Research and interview
Start by researching letting agents in your area. Look for recommendations from other landlords or property owners. You could also interview potential agents to understand their experience, services, and fees. Ask for references to gauge their track record.
Are they a member of a trade or professional body?
It is a good idea to use an agency who are members of a trade or professional body such as ARLA Propertymark (formally the Association of Residential Letting Agents) or safeagent (formerly the National Approved Letting Scheme) because they should be following codes of professional conduct and have proper guarantees in place to protect landlord and tenant monies.
Are they a member of a Redress scheme?
Letting and managing agents are required to be a member of a redress scheme. The purpose of these schemes is to deal with complaints made by tenants and landlords about agents.
This gives both landlords and tenants the right to independent redress if their agent cannot resolve a complaint to their satisfaction.
This means that anyone who feels they get a poor deal from their letting agent will be able to take their complaint to a redress scheme.
You can use this tool to check whether the agent you are considering is part of a redress scheme.
Are they a member of a client money protection scheme?
A reputable and professional letting agency will be able to demonstrate that it belongs to a Client Money Protection scheme. In the extremely rare event of a fraud, the landlord and tenant will be reimbursed for any loss. All landlord and tenant money should be held in a Client Account, separate from the letting agent’s general bank account. Ask for confirmation that this exists.
Fees
Letting agents are required to share any fees they charge so both landlords and tenants are aware of the costs associated with renting through them. It’s important to note that some fees charged to tenants have been banned under the Tenant Fees Act 2019. Guidance for letting agents and landlords regarding the Tenant Fees Act is available here
Written agreement
Have a written agreement in place that outlines the services they will provide, their fees, and the terms of the contract. Details could include tenant screening, property management and maintenance responsibilities. This agreement serves as a legal document to protect both parties.
Tenancy deposit protection
Law requires all landlords and agents to put tenants’ deposits in a government-approved tenancy deposit protection scheme. Depending on the level of service you opt for, it is likely that your agent will deal with matters concerning the deposit, which is held by the agent on behalf of the landlord as a safeguard against damage to the property by the tenant. Ask the agent for the details of the scheme they use.
