Landlords Reaction Should Letting Agents Increase Their Fees
A survey has revealed that a large percentage of landlords would continue to use the service of a letting agent even if the agent increased his or her fees due to a ban on tenant’s charges. This research was carried out by the UK Association of Letting Agents (UKALA).
The research revealed that a mere 9% of landlords felt that they would depart company with their letting agent. 7% of landlords were uncertain if they would remain with their letting agent. Also, 9% of landlords felt that they would agree to pay additional fees. It is interesting that 13% of landlords would try to negotiate terms with the tenants. 22% of landlords would try to get a better package by shopping around. Interestingly, 40% of landlords felt that they would charge their tenants more in rent to compensate for the additional expense they would incur.
Letting agents will no doubt have to decide what they will do i.e. leave the fee that they charge landlords unchanged or increase it. It will be interesting to see how landlords react to any rise in fees. Will it be comparable to the results of the research mentioned above?
No doubt letting agents provide a valuable service to landlords with the majority earning the fee that they charge their client. Many will undertake preliminary searches into the potential tenant’s financial stability to establish as well as can be whether he or she will be able to maintain the monthly rental payments. Many letting agents will deal with queries from the tenant acting as a ”go-between” between the tenant and landlord. Many landlords will get in touch with the tenant should he or she have fallen into arrears with their rent and also arrange to visit the landlord’s investment property to check that the building, fixtures and fittings and its contents are being well maintained by the tenants.