As rapidly changing lifestyles result in frequent job changes and relocations, the need for the services of a reliable letting agency becomes apparent. Nowadays, landlords rely on house rental agencies to ensure the sustained visibility of their properties on the market, to secure profitable rental terms and compliance to requisite safety legislations. And as a result, examining the criteria that govern the choice of letting agency becomes crucial.
1. Understand Agency Fees
House rental agencies liaise between landlords and tenants. A letting agency’s fee structure is a key consideration in determining current and future dealings. Letting agents typically charge 8 to 10 percent of the rental income as an advance fee. Dependable house rental agencies should provide a detailed listing of their services and the fees associated with every service, including all applicable taxes. If a landlord owns more than one property, negotiating with the agency for a discounted rate on multiple properties is a normal and reasonable practice.
2. Legalities and Reputation
Professional house rental agencies in the United Kingdom are usually members of the National Association of Estate Agents (NAEA), Association of Residential Letting Agents (ARLA), Residential Landlords Association (RLA) or the National Approved Lettings Scheme (NALS). While these associations do not substitute governmental legislation, they provide a framework of best practices for how an agency conducts business.
3. Professional Insurance and Certifications
The National Federation of Property Professionals’ Client Money Protection (CMP) Scheme and professional indemnity insurance are hallmarks of dependable letting agencies and demonstrate their commitment to consumer protection. Working with certified agencies assures landlords that their money is being handled with accountability.
4. Understand an Agency’s Services
Letting agencies offer a wide range of services but they often have specific areas of expertise. As a result, choosing a letting agency should depend on the specific services that a landlord needs.
5. Plurality of Service
While agencies may advertise the exclusivity of their services, a landlord’s chances of finding a suitable tenant are maximised by using more than one letting agency. Many letting agencies do not require a down payment until they are able to find a tenant that meets the landlord’s needs. This allows the use of multiple agencies operating in an area to improve the chances of securing a mutually beneficial rental agreement.
6. Maintenance Costs
Newer rental contracts made through letting agencies allow for the creation of a maintenance float fund that is managed by both parties and pays for periodic routine maintenance of the property. This service is usually part of a much larger property management programme offered by house rental agencies and provides landlords with a degree of predictability in terms of maintenance costs.
7. Obtain Tenant Feedback
Understanding the experience of past and current tenants is an excellent test of how an agency treats its customers. It is important that an agency’s approach is consistent with the landlord’s.
8. Safety Record
Reviewing a letting agency’s handling of safety legislation and property safety codes, such as the inspection, testing, and maintenance of gas lines, fire safety equipment, and building codes, is indicative of the quality of service that the firm offers. A diligent letting agency should routinely examine the property’s compliance with these codes, and protect the landlord from any legal liabilities arising from neglect.
9. Contractual Nuances
A well-written service contract between a landlord and a letting agency forms the bedrock of a solid professional relationship. It establishes the terms and conditions of the agreement while answering key questions. For example, a good contract should include clauses about vacancy fees, tenancy deposit protection, and all statutory and regulatory requirements.
10. Communication
Accuracy and timeliness of communication is a good measure of a house rental agency. An agency that is proactive and ethical in its communication can be expected to extend those qualities to its daily operations. Peer and industry feedback from real estate organisations are invaluable when choosing a particular agency.
An efficient letting agency acts as an effective liaison between landlord and tenant, ensuring the proper marketing, safety, and sound custodianship of funds between the two parties while representing the landlord’s best interests. That is what you should look for.
