There are many reasons for landlords to work with a reputable letting agent, and it may come as a surprise to learn that it could even save them money!
There are now over 140 Government statutes and regulations that relate to letting out a property. The fines for non-compliance are already significant, but come 2017 with the implementation of the Housing and Planning Act, local authorities will be able to fine non-compliant landlords up to £30K!
Accredited lettings agency like Northwood, who has a whole department dedicated to keep our 85 plus offices up-to-date with the latest legislation and ever-changing regulatory landscape can ensure that our landlords stay on the right side of the law.
A letting agent also save landlords money because we help them avoid the dreaded void, and re-let a property more quickly than if the landlord was trying to do it on their own.
One way to minimise voids can be through assisting with maintenance of a rental property, meaning that the tenant stays longer and that issues are dealt with quickly and for less expense than if they are allowed to deteriorate or worsen.
As our M.D. Eric Walker explains in the below video, working with a reputable agent reduces risk and this in turn can reduce costs as “prevention” is always less expensive than “cure” when it comes to property investment:
A survey undertaken with 500 landlords suggests that there are widespread misconceptions among landlords about the value for money offered by letting agents.
It is interesting to note that the research by insurance firm Endsleigh suggests that a letting agent can typically save a landlord an estimated £1,910 a year!.
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% 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 also suggests that relationships between letting agents and landlords are not solely about financial benefits.
Of those landlords who use an agent, 50% were most attracted because of their local knowledge, and more than two in five claim that excellent service is a deciding factor.
Some 41% feel the main benefit of working with an agent is that it provides peace of mind, and 25% say they communicate with their letting agent on a weekly basis.
At Northwood, the issue of landlord “peace of mind” is ultimately addressed by our market-leading Guaranteed Rent service. Quite simply, it gives total peace of mind, as the rent is paid on time, every time, whether the property is void, or the tenant stops paying the rent.
There is further peace of mind from the fact that Northwood is a founding member of SAFEagent, which highlights agents who have client money protection in place, and all of our offices voluntarily commit to professional standards by becoming members of such professional bodies as ARLA or NALS.
We offer a number of different levels of service to suit all landlords, and our offices are more than happy to talk prospective landlords through them, to find out which level of service if right for you. We aim to build long term relationships with all our landlords and support them through the entire landlord lifecycle.
Find out more about the different levels of service we offer >>> here.