avoiding letting agents?

[seldomrite]

This is in part a rant about letting agents, in part a request for advice on whether it is possible to avoid them.

I have a house let to students in Manchester. I have used two different letting agents and have also discussed this issue with other landlords in a similar predicament who have used other agents in the area.

I don’t say this lightly, but consensus seems to be that all local letting agents dealing with students lettings are extremely incompetent and dishonest. My experience sadly confirms this.

There is without a doubt a predatory culture that is exacerbated by high staff turnover.

Any complain from landlord or tenants, no matter how reasonable and justified, is met with a difensive attitude. There is never an attempt to find out what really happened, only a formulaic list of excuses aimed at evading responsibility and avoiding losing any money.

The industry is plagued by the use of dishonest contractors for repairs and maintenaince. The landlord has two options: either they check every single problem personally and get independent quotes, or they accept to massively overpay for all sort of real and imaginary issues.

While I have no direct proof that kickbacks are routine, I have no doubt in my mind that this is the case.

I expect people to reply that good letting agents do exist. I am sure that this is the case, but most definitely not in Manchester students market.

Given this state of things, I am considering avoiding agents altogether and trying DIY. My problem is that every year I spend months away from Manchester and so I would have to fix potential issues from far away. Has anybody got first hand experience of this? Can anybody advise on effective strategies? I know some builders/plumbers/electricians but they are not always available when I need them and I would most likely have to find new ones quickly on certain occasions.

If you think this is the definition of hell, I do not disagree. On the other hand, this house (owned outright) provides me with some diversification from shares that in this time of uncertainty I am very reluctant to give up.

What would you do in my shoes?

[dealtn]

What would you do in my shoes?

Sell up (assuming there are no better agents) and reinvest in property elsewhere where I could either DIY, or know there are better agents.

[mc2fool]

Given this state of things, I am considering avoiding agents altogether and trying DIY. My problem is that every year I spend months away from Manchester and so I would have to fix potential issues from far away.

Well, far from ideal as you'd still be paying letting agents, but you could use them, just as you do now, but give your occupants your mobile number and impress on them that for any problems they call you. Then if you're around you can deal with it yourself, and if not you can decide if it can wait until you return or you pass it onto the letting agents to deal with.

[kempiejon]

I believe adding agent to your job title is a detractor.
I used to work alongside the welfare department at university and saw close up the problems young people away from home faced. Housing and hence estate agents/landlords were regular issues affecting hundreds of students every year. The university would publish lists of approved landlords for students to make direct arrangements, good landlords would stay on the list, but a black-mark and they were off. Landlords excluded advertised the property via the gang of local agents.
I do know that some universities and/or their Students' Unions run their own letting businesses, Manchester I'm sure is one of those universities, but there 2 Unis in Man I think? Not a specific recommendation but might be better suited to you than a high street agent and perhaps better than self management.

[seldomrite]

Some good ideas - thanks!

dealtn: Finding good agents elsewhere and re-investing there is a possibility. Do you know any good, trustworthy, letting agents?

mc2fool: Paying the agents but dealing with issues when possible is what I am doing at the moment. Expensive but at least you get some control back.

kempiejon: The Manchester Unis do have approved landlords and I would like to be on the list if I can. I believe in offering a good service to students, so I am not over worried with their requirements. They do not manage the property for you though, so some of the problems would persist.

[Lanark]

It is absolutely possible to manage tenants without using an agent, some people like to use an agent for the first year so they don't have to do the marketing and viewing/vetting of tenants.

You will want to have a couple of plumbers/handymen who you trust on speed dial.

A friend of mine self-manages a rental flat which is 500 miles from his own house, he does have to visit once every couple of years, but he seems to manage OK with that. (I think he is mad being so far away, but it does show that it is possible.)

In my experience most agents appear to be very good until theres an actual problem to resolve, at which point they reveal themselves to be worse than useless.

[seldomrite]

In my experience most agents appear to be very good until theres an actual problem to resolve, at which point they reveal themselves to be worse than useless.

Yup. As soon as you scratch the surface (double check a particular repair, have a word with the tenants, etc.) a can of worms appears.

I wonder how people who look more or less decent/normal when you meet them can live with such a level of systematic deceit and low-level fraud...

[pennypunter]

I would use the http://www.spareroom.co.uk as a good means of finding tenants, whether students or otherwise.

That cuts out agents altogether and there is only a modest advertising fee.

Handling the problems yourself is far cheaper than using any agent. You need to have a good handyman, for plumbing, electricals, boilers, carpets. It is useful to have onboard a good cleaner.

You need a brief handout explaining how the property works, what the issues are, which answers and FAQs, you need copies of lease documents that can be amended when needed.

It is helpful if tenants are aware that by dealing with the landlord directly they are cutting out admin fees, commissions, inventory etc

Lastly you need to be good at problem management - I have been a landlord for many years- when I did use agents I regretted it. I have known agents good at finding tenants, and bad at admin/ tenant issues and vice versa - I have never encountered a single agent who could cover all bases.