How to motivate your LA

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  • #16
    Originally posted by oaktree View Post
    Joint agency agreements are different the country over, around here we rarely see such things and its common to have more than one agent acting, generally there is no change to the commission but it may be different in your area.

    But agents being generally a suspicious lot - it goes with the job - I could see some turning down your offer if it was joint agency. Here's a scenario for you.

    Agents A & B are instructed and A finds you a tenant. He receives no commission for the first 3 months as agreed. At the end of the term the tenant moves out and marketing is resumed. This time both agents find a suitable tenant at the same time. You could go with A and pay him the double commission you agreed. Or would you go with agent B this time, having worked out that not only would you not have to pay A his double commission, but you could also get away with not paying B for the first 3 months?

    Most landlords will opt for agents B and save themselves 9 months worth of commission. Next year they would also engage agents C & D as well and drag more agents into the net replacing the ones who drop out through not being paid.

    Most agents would see the potential for that one coming.

    If you really believe the agent needs motovating then change the agent! or make the offer simpler, say, let it to a suitable tenant within 4 weeks and you'll give them a bonus.
    Oaktree, yes that would not be fair on the LA and I would expect them to spot that, in my OP I was thinking that in return for accepting my offer I would give them exclusive rights to manage my property, as you say it would not work for a multi agency set up.

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    • #17
      Originally posted by Phlash View Post
      If you want to give the LA a better chance, don't pay them 20%, just pay them under their normal terms but give them the nod to give generous discounts on the rental amount.
      Probably the most practical, or pay a 'bonus' at the end of the year. Thanks for your thoughts on this.

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      • #18
        Originally posted by jjlandlord View Post
        IMO, the only reasons to have a risk of such lengthy void periods are:
        1. The letting market in your area has collapsed
        2. The property is unattractive

        I don't think an agent would be able to help you there.
        It's true that from my initial research No.1 is looking like a big factor. The area I am looking at was extremely good for many years but the economic scene in the last few years means fewer potential tenants being transfered by the firm and thus (from what I can see) a surplus of properties available for rent.

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        • #19
          Originally posted by Losos View Post
          Probably the most practical, or pay a 'bonus' at the end of the year. Thanks for your thoughts on this.
          I disagree. A bonus may make the agent work harder, but not smarter.

          The smart action is to lower the rent, such that you get a tenant quicker. That is the best way to avoid the voids. If you're allocating funds to (the additional 10% fees) anyone in order to mitigate the risk of a void, don't give it to the agent, give it to the tenant.

          I'm an agent, and if you proposed 20% but wanted to keep the rent high, my thoughts would be that you may pay me more, but I'm working harder. The delay in getting tenants in also affects me. So, I'd ask for the discount to be given to the tenant to get them in quick, also giving you the choice of tenant rather than accepting the one person you find weeks later for the higher rent.
          I can take no responsibility for the use of any free comments given, any actions taken are the sole decision of the individual in question after consideration of my free comments.

          That also means I cannot share in any profits from any decisions made!

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          • #20
            Originally posted by Losos View Post

            Is it normal to have an 'exclusive' with your LA or is 'mult agency' the prefered norm for landlords???
            The preferred norm for many landlords (including me) is no agent at all.
            'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

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            • #21
              Originally posted by mind the gap View Post
              The preferred norm for many landlords (including me) is no agent at all.
              It's a bit like paying for a painter and decorator isn't it!
              I can take no responsibility for the use of any free comments given, any actions taken are the sole decision of the individual in question after consideration of my free comments.

              That also means I cannot share in any profits from any decisions made!

              Comment


              • #22
                Originally posted by mind the gap View Post
                The preferred norm for many landlords (including me) is no agent at all.
                MTG Perhaps I should have said that I spend most of my time out of the UK so using an LA on a full management contract is the only viable option, and although you are too polite to ask I am a UK Taxable person HMRC and I keep in regular contact

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                • #23
                  Originally posted by Phlash View Post
                  I disagree. A bonus may make the agent work harder, but not smarter.

                  The smart action is to lower the rent, such that you get a tenant quicker. That is the best way to avoid the voids. If you're allocating funds to (the additional 10% fees) anyone in order to mitigate the risk of a void, don't give it to the agent, give it to the tenant.

                  I'm an agent, and if you proposed 20% but wanted to keep the rent high, my thoughts would be that you may pay me more, but I'm working harder. The delay in getting tenants in also affects me. So, I'd ask for the discount to be given to the tenant to get them in quick, also giving you the choice of tenant rather than accepting the one person you find weeks later for the higher rent.
                  Phlash - thanks, I can see your logic, in two weeks I shall be sitting down with all the main LA's in my choosen area to discuss matters, should be interesting to get face to face with them.

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                  • #24
                    Originally posted by Losos View Post
                    MTG Perhaps I should have said that I spend most of my time out of the UK so using an LA on a full management contract is the only viable option, and although you are too polite to ask I am a UK Taxable person HMRC and I keep in regular contact
                    I live outside the UK year round. I visit once a year. I employ a letting agent to let the property but manage it myself. If you have a good handyman, plumber and electrician it is pretty easy to do. Keep in contact with the tenants and fix any problems asap.

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                    • #25
                      Originally posted by Phlash View Post
                      It's a bit like paying for a painter and decorator isn't it!
                      No, not really!

                      Unlike many agents, decorators do tend to know what they are doing and they make the world more beautiful.
                      'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

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                      • #26
                        Originally posted by mind the gap View Post
                        No, not really!

                        Unlike many agents, decorators do tend to know what they are doing and they make the world more beautiful.
                        The beautiful argument is a good one. Happy to bow out quietly...
                        I can take no responsibility for the use of any free comments given, any actions taken are the sole decision of the individual in question after consideration of my free comments.

                        That also means I cannot share in any profits from any decisions made!

                        Comment


                        • #27
                          How to motivate LA? Take them out to lunch once a yrar.

                          They'll be so surprised they'll tell you things... and may, just may, think of you first..

                          Cheap, worth a try, possibly tax deductible
                          I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

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                          • #28
                            Originally posted by theartfullodger View Post
                            How to motivate LA? Take them out to lunch once a yrar.

                            They'll be so surprised they'll tell you things... and may, just may, think of you first..

                            Cheap, worth a try, possibly tax deductible
                            Artful - Great idea and i like the tax deductable bit as well.

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