TIP OF THE WEEK: Review your relationship with your letting agent

This weeks tip comes from a friend of mine, Greg Jackson, who I really cant recommend enough. From personal experience, I know he practices what he preaches and is one of the few true mentors, for want of a better word, that actually is out there buying rather than just teaching.

If you dont know Greg, then he is an experienced property sourcer and full-time landlord, and this is what he says re: letting agents.
Letting agents take your money from you. Most of the time they do nothing other than process rental payments, and then when you do need them you can often feel you dont get the support you pay for.

All the time, from your personal letting agent skills point of view, you are becoming weaker and weaker personally from lack of practice.

This is what agents want. They want you to be dependent on them. Like most professions, they have a vested interest in mystifying what they do so that it seems hard for you to do it.

For some landlords, with remote portfolios, they dont have the luxury of not using agents. Personally, I recognised years ago that as my portfolio grew, I would have logistical problems if the portfolio grew in a widespread geographical area. Hence my decision to portfolio build on my doorstep.

I have no letting agents helping me. I do have a well organised system of dealing with the mundane aspects of what letting agents do. It isnt difficult its just common-sense housekeeping. It also forces you to speak to your tenants and that way you can anticipate issues, good or bad, before they hit you in the face. It makes you a better landlord.

I accept that many people will always use letting agents the main reason being lack of time if they are working in full-time employment. In that case, dont sit on your laurels! Youre probably paying too much for management of your properties.

Explain to your letting agent that you are strongly considering self-management, but may stay with them if they can match the great rates other agents locally are offering (Ill be very surprise dif you cant find better prices by spending 2 hours phoning round). Dont just tell them this show them the evidence of your research in order to totally convince them of your efforts.

A friend of mine has recently saved £1200 per year by using this tactic on his 8 rental properties!

I strongly advise that you at least consider doing self-management. Why not simply try it with a few properties and evaluate matters from that point?

You can contact Greg on www.propertyinvestmentcoach.co.uk .

As always, call one of our advisors today for more information on any of these deals
Tel 01424 205 373 ref PropertyHawk