How to find a good letting agent?

Some investors manage their own properties. I have tried this myself in the past as I live quite close to some of my properties. However I am not an expert letting agent, I don’t want tenants ringing me up at any hour and I don’t want the hassle. Therefore I always use letting agents. Remember that letting agent’s fees are deductable against tax so they are quite a cheap investment.

Finding a good letting agent can be hard. In my experience there are a lot of average/poor letting agents and only a few good ones. Having a good letting agent protecting your investment and making sure the rent is flowing is critical. I have eight letting agents as I have properties in different areas. The way that I choose a new letting agent it:

a)    Recommendations from other landlords

b)    Choose 3 agents in the local area and visit them all in person

c)    Check their organisation – ask them to do three things. These can be quite small as posting terms & conditions, sending a landlords number and sending something else. Check that they do this, if they don’t they haven’t noted your request or just haven’t done it – either way this displays poor organisation.

d)    Don’t take them at face value – many people can talk a good game but not deliver.

When you have appointed a letting agent. Check this:

e)    Rent is received when agreed

f)    Regular inspections undertaken (with photos & report) – at least once a year, preferably twice.

g)    Swift communication of any problems

h)    Repairs are a sensible price, if they seem high question if the letting agent is taking a commission from the repair – they shouldn’t do this as you are already paying for them to manage your property.

i)    When vacant – is the property being properly marketed? i.e. is a board up, is it in the paper, is it on the internet etc…

It is very worthwhile spending some time building a relationship with your letting agent. Be professional, don’t waste their time but make them aware that you expect to be at the top of their priority list and that a good service is needed at all times. Praise them when they do a good job and constructively criticise when a poor job is done. Remember that problems occur and it won’t always be the letting agent’s fault. Having a frank but good rapport with your letting agent helps when there is a problem. You don’t want your letting agent to put off ringing you if there is a problem, if there is a problem and your letting agent knows that they can ring you and have a sensible and constructive discussion about how to resolve an issue then the issue will be resolved quicker than if there is a difficult relationship. If a letting agent is poor then change them but be careful to check the letting agent’s terms and conditions to see if you and you tenant are tied into them.

Most reputable letting agents will be members of ARLA (Association of Residential Letting Agents). This is a useful framework which describes what the agent should be doing and how to resolve disputes. However my best letting agent isn’t a member of ARLA so don’t base your judgement solely on ARLA membership alone.