Landlord Frequently Asked Questions Why should I choose Options to manage my property? We at Options Property Management believe our reputation is our main selling point. We do not believe in promising you over inflated rents just to get your business. All our charges are clear and fair. We do not have any small print. We do not offer you the cheapest commission rate only to charge you other fees not so obvious or clear just to get your business. Options has been around for a long time. Over 80% of our new business is from referrals. Our business is successful because of our reputation not in spite of it. We would rather be honest and not get your business than to be dishonest and let you down once you have signed up. Please consider some of the following points before deciding the course of action that suits YOUR needs, NOT the convenience of someone else. I’m thinking of letting my property what commission rate do you charge? This is the question we are asked more than any other, yet it could probably be the least relevant factor when it comes to letting your property. 7%? 10%? 15%? It does sound a vast difference but on a £500 rent, the charges are £35, £50 & £75 respectively. You must ask yourself if someone quoting £35 to manage your property is really going to give you the same level of service as someone quoting £75. Conversely its worth noting where the agents charging 15% are based. Will they give you a better service than someone charging 10% if the difference in charges could be down to the size and location of the Agents office. Someone with an office along a high street obviously has higher overheads to pay compared to an agent in smaller offices or less favoured locations. I wish I used a letting agency who did thorough and regular property inspections, I saved £15/month on my rental charge but lost £1,500+ when I sold my house a year later… You must ask yourself how much money you really are saving if your property is not properly cared for. On a property valued at £150,000, say if your property was poorly maintained, you put it up for sale after a 12 month let each 1% lost off its value due to poor maintenance/condition is a loss of £1,500!!! Very rarely will it be the agent quoting you the highest rent that gives you the greatest income in the long term. There is a number of reasons why this will be so. Market forces will always dictate the success or otherwise of charging the highest rent you think you can achieve. If your property is placed on the market at a rent above the average for its size, facilities, location and condition, your property will inevitably take longer to rent than similar properties of a more favourable rent. The chances are that any tenants you do get will also be more likely to be short term, moving on as soon as a more reasonable rental becomes available. The more realistic your rent the more likely you will avoid expensive void periods and the more likely you are to keep your tenants. We know of examples recently where we rented a maisonette in the same block where another agent had the same size apartment available. The other agent put their apartment up for let at £700 pcm, they have subsequently reduced the rent to £600 pcm in three steps and it is still available. We rented the apartment we are managing for £495. Our tenants are now in their third month. That’s an income of £1485 to-date against our competitors NIL. What rent to charge is always a delicate balance of a number of factors, but we believe in maximising our landlords income. Void periods are usually more expensive than obtaining say an extra £50 per month on rent but taking a few weeks or months to achieve it! |