A recent report by home.co.uk has revealed that there has been a 12% drop in rental listings over the past 12 months, which is creating somewhat of a ‘rental drought’.
While stock levels have reduced, Tenant demand remains as high as ever, and this means in the short and medium term, the lettings sector is expecting to see a surge in rental prices, indicating a higher return for Landlords. However, numerous Landlords are missing out, because they are either not getting the best advice from their Agent or are choosing to manage their property themselves.
Many Landlords manage their property entirely on their own and do it very well. However, others find it far more convenient and cost-effective to employ a Letting Agent.
Considering what your Landlord responsibilities are, and whether you feel able to manage all of them alone, should help you to figure out whether you want to use an Agent or not.
So why do Landlords use letting agents, and could it work for you?
In this article Peter Lee, Director responsible for Lettings at Redbrik discusses the pros and cons of using a Letting Agent and offers advice on how to choose the one that is right for you.
You may want to use a Letting Agent if:
Letting Agents typically offer three levels of service:
If you decide to use a Letting Agent, make sure you do your homework:
Where Letting Agents can also prove their worth is through the personal connection. Communication is a crucial part of estate agency, and this is often lost when different people do different parts of the lettings service. I often hear that Landlords don’t want to deal with separate people for the marketing, someone else for management, a different person for accounts as it becomes incredibly disjointed.
Redbrik’s service is different as we allocate one person who will deal with all aspects of the rental. The same Negotiator you deal with on day one is the same person to carry out viewings, to agree the let, to arrange and complete the sign-up. This continues with our Fully Management Service – your Negotiator will then carry out the inspections, checkouts and deal with all maintenance enquiries. We believe in one contact for our clients.
When you do instruct a Letting Agent it is essential to ensure that they are working hard for you and your property year on year.
The rental market has changed significantly over the last few years with rent increasing at approximately 5% per annum in some areas. Therefore, it is essential to evaluate whether you are achieving the maximum rent continuously. I see so many properties put back on the market at the same rent as the year before, yet they could be let for £50 or even £100 or more PCM higher.
After a Tenant has moved out, it is important to assess the condition of the property. We will always advise if something needs replacing, changing or if redecoration is required. This way applications are generated quickly and at the current market rate, not just at the same price asked previously. We tend to recommend that a property is redecorated every three years – this can make a big difference to the rental value, will ensure a quicker let and results typically in the Tenant keeping the property in better condition.
If your current Agent isn’t coming up with answers, the maximum rent value, or the right Tenants, then move on quickly and make sure you give Redbrik a call!