklist
Levels of service
Preparing the property
Problem tenants
Tenancy
Lettings agents
Choosing lettings agents
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The first thing that must be reiterated is that you should always do your utmost to choose a lettings agent that is a member of one of the professional bodies. This should help ensure that they work to a specified standard of service.
The organisations you should look for are:
- ARLA - Association of Residential Lettings Agents. These are the main specialists in the rental market, which makes them a better choice than a business whose main activity is selling property or something else. For more information on ARLA, click here.
- RICS - Royal Institute of Chartered Surveyors
- NAEA - National Association of Estate Agents
- Or a Government registered housing association
If the agent is not a member of any of these organisations you should question why not, and seriously think twice before using them.
Many people choose the lettings agent who advises them of the
highest potential rental figure. This is all very well, but it
is sometimes foolish for the valuation to be the only factor you
take into consideration. It is not all that rare for the suggested
rental income to be slightly exaggerated by the lettings agent
in a bid to win your custom. If this is the case, then you may
find that you lose out on potential rental income while your property
remains vacant, unable to attract tenants at the rental level
proposed by the agent.
Fees vary and each lettings agent will have their own scale of
charges and terms and conditions of business. The fees that lettings
agents charge can vary by several percent of the annual rent for
much the same services, so do look into how much the fee is and
what is included in the price. You shouldn't necessarily always
go for the cheapest option, as there is sometimes a cost-service
trade off, but it may well be an important factor in your consideration.
Sometimes there are certain incentives that offset some of the costs. Look out for things such as discounted lettings insurance, free legal protection or emergency repair insurance. Over the term of the tenancy, the cost of such things can add up, and having them included in the fees from the start can be worthwhile.
You should also check for hidden charges. Ask if any portion of the lettings fee is renewable and after how long. Many agencies will draw up 6 monthly agreements rather than 12 monthly ones so that they can charge an additional fee every time the tenancy is renewed - even though the tenants will probably remain the same.
One of the reasons for opting for a lettings agent belonging to
one of the official bodies listed above is to ensure a level of
professionalism. This is crucial to the whole process of letting
your home, from setting the rent, to finding a tenant and dealing
with the administration.
These are the sorts of things you should look out for:
- Polite, friendly and well trained staff, with a specialist lettings team.
- Clear and helpful advice literature.
- A well-maintained web site.
- Efficient computerised administration system.
- Comprehensive marketing - in newspapers, with signboards, leaflets and on the internet.
Whilst hungry young professionals bring much to a lettings agency,
it is important that there is also some experience in the company
you choose. Find out how long they have been a letting agent in
this area and how many years of experience they have in the business
as a whole. It often pays to choose the most prominent and successful
agent in the area - they will not have achieved that reputation
by default.
Don't forget your gut feeling. If it is telling you that something
is wrong, it can be worth listening to you natural instincts.
You should feel comfortable in awarding a lettings agent all of
the responsibilities they are set to take on.
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