What do Landlords Really Think about Letting Agents?

Self-managing, to date has been prevalent, with 42 percent of landlords in 2020 reportedly managing their own rental properties (National Association of Realtors). Interestingly, a recent survey of 2,000 landlords found that 63 percent were now open to making the transition (USwitch).

The main reason for this is ‘agent’s knowledge of the sector’. With legislation in a state of constant near-flux and government policies increasingly weighted on the tenant’s side; remaining compliant/avoiding fines is becoming almost impossible. Not every agent however is created equal! Landlords may be turning to agents, but this is no reason to become complacent. Increased competition highlights the need for increased understanding. What then do landlords really think of letting agents? What might drive them to choose one over the other? Let’s start with what they don’t want…

Top 3 reasons landlords become unhappy with their letting agent

1.Poor communication

Landlords often feel that there is a distinct lack of communication after the initial sign up period, leading to feelings of remorse and a sense of betrayal.

“My agent couldn’t have done more. Right up until I signed on the dotted line that is. They might just as well not have been there after that point. I use the term ‘been there’ extremely lightly. I don’t see any evidence of them having done anything to be honest. That’s putting it politely”. ~ Aisha, – Portfolio landlord, London

2.Management Issues

Quarterly inspections and emergency repairs are commonly cited as being some of the most stressful parts of landlord-life. Gas safety assessments… broken appliances… plumbing… electrics… not fun. Hence outsourcing. Many landlords, however, feel that agents fall short where this is concerned.

“I was being called constantly by my tenant, being told that the agent wasn’t’ responding within anything that could remotely be considered a reasonable time frame. I was then having to call the agent myself, which sort of defeats the object. I was using them to save time and hassle. The whole thing was like pulling teeth to be honest. Pulling teeth would actually be preferable. Never again”. ~ Aisha – Portfolio landlord, London

3.Fees

High fees are commonly flagged by landlords as a point of contention when using an agent, along with a lack of transparency surrounding fees.

“I quickly started to question things from an ethical perspective when I first made the transition to using an agency. I played it really safe too. I thought I was anyway.  This was a reputable South London estate agent! I don’t have any recollection of signing anything that said all tenancy fee must be paid by landlord to agent upfront!!! This was a long-term contract so fee really wasn’t to be sniffed at. Their fees were extortionate too (15%). ~ Martin – Landlord, London

What landlords DO want from your agency

We’ve heard what landlords don’t want. So what do they want? Pretty much the opposite of what they don’t. Unsurprisingly. You don’t have to be a rocket scientist to understand that people want to feel like what they are paying for is worth the cost. That is what it comes down to, essentially. Despite the grievances expressed by some, 60 percent of landlords in a latest survey said they were happy with their managing agent *.

1.Convenience and fair charges

2.Trust and reliability

3.Communication and transparency

4.Expertise and local knowledge

Conclusion

Position yourself as a beacon of light in these turbulent times. Landlords are looking for a voice of reason from an agency they can trust. It’s fine to charge more if your service warrants it. What you don’t want to be doing is changing through the roof and underdelivering. Keep everyone in the know. Be transparent. Be active/responsive with your email marketing/social media. Give more than is expected, be the expert you say you are, and business will come to you.

Let us Assist you

Are you an agent or landlord looking to save time and money by outsourcing? Choose Capital Group to ensure a fast, accurate, and award-winning service. Get started today. You can view our full range of high-quality services here and get in touch here.