Finding a good agent

If you've never used a letting agent before, the task of finding a decent one can seem extremely daunting. Metropolitan and suburban areas in particular are awash with agents all competing for your business.

As with most things, word-of-mouth is the best way to find a reputable agent. Start in the area local to your property and ask other landlords if they can recommend a good agent. It's also a good idea to drive around the area, keeping an eye out for advertising boards outside properties that read 'To Let', or better still 'Let By'. Make a note of the agents with the most boards.

Browse the web. Most established agents will have their own websites, and many are linked to nationwide sites dedicated to the property market.

The Association of Residential Letting Agents ARLA has a database of member agents, searchable by area. Using an ARLA agent is highly recommended. Although anyone can set up as a letting agent without any qualifications or experience, ARLA ensures that its members have basic industry qualifications. It also requires them to comply with a stringent code of practice. All members are bonded, so that if a member does fold, owing money to clients, those clients can claim their money back. Members are also required to have professional indemnity insurance and procedures for dealing with complaints.

Many letting agents work alongside estate agents, who deal with property sales, based in the same office. While it can seem reassuring to go with a large agency, particularly if they are part of a recognised brand, some agents suggest clients receive a better service from specialist letting agents. Some estate agents only have one desk dedicated to lettings and see it as a side business, preferring to concentrate on sales. Estate agents deal who mainly in property sales are used to short-term relationships with their clients, who they will probably never see again once the sale is completed. They might not have the experience to offer quality, long-term, customer care needed in lettings.

What you should look for when choosing an agent

The most important thing is to shop around and ask lots of questions. Make sure you are clear on their charging structure, what is included in the fees and what isn't. Most agents charge a percentage of the monthly rent as the lettings fee – 10% for the first year is standard. Sometimes this will include a fee for collecting the rent, but often rent collection is charged on top, as is the case with management fees (around 5% of the monthly rent).

Ask the agent how often they let out properties in your area. Go for an agent that has a lot of experience letting out your type of property in your area. Ask if they have an extensive client list – both landlords and tenants. Perhaps they can put you in touch with a landlord who has used their services.

You should also ask what type of tenants they typically let to. If you are marketing your property as a four-bed, luxury, family home and want it to be well cared for, you don't want the agent showing the property to party-loving students. They should have a history of letting to reliable, trustworthy people on a long-term basis. You want your tenants to pay their rent on time on a regular basis and stay in the property as long as possible.

You should also ask how the agent vets tenants. Some will do a full credit check, others simply ask for copies of bank statements or personal references.

Ask the agent how they intend to market the property. Small agents with limited resources might simply put a sign up outside the property and a small ad in their shop window. Bigger companies might charge a slightly higher rate, but they will have the resources to advertise in the press, which will reach more people.

Ask if the agent can provide rent guarantee and legal expenses cover. This type of insurance ensures you will be compensated if a tenant defaults on their rent and will also cover expenses for legal action you take to evict them. Some agents offer this cover for free.

Above all, a good agent is trustworthy. They should be happy to answer all your questions and be upfront about their fees, services and procedures. All the paperwork should be transparent and easy to understand. For standard lets, they should use a model of the Assured Shorthold Tenancy agreement, or something based on it. This agreement is flexible and straightforward and is recommended by ARLA. Any terms of the agreement that are not standard should be explained clearly.

Remember, there is no need to stick to just one agent. If you feel there is more than one that could fulfil your requirements, use them all. In general, you should not have to pay any fees until the property has been let, but check this with each agent.