What to expect from your managing agent

What to expect from your managing agent

The National Landlords Association describes letting agents as "a valuable resource" and says the "purpose of a letting agent is to alleviate stress for the landlord and to ensure that their property remains a savvy and profitable investment." Which sounds ideal in theory. However, as anyone who has experience of letting agents as a landlord knows, not all provide the same level of value and service. If you're looking for support with your rental property, what should you expect from your managing agent and what is a fair price to pay for their services?

The issue of cost

As a landlord you've most likely entered into the rental market as an investment. So, naturally, you're looking to see the best possible return on renting your property out to tenants. Part of getting the best return is not losing a large chunk of income in letting agent fees. Different agents charge different percentages when it comes to what you pay - the market average tends to be somewhere between 12% and 17%, which can take a significant bite out of what you're earning. However, there are letting agents in Hackney (and further afield) charging less. For example, at Storeys we charge just 10%. We're able to do this because our business is structured for efficiency and we're committed to doing this because we believe in delivering genuine value to the clients we work with. You'll get the same (if not a superior) service but pay less. So, if you're not happy with your current managing agent fees there are other options.

Managing agent service - what can you expect?

Given that at least a tenth of what you earn is going to a managing agent, is it really worth it? We think so - as long as you're getting some, or all, of the following as part of the service:

• Fielding contact with tenants, as well as queries and requests, so you don't have to
• Dealing with any issues that arise with the property, from maintenance to repairs
• Ensuring you're a compliant landlord e.g. carrying out the annual requirement for a gas safety inspection
• Chasing rent arrears and making sure that tenants don't fall behind
• Handling tenancy renewals and dealing with the process of annual rent increases
• Maintaining a positive relationship with tenants to help avoid frequent tenant changes
• Carrying out regular inspections to check on the condition of the property and keep it in a good state of repair
• Being proactive in between tenancies - it's vital to have an agent who understands the need to use the time in between tenancies for maintaining the property, taking steps to help achieve optimum rental (e.g. painting and decorating) and working to help find new tenants, fast

Customer service is also an essential part of the managing agent and landlord relationship and this is often where agents fall down. At Storeys, our customer service looks a little like this:

• Responsive communication
• Personalised service - we get to know our landlords and you'll deal with the same team every time
• Strong local knowledge
• Great contacts and access to expert local tradespeople
• A smart approach to admin and paperwork to reduce the burden on you
• Expert market knowledge and a proactive approach to compliance
• A desire to build long-term relationships with satisfied landlords

Managing agents vary across the sector, from the fees charged to the level of service provided. It's always crucial to set your expectations out clearly at the start to ensure a positive and profitable ongoing relationship. We are letting agents in Hackney - if you'd like to talk about switching to our service, get in touch.