| Choosing an estate agent: |
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Alas,
there are no real guidelines that dictate the running of a lettings
agency or lettings department. Virtually anybody can set up such an
agency and make a complete mess of it! Choosing
an agent has to be done with care. Many agencies will happily value your
property and then give a lot of spiel about how many people they can get
to view your property today or tomorrow as long as you sign on the
dotted line. DON'T DO IT. Certainly ring up as many agencies as you wish
to have value your property - this will give you an excellent idea of
how much rent you can expect to achieve. Ask all the agencies to put
their valuation in writing to you. Why? Because not only does this give
you time to reflect on the caliber of agents who have visited you but
also it will enable you to look at the figures presented to you and you
can budget accordingly - what is the worst figure you could expect to
achieve? All
the agents who value your property should: 1.
Spend time looking around your property 2.
Talk to you regarding your circumstances and why you are looking to rent
your property - remember they are acting in your best interests. 3.
Give you advice on Health and Safety laws. 4.
Tell you what their fee is. 5.
Give you a contract to look through. 6.
Tell you how much they think your property is worth in the current
lettings market. If
they fail to do any of the above they should have a very good reason for
doing so and it is probably best to steer well clear of them! Make sure
they carry out their business in a professional manner and do not be
duped into thinking how nice they are! Often the less friendly ones are
the ones who are very busy and have not got the time to sit and chat
about the weather and what a wonderful property you have. Needless to
say there is no room for rudeness! Once
they have all left you with their bits and pieces, you need to settle
down and go through the contracts. Do this whilst you still have the
impressions they would have left with you fresh in your memory. Going
through contracts can be horrendously boring. All the contracts I have
issued in my time have been 3 or 4 pages long, dull and usually in small
print. Depending on the service you require will dictate what you are
looking for in a contract. For example if they are collecting the rent
for you, how long before it will be put in your account? If it is not
mentioned, get it mentioned - I have known companies take up to 6 weeks
to get landlords rent into the right account, all the time the agent is
earning interest and the landlord is struggling to pay the mortgage - it
should take no more than 7 working days. Watch out for hidden charges
i.e. BACS transfer of your money to your account �25.00 yikes! On
the management side, how much are they prepared to spend before asking
your permission - no more than �100.00 I hope if anything at all -
honestly though, you should allow a little leeway for times when they
can not get hold of you and an emergency has occurred - they have to
account for all expenditure though! Do they mention that it is their
responsibility to employ suitably qualified contractors to carry out
works on your property? Do they mention that they will get quotes from 3
suitably qualified contractors and present them to you, prior to any
works being carried out with a cost in excess of �100.00? By the way,
it never hurts to ring a contractor and get a quote yourself for the job
- at least you know that the charges are reasonable - and check that all
the contractors exist - it is very easy to make up a quote! What other
charges are there. I used to charge my landlords an extra 10% of the
cost for over seeing works with a value in excess of �500.00 What did I
do - not a lot! Remember
that agents are supposed to work for you - you are their client - but at
the end of the day most will be working for themselves especially as
many will have monthly targets that must be met. One
very important note is to find out what we call the renewal charge is. A
renewal charge is when the same tenant stays at the property for a
second term. Most agents will try and get away with charging you the
same amount as if they had found a new tenant. Money for old rope! All
they are doing is printing off a new contract or one page addendum and
sending it off for signature - no need to charge an excessive amount
surely? They will often say that if it had not been for them then you
would not have the perfect tenant that you have - reply - if it had not
been for me you would not have made the money you have from my property!
Negotiate on the fee - it really ought to be close to half the original
fee - and if you think the tenant may stay for several years give the
agent a sliding scale of fees. Make sure that the management fee is
charged on a monthly basis i.e. only being charged as they actually
manage your property - it is often very difficult to get a refund out of
an agent! Note
that you want your property to get the best possible exposure so as to
attract the best possible tenants. Check out the local newspapers and
see which agents are advertising and make sure their advertising is
neat, effective and large enough - at least 1/2 a page. The last thing
you want is to have a single column box at the end of the property
section. Whether
you go for a corporate agency or an independent is totally up to you.
They both have their pluses and minuses. Should
a problem arise with the agent you must act on it immediately in writing
to the top dog. No point in writing to the negotiator or manager that
you are having a problem with, they will just brush it under the table.
Go straight for the jugular and do not take no for an answer. If you are
getting nowhere, try your local trading standards. They, I have found,
are always willing to help people and if they cannot do anything for
you, they will point you in the right direction. Also, find out if the
agency belongs to any professional bodies such as ARLA or NAEA and write
to them. Never let the matter lie as you will find that people will
become less and less interested, but if they can see that you consider
the matter urgent and important enough, they will act fast. Keep on at
them. Also keep on at the agency as you may find they get so fed up with
you calling them and leaving messages that they will want you off their
back ASAP. no harm in going into the office - often a good idea when
there are other members of the public there as the agency will not want
to look bad in front of anyone! |