Double agents
Landlord and property author David Lawrenson says that with some estate agents earning extra cash in the letting market, it’s getting harder to spot a good agent
David Lawrenson
“Your agent should be familiar with tenancy deposit schemes, gas and electrical safety and Energy Performance Certificates.”
As buying or selling property becomes harder and more people opt to rent out their homes instead, or to become tenants, many estate agencies have decided to switch to letting property to bring in much needed extra income.
Landlords may be tempted to go with the letting agent that charges the lowest fees, or one that claims he can get the highest rent. However, this could prove an expensive mistake in the long run.
Ian Potter, Head of Operations at the Association of Residential Letting Agents (ARLA) says: “The lettings industry is actually more involved than sales and it is very difficult for a sales estate agent to just change to lettings. The computer systems and knowledge have to be in place and they will need to know about break clauses, how company lets operate, inventories and HMOs – and that’s just for starters.”
Special agents
The best way to find an agent is to ask other landlords which ones they use. Then check if the agent is a member of a recognised trade association such as the Association of Residential Letting Agents (www.arla.co.uk), which has a code of practice for members and client money protection schemes in place.
Other bodies offering similar protection include The Royal Institution of Chartered Surveyors (www.rics.org) and the National Approved Lettings Scheme (www.nalscheme.co.uk). Landlords should check what protection the agent’s membership of a trade body gives them and if the agent is still a member.
Some good agents are not members of any trade body, making it even more important to check references and find out how long they have been in business.
Ask your letting agent what’s included in their fees — for example, some agencies offer a free inventory as part of their service while others charge extra for this. Ask to see a copy of an old inventory to check quality and detail.
Also, find out if they make extra charges for checking references, doing check-ins on move-in day, signing tenancy agreements or doing regular inspections.
Some agents offer free extras. For example, letting agent Brian Thorpe of Bright and Bright in Deal says if a tenant has impeccable references he can offer rent guarantee insurance free to landlords.
Knowing their stuff
A spokesman for the National Landlords Association says: “It’s critical the agent understands the importance of having proper references and an inventory done. The former will reduce the chances of ending up with a tenant from hell — one who won’t pay rent and who could take months to evict. And the latter will ensure that if the property is returned in a mess or with things damaged beyond normal wear and tear, you’ll be entitled to keep some or all the deposit to pay for it.”
As a basic minimum, your agent should be completely familiar with such things as tenancy deposit schemes, gas and electrical safety and the new Energy Performance Certificates.
They should know that within 14 days of taking the deposit on an assured shorthold tenancy in England and Wales, the tenant must have details of how and where the deposit is being protected, including the contact details of the landlord and what to do in the event of a dispute at end of tenancy. If they look blank about this go elsewhere.
If you have an upmarket property the agent should know that if annual rent is over £25,000, the tenant is a company or if you live in the property, an assured shorthold tenancy will be inappropriate.
If the agency is managing the rental and/or collecting the rent, find out how fast the rent will be passed on to you. Also, how do they deal with problems? Do they have their own network of maintenance people who can get a boiler fixed fast and will they refer to you or get a second opinion for expensive works?
“It’s critical the agent understands the importance of having proper references”
Questions to ask your agent
- Are they a member of a professional body and if so, what does that give you? Check the association’s website.
- Do they have a specially designated bank account to receive and hold client’s money separate from the office account and is there a client money protection bonding scheme in place?
- Are staff knowledgeable about legislation?
- Can they prove what rent they have achieved for properties like yours?
- Check their contract to see what’s included in the service and what costs extra.
- Do they use a credit referencing system to check out tenants’ ability to pay the rent and does it check for County Court Judgments?
- Do they offer you a Tenancy Deposit Scheme and Rent Guarantee Service? Is there a charge for this?
- Do they seem ready to listen to you and follow your instructions about the type of tenant you want or don’t want?
