Should you choose an online or high street agent?

Some people adopt an old-school way of thinking and believe that high street agents such as Savills are the only way to go. While these letting agents bring their own set of benefits to the table, you shouldn’t overlook or discredit online letting agents just yet. 

Some of the biggest complaints about online letting agents come from their direct competitors – high street agents. These tedious and sometimes unfounded arguments are just proof that some traditional agents are concerned about losing their business to less expensive, more tech-savvy online agents.

If you prefer working with your letting agent face-to-face, hiring a high street agent might be best.

But if you’re looking to save money and don’t mind doing some of the legwork yourself, you could benefit financially from using an online agent. It’s even been said that online and high street agents conduct business so differently, that it’s not really fair to compare them. However, here are some of the most notable differences:

High Street Agents

• Have a local storefront or office
• Conduct viewings and open houses in-person
• Provide a sale board for the property
• Meet with you in-person
• Have a direct pulse on the local community and market
• Charge more for their extensive services

Online Letting Agents

• Offer all of their services online
• Don’t conduct viewings or host in-person meetings
• Advertise your property on prominent online property portals
• Communicate via email, phone, or chat
• Charges less for their services

As you can see, choosing an online agent vs a high street agent is all about preference. If you’ve heard nothing but bad things about online agents, chances are, those rumors are being spread by high street agents desperate to salvage their clients.

There are several things (besides just price) that set high-street letting agents and online letting agents apart. Neither is better or worse than the other – they’re simply different and offer different services based on your location, needs, and budget.

Here are the main areas where you’ll see the biggest differences.

Cost

If you’re looking to let out a property, you’re probably interested in making money. That’s why the cost of letting agent services usually tops the list of importance. The old adage, “you get what you pay for” does apply here – sort of. Simply put, high-street agents charge more because they do more and have more overhead, while online letting agents offer fewer in-person services and, therefore, charge less. 

Finding and Referencing Tenants

The most popular and, arguably, the most important service both online and high street letting agents offer is finding tenants. Whether you’re new to property management or have been a landlord before, you know all too well that finding reliable, trustworthy tenants can be difficult.

Both online and high street agents will post your listing on property portals like RightMove and Zoopla. Most high street agents will handle any inquiries that come in by answering questions and communicating with the potential tenant, whereas online letting agents leave this to you. They’ll advertise your property and generate interest but landing a deal is up to you.

The same can be said for referencing or vetting tenants. Online agents don’t offer these services, whereas most high street agents do. Taking the first offer that comes your way isn’t a smart idea without performing some important research first. You need to confirm that the tenant is financially secure and has enough steady income to support the monthly rental payment. A high street agent will help with checking the applicant’s financial regards and speaking with previous landlords to see what type of tenant they were. Most online agents don’t offer reference checks. 

Rent Collection 

Both online and high street letting agents offer rent collection as part of their services but may go about it differently. Agents can set up a direct deposit into your account (minus their fee) or high street agents may choose to collect the rent in person. This allows them to do a visual check on the property periodically to make sure things are in order and there’s no damage.

In addition to collecting rent, both types of agents handle late payments and evictions. Keep in mind, though, that an online agent can only do so much in terms of handling unreliable tenants since they lack a local presence. 

Fully-Managed Services

One many difference between online letting agents and high street agents is that the latter offers fully managed services. This means the agent handles every aspect of the tenancy agreement from start to finish.

They list and advertise your property, conduct viewings, find and vet tenants, handle inquiries, draw up the tenancy agreement, collect rent, perform an inventory (if the property is furnished), handle any necessary repairs or maintenance, and serve eviction notices when necessary.

Fully-managed services are for accidental landlords or those who simply want to collect payment without getting their hands dirty. Online letting agents don’t offer these extensive, thorough services.

Even with fully-managed services, landlords are legally responsible for the property, which is why you need to hire a reputable agent you can trust.

Local Knowledge and Presence

Most high street agents have an office or storefront in the community. This allows for increased foot traffic and interest in your property. It also gives high street agents a pulse on the local community and market. 

Online agents, on the other hand, work on a more national level. That means they have access to a larger audience of potential tenants but they may lack in-depth, local knowledge and details about a specific area. It’s important to note, though, that most properties are found online through property portals like Zoopla and Rightmove, which don’t require local knowledge or a storefront. 

Communication

We live in a highly digital world where most people communicate via text, phone, or email. This is common practice for both high street and online letting agents. If you prefer to shake hands and see your letting agent face-to-face, you’ll want to hire a high street agent with an office. Remember, though, that high street agents will hold normal business hours where online agents may be available 24/7 through their website’s chat feature or email. 

Using both type of agents

Can’t choose between an online letting agent or a high-street agent? You don’t have to! This isn’t a “one or the other” type situation. If both types of agents fit your needs and budget, you can hire them for individual services. 

Here are a few ways to take this approach.

Set a budget for online letting agent fees. Let’s say, £50. With that money and a little time, see if you can land a tenant. At the same time, let a high-street agent search for tenants at another minimal fee. Then, just sit back, relax, and wait to see who comes out on top. 

One bonus about letting a high-street agent search for tenants is that you don’t have to pay them unless you sign an agreement with the tenant they find. If the high-street agent does come out victorious, you may lose the £50 you spent on the online agent, but that’s a small price to pay if you’re now collecting steady rent for several months or even years. 

 You can also start with an online agent while taking on the role of hands-on landlord yourself. If this becomes too overwhelming, time-consuming, or stressful, you can choose to hire a high-street agent later on to manage the property.