Insurance News Archive

Landlords 'should beware low letting fees'

Industry experts have advised landlords to be cautious about low letting fees being charged by estate agents as the service may not be up to scratch.

Price drops in letting charges are being used by agents who are desperate to attract as many landlords as possible since demand for rental accommodation is so high that they are running out of properties to offer waiting tenants.

But while this might seem good news for landlords on the surface, Paul Weller, the managing director of letting specialist Leaders, offered another opinion.

"Landlords should be aware when choosing a letting agent that you get what you pay for in terms of service and professionalism," he said.

"Half-price fees could result in a second-rate service, and worse, in the agent not having the funds to deliver any service at all."

Leaders argue that advertising properties and interviewing and vetting tenants takes time and money, which Mr Weller said may not be covered adequately by agents with very low fees.

However, he acknowledged that "landlords will naturally want to keep their costs down and will be looking for a competitive rate".

28 Aug 2007