Your home and any investment properties are likely to be the most valuable assets you own. Would you risk those investments for a 1 or 2% fee, or is your peace of mind worth a little more?
Recently I met with a Landlord looking to rent out her house for the first time. We’d spoken before about her objectives and the lettings process, so I was feeling quietly confident of winning the instruction.
As I made coffee, she passed me a piece of paper - the full management service offered by another agent.
‘Can you match that?’ she asked. If I could, the business was mine, if not she’d go with the other agent. Their service seemed very comprehensive with a fee 2% lower than I would charge. I sensed a disappointingly short meeting but with coffee to drink, we chatted on about her plans.
They were exciting, but there was a very real possibility that she would need to sell-up at the end of the fixed term, and quickly! Aware of this, the other agent had suggested attaching a Section 21 – Notice to Quit, to the Tenancy Agreement.
Now I’m not a fan of starting a relationship with a tenant and simultaneously telling them you want them to leave, but something else bothered me. The document was littered with spelling mistakes and the hand-written date in the top corner was for the following day. Now that may seem trivial but on other documents those mistakes could have serious implications, for example a Section 21 could be thrown out of court!
I had to ask her ‘How confident are you that these mistakes are a one-off?’ And ‘Is your peace of mind worth an extra £20 (2%) per month?’