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It's official - letting agents save landlords an average £1,910 per year

A new survey suggests that a letting agent saves a landlord an estimated £1,910 a year.

The result of an investigation into 500 landlords by insurance firm Endsleigh suggests that there are widespread misconceptions among landlords about the value for money offered by letting agents. 

Of those landlords suggesting that they could save money by not using agents, the average sum ‘saved’ on fees was £159 per month. 

However, comparative analysis of the rental income and void periods for those landlords with, and those without, agents suggested that in fact agents saved their clients an average of almost £2,000 each.

Most of the savings for landlords are created by agents minimising void periods when compared to landlords who go it alone marketing their property.

Some 76 per cent of respondents to the survey reported that their agent helped them pro-actively find tenants, as well as providing other services such as help with legal and financial matters and so contributing to a reduction in overall costs.

The survey suggests that relationships between letting agents and landlords are not about financial benefits alone. 

Of those landlords who use an agent, 50 per cent were most attracted because of their local knowledge, and more than two in five claim that excellent service is a deciding factor.

Some 41 per cent feel the main benefit of working with an agent is that it provides peace of mind, and 25 per cent say they communicate with their letting agent on a weekly basis. 

  • Simon shinerock

    Absolutely right, it never ceases to amaze me how much Landlords cost themselves in money, time and grief by going it alone. In the home I always used to compare letting privately to going fishing in a small infected pond when a great big lake full of fat fish is right there beside you

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    We've had landlords letting properties themselves but taking two/three months to let it thinking they've 'saved' money by not employing us!!! We let properties quickly to quality, fully referenced tenants and the landlord gets their money rolling in quickly. No brainer surely?

  • Matt Williams

    What a cracking analogy Simon!

    Simon shinerock

    Thanks Matt, one of many :)

     
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    Good agents are brill. As a landlord myself I have worked with several agents and not all have saved me money! Some did not tell me about their fees to tenants which only became apparent when tenants were not signing up. Other agents have been outstandingly good taking just days to achieve a higher rent in a shorter space of time (usually because they are gifted at striking up great rapport with tenants and have great soft skills to weed out the time wasters and pretenders). Time is money and being able to sleep at night because a good agent is in control is worth much more than money. Good agents have skill sets many landlords (myself included) do not have; that is valuable and deserves rewarding.

    Simon shinerock

    Well said ztom

     
    Simon shinerock

    Tom!

     
  • Kristjan Byfield

    Its just refreshing to see another sector actually heap praise & value on our sector for a change! It would be great to see the industry media seek out and promote more articles like this in 2017.

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