Posted by Simon Misiewicz on 1st July 2013
Are you using a letting agent to manage your property?
Are they giving you value for money?
The charity did a study of 60 letting agents in England and found 17 were charging people more than £400 to set up a tenancy agreement and seven were charging more than £700 (1).
You need to check how much money letting agents are charging you as the property owner and how much they are charging the tenant.
Is it possible that more voids will be created if letting agents over charge the tenant? Worse still are your returns being eroded because letting agents are then charging you an excessive rate of managing the property and tenant finding?
Mr Robb told BBC Radio Four’s Today programme that the charity is calling for transparency in how fees are levied and who pays them.
He said: “Renters are getting into debt because of the amount of money they paying up front. This is a very unusual market where you have two people paying for the same service.” (1)
Here are some quick tips of selecting and working with the right agent:
- Interview them and get to know their values, make sure they are aligned to yours
- Understand their fees up front
- Understand their process of tenant finding and checking that they are the right tenants
- Ask for referrals or better still ask other property investors and ask them to put their name on the recommendation. Only the best letting agents will be names to save the embarrassment of the referrer.
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(1) Letting Agency Fees Creating a Dysfunctional Market?