What Some Letting Agents Might Not Be Telling You

As a property owner, you trust your letting agent to handle your investment with care and expertise.

However, while many agents do an outstanding job, some may not be as transparent as they should be.

Below, we outline a few common practices that less scrupulous agents might keep under wraps.

1. Lack of Qualifications

Did you know that the letting agent industry in the UK is largely unregulated? Anyone can set up as an agent without any formal training.

While joining a Property Redress Scheme is now mandatory, this alone doesn't guarantee an agent’s competence. Unfortunately, some agents operate without the necessary qualifications or experience, leaving landlords vulnerable to legal and financial risks.

Our Tip: When selecting an agent, look for those regulated by Propertymark or RICS. These bodies enforce strict standards, ensuring that their members are properly trained and adhere to a professional code of conduct.

2. Hidden Commissions from Contractors

Some agents may receive kickbacks from the tradespeople they hire for property repairs. This can lead to inflated costs for you, as the landlord, and it is often done without your knowledge.

By law, any commission an agent receives from contractors must be disclosed to you in advance. If it isn't, this is considered a 'secret profit,' and the money legally belongs to you.

Our Tip: Always ask your agent about their relationships with contractors and whether they receive any commissions or incentives.

3. Long-Term Tenancies with Unsuitable Tenants

At first glance, a long-term tenancy might seem like a win-win situation. Your agent finds a tenant willing to stay for multiple years, and you enjoy the stability of continuous rental income.

However, some agents might push for long-term leases with unsuitable tenants simply to secure a large upfront commission. If the tenant turns out to be problematic - paying rent late, disturbing neighbours, or damaging the property - you could be stuck with them for years.

Remember, during a fixed-term tenancy, your options for evicting a difficult tenant are limited. This could lead to significant stress and potential financial loss.

Our Tip: Ensure your agent conducts thorough background checks and references before committing to long-term leases. It’s also wise to keep your own communication with the tenant open and honest.

Be Informed, Be Prepared

While there are many trustworthy agents out there, it's crucial to do your due diligence. Don’t be swayed by a sharp suit or a flashy office - dig deeper.

Research your prospective agent's qualifications, ask the right questions, and make sure you fully understand their business practices before signing any agreements.

By being vigilant and informed, you can avoid these potential pitfalls and ensure your property is in safe hands.