Is it worth using a letting agent?

I was interested to read an article in Letting Agent Today this morning detailing the results of a survey conducted by Endsleigh the insurance company.  Their survey suggests that on average a letting agent saves a landlord an estimated £1,910 a year.   At a time when landlords are feeling financially bruised due to Government legislative changes, it is interesting to note that landlords should trust the value for money offered by letting agents. 

The survey suggests that of those landlords who believe they save money by not using a letting agent, the average sum ‘saved’ on fees was £159 per month. 

However, comparative analysis of the rental income and void periods for those landlords with, vs. those without agents suggested that agents saved their clients an average of almost £2,000 per annum.

Most of the savings for landlords are created by agents minimising void periods when compared to landlords who go it alone marketing their property.

Some 76 per cent of respondents to the survey 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 contributing to a reduction in overall costs.

The survey suggests that relationships between letting agents and landlords are not about financial benefits alone.  Of those landlords who use an agent, 50 per cent were most attracted because of their local knowledge, 41 per cent feel the main benefit of working with an agent is that it provides peace of mind, and 25 per cent say they communicate with their letting agent on a weekly basis.

I admit, as the owner of a letting agent, I have a vested interest in this survey. However, I recently had cause to list the main services that my agency provides to landlords, and it is a surprisingly long list of different services.  Over recent years, legislation that applies to landlords has become more complex, and more significant in terms of sanction.  A key part of our service is to keep abreast of legislation and to assist our landlords to work effectively within the law to optimise their own position, particularly at times when a tenancy has become difficult.

It is also interesting to me to note that the survey confirmed a point I have raised with landlords recently – that the cost of void periods far outweigh other costs associated with letting property.

As landlords move into 2017, it is a timely reminder of the broad and important services that letting agents provide to their clients, which saves them money and assists them to sleep easier at night.