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De-Instructing Estate Agents During Marketing Phase


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Good morning! I will be letting my properly in 3 months and am thinking of appointing 6-7 estate agents for an initial private sounding exercise and then reduce them to 2 closer to the start date. Has anyone ever done this and is it possible to de-instruct letting agents flexibly? Their contracts say I'm only due to pay fees once the tenancy contract is signed by tenant and landlord.

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I can read the words but don't understand any of your questions.......

* What is a private sounding exercise ?

* Why do you need two estate agents ?

* What does de-instruct 'flexibly' mean ?

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Hey Richlist!

Thank you for replying.

*Private Sounding = Checking interest from individuals/corporates based on pre-existing enquiries before it goes public (Zoopla, Rightmove etc)
*More estate agents = more chances of success (esp in the private stage)
*De-instructing without incurring costs (ie. if they dont find a tenant in the first 4 weeks, de instructing)

Hope this clarifies my questions!

 

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That sounds like an awful lot of effort with no guarantee of ending up with a model tenant.

I always recommended a landlord to pick /choose their tenants very carefully. There is nothing more important or that takes priority over picking a suitable tenant.

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On 6/20/2021 at 7:56 AM, DancingQueen said:

Hey Richlist!

Thank you for replying.

*Private Sounding = Checking interest from individuals/corporates based on pre-existing enquiries before it goes public (Zoopla, Rightmove etc)
*More estate agents = more chances of success (esp in the private stage)
*De-instructing without incurring costs (ie. if they dont find a tenant in the first 4 weeks, de instructing)

Hope this clarifies my questions!

 

*More estate agents = more chances of success (esp in the private stage). I would have to strongly disagree. You will be pressurised and possibily misled into taking an unsuitable tenant if agents are in a bun fight. 

Letting agents dont generally start charging until a tenant is found and signed up.

Remember most agents use the same portals and likely as much to have a lot of the same people on data list. All the agents will also tell you they have many suitable applicants waiting. The most important thing is to get the rental price right and also do your own research. It is all very well an agent stating they can get you xxxpcm but if the property takes 3 months to rent it doesn't really achieve much more. I would rather advertise my properties at a little less to have a better choice of applicants and to rent out a lot quicker. 

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Anyone can find a tenant. There is a massive shortage of rental property in most areas of the country. You don't need a lettings agents to find someone who wants to rent your property. That's never ever been an issue for any landlord. I could have 20 applicants available in a week........but they are all likely to be unsuitable.

Finding the right tenent, one that ticks all the boxes and meets your list of critetia.....that's the difficult part.....and that's where you need to prioritise.

There are a growing number of potential tenants that will not be prepared to go thru an agent. They will search for a property elsewhere........Gumtree, local press, local employers etc. So, going to agent is not a magic bullet and is no guarantee of finding the tenant you want.

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Incredible advice! Thank you very much, especially Richlist for returning here and there and emphasising the importance of finding the right tenant. Grampa is also right, the estate agents are putting me under a lot of pressure and promising the world... by mentioning specific situations, not at all comparable to mine, where they've had success vs their competitors.

My thinking is to aim for corporate tenants - hopefully this means they'll be cleaner and more civilised, especially if their employment contract is tied to the tenancy?

Just simulated estate agent costs (not just fees but also setup, maintenance, renewal and closing costs) and they are SO HIGH (c20% of my total income from the rental... ). Would love to find a tenant independently and avoid these charges but I feel like gumtree/local press will definitely not be targeting the “model tenant” that I’m after :(

Back to reading estate agent contracts I go... Oh dear, landlording really is a business of its own.

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  • 2 months later...

Hey guys! I am trying to follow Richlists advice and find a tenant on my own. If I go it alone, I might as well do all the checks / inventory / AST without a high street agent. Do you have any online agents that you'd recommend? Some of them offer very low prices (£12 reference checks, as well as £49 to set up a tenancy and manage rental payments, deposit registration, etc). In your experience, are these prices too good to be true?

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  • 2 weeks later...

when you choose a letting agent, you are choosing on the person behind the desk, not the brand name! They are only as good as the person working for them. I did this for 10 years at an independent and regularly beat the corporates.

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A good start in sourcing a agent is to look at google and Facebook reviews. As long as there at a number of them it will give you a balanced starting point and help in comparing one against another.

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Check if there is a landlord group or association in your area. If there are other landlords who will recommend their agent it will, at least, give you a lead or a degree of confidence if you choose them as well.

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