Landlord Law Services

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Tessa’s Ten Top Tips for Landlords on Letting Agents

  1. Be careful when choosing a letting agent. You can be legally bound by things they do on your behalf, sometimes even where they have disregarded your instructions. Set out their authority clearly in writing, including when they must obtain your approval.
  2. Ideally, choose an agent who belongs to a professional organisation such as ARLA Propertymark or the Royal Institution of Chartered Surveyors (RICS). Verify their membership directly with the organisation.
  3. Check that they are a member of an approved redress scheme – this is mandatory.  The scheme logo should be on their website, in their office and on their stationery.  You can double-check on the Redress Scheme website.  Do not use an agent who is not a member of a scheme.
  4. Check that the agent clearly displays their fees on their website and in their offices. If they will hold money on your behalf, check that they belong to an appropriate client money protection scheme. Ask to see their membership certificate and verify it with the scheme before handing over money.
  5. Be aware that there are many fraudulent and criminal letting agents around, particularly in large cities.  So be very careful, and watch out for anything suspicious.  If you use one of these criminal firms you could suffer heavy losses.
  6. If you are choosing a letting agent – decide first what you want them to do.  Is it just to find a tenant or do you want the agents to manage the property for you?  Will you want them to deal with protection of the deposit, and the Gas Safety, electrical safety inspections and reports and Energy Performance Certificates?  Compliance with the furniture and other regulations? Will they carry out inspections during the tenancy?  Deal with minor repairs? Make a list and discuss this with the agents you consider. Agree in writing who will do each task and how you will receive evidence that it has been completed.
  7. Check the agency agreement VERY carefully, particularly if you are contracting through a limited company, which cannot claim consumer protection under the Consumer Rights Act 2015. Check fees, termination provisions and any commission payable while the tenant remains, including after you stop using the agent.
  8. Make sure your agents agree to show you copies of the credit reports, references and other relevant referencing material obtained for prospective tenants. Make this a condition of their appointment. Data protection law does NOT prohibit sharing this material with you: agents should arrange their referencing procedures to allow lawful sharing and should not use “GDPR” as a blanket excuse for refusing access. Withholding the evidence can conceal inadequate checks. After all, if you cannot see the material, how can you be sure they have checked prospective tenants thoroughly?
  9. If there are several agents who appear equally competent, consider using the one which has been in the area longest.  Do not choose an agent solely on price.  The cheapest agent is usually not the best.
  10. Keep copies of the agency agreement and all correspondence, and emails with the agents and make a written note of all telephone calls, particularly if these are about the management of the property and their work for you.  Ensure that you are also provided with copies of signed tenancy agreements and other paperwork (such as certificates and receipts for work done) in respect of the property.  It is your property and you are entitled to this!

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