How to find a letting agent
If you’re a landlord or tenant, you’ll probably need to work with a reliable letting agent. But not all letting agents are the same.
Many people aren’t aware of how some agents work to protect landlords and tenants. This week, we talk about what to look out for if you’re searching for a professional letting agent.
Protecting your money
This year, it became compulsory for all letting agents to protect the money they hold on behalf of tenants and landlords. From 1 April 2019, all agents need to belong to a government-approved Client Money Protection (CMP) scheme to safeguard these funds. The insurance scheme covers landlords and tenants if an agent ‘misappropriates’ the rent, deposit or other client funds.
The new legislation also means letting agents need to show they are handling clients’ money in the right way by:
1) Holding this money in a separate bank account to their operating funds
2) Having indemnity insurance so the money can be reclaimed if any employees commit fraud.
If you’re a tenant handing over a deposit, the agent must protect your money in one of three government-authorised tenancy deposit protection (TDP) schemes. If the agent doesn’t have CMP or fails to protect a tenant’s deposit, they are breaking the law and could be fined.
Stirling Ackroyd has been covered by CMP insurance through our membership of the Association of Residential Letting Agents (ARLA) – now known as ARLA Propertymark – for a long time.
However, if a letting agent is a member of ARLA Propertymark, they keep-up with the highest standards and commit to ongoing professional development – which benefits landlords and tenants. This includes regular training courses so members keep up-to-date with legislation.
Crucially, each letting agent also needs to do the following before they are allowed to become members:
There are some other membership bodies that provide similar peace of mind, such as the National Association of Estate Agents (now known as NAEA Propertymark – the sister company of ARLA Propertymark), the Royal Institution of Chartered Surveyors (RICS), the UK Association of Letting Agents (UKALA) and SAFEagent.
Check their service levels
Most letting agents offer different levels of service. This generally includes the following, but it’s worth talking about the options with your chosen agent:
Test their knowledge
There are hundreds of laws in the private-rented sector, so it’s well worth testing a letting agent’s knowledge. An agent should be fully aware of the compulsory legislation all landlords need to follow if they want to stay the right side of the law. These include:
Check their working procedures
There are a number of best practice procedures a professional letting agent should follow if they’re providing a high-quality level of service. These include:
Are they highly rated?
Nowadays, it’s much easier to find personal recommendations from tenants or landlords who have worked with a letting agent. Google is a great place to start for honest feedback. Also check out the agent’s social media channels and AllAgents.
Professional lettings agents should be happy to supply testimonials, or even put you in touch with current clients if you’d like a more detailed chat. Asking around the area will also help you gauge the agents that are really embedded within their local communities.
Speak to our team…
If you choose to work with Stirling Ackroyd, you can expect all of the above. If you’re searching for a professional letting agent that puts your needs first, as well as upholding all industry regulation and best practice, speak to one of our experts in branch now.