I remember over-hearing a conversation between 2 English couples a few years ago – it was in a restaurant on holiday and they were talking about their rental properties back in the UK. It went something like this: “We’ve had tenants for years and had no problems; we use an agent but they don’t seem to do anything. I think when we get back home we’ll tell them to sling it and manage our properties ourselves – and our advice to you (talking to the other couple) would be to not bother with an agent. Honestly, it’s money for old rope…”
I resisted interrupting! But I did jot down some notes at the time. The chap had, in almost the same sentence, just championed the reasons FOR using an agent, but he and his wife didn’t even realise. So I now call it the ‘money for old rope paradox’…
“And had no problems…”
There are 3 reasons why a residential landlord will have no problems with their tenancies:
- Their rental property is vacant!
- They have a tenant who is compliant, agreeable and tolerant of issues (eg maintenance problems).
- They have have an agent who ensures that problems are resolved proactively and who avoid potential pitfalls, eg legal issues and disputes etc
The reason why our couple in the restaurant had no problems, after many years of tenants, is almost certainly because they were using an agent!
If the agent appears to be doing nothing, and the landlord has had no problems, then perhaps the agent actually did this:
- Advertised for professional tenants on the national portals (Zoopla, Rightmove, OnTheMarket)
- Investigated comprehensive financial references for the tenant to reduce the chance of arrears later
- Complied with the UK Home Office requirements and ensured/checked the tenants have a right to rent in the UK
- Supplied all the prescribed information and documents meaning future notices for possession would be valid.
- The agent took the time to assess the specific needs of the property and emphasised specific conditions in the tenancy agreement in order to enhance understanding and avoid disputes – eg, clauses to care for a wooden kitchen worktop or wooden floors etc
- Conducted a check-in at the property and showed the tenant around the home and ensured the tenant understands specific features
- Undertook a detailed, fully referenced and updated inventory and schedule of condition which was agreed at tenancy commencement in accordance with the advice provided by the Deposit Protection Services’ guidelines.
- Provided the tenants with a comprehensive online reporting system to allow maintenance issues to be routed promptly and quickly to an appropriate trades-person
- Maintained ongoing and good relationships with local tradespeople, building trust, goodwill and a technical understanding to ensure maintenance issues are resolved correctly
- Maintained a full audit trail of all activity so that the tenant can be advised correctly of any historical issues or misunderstandings. These records can, in extreme cases, be used for legal defence.
- Undertook regular property inspections in order to build relationships with tenants, promote good communication and identify any maintenance or compliance issues that the tenants might not have already reported.
- Ensured that the tenants legal rights were upheld – eg, correct notice periods before visiting the property, avoiding any activity construed as harassment or infringing ‘quiet enjoyment’.
- Using a full accounting system for oversight and reconciliation of rental payments and tracking of arrears.
- At the end of the tenancy, carried out a tenancy check-out having also provided the tenant with a comprehensive package of advice, letters, guides and inventory to ensure the standard and requirements are met.
- If there were any, correctly assessed dilapidations, damage and deposits disputes – eg, making correct and fair assessments of the value and age of damaged items and apportioning costs/deductions commensurately.
Further guidance on all these subjects can be found on our downloads page: https://proudhouseproperty.co.uk/downloads/
Was the agent really useless and did they really ‘do nothing’?
There is a big difference between ‘doing nothing’ and ‘making something look easy’. Here’s an analogy: a plumber might fix your leaking pipe in 15 minutes and then charge you £75… £75!! How much? £75 for 15 minutes…? but you’re not paying the plumber for 15 minutes; your paying the plumber for their time, expertise, training, access to tools/equipment and prevention of further water damage.
Next time you think you’re paying an agent (or perhaps any other professional) ‘money for old rope’, please think again. Actually, a good agent is doing exactly what they should be: making the landlord’s life easy whilst effortlessly doing their job and also giving the tenant reassurance and a well managed home.
Proudhouse Property Management is an ARLA PropertyMark professional organisation: https://www.propertymark.co.uk/
