UK Landlord Forum / Life

Hi all,

I've been thinking recently about the value letting agents provide, given the ever increasing fees (specifically for finding tenants instead of managing properties). Has anyone had any particularly bad experiences, or come across letting agents that they think provide good value for money?

Interested to hear everyone's views!

I don't have many properties, I'm not thick and the furthest property I do have takes 17 minutes to drive to if the traffic is bad.  I have no use for an agent so can't place any value for their services.  To me, they seem like an expensive telephone receptionist/rent collection service but having never used one I'm not the best informed.  If I was looking for an 'agent' I'd prefer to try and find someone running one from their back bedroom as I'd feel they'd actually want to provide a service.  I do my own viewings which is really insightful as to who and what the tenant is.  I discounted a prospect based on their chavved up family car that pulled up even before speaking to them.

I had no choice but to use a letting manager/agent for my property as I live over 200 miles away from it.

In all honesty, I am disappointed so far in their service. Their appointed electrician and boiler maintenance found faults (of course they did) and tried to charge me in excess of £4,500 to repair and/or replace. After paying for independent contractors, I learnt that they grossly exaggerated the problems and everything was resolved for a little over £1,300 (which included a maintenance contract and 10 year guarantee on parts). They have also supported the tenant (I thought I was paying their management fee!) over minor complaints. Contractually stuck for 3 months but seriously considering other options.

It seems fair to say that most Landlords would not elect to use a Letting Agent, unless they felt they had to. For many it won't be about the value, it will be about the veneer of professionalism and knowledge an Agent has in that space, which a Landlord often might not. The truth, as we know from this forum, is that often is just a veneer (a thin one). Many Agents fall into the trap of working both sides, and inflating quotes etc.. It can be quite shady.

All that said... these Agents exist, they're not all bankrupt, and more start up every day, so there must be many, many Landlords who use them, and continue to use them. You are never going to get those people spending their time to write on a forum how happy they are with their Agent. All you will get is people moaning about how bad an Agent is.

Personally, I self-manage... I do that because I want to do it, though. This plan of mine should allow me to retire before the stupid age many of us will get lumbered with, but I'll still have plenty to occupy me. I have learned a lot while doing the role as well, not least plenty of DIY. It puts you into a better position when dealing with trades as well. I've had my fair share of problems, but never met the nightmare Tenant from hell, yet. So, if an Agent did everything that I do, and just as well, then I could certainly say I'd see value in that - the truth is - I don't think I could find an Agent who would do what I do.

At the end of the day, every Landlord you'll talk to will want an Agent to work for peanuts and provide a Platinum Service. They can't help but perceive an Agent as some kind of parasitic bottom-feeder. It's not the case, really... but Agents often don't help themselves. If you could have an Agent you could put complete trust in to manage your property and your affairs, but they wanted 50% of all your rental income, I doubt you'd go for it - but they'd be doing all the work, you're just a silent partner stumping up the capital (which is also growing as an investment anyway). I'm thinking... what a business model!

For several years I managed the properties myself,only using agents to find tenants/do checks and viewings.Initially I tried doing all of it,but found the aggravation of viewings ,no shows,total liars etc,was a bummer.This was  20 years ago,and I was not internet savvy.
A lot depends on your circumstances.The furthest property was 15 miles,but I don't drive and my partner was working away a lot.I was freelancing,and one particular hellish tenant led me to go for full management of all 6 (now 5) However,that did not spare me from further hellish episodes,agents with no instinct for spotting flakes.

Now,things have changed,and I am taking back one at a time as they are vacated, to avoid penanlty fees.Tenants stay a long time these days,so only managing one so far.

The agent I have used to find the latest tenant is a one man band.His fee is half of the first month's rent,and he includes a lot of services in that.I like him,and so far I would use him again.My biggest gripe with agents is failing to remember who pays their fees,sucking up to tenants to  get them off their back. And,as everyone mentions, telling contractors to charge as much as they want,after all,landlords are all fat cats. 

Quote from: heavykarma on May 21, 2018, 10:19:11 AM...agents with no interest in spotting flakes.

I corrected that for you.

Yes,that's exactly right!  They have skin like rhino hide,sleep well at night.

QuoteMy biggest gripe with agents is failing to remember who pays their fees,sucking up to tenants to  get them off their back. And,as everyone mentions, telling contractors to charge as much as they want,after all,landlords are all fat cats.

I concur but - as a fortunate consequence - I am now learning how to find the right contractor/tradesman for the job and then negotiating a mutually agreed price. A surprisingly useful skill nowadays.

I almost employed an agent...but couldn't justify their fees.  I've managed 13 properties on my own and prefer it.  I know my houses/flats and am careful who I choose (don't always get it right 100%) but prefer my judgement as I have more to lose than an agent.  Friends tell me awful/expensive stories of poor managing agents - inflated contractor fees, Section 21 issued incorrectly creating another 2 month delay...more rent arrears, 9 month wait for deposit to be returned to landlord etc.  Do your research and use sites like this!  I understand some investors have to use an agent.  If managed well then it should work (in theory). Just expect less profit.