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Written by rosalind renshaw

Half of landlords do not use agents, new research from an independent marketing consultancy has said.

While other estimates put the proportion of private landlords using agents at 60%, the BDRC Continental Landlords Panel puts it at 50% – suggesting the possibility of significant more growth for agents.

The average landlord pays 7.3% of their letting income to an agent, says the research – reflecting a mix of landlords who use full management services, let-only, or a combination of services.

For landlords using an agent, the choice tended to boil down to professionalism, with one landlord saying: “Letting agents know how to pitch things. They can show flats at required hours. They invariably have a web presence and reputation / brand. They’re clued up on ‘closing a deal’. I live abroad and so can do none of these things.”

Another said: “The agent knows far more than I do about the law, about the market level of rents (she runs several of her own properties), and about what to do with awkward or neglectful tenants. One day I might be able to do all of this, but not yet. So, in a word: experience.”

Landlords choosing not to use agents had equally clear reasons, and said they were more able to offer tenants a personal service. One said: “I also act promptly. I do not rip tenants off, charging more for referencing than it costs or charging any admin fees. I find agents double-dip and charge both landlord and tenants fees when they let property.”

Another said: “I can only speak for my own service, but it is bespoke. My tenants can always contact me and receive a personal approach. Because I do not have the additional expense of using an agent I can pass on the saving to my tenants in the form of reduced rent, which makes me more competitive than letting agent managed properties.”

Comments

  • icon

    i like rentdirecuk.co.uk

    • 22 April 2013 13:23 PM
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    We continue to support Rightmove because even at the current fee levels the ROI is positive. It's simple commercial arithmetic.

    • 16 April 2013 22:45 PM
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    Many agents fail to pitch the end of year agent fee offset to landlords.

    RIGHTMOVE AND ZOOPLA both allow private landlords in through the backdoor via budget marketeers as below:

    RM + Z - http://landlorddirect.com/ £39
    RM + Z - www.makeurmove.co.uk Tenant find - free/ to £49
    RM + Z - http://www.openrent.co.uk/ - from free

    So why do agents support the portals that place private ads next to agents ads - through back door marketing companies from £0's

    Its a bit like the NHS letting vampires in to enjoy the goods at the blood bank.

    • 16 April 2013 09:25 AM
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    As a help to those self managing to make sure they are not going to get sued.

    I could pose the same questions to agents and find exactly the same results.

    As usual just trying to help............

    • 16 April 2013 09:22 AM
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    Any landlord instructing tradesmen to carry out work on their property is culpable to HSE if they have not done a risk assement themselves and have not checked the risk assement of the tradesman employed.


    IO why did you post all that? Without your post this whole article was a non story from an organisation no-one has heard of.

    • 16 April 2013 09:01 AM
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    About 15(?) years ago when CEO of ARLA Adrian Turner said in an article that only 40% of properties within the M25 were using an agent for a fully managed service.

    To all those self managing Landlords either out of desperation to save money, or because they think agents are useless, here is a simple and sobering test for you today.

    Examine each property file you have, and assuming you have a copy of the Prescribed Information on it signed and dated by the tenant, check the following:-

    1. Is it dated within 14 days of receipt of the deposit if the tenancy started pre 6.4.12 or 30 days if after?

    2. Is there anything written in the entry line for Tenant Post Tenancy Address?

    3. Is there any Relevant Person named if indeed there is one?

    4. Did you actually specifically ask the tenant if they were providing all of the deposit entirely from their own resources?

    If the answer is NO to any of the above when in the case of (3) for example it should be YES then next time use an agent

    • 16 April 2013 08:12 AM
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