Do agents look at this forum? [Archive]

Paul_f

28-03-2005, 21:19 PM

Look! Tom Entwistle the Editor of this site very kindly put my website under the "training" section and if you are thinking of setting up as a letting agent you could do worse than my spending a day with you. It will either encourage you or completely put you off, and there's draconain regulations on the way that are bound to catch out not only the unwary but many, many agents who think they know what they're doing. Believe me there's not one that I haven't knocked spots off yet!

There are still agents using old AST's drafted before 1 November 2001 that are about as useless as you can get.

My website is www.learnletting.co.uk You'll have to disregard the crap spelling in parts but the bloke who has part constructed the site is pretty lousy in this regard. It will give you a good idea of what ytou need to knwo.

JimS

30-03-2005, 22:15 PM

I recently bought the Southcourt Package and I find it excellent - I'm in the process of setting up my agency now. I spoke to them about the helpUstart website, and the bloke who runs it bought Southcourt's package some time ago so it looks like a copy; apparently they're looking into it.

stubie

03-04-2005, 16:05 PM

Surprise me by noting that you have visited it!

Boo!!!, Paul I hope that surprised you :D

"Do agents look at this forum"? Well judging by some of the tales from Tenants that I have read, I think agents should read this forum! :eek:

I've been reviewing the Letting Industry for the past 6 month with a view to starting my own business. I've still got some way to go before I officially "go live" but all indication so far look good. I released my website earlier this year (2005) and to date have received over 800 specifically targeted hits, with leads for tenants and landlords coming in. I'm not a great fan of the local newspaper for advertising, especially at £14.95 + VAT per line. :confused:

One of my colleagues originally started his own letting business as a sideline about 18 months ago. He now has over 30 properties on his books with a T/O exceeding £400k. Needless to say his sideline is now his fulltime job. I know that he started with the help from Southcourt, so there's one recommendation.

If you have some basic knowledge of sales and marketing and you don't mind reading (I mean a lot of reading) then go for it, don't think about it.

As I said before all indication look good, I just need to get my next business plan into action.

Hats off to Paul_F for all the contribution he has made in this forum :)

Regards
Stubie

Amanda

12-04-2005, 08:37 AM

I've been visiting this site for nearly a year now. I've found it to be the most helpful site so far.

I set up my agency only 6 months ago and have found a lot of the advice (especially from Paul F) extremely helpful. I would also advise anyone who is thinking of setting up to think very carefully! I did a diploma first (with three years experience) and still run into problems from time to time. Only experience can help you in this job!

I will continue to look at the site on a regular basis - I don't contribute mostly because i still don't feel i have enough valid experience to try and help other people!

All the experts - keep up the good work. I never fail to be impressed by the advice on here.

P.Pilcher

12-04-2005, 23:30 PM

Well I read it because, apart from the gems of wisdom dropped by Paul F. I like to note anything which illustrates good practice by agents. I am in phase 1 of my retirement plan at the moment which is to acquire properties (done) and manage them myself. When I get older and more decrepit I will commence stage 2 which is to appoint agents to manage my properties for me where the information mentioned above will become extremely useful. Stage 3? Dispose of properties, invest capital and live off the annuity income. - Not for many years so please IFA's who reads this, please don't bother to P.M. me!

P.P.

swalker

21-04-2005, 10:03 AM

Questions for the agents reading this forum. What are the associations to which you belong? Can landlords contact them?

oaktree

22-04-2005, 14:53 PM

I've just recently started using this forum and have been horrified to read some of the questions/problems posed by tenants but really pleased to see that in the most part the responses are based on sensible and accurate information.

You're never to old to learn.

Paul_f

23-04-2005, 17:05 PM

Questions for the agents reading this forum. What are the associations to which you belong? Can landlords contact them?

You can only join ARLA or NAEA by passing the Technical Award which is an NVQ level 3. The NAEA fees are lower than ARLA. The other body is NALS although this is government backed and does not have the same lobbying expertise as the others. I also think it has considerably less "teeth".

Their respective websites will give you all the information you require.

howarde

06-10-2005, 16:15 PM

I have a Southcourt package for sale, if anyone out there is interested. I`m looking for £250.00. This is less than half the cost from the company. Its all there, all original. Email me if interested. h-elliott@tiscali.co.uk

Howard

mjpl

07-10-2005, 10:00 AM

I have been an agent for 11 years. No matter how long I spend in the business and all the courses I go on, I still get things wrong. I contribute to this site as often as I can and know that when I need to ask a question I should get the answers I need.

I am a personal member of the NAEA and ARLA but have yet to force the company to join, mainly because of accounting regularities.

Paul_f

07-10-2005, 17:05 PM

That's an interesting response mjpl.

If any of the partners/principal directors are NAEA Members at your branch then it is automatically a "member firm". As far as I know only one member of staff needs to have passed the ARLA Certificate for the firm to have ARLA accredited status.

oaktree

08-10-2005, 08:41 AM

That's an interesting response mjpl.

As far as I know only one member of staff needs to have passed the ARLA Certificate for the firm to have ARLA accredited status.

Which is a bad thing right? I was recently asked by a mortgage broker to offer a valuation for a buy to let property for one of his clients. I did so.

A week later the lender wrote and asked for our ARLA accreditation, I said I wasn't a member nor was anyone within the company. They refused to accept the valuation. Then they went to one of only two ARLA members in town at the time who sent a 17 yr old, 3 months in the business, junior neg to look at the property, (not an ARLA member but the principal of the company is) His valuation (based on what the vendor of the property told him he had been getting for it previously!) was accepted.

The lender then asked a local RICS surveyor for a valuation comparable. He phoned me!!

I appreciate ARLA have some good points, mostly for people new to the industry, but surely its wrong for them to cover even the most inexperienced neg within a company with their accreditation simply because one person has paid their fee.

I can't think of any other professional body where you could get away with that.

Paul_f

08-10-2005, 23:17 PM

I take your point but the fact is the firm who has ARLA status is protecting their client; the fact they sent an inexperienced staff member means the principal carries the can if they screw-up, and they will be fully insured as part of the terms of their membership.

With the terms of the Housing Act 2004 coming into being over the next 24 months or so agents and landlord will need to sharpen-up so much they don't realise what's coming. NAEA and ARLA have been working comprehensively on behalf of their members, liasing directly with the ODPM and trying to get a working module for practical implementation of the Act so that it's workable.

I know there are a small number of crap agents in both organisations, but they get their come-uppance sooner rather than later. I also know the NAEA are quite hard on their members who step out of line, moreso than ARLA probably.

Agents who join NAEA/ARLA are saying they are prepared to stand up and be counted.

Nitnat

28-10-2005, 10:52 AM

I have been seriously thinking about getting into the letting business and have recently purchased the Southcourt package (which by the way looks very good). I currently work full time and am a little nervous :eek: although very excited about the prospect of starting up my own business. The idea is to gradually move into the business.

Is there anyone that could offer me some advice? Some of my initial questions include:

1) As a letting agent, how anti-social do you find the hours?
2) Did you find it easy to get up and running?
3) What about a Franchise rather than setting up as an Independant?
4) Is it feasible to 'ease' into it alongside another job?
5) How long does it take to set up and start earning a reasonable wage?

Very general questions I know and probably person specific but any advice would be welcome :)

Esio Trot

29-10-2005, 11:27 AM

Someone I know has a lettings franchise with one of the big boys.

It has taken them some years to develop the business enough so that they didn't just buy a job. It meant working 70 or 80 hours a week. Although the business has grown, they have not made much out of it as the funding for growth has come out of their pockets.

The franchisor has, in the last 2 years, introduced an "exit stategy" into the Operations Manual (which the franchisor can change at will), and in all franchise agreements adherence to the Ops Manual is a contractual term. Thus the "business" can only be sold to a person approved by the franchisor; the person has to pay a full franchise fee on acquisition; the franchisor is entitled to up to 10% of the value of the business sold. Thus, on the open market, a portfolio of properties might be valued at £150K; however because of all the extra costs for a buyer and the levy on sale price, the franchisee will be lucky to come out with half the market value.

Also, in general business terms that apply to estate agency as well, fee income is often set too low e.g. full management at 5%. At this rate a business can only just break even - and then only if the tenants behave. As soon as the rent is overdue, it starts costing the business money. Staffing issues are also a key factor.

Example: You manage just over 200 properties with your existing staff, which adding the let only's means that the office is working to full capacity. The trend for business is an increasing one and so it means taking on another negotiator to service the anticipated new business. This will cost the owner up to £2K a month when the person starts - maybe more if a company car is in the package. Although the extra business generated by the new starter may start to be evident after 3 to 6 months, that is still at £12K of profit down the pan (if you include on-costs like training) on the deferred expectation of greater profits in the future. What if the new starter, or another member of staff leaves after 6 months? Again, as owner, it is your income that suffers.

Brigitte

28-12-2006, 19:48 PM

Of course letting Agents look at this forum. I have been looking and reading as a guest for the past year but decided to register at last.

To deal with some tenants and landlords, you need hair on your teeth. All this making money easy is nonsense. So much is needed for membership of this and that and advertising that there is hardly anything left.

But it is much better than working in IT or for a big organisation. So, Independence rules!

The next natural step for me as a landlord was to be a letting agent for myself and other landlords. :)

justaboutsane

29-12-2006, 16:34 PM

We are an agent and I look at this forum too! I am also considering a course with Paul_f (will email you Paul to discuss further! ;) )

I have found this site in general an enormous help!

P.Pilcher

09-01-2007, 11:55 AM

There are three types of agent I like: First, the inexperienced ones who have done their best to get trained up so that they know what they are doing, read this site, and post here occasionally when they have a thorny problem, so that we can all learn from their query. Secondly is the very experienced agent who posts the benefit of their experience here for the guidance of us all, and we all know who they are. Thirdly are the agents of the type I use professionally, they do an excellent job for a fair fee. Suprisingly they seem to have little difficulty in making a decent living out of their activities and have many satisfied customers.
The agents I don't like are the ones that we read about here who don't really know what they are doing but are bigheaded and claim to be experts. Thus they dupe their landlord customers and their tenants into parting with more cash that they need to and provide a pretty ropey or non existent service coupled with poor, innacurate advice. One thing which really gets me is the "custom" of repeatedly renewing six monthly AST's for a fee. (Probably on top of the 10% commission that they are already taking.) This is a trick designed merely to line the agents' pockets as it puts their landlord customers in a worse legal situation that they would be if the usual statutory periodic mechanism were used.

P.P.

J4L

12-01-2007, 20:36 PM

I know this is bumping this thread but I think it's important.
Sarah & I are at the moment entering into the lions den of becoming letting agents and this is the one place it seems that we can get constructive advice on the areas we need to look at.
So YES paul f, agents, or 'potential' agents do and definitely should look at this site. We've only been looking today and have already learned so much.
Keep posting guys I'll remember you all when I write the will out!! :eek:

Rebecca12

01-02-2007, 22:05 PM

Husband and I also looking at starting a letting agency. We've been managing our own properties for the past 9 years and only use the local agent for sourcing tenants.

We've a fairly good knowledge of the local property and rental market (been dabbling in property & developing for over 18 years) but dealing with other peoples property is a different ball game and we're keen to do everything "by the book".

I understand you need to be trading for 2 years to become an ARLA member. Is NALS an option in the meantime to give us credibility and reassure clients?

I have booked an NAEA legal course for letting agents and plan to attend other training? Can anyone suggest other essential training?

I've only been a member for a few months but have found the site incredibly valuable - although of the stories would make your hair curl!

Cheers

Rebecca

Paul_f

05-02-2007, 11:02 AM

Rebecca. If you want the Technical Award course delivered to you at your place of business then I can do that over 2/3 days. The more you can get the cheaper it will be.

Send me a private message or email me at technicalaward@btinternet.com

exetercasteles

27-02-2007, 17:07 PM

Hi everyone

I have just joined Landlord Zone and have read a lot of interesting stuff!

We are franchised ARLA letting agents as well as being landlords (property 200 miles away and managed with local agent) and tenants so we can see things from a lot of different perspectives.

I would like to assure everyone that the vast majority of landlords, tenants and letting agents are very good, and it is the few who aren't that give the industry a bad name

The advice to use an ARLA agent is sound, the following may be of interest. Amongst other things, ARLA agents must have a dedicated ring fenced client account which is audited by a chartered accountant bi monthly. They must carry PI insurance and if one does do a moonlight then the tenants deposit is protected

Few tips for tenants as well: see a copy of your tenancy agreement in advance, make sure the amount of rent and deposit is correct, if you have been allowed to keep pets make sure this is on the agreement with the extra bond. Before you are checked into the property ask to see a copy of the Landlord's Gas safety certificate, and if it cannot be produced, DO NOT MOVE IN!

NoelW

01-03-2007, 08:43 AM

It is obvious that majority of Agents/trainers who promote the use of ARLA generally have a vested interested to do so..common sense really, but can anybody explain the collapse of the ARLA agent Kings Royal (the one that will not go away), sorry I did request this on another thread but nobody could answer as indeed contacting ARLA was met with a "no comment"

Incidentally, Exetercasteles...I hope you didn't use this franchised ARLA agent !

http://www.rla.org.uk/rla.exe/landlord/magazine/rpi/rpi_06jf_conman.htm

lorenzo

01-03-2007, 14:15 PM

It is obvious that majority of Agents/trainers who promote the use of ARLA generally have a vested interested to do so..common sense really, but can anybody explain the collapse of the ARLA agent Kings Royal (the one that will not go away), sorry I did request this on another thread but nobody could answer as indeed contacting ARLA was met with a "no comment"

Noel, Is there some sort of story/link about this?

Google is yielding nothing whatsoever.

Johnlondon

04-03-2007, 15:18 PM

Sorry new member but do recall about this firm

If you search Google you end up here on this very website, where there has been mention of this Arla agent before

http://www.landlordzone.co.uk/forums/showthread.php?t=482&page=2&highlight=kings+royal

But the link to the Southern Private Landlords Association has now gone down; this was basically that was in the national press.

Landlords and tenants were having problems receiving payments from ARLA registered agent Kings Royal (of Sussex). ARLA was contacted and stated that they had written to the defaulting Agent requesting accounts and explanations which where not forthcoming, so as they now had breached ARLA rules, they (ARLA) simply withdrew membership and effectively just stuck two fingers at from the whole messy episode. It was only after lots of outcry at ARLA that they decided to changes thier membership requirement, So I can see myself that with all the pro ARLA ranting on this site you are going to upset some!

I can't believe this "ARLA agents must have a dedicated ring fenced client account which is audited by a chartered accountant bi monthly". how much does this cost then Chartered Accountants being say £150 min a hour? £500 a go..so say £12,000 a year, does being a member of ARLA warrant that..I doubt it very much!

Could we have a ARLA member comment on this ?

MrLandlord

07-03-2007, 11:25 AM

I have been running a family business letting company in East Sussex for 20 years.

My wife works from home doing all the book-keeping & I do all the hard work in the office. ;)

It is large enough to provide a good income, yet small enough not to cause too many problems.

In all this time I have never felt the need to join any organisations like ARLA, as all my deposits are kept in a seperate account backed up by indemnity insurance.

I do find these forums extremely informative & peruse them on a regular basis.

jeffrey

07-03-2007, 12:33 PM

So at least someone actually reads all this stuff that we post. Judging by the repetition of FAQs [perhaps the Editor's new FAQ facility might staunch the flow], many new posters don't bother researching at all but just plunge in and ask again- and again and again.

Tiggy

27-03-2007, 13:15 PM

I am also an agent - only just discovered this site but its great to have somewhere to ask questions and get feedback. Will be a regular browser/user from now on. I am a member of ARLA but the office is not a member (due to high fees) we only manage around 100 properties at the moment. We are also members of NAEA and I am about to start doing the Technical Award and intend to do the diploma in due course.

CPSHomes

07-04-2007, 12:51 PM

I have been working for a number of Cardiff letting agents for the pass few years. Supposedly we have the highest number of unlicensed agents within the UK. Most large agents are not registered but still provide a high service. There are exceptions like Yeoman Edwards, going bankrupt owing monies to LL's or Hobsons still running, paying LL's after 6 months of a let. There should be more regulation within this industry, but just be wise when meeting agents. Meet at there offices, see how many staff are running the maintenance etc - get to know how they run, an unprofessional company will blag allot, a professional agent will supply facts and be more realistic.