But many are satisfied with the service provided by their letting agents
While the majority of landlords are happy with the service provided by their letting agent, around four in 10 believe their agent charges too much, the latest industry insight from Total Landlord Insurance has revealed.
The survey found that 57% of landlords believe the fees they are charged by their letting agent are fair. However, 42% think they charge too much, while just 1% said that they should be charged more.
Over half of landlords, 56%, rated the service provided by their letting agent as above average to excellent, while just 18% stated it was below average to poor.
Six in 10, or 61%, said that they had never experienced a late rental payment. The majority of those who have experienced it either stated it was the fault of the tenant or cited another issue such as banking or technical problems. That leaves just 5% to have had to wait for their rental income because of their letting agent.
However, 16% did reveal that their letting agent has previously made unexpected deductions to this rental income without discussing why before doing so.
The most common reason given was for maintenance work on the property carried out by the agent’s contractors, with additional management fees, a gas certificate, electrical safety checks and tenant finding fees also ranking high.
Read more: Landlords prioritise tenant needs over profits, study shows.
Eddie Hooker, chief executive of the Hamilton Fraser Group – who operates industry schemes such as Total Landlord Insurance, the Property Redress Scheme (PRS), and Client Money Protect, said the survey findings are not entirely surprising as “fees are always going to be a contentious issue, especially in the current climate.”
“While some landlords may feel that the fees charged by their letting agent are too high, this survey shows that the majority do believe they pay a fair price. This is undoubtedly due to the perceived value they feel their agent brings and there’s no doubt that the quality of service provided is an area the industry has improved on in recent years,” Hooker pointed out.
“Despite this, misunderstandings do still happen and one of the most prominent complaints we receive from landlords through the Property Redress Scheme is unexpected charges made to them by their agent,” he continued.
Hooker added that these disputes can quite often be avoided by clearer, more frequent communication.
“Agents can help reduce these kinds of complaints by forewarning their landlord customers of any charges they may not be expecting. This will help landlords to manage their own financial obligations in advance and this, in turn, will prevent a dispute reaching the PRS redress scheme more often than not,” he said.
The survey of 1,250 UK landlords on May 26 was commissioned by ProperPR on behalf of PRS via consumer research platform FindOutNow.
