UK Landlord Forum / Life

Am switching to a new letting agent and sent out a few enquiries via email. Chatted to one agent who seemed very switched on but when the paperwork came through it wasn't on official letterhead and the company doesn't appear to be registered with companies house. Not v.a.t. registered either and no membership of normal letting agents bodies.  Bit of a stupid question but do letting agents have to be registered as a business etc.?
Thanks in anticipation for any responses

Legally, no.

Should they? Yes.

Need to be? Probably not, if you have a good relationship with this man, and you can get a reference from another landlord or three, then it may just work out okay. A one man band not being registered for VAT is not unreasonable, and does make it cheaper for you and the tenant.

There, that is a suitably confusing answer!

Many thanks for your quick response which was helpful as I didn't want to jump out of the frying pan of big letting company chain into the fire of a one man band and was wobbling a bit as all seemed okay but I was just a bit doubtful when I saw it wasn't registered as a business.  They've come back to me offering to put me in touch with other landlords and I suppose everyone has to start somewhere....... so thanks for that.

Everyone agent to start somewhere but why on earth would you choose an agent that isn't a member of any professional bodies? If you have chosen to use an agent you may at least use a decent one who knows what they are doing unless of course you are choosing your agent based on how little they charge? I am unsure how any successful agent will keep below the VAT threshold though as it is not very high.

£81,000, so at 5% commission he would be overseeing collection of rent of £1,620,000.

210 plus properties.......

Hmmmmmmm.

( Incidentally those numbers shocked me as well!

I think most Agents are pretty crap anyway, never having met a good one, or spoken to anyone who has used a good one, so if you like someone then I would thought this is a pretty good start, but I would still assume in the long run they are going to be crap.

5% you need to aim higher boboff, think more like 12%. Agents will also charge fees for referencing and admin that are often paid by the tenant.

When we opened a few years ago we hit that figure with ease in our first year from a cold start and although admittedly we did sales as well, the bulk was from lettings.

BTW I think you have the right attitude to agents - some are not only crap but downright cooked as well.

Sorry, didn't know you were an Agent...


Obviously now I know I nice one, I shall have to change my ideas!