Buy to let property research advice for investment landlords.

Wise investors carry out proper research before entering into an investment, be it shares, pensions or any other financial product. Investment landlords (buy to let landlords) are no different. However, not all investment landlords research their letting agent as thoroughly as the property they intend to buy. A good letting agent, through careful tenant selection and property management, will make a big difference to the returns the property achieves. Importantly they can also help the landlord buy the right property in the first place. Property tends to be a medium to long term investment and the positives or negatives are therefore greatly amplified.
Try not to become blinkered by a property you really like; ask a specialist letting agent for advice on letting potential before committing. Some aspects of a good buy to let property are the same wherever it is but every town/area is different and it is easy to buy the right property in the wrong part of town. Many landlords will form good relationship with selling agents/investment buy to let advisors and this is a good thing. Many are professional and honourable but you should still take care. A selling agents or developer/investment club’s primary responsibility is to their vendor client or to ‘shift’ a block of new build flats and once the sale is complete their involvement ceases and their fee is earned. Your letting agent on the other hand has got to successfully let and manage the property for many years and they only make their money when this is done successfully. A specialist letting agent, particularly one who does not get involved in sales, only succeeds and earns money when the landlord succeeds and earns money. The success of their business relationship is inter-dependent and this can make the difference between success and failure for the landlord.
Often investment groups, clubs estate agents and new build developers want you to deal with their preferred agent. Ask how the agent has been selected; is the selection based on outstanding business performance and voluntary membership of a redress scheme such as an Ombudsman Scheme or if it is down to the amount of money the letting agent will give to the introducer?
When selecting a letting agent please don’t just think of what they charge. It is the service they provide and their ability to continuously let your property year after year and manage the tenancies well that will really make the difference to your investment return. Remember, with vat, a fee 1% higher than another agent is merely £6 per month or £72 a year on a rent of about £550 pcm but just one month’s unnecessary void is a loss of £550. Damages or rent arrears not properly managed and resolved can be even more expensive. This is where the real expenses may lie.
Look at the service they offer, check how the deal with complaints, check if they are a member of the Propertymark Scheme and the Ombudsman for Estate Agents (soon to be the Property Ombudsman).
A good agent such as Belvoir will ensure your property is correctly managed having fully credit scored and referenced tenants. Correctly documented agreements will be in place and they will advise you how to handle the various hurdles, issues and disputes you will inevitably be faced with.