Beware of Estate Agents Converting into Lettings Agents

The current economic climate has seen many estate agents have now started an opportunistic lettings department to 'cash-in' on those customers who cannot buy. But Estate Agents do not necessarily make good Lettings Agents as this article explains.

It has become clear that due to the economic climate  the housing market has taken a significant downturn.  As a result many estate agents have now started an opportunistic lettings department to 'cash-in' on those customers who cannot buy, due to the scarcity of mortgages, and who therefore choose to rent.

This poses a number of issues to tenants that choose properties with such 'new' letting agents:
• They lack professional experience in the field of lettings so cannot give a thorough and precise answer to your queries as a specialist letting agency can;
• They would have difficulty in ensuring the correct tenancy agreement is used due to a lack of training/education;
• Once a tenancy is in progress, they would have incredible difficulty in managing maintenance due to the lack of a property maintenance co-ordinator, common in lettings agencies, within the team;
• They may not always handle deposits legally and may not even register them with the appropriate regulatory body; and finally
• They would have less focus on managing a good relationship between agent, landlord and tenant due to their skills being more aligned to estate agency and house sales, rather than the long-term relationship that comes with the lettings industry.

On a similar note, landlords must also be cautious due to the greater risks that 'new' lettings agents pose, namely:
• Even if a new agent charges low fees, this is often a gimmick that will not last;
• The low level of knowledge of tenancy agreements may mean that a new agent could sign on your behalf an agreement that is unenforceable under English Law, thereby giving you no rights to possession if necessary; and
• Many new agents do not have property maintenance co-ordinators.  This is a false economy, as properties would simply degrade over time and lose considerable market value.

In conclusion, therefore, I would always advise a prospective landlord or tenant to visit a specialised residential property lettings agency that can cater for your needs but also who understands through experience the importance of a quality service.  Lettings agencies have specific knowledge, training and organisational usp's which should commend them to both Tenants and Landlords ie:
• Extensive knowledge of tenancy laws
• A full lettings team that ensures efficient action if an issue arises
• Protection for landlords relating to property maintenance through our dedicated maintenance co-ordinator, and
• Proactive nature, thereby ensuring all matters are addressed same day.

 

Harpreet Garcha is the Owner of Belvoir Property Lettings Kettering, www.belvoirlettings.com/Kettering  who have a wide range of properties to let in Kettering. He can be contacted on [phone], email [e-mail]