Whether you’re a landlord or a tenant, everyone wants to make sure they’re getting the best possible deal. In the current climate, it pays to do your research before signing on the dotted line. More and more landlords and letting agencies are emerging to fill in the void — but how do you know if you should trust them with your most valuable asset? Here are five signs that you’ve found a great letting agent.
- Look for letting agents with a long track record.
A letting agent is a person or company that manages the rental of a property on behalf of a landlord. When you are looking for a letting agent, the most important thing to do is to look for a letting agent with a long track record. This is because it’s tough to tell which letting agents are good and which ones are bad. When you look at the back of an agent’s application, you’ll see a note saying “professional references.” This means that they have worked in the rental industry for a long time and have worked with many landlords. However, it’s a good idea to do your own research. Talk to previous tenants who have used the agent. Ask the agent if they’ve had recent disputes with landlords. And avoid agents that are listed online with no social media presence or references of any kind.
In some cases, agents will get fees for referring good tenants to landlords. Landlords will promise an upfront fee to the letting agent that’s nearly five times the monthly fee the landlord pays them. Other agents will pay additional fees or pocket the money. Keep in mind that fees can be an add-on monthly or flat fee instead of a percentage of the rent. Before you make any commitments, research the fees and their potential pricing. Sometimes all it takes to turn a great letting agent into a good landlord is a simple phone call. Call them up and talk to them about their experience dealing with landlords. If they have treated you and your family well, many places will want to work with them going forward. When looking for a letting agent, contact the best agents and agents with impeccable references. You don’t want someone who is only out on the town for the night who then disappears for 5 years. You want people who know their stuff. If the reference you get back is 5–6 years old, it won’t make much of a difference. Pro tip: When you call a lot of letting agents looking to open new properties, be as specific as possible.
- Search for online reviews from tenants and landlords.
When you’re looking for a new apartment or rental home, search for reviews from tenants and landlords that will give you an idea of what the building is like. The best way to get this information is to search for reviews on Yelp, TripAdvisor, and ApartmentRatings.com. The best part about these sites is their huge datasets. Yelp provides the most recent reviews from your previous tenants, TripAdvisor pulls reviews from around the world, and ApartmentRatings.com has data going back as far as 2000. Occasionally, you may find reviews for entirely different properties — for example, we recently searched for a rental home that also had a gaming room with terrible reviews. After poking around the websites, we eventually narrowed down our search to a specific floor of an apartment building in the city where we’d like to live. From there, we browsed through all of the reviews and argued about which ones were the most helpful, all while sipping our lattes. Investing in a trusted letting agent can significantly increase your chances of finding the right apartment. Try to find agents with a referral network at least as big as your own or lessen. An extra layer of protection is always helpful. Your letting agent’s goal is twofold: first, deliver the best possible deal for both you and your renter. Second, make sure the rent calculation is fair and accurate. This requires research, but luckily it doesn’t take a lot of legwork. First, ask your agent any pertinent questions about new tenants or the leasing process. This is where you can uncover any gaps in knowledge that could impact your future rent payments. For example, discover if the new landlord increases your rent by £10 or if the leave-in-place clause is a monthly fee instead of a yearly stipend. You don’t want one of these two pieces of information to impact your quest for a new pad negatively.
- Ask for proof of insurance and accreditations.
As a freelancer, you need to know that your clients are who they say they are. Ask for proof of insurance and accreditations to make sure they’re legit. If a potential renter is coming into your London pad with their whole family, they’re probably a fraud. Make sure you spot any inconsistencies such as fake birth dates, teachers, degrees, and income. Maybe they’re onto something. A study found that about 80% of Airbnb superusers were not from London, and of those, 43% had fake identities. If they can’t tap into the pool of starry-eyed contractors who flocked to London, they’ll need to import their workforce elsewhere.
Never hire someone based solely on their social media history. Verify the legitimacy of their references. Sure, some property owners will let someone stay in their home because they’re friends or like the person, but you need to know how to spot a flake. A real estate agent has to know someone in the community. Maybe their uncle knows a broker that’s connected to a local politician. They should also have real estate experience — meaning they’ve actually inspected and assessed properties before. Real estate agents are human, and mistakes are bound to happen. That being said, you want to make sure that it backs up what they say. You don’t want to throw away an opportunity to save money because of a bad reaction. If you’re hiring a contractor, produce a contract. Before signing anyone, ask for a copy first. Contracts should include the terms of the job and give more details about how much work should be done and how much each will be paid. I have a friend who noticed things in her rental agreements between agents and landlords that weren’t quite adding up. It’s common to have hidden fees added on to rent payments, forms of late payments, and termination fees.
- Make sure you’re dealing with a licensed agent.
The first thing you should do if you’re looking for a property is to make sure you’re dealing with a licensed agent. The agent will help you find the ideal property for your needs and help you through the whole process. Would you please do your research regarding your needs and whether the place you want to rent has certain characteristics that would make it a good rental? If you’re looking to rent a furnished property, it’s worth reviewing fees and commission structure. Are you looking to save money, get a quick deal, or save on tax? Before you sign a lease, make sure you understand the terms and conditions that apply to the property you’re looking to rent. If you’re looking to buy, it’s true that some letting agents charge a fee for “pre-landed” properties. This is generally for the same fees that would be charged in the commercial rental market. Puppy training facilities, for example, require four trips to the pound before they’re considered available for rent. You usually don’t need to pay anything extra for a “pre-landed” property, but the fee adds up quickly, so be sure to discuss the cost of your new place with a licensed agent. Before you do anything, make sure the agent has a good track record. According to a survey done by Let’s Go Homes, only 10% of letting agents are 100% satisfied with their job. Make sure; however, the agent you’re working with tries their best and succeeds each one of their clients. If they watch over your pets or act quick to reject your no-kill application, they’ll be able to establish their high-quality reputation with you. Next, classify your property as either distressed or empty-nesters for potential discounts or increased rent. Sometimes a rental property can be deemed as distressed if the properties condition warrants it.
- Pick an agent who can show you around their property portfolio in person.
When meeting with potential agents, make sure you can see their property portfolio in person. You want to make sure they have the expertise and experience to help you sell your home for the best price. Also, their portfolio should reflect the kind of home you’re selling. A four-bedroom, modern two-story home will rarely trade hands for a two-bedroom, old schoolhouse. If you’re new to the rental game, it’s important to find an agent with a referral network. This will help you negotiate the best rental price. You should also ask about their best practices in the industry. Do they follow all the regulations when renting? Are they fair and upstanding people? Carefully analyze your letting agent’s writing to find out whether they provide clear, thorough, and professional coverage. This will ensure you protect a large portion of your deposit upfront. An experienced agent will take the time to research and research thoroughly. Make sure the agent clearly explains the terms and conditions of your lease. It’s also important to know the amount of your deposit. When writing a lease, it’s important to define deposit management. This will ensure you won’t be footing the bill for huge monthly instalments later on. It’s also a good idea to accept landlords’ offers of no deposit if your income is sufficient to cover it. It’s immensely beneficial to talk to multiple letting agents. This will uncover any hidden rules or requirements within the industry, as well as any hidden fees. You can also ask agents about transaction fees, the process of selling the property, and any hidden fees that will affect your finances or your credit score. In short, ask questions! If a letting agent is not upfront with you, run your lease paperwork past a colleague or friend. Many professionals offer to do this for you online, but make sure they are serious about it. They may charge a small fee but trust your judgement more. Many letting agents offer one-time payments or lump sum payments.