Choosing the right letting agent is a significant decision for any landlord. While a friendly face and a promising valuation are important, the true foundation of your partnership lies within the agent's Terms of Business. This legally binding document dictates everything from fees to termination clauses, and a thorough review can save you considerable stress and expense down the line. At Greater London Properties, we believe in transparency and empowering our landlords, which is why we've put together this essential checklist.

Unpacking Fees and Hidden Charges

One of the most common pitfalls for landlords is being lured by a seemingly low headline fee, only to discover a raft of additional, undisclosed costs later. Some agents might quote a competitive management fee but then add charges for tenancy renewals, inventory checks, professional photography, or even arranging repairs. Always ask for a comprehensive breakdown of all potential costs associated with letting your property, from initial marketing to the end of a tenancy. A truly transparent agent will provide this without hesitation. Remember, the lowest fee upfront doesn't always equate to the lowest cost overall.

Understanding Contract Length and Lock-in Periods

Be wary of lengthy, restrictive contract terms. Some agents impose lock-in periods of 26 weeks or even longer, meaning you are tied to them regardless of their performance. This can be particularly frustrating if you are dissatisfied with the service or if your property remains unlet for an extended period.

Clarifying Liability and Termination Clauses

It's vital to understand your obligations if you decide to switch agents. Some contracts stipulate that you still owe a fee to the original agent even if they didn't find a tenant, or if a tenant they introduced eventually moves in after your contract has ended with them. Ensure the terms clearly state that you are only liable for fees for services rendered and successful tenancies secured by that specific agent during their instruction period. Furthermore, examine the termination clause carefully. Look out for excessive termination costs or unreasonably long notice periods, such as two or three months, after the initial fixed term. You should have the flexibility to move on if the service isn't meeting your expectations.

Scrutinising Contractor Usage and Commissions

Many agents have a network of preferred contractors for maintenance and repairs. While this can be convenient, it's crucial to check if you are forced to use their contractors exclusively. Some agents may also receive a commission from these contractors, which could inflate your repair costs. Always ensure your Terms of Business grant you the right to obtain multiple quotes for work and to use your own trusted tradespeople if you prefer. Transparency around contractor relationships is a hallmark of an authentic and accountable agent.

Recognising Red Flags in an Approach

Beyond the contract specifics, certain behaviours can signal a less-than-ideal partnership:

• Unrealistically Low Fees: As mentioned, a fee that seems too good to be true often comes with hidden costs, poor service, or indicates a lack of negotiation skill if the agent dropped their fee too easily.
• Overpricing Your Property: Some agents will tactically overvalue your property just to win your instruction, only to push for quick price reductions once it's on the market. Make sure your valuation is based on market data, ensuring your property is priced competitively from the outset.

At Greater London Properties, our values of being Accountable, Ambitious, Approachable, and Authentic guide every interaction. We offer a transparent service with no hidden charges and no restrictive lock-ins. We believe in building trust through honesty and clarity. We encourage you to ask every question you have, ensuring you feel completely comfortable and informed before entrusting us with your property.

As always we are here to answer any questions you may have.

Best Wishes

📸 @greaterlondonproperties |