New figures suggest that half of the
landlords in the country are not using a letting agent - suggesting
that there are considerable growth opportunities out there for
agents who are prepared to market their services to these
go-it-alone landlords.
Other sources estimate a
rather smaller - but still significant - figure of around 40% of
landlords operating without the
services of an agent. But the BDRC Continental Landlords Panel
have released figures putting their estimate at 50%.
On average, a landlord pays 7.3% of their letting income to an
agent. This average is collated amongst a number of different
user-types: some landlords employ an agent for a full range of
management services, where as some may purchase a more minimal
range of services from their agent.
Landlords offer arguments for and against hiring an agent
One landlord who does use an agent has endorsed the practice,
saying: "Letting agents know how to pitch things. They can show
flats at required hours. They invariably have a web presence and
reputation / brand. They're clued up on 'closing a deal'. I live
abroad and so can do none of these things."
Another emphasised the value of their agent's industry know-how:
"The agent knows far more than I do about the law, about the market
level of rents (she runs several of her own properties), and about
what to do with awkward or neglectful tenants. One day I might be
able to do all of this, but not yet. So, in a word:
experience."
Landlords who rejected the notion of using an agent's services
did so because they said they could offer a more "bespoke" service,
and because they could reduce the level of extraneous fees. This
suggests that offering a transparent and flexible service could be
key for agents wishing to convince these agentless landlords that
hiring an
agent really would improve their business.
