Ask a Letting Agent anything
Discussion
Countdown said:
What mark-up did you make on arranging repairs for the LL?
its was at 0% to landlords. We did make a charge to contractors of 11%+vat but that was off their fees as we were giving bulk work to them and saved them advertising/getting work in and no defaults. We made sure the costs did not rise to landlords and secured better rates for our landlords then they would get indivuidually.
dingg said:
Can you describe the worst state of a property after a troublesome tenancy has came to an end?
How much it cost the landlord to put right in terms of repair?
Finally how much rent was owed to the landlord at eviction point?
Very very few in 25 years. (for reasons)How much it cost the landlord to put right in terms of repair?
Finally how much rent was owed to the landlord at eviction point?
Properties abandoned ; Perhaps about 3 None of these were trashed, just old clothes, unclean, some furniture. generally sad stories behind these.
Problem tenants - again very few. Most tenants are not problems and issues with properties we are mostly able to resolve. Where they were just a pain there were other reasons ie they wanted to leave early. To which we could assist thus they worked with us in the end to get a good solution.
Repairs - yes from time to time there would be dilapidations but never had a property "trashed" or damaged deliberately. if it were damages then we would generally get most from the ex tenant from the deposit. Some may argue but the check ins are good and little room to argue.
Some time it would get split 50/50 with the LL and T
rare to be more then the deposit claimed but has been and tenants paid up without being taken to court. Again good check in/check out process leaves little room to wiggle off.
Evictions as in goes to court for possession about 3 in total - again very very few for various reasons. largest arrears was about £4000 (approx. 4mths) and property needs to be cleaned/some rubbish removed. About £600
Funds were recovered from a Gtor but it did go to court.
Some others they disappear just before bailiffs arrive.
Most times when tenants leave no issues save for minor cleaning. We try to manage the LL expectations and tenants expectations. ie a property will need full redecorating each 5-6 years new carpets life span about 10-15yrs. thus adjust claims/works to take that into account.
The key was not to get risky tenants which we were very good at. We were very selective. We wanted happy tenants, happy LL and successful lets.
we had about 8 tenants die
2 x murdered
2x now renting with HMP services.
and all the other normal life dramas.
Edited by superlightr on Thursday 16th March 15:13
Edited by superlightr on Thursday 16th March 15:14
Edited by superlightr on Thursday 16th March 15:14
Edited by superlightr on Thursday 16th March 15:17
Edited by superlightr on Thursday 16th March 15:18
Edited by superlightr on Thursday 16th March 15:19
Countdown said:
superlightr said:
Countdown said:
What mark-up did you make on arranging repairs for the LL?
its was at 0% to landlords. We did make a charge to contractors of 11%+vat but that was off their fees as we were giving bulk work to them and saved them advertising/getting work in and no defaults. We made sure the costs did not rise to landlords and secured better rates for our landlords then they would get indivuidually.
Bluequay said:
How many times have you said the phrase "Per Calender Month" and does it grate on you as much as it does on me!!
I dont deal directly with tenants very often over the last 10 years. you do end up emailing the same things to the same questions to both LL and T so we had standard letters to send out - ie T forget to increase rent after a rent increase etc. Standard letters/procedures are key.
the aim was to make it as efficient a business as possible. To be helpful to a point.
The issue was the more you helped/bent over to help it would come back to bite you so we stuck to what was agreed and informed others what to expect and what is required. Little deviation or room to argue then.
MonkeyBusiness said:
Bluequay said:
How many times have you said the phrase "Per Calender Month" and does it grate on you as much as it does on me!!
How many times have you discovered the property has been sub-let? (as happened with my father).
menousername said:
Bluequay said:
How many times have you said the phrase "Per Calender Month" and does it grate on you as much as it does on me!!
HahaAnd did you ever get asked to do a valuation on Homes Under the Hammer
And if so did you write anything on your clipboard or just wing it
Chipstick said:
In addition to the usual vibrating dressing table trinkets - What sort of odd item(s) have been on view within a property that you’ve shown people around that may have raised an eyebrow?
just the normal underwear etc but we are very careful if staff are showing a property whist someone is still living there as we dont want anything to go missing or get damaged. The main concern is if they have a pet and then not to let the pet out/escape etc ie cator to leave it as we find it ie single locked/curtains closed etc. We dont touch anything about from the door and open curtains.
from time to time you will get a semi naked person answer a door if they forget an appointment has been booked.
NextSlidePlease said:
Is rightmove the only realistic way of letting? I am in the process of setting up as a letting agent (following a decade plus of being a landlord) but my god the fees!. Can you get by at least initially on various social medias and own website and tenant shortlists rather thave having to hand over 4 figures a month to RM?
We are getting out now at the top/peek of the market for letting agents - its going to go downhill quickly for smaller agents as the big boys are buying up and the hoops to jump through are getting ever more for the letting agent. I think it will be ok for the landlord but at the end of the day we know we will struggle in a few years to compete with the larger firms, our income will decline and our sale vale will drop. It wont be viable from our pov. bear in mind this is our pension. So we took the decision to cash in now before the really serious changes impact smaller agents and landlords and before our value declines.If you are starting organically ie you are not buying up a portfolio or another agency then good luck. its very hard to break in to make money now. the costs are very high at all levels, the competitors will be fierce, they will have better tech. Yes you can undercut, yes you can be more nimble and offer a more personal care for your landlords but to actually grow it and make money you then get into the stage of you will need staff and then thats where the issues start. You also have to know what you are doing in so many technical areas. Training and compliance for yourself and staff are vital. Its so easy to screw up the paperwork. Most DIY landlords dont know half of what they have to do and end up screwing up. It may not come to light and they think they are good at it but when they get bitten they get bitten hard with multi thousand pound fines. Get ARLA trained to level 4 which you will need to be shortly by law as an owner of a LA. (I think its level 4 or perhaps 3) This will help you to understand the issues.
Wife and I did well on compliance as we both have law degrees and worked as solicitors - compliance is where the hard work is - letting properties is easy. Proving compliance is also a major part now if and when you get inspected or challenged by trading standards. Proof, compliance and vigoursly following procedures.
Where you can beat the big boys and where we did is on the tenant selection and not having issues with tenants from the very get go. We were very selective.
Bear in mind;
the govt hate you, the public hate you, the banks hate you, the governing bodies hate you and trading standards hate you. You are public enemy number one. Before you go any further check out that you can actually open a client bank account. many banks will not do so for new business.
I honestly would struggle to recommend you going into at this time without full training and having worked in the industry for years. looking after 4 properties is nothing like running a letting business.
Louis Balfour said:
superlightr said:
Having just sold up a multi (2) branch Letting Business and been working as a letting agent for the last 25 yrs - Im happy to give any low downs, ins and outs or questions relating lettings, landlords/tenants. (We didnt do any sales)
How much did you sell the business for (if you don't mind disclosing such info) and how did you calculate its value?Edited by superlightr on Thursday 16th March 16:41
Edited by Louis Balfour on Thursday 16th March 20:21
We also had a high profit ratio for the industry of close to 45% but we were very efficient and charged high fees. our market is SE but not London and clients not generally BTL investors but well off LL who wanted straight forward, reliable agent who could sort out the issues and successful do the job.
Sold for just under £900k ish.
Edited by superlightr on Thursday 16th March 22:14
Edited by superlightr on Thursday 16th March 22:14
Nickbrapp said:
Why are so many houses “stunning”
Why do landlords think it’s ok to not allow pets?
As letting agents not estate agents we were much more down to earth and realistic about properties/descriptions etc. We did have some stunning properties over the years worth a 1-2 million we let out but most were normal houses/flats. We were rural location so again some properties were attractive and interesting which is what i enjoyed and had property envy a few times for sure !Why do landlords think it’s ok to not allow pets?
We would not take in properties if they were bad - its a waste of everyone's time.
Equally we would bin some LL if their expectations were not realistic and we could not work with them. Its very much building up trust and getting the LL to trust us to get the best price and manage the property in the best way. We had many LL with us for 20+years.
One of our challenges was always to educate LL that the rent should go up each year - LL would say but they are nice tenants, keep the rent low to help them etc but that was not the right way. We ran educational letters abut why to increase the rent each year and why it was best for the LL and also the T in the long run.
Pets
tricky as "technically" a LL must consider allowing unless there is a reasonable reason not to. Many LL are reluctant for Pets (we would general refuse tenants with reptiles based upon a number of bad experiences). Cats/Dogs ok depending on numbers and how they are kept. we would try and educate the LL to allow pets as it would open the property to a wider market, we could charge a higher rent and simple maths to show they would get more rent which would cover any realistic risk was worth it business wise. We/I would always recommend to allow a pet 1 or 2 unless flats etc where they would be excluded under the head lease. 8/10 the LL would follow our advice and it would work out well. pets are not a problem.
Its getting the right tenants that the hard part which we excelled at. thus low rent arrears and few issues with tenants. = happy landlords and high fees.
lizardbrain said:
Louis Balfour said:
If there has been no agreement to a pet the landlord can either seek to secure their financial position, or serve notice. The Tenant Fees Act (2019) limits the deposit, so they can really only insist on a guarantor if you've already paid the maximum deposit.
But what typically happens. Is eviction the most common response? (Assuming no damage) What if the tenant refuses extra deposit? Edited by lizardbrain on Friday 17th March 08:42
Disco You said:
I'd be fascinated to know how you managed to spin it that an annual rise in rent is good for the tenant.
We found that if a landlord does not increase the rent for a few years then it gets so out of touch with market rent when they do have to increase it the tenant then cannot afford it or feels aggrieved. Equally if a tenant is suddenly presented with a large increase pcm its such a shock and creates bad feelings.We all want tenants to be happy and to stay long term the rents on renewals are pegged below market rent at each renewal and we explain this to the tenant and LL so both sides get a fair deal. If empty then yes it will be at max market rent and then let and then renewal pegged below and so on. It works much better that way for all.
elanfan said:
Daughter is in a houseshare. It’s been dreadful from the off. Black mould, water running down walls, treated by landlord/letting agent though mould blamed on them. Walls are damp skirtings rotten. She literally has slugs coming into her room. Numerous contractors turning up with no notice. Noise whilst daughter works from home. Thankfully only 3 months left on tennacy.
Latest is the letting agent texted her (not any of the other 4 housemates) Weds evening saying scaffolders would arrive Friday morning to cover entire house ready for contractors to remove all the render off the house to try to cure the damp issues. Talk about having quiet enjoyment of the property?
Council already involved over previous issues, daughter has copied council into email telling letting agent no. Let’s see if he listens I expect not.
Sounds terrible.Latest is the letting agent texted her (not any of the other 4 housemates) Weds evening saying scaffolders would arrive Friday morning to cover entire house ready for contractors to remove all the render off the house to try to cure the damp issues. Talk about having quiet enjoyment of the property?
Council already involved over previous issues, daughter has copied council into email telling letting agent no. Let’s see if he listens I expect not.
if the LL are trying to fix the issue then giving 24hr notice of scaffolding/external works is reasonable. It would be unreasonable for the T to refuse as its maintenance/urgent i would think. Best bet is to get the council involved and seek rent reduction for the disturbance.
croyde said:
You say that the LL should raise the rent every year.
Why?
My wages have not gone up in years. I have stayed a while in properties where the LL has treated me well and I have looked after the property.
Anyone raising rent after only a year and I'm off.
Its a balancing act - as mentioned after your reply the reasons why gentle increases we feel are best for both sides. Why?
My wages have not gone up in years. I have stayed a while in properties where the LL has treated me well and I have looked after the property.
Anyone raising rent after only a year and I'm off.
Gazzas86 said:
When work needs doing on a property that is managed by you, and you are asked by the LL to go and get quotes, do you get 'backhanders' for choosing a certain contractor?, does he give you a Christmas hamper each year, a cut of the costs, discounted work on you're own properties etc. There must be some sort of arrangement
Nope - no backhanders. no brown envelopes with cash. We wouldn't take them in any event as we want a professional business relationship with the contractors. They all sign terms and conditions and are checked out for regulations. Everything is black and white and clear. I want to beable to take them to court if they screw up big time and put us into trouble.We will bin contractors if they dont stick to their side of the contract or dont work well or we think start to over charge. We will often get 2 quotes for most works except small jobs. Yes we may get some chocolates from them at xmas but we do as well from LL and T.
Edited by superlightr on Friday 17th March 11:44
lizardbrain said:
Google thinks 50% of the population have pets. (62% according to one recent survey)
6% of rentals permit pets. Even allowing for ownership type the numbers suggest it’s rife!
OP I'm still curious to know what the most common response is to a pet discovery? It must happen all the time?
we generally allow pets and are able to get the LL consent to pets right away - so its not been an issue. 6% of rentals permit pets. Even allowing for ownership type the numbers suggest it’s rife!
OP I'm still curious to know what the most common response is to a pet discovery? It must happen all the time?
Edited by lizardbrain on Friday 17th March 10:29
Reptiles are though as we have had no end of issue with them/those owners which is tarring with one brush so will refuse reptiles most times - sorry Lizardbrain.
Howard- said:
superlightr said:
we generally allow pets and are able to get the LL consent to pets right away - so its not been an issue.
Reptiles are though as we have had no end of issue with them/those owners which is tarring with one brush so will refuse reptiles most times - sorry Lizardbrain.
What's up with reptiles, out of interest? Don't they just live in an enclosed vivarium usually?Reptiles are though as we have had no end of issue with them/those owners which is tarring with one brush so will refuse reptiles most times - sorry Lizardbrain.
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