To agent or not to agent

kmmr

I have a little rental flat in London which I have been renting out privately for the last 9 months or so.

It's been a bit time consuming, and I get the feeling that I am not brilliant at selecting tenants! I have done the right things with inventories, gas certificates and deposits, and have arranged for a few visits by various tradies. I don't have an EPC - but no-one has ever asked for it (probably ever in any house in history to be honest!)

Anyway, I am a bit over it all... I want to keep the flat, but the landlord stuff is annoying and more work that I wanted. Especially as I have a very demanding job that I would prefer to focus on.

So, I am thinking of using an agent and engage then to take over a full management service. Does anyone use agents here? Does is really make a difference in the quality of tenants, and how can I check out the agent to make sure they are not going to just send out their mates to do endless expensive repairs! I am happy to pay the cost (13%) if it really means that the flat is managed for me - but not if it just means that they call me to ask questions all the time.

So, just looking for some opinions on whether other landlords find it worthwhile to use an agent, or it is in reality just another layer of administration to manage.

Thanks

KMMR

missile

Some agents are very good and do earn their % ...............

unfortunately I have never found a good one.

Fire_Fox

Leting agents cannot do any repairs/ chase tenants for arrears etc. without the landlords consent, and they usually add an 'admin fee' onto each transaction as well as changing the monthly percentage. I am never convinced full management is worth the money, however finding and checking tenants is worth farming out.

mqandy

I let my house out on a long term let, and beyond the initial paperwork, I just collect rent and pay repairs.

I'm currently living in a rented flat, through an agency, and it's a nightmare!

They are meant to be managing it, but all that seems to consist of is forwarding messages to the LL, or - more often - Not forwarding messages to the LL.

There also seem to be hundreds of small things the LA has found the need to charge us for ('sign on' fee, £200 credit check (!!), inventories, canceling inspections, sending letters...), which I'm sure they charge the LL for at the same time.

The LL would have been better off just using a virtual PA type service.

kmmr

Agencies are saying it is 10% to find a tenant, and then just an extra 3% for the management. It's not much more, but... if it ends up costing me more in overpriced tradies, then it might be an issue.

Hmm...

missile

IMHO the advantages of having an agent are finding and vetting the tennant and avoiding face to face contact.

If your price is right you ought to have no trouble finding a tennant.
I prefer to meet and vet my own tennants.
I find it reassuring to maintain direct contact.
I prefer to do minor repairs. Not only to save cost, but it gives me opportunity to view propety.

If you have managed for the last 9 months I don't see why you would want to get an agent now.

I have used agents but found it was a bit like keeping a dog and barking yourself.

trixietoes

I use an agency to rent out my house today I have informed them I don't want their management service anymore.

Personally the management of the property is something that can be done yourself. From the next tenancy term they will only collect the rent and find tenants when needed, if the refuse I will change agents.

I worked out that over a year I pay them just under 1000.00 to manage the property...which in my case they don't. This is money I can use to have some repairs/updating done and fly back home a couple of times and still be in pocket!

Agents... generally don't shop around for the best deal, add a fee on top (even though mine says they don't - they do).

My tenants reported a few minor problems 6 -8 weeks ago and nothing has been done yet that I know of despite chasing!! (I live outside the UK so can't pop round and check).

Personally I like the comfort of them finding and vetting the tenants and collecting the rent, anything over and above that you are throwing your money away (like I have for the past 2 years Grrrrrr)

Vincenzo

How long do your tenants tend to stay? On a managed contract you will pay the % indefinitely. IE 13% in perpetuity (this is high - I would expect closer to 10%). With let only you only need pay a % for the first year, say 7%.

If tenants in your area/type of property tend to stay longer than 12 months, this is a big consideration on cost. I instructed an agent on a fully managed basis for 12 months and now we are coming to the end of that period am switching to let only (no cost). I paid 13% for the first year including rental guarantee insurance and Landlord's indemnity insurance. Therefore I knew I would get my rent no matter what and I now know the tenants are reliable and look after the property. They have indicated they intend to stay for another 3 years. If they do I will have saved £4,700 over that period.

If you do use an agent I would actually favour a chain (e.g. Countrywide, Andrews etc) rather than an independent agent. This is because they will have systems in place that to an extent safeguard you (and them) from mistakes and they are less likely to disappear overnight with a month's rent and the tenant's deposit. They will also be kept abreast of the changes in laws and most are members of ARLA. I have used a few different ones so far and they are all much of a muchness.

I do take a hands on approach to maintenance though so I rarely allow their contractors to do any works unless I have no time or the skills/tradesman for a particular job.

kmmr

The area (Aldgate) and the nature of the flat (a 'compact' 1 bed) tends to lend itself to a fairly regular turnover of tenants. It's not a family home area.

Hence, the largest piece of work for me is finding tenants. And reference checking them etc. Plus I can only do it around work, which is annoying for people looking, and for me.

I have spoken to the two largest agencies, but I think there are smaller ones that will do it for a lower fee. I think I will throw the ad up on gumtree - that normally brings the agencies running!!

Thanks all

Nosht

Try Martin & Co. really good franchise.

N.