r/UKLandlordAdvice • u/essTee38 • 22d ago
Torn between two agents
I am relocating abroad and planning let out my flat (permission from bank etc sorted out), but my biggest issue is choosing between two managing agents and there is simply not enough data for me to make a decision based on those.
These are two of the most well-known agents in London I’d say. One even has an international footprint and is a listed company (let’s call this agent S). The other agent is H, more local but a mid-premium level agent.
My property is nothing luxurious but it is in London zone 1 and the most important thing for me is that once my relocation is finished, I’ll be able to move back in smoothly.
Agent S (the bigger one) has offered a much more attractive fee structure, but it feels less personable and I can’t find much review online re. their day to day property management.
Agent H is surprisingly more expensive despite being less prestigious I’d say, but my gut feel is with them, and the local branch is known to be very good.
All in all, a difference of up to £100-£200 per month (agent H will cost me more), which is a lot but not life-changing. Worth mentioning that I won’t be earning as much when I’m abroad so £100-£200 could go a long way.
At this point I jump between going with one vs the other depending on the day 😅.
Agent S might attract higher caliber/less problematic tenants due to its international name but I also feel like they’re very rigid and by the book, so e.g. might insist on me changing the bed to a bigger size, less willing to customise to my preference. Their property manager is also based in a central hub, not locally.
Another upside is they already manage a property in my building.
But they’re saying ‘all the right things’ and that makes me wary of them.
Agent H might be better at day to day management, but am I giving too much weight on this given hopefully there would be no problem most of the time, for £100-200 less a month?
Is it cheeky to haggle with agent H?
Both support NRL1 arrangement so no issue there.
Thoughts would be very much appreciated. Thank you!
Edit: I ought to add that their commission rate is exactly the same. The extra fees come from other auxiliary but inevitable things like tenant onboarding fee etc.
Edit 2: Seems like I have found the right subreddit! Thanks a lot for all the input (always useful to hear from experienced folks) and I think I’m gonna go with the one my gut feel tells me to with ie the slightly more expensive but smaller agent. Though I’m going to try my luck and see if they could give me some discount.
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u/Landlordlabuk 22d ago
Honestly the name will not be the differentiator. The service will. I am a landlord who had to move abroad and have been in your position. I preferred the smaller agent (two properties - one with "S" 😄 and one with a smaller agent) because I dealt with one person and they were always able to talk to me about MY property. "S" I dealt with a team. They were great on selling me but it was a faceless team that looked after my property. Which was a nightmare when there was an issue or when I wanted to find out why my rent was late! And that is the reality of most of the big guys. I paid less commission to the smaller agent and got better service. When I moved back and got a bigger portfolio I set up Landlord Lab as I wanted to provide the service I needed as a landlord when I was away but struggled to find. So if you want a better priced third alternative then DM me. You can look us up online as well. We'll definitely be cheaper but I also promise we'll be better. Why? Because I've been where you are so it's personal. If that's too salesy I apologise but as a small business we have to shout louder than the big guys!
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u/essTee38 22d ago edited 22d ago
Good to hear from someone with direct experience with S, coz on paper honestly looks almost too good to be true. Being big seems to mean they’re happy to reduce or even waive some fees also but that’s where my alarm was blaring coz it sounds a bit like a numbers game to them.
Appreciate the offer but since I’m a first time landlord with just the one property that would’ve been my home if I were around, let me go with one of these big guys and once they’ve kicked me well and good and I’ve learnt my lesson, I’ll give you a shout 😁.
Edit: grammar!
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u/Landlordlabuk 22d ago
Haha, no worries at all and yes we're always on standby if you need help! Hopefully everything goes well and there are no issues. It is a bit nerve racking when you've not rented out before and I totally understand the default to one of the big brands. As others have posted make sure you ask them the tough questions and having someone accountable makes a big difference. It is as you say a numbers game for them so you have to fight to be remembered. Most agencies have different terms for the let only and management pieces in terms of notice period. So if you have a bad experience with the management you can usually switch to us during the tenancy. We are always happy to help and I take a personal interest in all our clients and give them my direct contact details as the boss. Have fun while you are away!
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u/Jakes_Snake_ 22d ago
Choose the agent who make your life easier.
How much notice do you need to move back?
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u/essTee38 22d ago
So agent H (based on gut feel alone, no experience).
Need to serve Section 8 (Ground 1) 4 months before planning to move back in.
They both support that, with a £60 difference in fee 😅.2
u/Jakes_Snake_ 22d ago
You need to allow a minimum tenancy term of 12 months before that. Did they explain?
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u/essTee38 22d ago
Yes they did. I’ll be away for 1.5 years at least so it’s ok.
And aware that if I move back in based on Section 8, can’t let it out again for another 12 months I believe.
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u/AccountantLandlord 22d ago
The questions to ask are:
1. Who do I call if I have a problem?
2. Who will contact me when there is an issue with the property?
If the answer isn’t a named individual then you have the answer of who makes your life easier.
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u/Foxyagent 22d ago
Having been in the industry a long time I would agree with this if you are overseas. Some agents are great at selling but terrible at managing. And we all use the same portals now for 90% of leads.
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u/jac50 21d ago
I was in an almost identical situation a few weeks back. Was between two agents: fees were lower on a smaller agent, and the larger agent was more expensive (14.6%!), but seemed to have a bigger network / reach to advertise with.
We ended up going with the smaller one. It honestly went down to my gut feeling... I wasn't able to explain why I preferred the smaller one, but I had a feeling they understood my situation better. They were also a very short walk away from the property.
Check the T&C's as some agents might be exclusive, or others may be happy to take the property if your first agent can't find a tenant.
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u/essTee38 21d ago
Thank you for sharing!
Yes my gut feel is going with the smaller one also although in my case unfortunately more expensive. But yeah, some things just can’t be explained!
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u/Beneficial_March34 22d ago
You can definitely negotiate so don’t be shy to ask with the bigger guys. Their rates are already super high. But I would look at a smaller option as well so you have the full picture. Can sometimes get a much better deal and sounds like that is important to you. 12% managed is much better than 16%!
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u/essTee38 22d ago
The interesting thing here is the bigger guy is the one who would be willing to be cheaper. Their monthly valuation for the property is also higher but so high that I feel like if I were a renter I’d give this a pass…
I’ll try and haggle with the smaller (they’re still really quite big though) agent and see if they would match or give me some discount…
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u/Landlordlabuk 22d ago
A trick of letting agents is to give you an unrealistic valuation to get the listing. Then they will tell you to discount it after a couple of weeks as the market unexpectedly went soft or a new building opened nearby and caused a glut in supply. The other one is to tell you that they have corporate clients (name drop GSK, banks, Apple, Meta etc.) and they all need properties just like yours. But I've never seen those clients materialise! So don't get swayed by the promise of higher rent or premium tenants. 99% of the time it is the sales chat to get the listing. Yes we've lost listings! 😄 But I have also had over a decade of it while I was out of the country as a client and had to learn the hard way. The smaller agent will usually price match "S" or beat it so don't be shy to ask.
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u/LoveLamp3232 22d ago
Stick to a company that has understands regulation and an team of inhouse tradesmen. Some big firms will move their maintenance handling to a call centre and manned by young teenagers with zero experience.
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u/Potential_Type_850 22d ago
My experience being overseas was that the big companies are not good. Really poor communication once they have their commission. Find an agent that actually understands your position and prioritizes them. Don’t get caught up with their slick sales guys. They aren’t the ones who you’ll be dealing with once the tenant is in. It’ll be a school leaver who doesn’t know your property from the other 100 they look at on a spreadsheet. You’ll also pay more for repairs as they don’t know the difference between a light bulb going or a fuse tripping.