Guide to choosing a letting agent

Updated: January 2025

The central performer in any buy-to-let business is the tenant. Tenants generate the income on which the success of the whole business turns. However, this only happens when your property is occupied by tenants who:

• pay their rent on time and in full;
• treat the property with care and respect, minimising the need for repairs;
• stay long enough to avoid costly void periods when no rent is received.

While some landlords may attempt to achieve these objectives independently, professional letting agents are typically available to manage every aspect of your contract with tenants. From finding tenants and conducting reference checks to drafting tenancy agreements, arranging deposits, and handling ongoing property management, letting agents can take on much of the workload. This allows you to focus on other priorities.

Depending on the level of service you opt for, letting agents can even take responsibility for repairs and maintenance. Their expertise can play a pivotal role in the success of your buy-to-let enterprise, making the selection of a letting agent a crucial decision.

This guide explores key questions and considerations when choosing and working with a letting agent, ensuring you secure the most suitable partner for your rental property needs.

Letting agent or DIY?

One of the aspects likely to have attracted many an investor into the buy to let market is the apparent ease of taking on the role of landlord and the seemingly straight forward job that needs to be done.

How difficult is it going to be, after all, to let other people live in a property you’ve bought – or otherwise come into – and collect a rent from them each month for the privilege of their doing so?

The answer, of course, is that the job is likely to be considerably more complicated than that. It is likely to demand considerably more time and effort than you first imagined – and the cost of getting it wrong might be rather more expensive than you bargained for.

At the heart of the landlord’s role, of course, is a contractual relationship with those individuals relied upon to generate an income for any buy to let business – the tenants.

Finding tenants – ensuring that you have picked the most dependable when it comes to paying the rent and the most trustworthy when it comes to treating your property with respect – is the foundation on which the landlord tenant relationship is based.

As part of that relationship, you need to:

• draw up some form of formal contract between the two of you to agree the terms and conditions of the rental;
• draw up an inventory on the condition of the property and its contents;
• take a deposit from the tenants as security against any breakages or damage
• collect the rent each month;
• respond to tenants’ requests for attention and action on your part for the duration of the tenancy;
• ensure you meet all your legal obligations to your tenants.

This is a job you may indeed take on yourself – and the points mentioned above we will describe in a bit more detail – or it is one which you might choose to delegate to a professional. Let’s take a brief look at the two options:

DIY landlord responsibilities

• from the moment you take on the role of landlord, you also assume a raft of responsibilities and obligations – and your compliance may be a question of law or local regulation;

• a broad description of these responsibilities and obligations in England and Wales is contained on the official government website. There are different rules for landlords in Scotland and landlords in Northern Ireland;

• if you are going it alone on a DIY basis, you need to satisfy yourself that you have a clear understanding of each of these formal requirements and make sure that they are followed;

• when you know which side of the law you are standing, it is time to find those tenants who are going to be providing the income for your business by paying the rent by marketing your property;

• one way or another, this requires letting potential candidates know that you have the accommodation to let – you need to advertise its availability in other words;

• it means you need to design and write the copy for your advertising and then purchase the space in local newspapers, broadsheets for tenants, online listings, shop windows, or by word of mouth;

• showing prospective tenants around the property is a two-way process in which it is not only they who are inspecting the accommodation, but you who are interviewing them and trying to decide whether they are going to make reliable and trustworthy tenants;

• to support any decision you reach, you then need to make a number of background checks to test their likely reliability – usually by taking up references, preferably from previous landlords when these are available, and by evaluating their financial standing in order to pay the rent each month;

• when you are satisfied, you have to draw up a tenancy agreement which sets out clearly the terms and conditions on which you are letting the property – and which protects your own interests as the landlord;

• as security against any breakages or damage caused by your tenant you typically collect a deposit, which then needs to be deposited with an approved, independent third party for safe keeping. Our Guide to tenancies describes this in more detail;

• so that there is an agreed statement of the initial condition and contents of the let property, you have to draw up and conduct a detailed inventory of the premises;

• you arrange collection from your tenants of the rent due each month – or as often as the tenancy agreement requires;

• you may need to gain access to the property during the course of any tenancy, either to inspect its condition or to make repairs; and

• you have to be available to answer tenants’ queries about ongoing issues during the tenancy – especially with respect to organising repairs;

Using a letting agent

Quite reasonably alarmed by this – by no means exhaustive – list of things that must be done, many landlords decide to delegate responsibility by passing on much of the work to letting agents;

• whilst you remain responsible for compliance with the law and local regulations governing any tenancy, a letting agent is there to remind you of your obligations and to ensure that necessary measures are taken;

• critically, a letting agent’s professional judgment and experience of working in the area is likely to help you determine the maximum yet realistic rent you may ask for the property;

• the agent then usually takes on the responsibility for advertising the letting and finding suitable tenants;

• references are taken up and credit checks of prospective tenants are typically carried out by your letting agent, who also draws up the tenancy agreement and arranges for it to be signed;

• the agent receives any deposit and ensures that it is placed with an approved, independent third party – but it remains your responsibility as the landlord to ensure compliance with this legal requirement;

• your letting agent usually compiles and conducts the inventory when tenants move in – and again when they move out at the end of a tenancy;

• the agents serve as the first point of contact from any queries or requests for repairs that are raised by tenants occupying the property; and

• depending on the nature of your contract with the letting agents, they may also assume responsibility for arranging a schedule of maintenance and repairs and for organising any work which needs to be done during the course of a tenancy.

It is clear, therefore, that a letting agent’s duties and responsibilities may be comprehensive and far-reaching – so how do you go about finding one?

Finding a letting agent

On the face of it, finding a letting agent appears to pose no real problem – some have a shop front on your local high street and advertise quite extensively in the local press.

As the long list of responsibilities and duties typically taken on by a letting agent suggests, however, finding the most suitable, competent and experienced letting agent is likely to prove critical to the effective – and profitable – management of your buy to let business.

While it may be tempting to select an agent based on their visibility on the high street or online, a more thorough evaluation is essential.

Where to start

• Property research: Check the types of properties local agents manage. Do they align with your property’s profile?
• Recommendations: Seek advice from fellow landlords, bank managers, or accountants. They may have experience working with reputable agents.
• Accreditations: Look for membership in professional bodies such as SafeAgent or PropertyMark. In addition, and in anticipation of any dispute which might subsequently arise with your appointed agents, you may also want to choose one that is registered with the Property Ombudsman.

Questions to ask

When evaluating potential agents, consider:

• Rent valuation: How do they determine rent levels? Are their estimates backed by market data?
• Tenant screening: What is their process for vetting tenants?
• Marketing approach: How do they advertise properties? Are listings featured on major platforms like Rightmove and Zoopla?
• Inspections and inventories: How detailed are their inventories, and how often do they inspect properties?
• Fees: What are their charges, and are there additional costs for specific services?

Agree the terms

Once you’ve chosen a letting agent, formalise the agreement by clarifying the following:

• Services provided: Specify whether the contract covers tenant finding, full property management, or both.
• Fee structure: Confirm whether fees are fixed or a percentage of the rental income. Be aware of additional charges for services such as inventories or safety certifications.
• Contract duration: Understand the length of the agreement and any notice periods or cancellation fees.

Quick FAQs

What is a letting agent?

A letting agent is a professional who helps landlords to rent out their properties.

What services do letting agents offer?

Letting agents offer a range of services, including finding tenants, managing tenancy agreements, and property management.

How do I choose a letting agent?

When choosing a letting agent, it’s important to consider factors such as their accreditation, fees, location, and communication skills. You should also evaluate their tenant selection process and ensure that they comply with legal requirements. Ultimately, it’s important to choose a letting agent that you feel comfortable working with.

How do letting agent fees work?

Letting agent fees can vary, with some charging a fixed fee and others charging a percentage of the monthly rent. It’s important to understand the fees involved and factor them into your budget.

What is tenant selection?

Tenant selection is the process of finding and vetting tenants for a rental property. A letting agent should have a thorough tenant selection process in place to ensure that tenants are suitable and reliable.

Summary

Instructing a letting agent may take a lot of the weight off your shoulders when it comes to running a successful buy to let business.

Whenever you employ professional services such as this, however, it is important to establish just what you get for exactly how much you pay.

This guide has been aimed at helping you address just these questions.