Finding a good letting agent who can manage rooms in a HMO is sometimes very hard and why lots of landlords do the management themselves. So what sort of questions should you be asking a Letting Agent to find out if they can do the job you need them to do?
You can do some research on each agent before going to the effort of seeing them to ensure that they are correctly registered. You should find this information on their website:
- Are you registered with The Property Ombudsman or the Property Redress Scheme
- Are you registered for Client Money Protection Scheme as you will be holding rent on my behalf?
- Are you registered with the Data Commissions Office as you will be holding electronic data
- Do they have a Privacy Statement/Policy/Notice on their website
As well as knowing about legislation, licensing etc and how to rent to a tenant, you need to assess how well and agent can evict a tenant is there are problems; how responsive they are to tenant issues; and what systems they have in place to deal with emergencies.
These questions can prompt you in the first meeting with an agent although we suggest that you do not sound like you are interviewing them and build the important relationship so that you can trust them and they know they can work with you.
- Are you currently looking after any HMOs? If yes, how many properties/rooms and for how long has the business been managing HMOs
- What type of HMO do you specialise in?
- What is the average room rent achieved in this area?
- What is your average void period?
- What are your average type of tenants? Hospital staff, professionals, other?
- Where do you advertise to find tenants?
- What are the current HMO occupancy and arrears rates (number of rooms managed and let and any arrears)?
- On average how long does it take to rent a room?
- What % of rent advertised do you achieve?
- What number of viewings to tenant acceptance is your average?
- Where are the HMO’s you manage? (in relation to yours) do you have any near where my property is located?
- Do they all get involved or do they have a dedicated team? If yes, how many?
- Can you provide me with a list of charges for your services? What are the additional charges, if any, for HMO management?
- How do tenants report issues or general queries?
- How do you deal with repairs or maintenance issues?
- How do tenants contact you in an emergency?
- How often do you do property inspections and room inspections? Do you provide me with any evidence of inspections; a report etc? Do you test the smoke alarm systems and emergency lights as part of the visit?
- How do you deal with missed payments and rent arrears?
- How do you ensure cleaners are managed well?
- Do you have any Key Performance Indicators (KPIs) which you supply to me and your tenants?
- What is your inventory process?
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