Good letting agents can save a landlord almost £2,000 a month
Almost of half of private rented sector landlords use a letting agent because it gives them peace of mind and a quarter communicate with then on a weekly basis, new research has found.
The research from insurance firm Endsleigh also found that agents can help landlords save money, almost £2,000 a year, by minimising void periods.
Overall 41% feel the main benefit of working with an agent is that it provides peace of mind, and 25% will contact their agent at least once a week.
Landlords who feel they could save money by not using a letting agent said that the average amount they were not spending on fees amounted to £159 per month.
However, comparative analysis of the rental income and void periods for those landlords with, and those without, agents suggested that in fact agents saved their clients an average of £1,910 a year.
Some 76% of respondents reported that their agent helped them pro-actively find tenants, as well as providing other services such as help with legal and financial matters and so contributed to a reduction in overall costs.
But the survey suggests that relationships between letting agents and landlords are not about financial benefits alone.
Among landlords who use an agent some 50% did so because of their local knowledge and more than two in five were attracted by the service provided by their agent as a deciding factor.
According to Will Parker, associate director and chartered surveyor at H&H Land the figure given in the survey for savings is substantial.
‘In the past there have been widespread misconceptions amongst landlords about the value for money offered by letting agents. The survey suggests that in these cases letting agents can in fact save their clients an average of almost £2000, which is certainly a very significant saving and one worth considering