We are often asked "what value for money do I get out of using an agent?" The case study below is an example how working together with a lettings agent with experience of local market conditions can provide investment landlords with a service far above the value of the agent's charges.
Background: In 2006 a lettings agent was approached, somewhat reluctantly, by a potential investor, who had been looking to enter into the Buy to Let market.
They had identified a property which they believed was a good investment for them and were in the process of purchasing a brand new 4 bedroom detached house.
After discussions and a review of what types of properties were in demand for tenants in that area, the potential landlord changed their decision completely and they invested not one large property as planned but three smaller ones! Two 3 bed semi-detached houses and a 1 Bedroom coach house on the same development.
On the basis of the "free advice" given at the start of the relationship the Landlord appointed the Lettings Agency as managing agents for these properties.
Benefits: Since that time, the properties have been fully occupied and at the change of tenancies, minimal void periods have been experienced.
Void periods are the single biggest cause of lost profits for Landlords and often happen inadvertently for landlords who are trying to mange and market the property themselves.
In contrast the rental potential of the original four bedroom property has been proved to be much more erratic as the influx of larger "family" houses into the rental market has put downward pressure on rents in that sector.
The landlord, in common with the majority of investment landlords, has a very busy personal life being a Doctor.
Having been skeptical he is now more than happy with the decision he took to have the properties managed by a professional lettings agent, because in addition to just finding tenants there has been an ever increasing administrative burden placed on landlords over the past 3 years.
Latest Developments: Since that time, the properties have been fully occupied and at the change of This has released his valuable spare time, to focus on adding further investments to his property portfolio.
The latest addition being a second 1 Bedroom apartment purchased within 6 months and two further properties purchased during March and April 2009 (despite this being in the middle of one of the worst property market recessions in the UK) again having used the market knowledge of his letting agent to help him seek out the ideal properties to add to his portfolio at this time of increasing opportunity.
Conclusion: Professional lettings agents are always happy to spend some time with potential investors before they actually make an offer on an investment property, to offer advice and guidance on the suitability of the property, along with advice on the best way the property should be presented to attract the best tenants and maximum return.
If you are therefore considering entering into the Buy-to-Let market or adding to an existing portfolio, especially during these uncertain times, please contact a lettings agent with local market knowledge before you make your decision.