QUESTIONS TO ASK YOUR ONLINE LETTING AGENT

Once you decide to let out your property using an online letting agent the next step is to choose the right one. Different agents offer different services from fully-managed services to referencing tenants and completing all the necessary paperwork.

But not just any agent will do. You need one with experience and a good reputation. You’ll want to prepare the right questions to ask to see if the agent is going to be a good fit.

Need help brainstorming some ideas? Here are the top questions to ask your online letting agent to ensure they’re a good fit.

WHAT’S YOUR RECORD OF SUCCESS?

A good (or bad) reputation goes a long way. One of the first questions to ask your online letting agent is what their record of success is.

How many properties have they managed and how quickly do they find tenants?

Beware of any letting agents that guarantee a specific turnaround time. Even the best online letting agents can’t guarantee they’ll find you a quality tenant in a certain period of time, but ask, on average, how soon they can fill your vacancy. Don’t be afraid to ask for proof and specific statistics.

Any letting agent can rattle off a ton of statistics without proof to back up their claims.

A reputable letting agent will have no problem showing you their portfolio.

In fact, they’ll be happy to boast about their past success. If possible, talk to previous clients and ask what their experience with the specific letting agent or agency is. Word of mouth is a great way to get insight into an agent’s experience and track record.

But remember, just because a letting agent has managed hundreds of properties doesn’t mean they’ve managed them well. Make sure the agent you hire isn’t overloaded or spread too thin or it’ll reflect in their service (or lack of).

Longevity and experience are two key things to look for in a successful letting agent. Find out what they know about the local market and what training and credentials they have. If you’re using an agency, ask if you’ll be working with the same letting agent for the duration of the tenancy agreement.

You want consistent contact with the same agent. That way, they know the tenants, the parameters of the agreement, and your personality. Switching agents mid-stream or flip-flopping from one to another is not only stressful but leads to careless errors and miscommunication.

Also, ask the agent what their plans are for the future. Do they plan to stay with the agency long-term? What are their working hours and do they have an office space? All of these factors impact their availability and your future interactions.

HOW MUCH MONTHLY RENT CAN I CHARGE?

Let’s face it. You’re letting out your property to make money. An important question to ask the letting agent you hire is how much rent your property will bring in. Ask for a valuation of the property’s rental potential.

Once they give you a number, ask them what it’s based on.

Things like location, the size of the property, and the local real estate market all play a role in rental amounts. Reputable letting agents will provide comparisons to other properties in the area similar to yours and what they’re valued at. This helps you see, in black and white, why your property is worth what the agent suggests.

Don’t get defensive if the agent comes back with a figure much lower than you expected. Instead, ask them to show and explain why they’re valuation is so low. Experienced agents have insight about the local market and should have no problem explaining their valuation.

Remember, even a low monthly rent is better than no rent at all. If the agent can’t provide this information, there’s likely a reason and you should probably move on.

WHAT ORGANIZATIONS ARE YOU A PART OF?

You’re not just hiring the letting agent but also the professionals they’re associated with. Be sure to ask the letting agent what organizations they’re a part of and what other professionals they work with.

Find out if the agent is registered with the Association of Letting Agents (ARLA), the National Association of Estate Agents (NAEA), or the Royal Institution of Chartered Surveyors (RICS). Similar to licensed contractors and local officials, the letting agent you choose should be back by one of these professional bodies.

Ask the agent if they have specific contractors, inspectors, and solicitors they work with. While you’re not obligated to use these individuals, having a recommendation can be helpful. Just be sure to check any hidden fees associated with using the agent’s recommendation.

In some cases, they receive a kick-back which is their incentive for referring clients. They might be suggesting certain professionals for their own benefit, not yours.

WHAT SPECIFIC SERVICES DO YOU OFFER?

You need to know what you’re hiring the letting agent for, which is why one of the most important questions to ask your online letting agent is, “What services do you offer?” Most agents offer everything from fully-managed services and property management to individual services like tenant referencing and rent collection. A few common services to inquire about include paperwork, repairs and maintenance, and inventory checks.

Paperwork

Ask the letting agent if their fees include all rent-related paperwork. This includes tenant referencing, credit checks, and drafting tenancy agreements.

Your letting agent should also handle any paperwork in the event of an eviction. They should know the necessary steps to take to perform a legal eviction and what both yours’ and the tenants’ legal rights are.

They would also act as your go to for rental advice, especially in the face of increasing rental reform

Maintenance and Repairs

Ask the letting agent how often they plan to perform maintenance on your property and what it includes. Do they offer both indoor and outdoor upkeep, as well as structural maintenance?

Repairs, especially emergency ones, must be done within 24-hours. Ask the letting agent if they can uphold this standard. As the landlord, it’s your job to maintain a safe living environment. Emergency repairs are a big part of this equation.

Also ask the letting agent if they’ll be available by phone 24/7 in the event of an emergency. If you’re paying for this service, the last thing you want is your phone ringing at midnight! You’re paying a letting agent to handle these headaches for you.

Inventory Checks

Inventory checks are especially important if you plan to let a fully furnished property. Either way, ask the letting agent how they perform the inventory checks and what documentation they provide.

Agents should take photographs and make detailed notes about the contents of the property before any tenants move in. This way, if anything is damaged, lost, or stolen, the letting agent can hold the tenant accountable.

This is usually done by deducting the amount from their deposit, if one was taken. Some landlords prefer to hand over all responsibility to the letting agent while others want to be more involved. Determine how little or much you want the agent to do and what it’s worth.

For some landlords, peace of mind, reduced stress, and less hassle is priceless.

WHAT ARE YOUR FEES?

Speaking of priceless, how much will hiring a letting agent cost? This is another important question to ask. After all, you’re most likely letting out your property to make a profit.

The letting agent fees you pay will cut into that profit. Ask the agent how much they charge for their services and how they’ll be paid. Some letting agents offer guaranteed rent which means they pay you on time every month, regardless of whether or not the tenant pays on time.

Of course, there’s a fee associated with this. Fully-managed services will cost more than individual services, so be sure to consider this when setting the rental amount and budgeting overhead expenses. Some letting agent fees are a fixed rate while others are a percentage of the monthly rent. Ask for specific figures and amounts prior to entering into an agreement.

WHAT’S YOUR METHOD FOR FINDING RELIABLE TENANTS?

Finding reliable tenants is one of the biggest challenges landlords face and one reason so many hire letting agents for help. But where (and how) do agents find responsible, good tenants?

Ask your letting agent this question. What is their method for finding and vetting quality tenants? Ask them to explain the process to you, as well as what they consider must-have qualities of a good tenant.

These usually include good credit scores, proof of income, and positive reviews from prior landlords. Ask the letting agent if they call previous landlords and what background checks they perform. You also want a letting agent with connections and resources for finding quality tenants. One way to find them is by actively advertising your property. Ask the letting agent how they plan to attract new and interested candidates.

Marketing should be a huge part of your letting agent’s plan!

Ask them how and where they plan to list the property and handle showings. Ask to see photographs of your property and listings once they’re available online.

You can also ask if they have a tenant database and if so, how many people are included on the list. Ask the letting agent how they field inquiries as well.

You may also want to ask what their office hours are. A lot of people work 9-5 jobs Monday through Friday. Letting agents with weekend hours are more likely to attract more tenants.

The same is true for online agents that also have office space. This increases visibility and foot traffic. Lastly, ask which realtor platforms your property will be listed on. The most popular sites include Zoopla and Rightmove.

HOW DO YOU HANDLE LATE PAYMENTS AND EVICTIONS?

If the letting agent you hire will be with you for the long haul and plans to perform rent collection, ask them how they’ll handle late payments. Ask if they offer guaranteed rent.

These tasks are also part of a fully-managed property agreement where the letting agent will perform routine maintenance and repairs, inventory checks, and in the event of non-payment, file for an eviction.

Your letting agent acts as a buffer between you and your tenants, helping sustain a positive relationship. Be sure that the agent’s approach, personality, and demeanor are appropriate since they’re the ones interacting with the tenants directly.

WHAT MONEY PROTECTION SCHEMES DO YOU USE?

A law passed in April of 2019 requires that all letting agents and landlords protect the tenants’ deposit in a government-approved client money protection scheme (CMP). This must be done within 30 days of receiving the money.

In order to stay compliant, ask the letting agent what types of schemes they use and the details of the process. At the end of the day, anything that doesn’t comply with the government guidelines will fall on your shoulders. Make sure the letting agent is handling things by the book.

The government website has a list of approved CMP schemes for the letting agent to reference, but they should know this already! Not only must the deposit be protected in an approved CMP but it also must be displayed on their website and in their office.

Ask the letting agent how and where they hold yours’ and the tenants’ money. Another new rule indicates that letting agents must deposit all money in an FCA-authorized bank where it’s protected by professional indemnity insurance.

THE MORE YOU KNOW, THE BETTER

They say, in life, there are no silly questions. Knowing the right questions to ask your online letting agent helps clear the air before entering into an agreement or signing any long-term contracts.

It also guarantees that you remain compliant and that your property and money is being managed legally.

Get all the information upfront so you can make an educated, researched decision about who you’re trusting your property and money with.