Every landlord knows the importance of vetting tenants before letting their property to them. Just as crucial – but often overlooked - is vetting the agent to whom you are entrusting your investment.

With rental demand continuing to grow across the South East, many agents are finding themselves short of properties to offer the high number of tenants registering with them. As a result, some are becoming desperate to gain instructions from landlords and are resorting to tactics such as discounting fees, over-inflated rental valuations, and even poaching the clients of other agents.

This means landlords face the danger of choosing an agent for the wrong reasons, which could put their investment in jeopardy, says Leaders, the UK’s largest independent letting specialist.

"Choosing the wrong agent can have dire consequences for landlords, including huge legal expenses, loss of rent, long void periods, loss of tenant’s deposit and penalties for not complying with legislation," said Paul Weller, joint managing director of Leaders.

"By contrast," said Mr Weller, "the right letting agent can maximise your chances of enjoying a trouble-free and profitable let and give you the confidence of knowing that everything is being looked after legally and reliably on your behalf. Consulting a professional, experienced and trustworthy letting agent is often the key to a successful investment."

To help landlords, Leaders, which has been specialising in lettings for 22 years, highlights the most vital points to consider when choosing an agent to let and/or manage your property.

ARLA Membership

Only consider an agent that is a fully bonded member of the Association of Residential Letting Agents (ARLA), so you can be sure they will give trustworthy advice, hold professional indemnity insurance, have a minimum of two years lettings experience, and above all, comply with ARLA’s strict rules on holding deposits and rent safely on your behalf.

Fees

Each agent has their own scale of charges, usually based on a percentage of the annual rent. But be warned, the cheapest option is not always the best; you get what you pay for in terms of service and discounted fees should be treated with caution. When making comparisons between agents, ask for a list of all charges, what they relate to, and the total amount payable for your specific tenancy. Make sure there are no hidden charges.

Expertise

Choose an agent that specialises in lettings, with many years of experience in the industry. Staff should be ARLA trained with an excellent understanding of your local market. They should also be completely impartial; never take the advice of an agent who is also selling you a property.

Also, be wary of high rental valuations; some less scrupulous agents may exaggerate the figures in order to win your instruction, in which case you could lose out on rental income whilst your property remains vacant because it is too highly priced.

Professionalism and Reputation

Choose a well-known agent with a good reputation - they will not have achieved their good name by default - and don’t hesitate to seek recommendations from other clients. Look also for friendly, helpful staff; clear and well-presented literature; a well-maintained website; comprehensive marketing; and an organised office.

Tenant Vetting

The agent should carry out stringent checks on all prospective tenants, including bad debt history, previous address details; salary details; an employer’s reference, and previous landlord’s reference, if applicable.

Tenancy Agreements

Check that the agent’s Tenancy Agreements comply with the Housing Act (or contract law if it is a company let and/or a let with a rental value of over £25,000) and with the Office of Fair Trading recommendations. An experienced agent will incorporate clauses to cover any potential problem areas that have been encountered in the past.

Property Management

Choose an agent with well-trained Property Managers who have access to reliable, efficient and reasonably priced contractors.

Complying with the Law

With more than twenty different regulations, Acts and rules that landlords must abide by - and recent changes to the Housing Act (2004) allowing Ministers to introduce further regulations without reverting to the House of Commons - it is now more important than ever that you and your letting agent keep up to date with legislation affecting your investment.

Make sure your agent has the resources in place to stay informed about legislative changes in order to protect your interests and the safety of your tenants. (You can download a FREE copy of The Knowledge – a unique 8-page document published by Leaders outlining all the legislation relevant to lettings – from www.leaders.co.uk)

Leaders are fully bonded members of ARLA and have built their reputation on providing a friendly, reliable and professional service. They have remained the first choice for thousands of landlords and tenants across Sussex, Surrey and Hampshire since they were established in 1983.