The latest LSL Property Services / Acadametrics House Price Index for July 2011 reports that house prices in July fell by only 0.1%, reaching their lowest level since December 2009 following a 3% drop in Q2 2011. Transactions are down 5.9% year on year, as cheap mortgage deals fail to stimulate demand.
A lack of means or desire to buy has led to some estate agents looking to compensate for the sales market to diversifying into the rental market (and anything else they think they can make a quick buck on!). The plus side is that landlords now have greater choice of who to use to let or manage their property.
The downside is that many of these ‘accidental agents’ have little or no qualifications or experience of letting but attract landlords with ‘too good to be true’ agent fees, only to later close down and in some cases defraud their clients.
Landlords are in the driving seat and do have the opportunity to shop around for the best agent or management company and the best tenants. However, with a thriving yet unregulated market come an increased number of people looking to cash in on it, so landlords should remember service levels and price usually come hand in hand.
6 questions to ask when approaching an agent to let your property:
- Do the staff have any formal qualifications in letting or property management such as those awarded by the National Federation of Property Professionals (NFOPP)?
- Does the business have any experience as landlords – have they walked in their customers’ shoes?
- Are they a member of any professional bodies such as the National Landlords Association (NLA)?
- Are they a member of The Property Ombudsman Scheme (TPOS)?
- Is the business covered by Public Liability (PL) and Professional Indemnity (PI) insurance?
If they answer no to any of these questions then quickly move on to a better agent.
Ask for a complete breakdown of all fees and in particular:
- Set-up Fees
- Tenancy Agreement Fees
- Deposit Protection Fees
- Tenancy Renewal Fees
- Re-let Fees
- VAT
- Inventory Fees
- Monthly Property Management Fees
- Commission on maintenance and repair contracts
- Cost of arranging an Energy Performance Certificate (EPC) or Gas Safety Check
- Check-Out Fees
The list is endless but if you don’t ask they won’t tell you – 18 months down the road you realise that the price that was on the tin was not the price you have paid – I know because I have been there.
Good luck and happy letting 🙂
Leave a Reply