Letting agents can be invaluable resources for landlords. If you don’t have the time or resources to devote to managing your properties or managing properties isn't your full-time job, agents offer the experience and efficiency needed to ensure that a property is managed properly and to the satisfaction of both landlord and tenant. If you’re a first-time landlord, having the support of an agent can help relieve the pressure of responsibility. But what should you be looking for in a letting agent?
Do they belong to a client money protection scheme?
A reputable letting agent should be able to demonstrate that they belong to a Client Money Protection scheme. This ensures that clients' money is protected. Remember – as a statutory requirement, all landlord and tenant money should be held in a Client Account which exists separately from the letting agent’s general bank account.
Are they a member of a professional body?
A good letting agent should be a member of a nationally recognised and approved body. Surprisingly (at the moment) there is no requirement for a letting agent to be regulated or trained to a certain level. That said, lots of agencies have voluntarily accepted regulation under a Code of Conduct and/or committed to ongoing training under a lettings industry specialist training body.
The main professional and/or training bodies to look out for are:
- The Association of Residential Letting Agents (ARLA Propertymark)
- National Approved Letting Scheme
- The Royal Institution of Chartered Surveyors (RICS)
- The National Association of Estate Agents (NAEA Propertymark)
- Guild of Letting and Management
Are they registered with an approved tenancy deposit scheme?
With a rent collection or fully managed service, letting agents are liable for matters concerning the security deposit that is paid at the start of the tenancy. As this money is held by the agent on behalf of the landlord, it must, by law, be registered with one of the following government-approved tenancy deposit schemes: Deposit Protection Service, MyDeposits or Tenancy Deposit Scheme. Ask your prospective agent for details of the scheme they use and for confirmation that the deposit has been registered.
Are they registered with a letting agent redress scheme?
The letting agent you use must be a member of one of three property redress schemes: The Property Ombudsman (TPO), The Property Redress Scheme or the Ombudsman Services Property Scheme. Letting agent redress schemes provide a free, independent service for resolving potential disputes between yourself and your agent. Through the scheme, letting agents must cooperate with any investigation and, if applicable, comply with any orders to pay you compensation, pay a fine or put something right.
How do they handle repairs and maintenance?
Every property inevitably needs some maintenance now and then. You should get confirmation that your letting agent will carry out regular inspections to ensure the tenant is keeping the property in good order
and to check if there are any issues. In the case of urgent problems, many agencies will have a list of contractors to use. They will then organise quotes and coordinate work up to a prearranged financial limit.
Are they organised when it comes to paperwork?
A professional lettings agency should be able to handle all the paperwork involved in a letting. They should be ready to take up references on new tenants, carry out credit checks, confirm the tenant’s employment details and check that the tenant has the right to rent in the UK. The agent will draw up the tenancy agreement and collate the required gas and electrical safety certificates. Agents can also obtain an Energy Performance Certificate (EPC) for the property. This must be given to any prospective tenant.
Do they have a good marketing strategy?
A letting agent must be able to effectively market your property. Most agents will have their own website or occasionally advertise in the local press. It’s also worth looking at the agencies’ online listings on websites such as Rightmove as well as the emails sent to the past and current rental database.
Do they screen tenants?
A letting agent should do their best to screen potential tenants. It is worth asking if the agency has a system for checking prospective tenants, focusing on the key areas of credit rating, past rental history and
current employment. It’s also worth asking an agent to outline the company’s rent collection policy and whether they enforce late fees. This could save you a lot of trouble down the line.
Can they demonstrate good knowledge of the local area?
It is essential that your agent has a good understanding of similar properties in your area as well as the rents that they are achieving. This will ensure that you get the best rental price for your property - the
letting agent will know what the going rate is and be able to filter and negotiate with potential tenants to secure that amount for you.
Do they have a comprehensive reporting system in place?
Having a clear line of communication between landlord and tenant is important, especially when it comes to a fully managed service. Look to use a letting agent who offers a clear level of reporting as part of their fully managed service. Implementing the right repairs and maintenance software allows property managers to make their tenants feel as though they have a direct line of communication on a 24/7 basis, which means a massive improvement in what can be a tense relationship. As well as streamlining the repairs process, repairs and maintenance software offers a written record of every interaction between tenant, agent and landlord, providing protection in case of any issue.
Anyone looking for advice on renting their property or managing their portfolio should get in touch with Spencer Harvey Estate Agents on 0161 480 8888. You can also arrange a free instant online valuation by visiting https://valuation.spencerharvey.co.uk