Is it time to consider switching letting agents? As a landlord, your rental property likely stands as one of your most significant financial assets. Thus, ensuring it’s effectively let and managed is paramount.
If your current letting agent isn’t meeting your expectations and you’re contemplating a change but unsure where to begin, this comprehensive guide provides all the necessary insights to facilitate a smooth transition.
- What you need
As a landlord, entrusting a letting agent involves a significant level of reliance, especially if you’ve opted for a ‘fully managed’ service where the agent oversees both the tenant and property throughout the tenancy on your behalf.
You depend on your letting agent to:
- Secure a ‘good’ tenant who can consistently pay the rent on time and maintain your property.
- Ensure compliance with all relevant legislation regarding both the tenancy and the property.
- Maintain effective communication with you, keeping you informed of any legal changes impacting your interests.
- Handle inspections, maintenance, and repairs promptly and economically.
- Manage any tenancy transitions to minimize vacancy periods and sustain fair market rental rates.
- Provide guidance on potential rent increases and advise on worthwhile property upgrades or modifications.
Your rental property stands as one of your most significant financial assets, emphasizing the importance of effective letting and management. Your agent’s primary role should involve ensuring consistent rental income, covering your expenses, and ideally generating a profit. Additionally, they should maintain the property’s condition, providing a safe and comfortable home for tenants while safeguarding its capital value.
If your agent is falling short of these expectations, you might be considering a switch. But how can you navigate this transition smoothly? Here’s a helpful guide:
- Review Your Agreement Terms:
- If your agent is solely responsible for finding tenants, giving notice should be straightforward. However, with fully managed services, there might be an initial tie-in period, delaying an immediate switch. Unless there’s a breach of obligations (see point 3!), the agreement will outline termination procedures for both parties and the required notice period.
- Note: Many agreements stipulate continued fee payment to the agent as long as their introduced tenant occupies the property. Discuss this with your new agent to avoid overlapping management fees.
- Secure a New Agent Before Giving Notice:
- Unlike changing estate agents for property sales, timing is crucial when switching letting agents, especially if your property is currently tenanted. Ensuring continuous and proper management of your property is paramount.
- Successfully managing a tenancy involves numerous systems, processes, and legal knowledge. Having a new agent lined up before giving notice ensures a seamless handover, minimizing the risk of overlooked tasks.
- Key Considerations When Selecting a New Agent
- Do they possess Client Money Protection insurance? (Legally required)
- Are they members of a redress scheme? (Legally required)
- Do they belong to a professional industry body with a Code of Conduct? (e.g., Propertymark or Safeagent)
- How do they stay informed about legal changes in the industry?
- What are their fees, particularly for tenancy renewals?
- Do they have a track record of successfully letting and managing properties similar to yours?
- Do they have an appealing website and effective marketing strategies?
- What is their average time to let a property and average annual void period?
- If possible, seek feedback from one or two of their current landlords.
These considerations provide valuable insight into the professionalism of the company and their capability to manage your property and tenants effectively. However, the ultimate point on your checklist is whether you feel a rapport with them. Since these are the individuals you and your tenants will interact with for the foreseeable future, possibly for years, liking their approach is crucial.
Once you’ve identified the agent you wish to transition to, it’s time to notify your current agent.
- Communicate Your Reasons to Your Agent:
- Open and amicable discussions often lead to the best resolutions. Clearly articulate your reasons for wanting to switch to your agent. Consider making a list of these reasons before initiating the conversation.
- If your agent acknowledges the issues, they might be willing to negotiate regarding any contractual tie-ins, especially if their tenant remains in the property. For instance, you could propose a one-time ‘introduction’ fee instead of continuing monthly payments until the tenant vacates.
Importantly, ensure the old agent agrees to transfer the tenancy file to your new agent. This file should include tenant referencing information, deposit protection details, and gas check certificates. Also, confirm that they will liaise with the tenant to facilitate a seamless handover of rent payments and other responsibilities.
Ensure that any agreements reached with your agent are formally documented.
It’s crucial to note that every letting agent must be a member of either The Property Ombudsman or The Property Redress Scheme, as mandated by law. Both provide independent third-party dispute resolution services. If you’ve already discussed your reasons for leaving with your agent and have documented them, but the issues remain unresolved to your satisfaction, you can escalate the matter to the relevant redress scheme to seek resolution.
- The Final Step
Engage Your New Agent
The last crucial step is to engage your new agent. Be transparent about why you’re choosing to switch to them and clearly outline your expectations for their service. From our experience, a successful landlord-agent relationship hinges on effective communication. It’s vital to establish this from the outset.
If you’re considering transitioning from your current agent, we’re eager to assist you. We can explore the range of services we offer and help you discover the ideal letting and management solution aligned with your goals as a landlord. Reach out to us today at 01706 356633 or enquiries@reside.agency, and we’ll gladly arrange a discreet and confidential conversation.
