16^th August 2023

Choosing the right letting agent or property management company

Following on from our recent topic on the advantages of using a property management company, here we take a look at how to choose the right letting agent or property management company.

Selecting the right property agent is a crucial decision to any property owner or investor. This is the team that you're going to entrust with the stewardship of one or more of your most valuable assets. In the private rental sector, property management companies are pivotal in maximising the return on your investment and ensuring smooth operations. This guide outlines some of the key steps in choosing the right management company.

1 Assess your needs and strategy
Before you begin your search for a property management company it's essential to understand your specific needs. Consider the question: what services you are looking for? Letting agents and property management companies offer a comprehensive range of services, including property marketing, tenant screening, compliance checking, tenancy documentation, rent collection and property maintenance services and more. Some agents specialise is certain functions or particular areas of the sector, eg student lettings.

2 Conduct your research
Start by identifying a list of potential companies. Seek word-of-mouth referrals from fellow landlords as these can prove a valuable resource and offer real first-hand experience of a company. Online reviews and testimonials can provide insight into a company’s reputation. Review sites such as Google and Allagents can be really useful in getting to know how a company sees its customers. All of this will help to refine your shortlist.

3 Check experience and expertise
This really matters in property management. Most companies can handle the easy stuff, but companies with a good long-term track record typically have systems and skills to handle the trickier situations and complex issues. Expertise in your field is also important, so choose a company that knows your property type and local area inside out.

4 Check for compliance
Letting agents and property management companies must adhere to some strict requirements. All such companies are required to be members of an approved redress scheme such as The Property Ombudsman (TPO) scheme, etc. They must also comply with regulations covering the handling and holding of client monies and must be a member of an approved Client Money Protection Scheme if they receive and process client funds such as rent payments or tenancy deposits. It's important to check that the company you are considering is compliant in these respects. It's also advisable to seek out a company that's signed up to one of the industry accreditation schemes such Propertymark, Safeagent or UKALA.

5 Take a look at the company’s communication and customer service record
The property management company you choose will be the main contact point and the conduit for information flow between you and your tenants. Communication skills and quality of customer service are therefore imperative. Pay attention to issues such as their responsiveness, willingness to answer questions, professionalism, etc. A good company will demonstrate that they have respect for both you and your tenants.

6 Understand the costs and charges
Letting agents and property management companies will all have fee structures that can look quite different and it's important to understand what you are being offered. Take a look at the additional charges and incidental costs so that you can make an informed assessment of the overall costs for comparison. Be clear on what’s included and what’s an extra.

7 Read the agency/management agreement and their terms of business
This is important in that it clearly defines the obligations of the company and the client. It will include terms of business, legal obligations, limitations, clarification of liabilities, scope of work engaged and terms of exit. Read it carefully and ask for clarification if required.

8 Ask for references
Don’t be afraid to ask for references form current or past company clients with properties similar to yours. This is great for assessing reliability and levels of satisfaction and any company worth engaging will always be happy to co-operate with such requests.

As Andrew Ward, owner of Award Property Management Limited says, ‘entrusting a letting agent or management company with your most valuable assets is a huge decision. It's so much more than just finding someone to manage a property; it's about trust, professionalism, integrity and relationship building.’

As an award-winning property management company, Award Property has the tools to demonstrate competence, experience, expertise, professionalism and a personal approach that will provide peace of mind for anyone looking to enter the sector or expand their portfolio, as well as for those who are feeling less than delighted with their current arrangements.

Award Property Management are award-winning estate and letting agents in Cambridge. If you’re a landlord looking for an attentive and reliable agent for your rental portfolio, please contact us.