A research report claims letting agents could be missing out on thousands of pounds of potential income each year by not providing full property management to landlords.
The report is from outsourced supplier ARPM which says that many agents in London typically offer let-only, but to their detriment - agents could increase their average annual income per tenancy by up to 80 per cent if they offered a full service.
The report says:
- the ban charging tenant fees will result in £400 less income on average per new let for London agents;
- longer tenancies mean there are fewer opportunities to earn income from let-only and tenant find services;
- let-only does not contribute to a business’s capital valuation;
- focussing on full property management can increase average annual income per tenancy by up to 63 per cent in the capital and business valuation by 600 per cent;
- there is an untapped market of almost one million landlords who only use letting agents for tenant find services or do not use agents at all;
- private renting is now the most prevalent form of tenure in London and 36 per cent of landlords who invest in London buy-to-let property live outside of the capital.
Lettings expert and founder of propertychecklists.co.uk, Kate Faulkner, writes in the report: “The property market is changing, and while many letting agents may conclude that it’s not a great time for their business, I believe the opposite is true. What this report highlights is the great opportunity available in property management which can improve financials for agents, protect landlords and raise property standards for tenants.
“Those who focus more on let-only could be missing out not only on the chance to grow their business but helping to deliver legally and safely let properties from landlords who lack the time and knowledge to do this themselves.”
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Becareful and only deal on Tenant Find basis, max fee £200. Or better still find you own tenant, keep to the simple process and cost should be around £100 to max £150.
I think you may be on the wrong publication Steve, your comment is about as appropriate as advising a butcher to only sell vegan produce. Actually statistics show that landlords who rent privately or manage their own properties get less rent, experience more voids and suffer more problems with tenants than those who use a professional agent. Classic case of pound foolish penny wise
Simon I beg to differ, for each of my properties the LA suggested £100 on average below what I am receiving. Sometimes I think they just go low to quickly fill the house grab commission and move on
Been doing it this way for over 35 years and works.
Find a lot of LAs can be Flash know it all but actually dont know a lot.
To carry on with this . I get higher rents than LA sugesst and dont have voids. Haven't had to evict in past 10 years.
Be careful out there with some LAs now trying to rip Professional LLs off now they cant rip off the tenants.
Mr Shinerock are you a LA?
I am a LA, fully licensed with ARLA. I can agree that its fine for the LL to cut out the LA .... but that they should at least comply with lettings legislation. Some may well do so, but as the legislation changes every few months it is VERY hard to remain compliant unless you are a professional. There are several local private landlords who are knowingly breaking all sorts of lettings legislation and doubtless many more who do so without knowing. In my opinion nobody should be allowed to operate in the PRS unless they are licensed or use a licensed LA.
The only way to level the playing field is for ALL LL to be licensed.
There are too many LL getting away with not observing regulatory requirements which is manifestly UNFAIR competition for LL who are diligent and do comply or try to comply with all legal letting requirements.
For far too long good LL have been letting bad LL get away with it.
There also needs to be licensing and qualifications etc for LA.
Currently it is possible to walk out of Prison and set up as a LA the following day!
This brings the whole LA sector into disrepute.
There needs to be far fewer LA but they should be qualified and trained to do the job for much larger property portfolios.
LA need to have a large number of properties under management if they are to provide a viable service.
It is unreasonable to expect LA to do this without sufficient income to provide a viable service and an income for LA employees etc
An effective and all encompassing LL licensing scheme would force many LL to become compliant and would see some leave the sector.
This would ensure that tenants receive the effective service they deserve.
Tenants deserve a professional service.
With licensed LL LA would have far fewer problems with their LL clients.
LL are getting away with things which ultimately causes Govt to dump on good LL.
I would be perfectly happy to grass up all bad LL I know of.
Trouble is it is very hard to find rogue LL.
I only know about 2 LL in 10 years.
It is just too easy to be a rogue LL which is why I believe licencing will at least be a start to making LL compliant with regulations.
Still dont agree, a Professional LL will be ahead of legislation Always keeping a professional eye on Rules Regs Legislation etc etc etc. Most of the time being more selective with their tenants. Always carry out Free Check In, Free Check Out.Free dated Photo Inventory, 2 or 3 Monthly Free Inspections. No Charge in other words free Tenancy renewal. No rent increase unless Maintenance up, bank rate up, service charge up. Respond immediatly within the hour to tenant issues.
Keep it professional keep in simple. No arrears. No voids. Most of business colleagues operate the same.
Watch out for Flash 4x4 Flash socks Letting Agents who charge more than £200 for tenant find only. Simples.
I think the LL which will benefit most are the middle of the road types who do not keep up with regulations and law changes. 50% don't know about the tenant fee ban, 50% don't know about HMO licensing. A compliant agent will ensure they don't get penalised! And yes they will have to pay a bit more! It's life.
I know of umpteen landlords who have yet to register with the ICO concerning the DPA, and will probably get away with it as the ICO will take years to track down most of them, if there's the will to do so. No, thought not!
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