One of the biggest challenges for landlords who self-manage is staying up to date with the law. There are over 400 separate rules and regulations and they can be updated or added to at any time - sometimes with very little notice or publicity.
For instance, during the first couple of years of the pandemic, there were around 50 rule changes! Although most of these were temporary, some were permanent - such as the amendments to right to rent checks.
In October, new regulations for carbon monoxide and smoke alarms come into force and now that the Government’s White Paper on rental reform has been published, further major changes are on the horizon for the entire lettings industry. Current proposals include the scrapping of Section 21 and the introduction of periodic tenancies to replace Assured Shorthold Tenancies (ASTs).
And it’s not just about knowing when laws change - you also need to understand whether and how they apply to you and your property – and this is where having a managing agent can really make your life easier.
So how do you make sure you choose the right agent?
Many people are surprised to learn that letting agents and property managers in England aren’t regulated. In Scotland they need to be registered and in Wales they’re required to be licensed, and in both countries they have to undergo training and comply with a Code of Practice. But with no such legal requirements for letting agents in England, how do you know which ones are up to scratch?
To help you, here’s a run-down of what to look for:
Legal requirements in order to let and manage properties
By law, letting agents must have:
- Membership of a government-approved redress scheme:
a. The Property Ombudsman – of which Your Move is a member, or
b. The Property Redress Scheme.
These are independent third parties that will investigate complaints made against agents and property managers that can’t be resolved directly by a landlord or tenant.
Agents or property managers who don’t comply could be fined £5,000, with further penalties if they continue to fail to comply.
One of the requirements for membership is that the agents have professional indemnity insurance. This helps to ensure their costs are covered if any of their clients (e.g. you, as a landlord) take legal action and claim financial compensation for bad advice or some other mistake.
- Client money protection (CMP). This is a type of insurance policy that protects any landlord or tenant monies held by an agent, such as rent or property maintenance funds. If the agent goes bust or misappropriates any money, the CMP scheme should cover you.
What qualifications or memberships should a professional agent have?
Although there’s no mandatory regulation for letting agents, the industry does have several self-regulating bodies:
- Propertymark is the leading industry body that sets professional standards for letting agents. It was launched in 2017, combining ARLA, NAEA, NAVA, ICBA and APIP into a single brand. Member agents must work to a code of conduct and benefit from legal support and ongoing training and development.
The three other main bodies are:
- UK Association of Letting Agents (UKALA)
- Safeagent (formerly the National Approved Lettings Scheme)
- The Royal Institution of Chartered Surveyors (RICS)
Any professional agent will be a member of one of these organisations.
What other things should a good agent offer?
Most professional agents these days have their own landlord portals, where you can log in and stay up to date with everything that’s going on with your property. But they should also keep you up to date with what’s happening in the industry and any upcoming legal changes via a regular newsletter – like this one! Contact and communication is key to a successful relationship, so ask agents how they stay in touch with their landlords.
Having great knowledge of the local area is essential and a good agent will not only know about property prices and rents, but they’ll also be able to tell you things like:
- The demand in different parts of town
- Which roads certain tenants prefer
- What licensing schemes and planning requirements the local council has in place
- Even where you can pick up cost-effective furnishings for your rental!
So, find out how long the agent has been in business and how long the team members have lived and worked in the area.
Where can I find a professional agent?
If you use a Propertymark member agent, you can be confident they’re operating to the highest industry standard. You can search for agents in your area via their website.
Looking at listing sites like Rightmove and Zoopla, you’ll be able to see which agents are most successful in your area. Personal recommendations are also a reliable way of making sure you get great service, so check online reviews and ask other landlords in the area who they use. Just remember to check that an agent has these four key things before engaging them:
- Membership of a government-approved redress scheme
- Professional indemnity insurance
- Client money protection
- Membership of a self-regulating industry body.
A good agent can save you a huge amount of time and money – plus you’ll have peace of mind that your property and tenant are being looked after professionally. If you’d like to chat through our service or have any other questions about lettings and management, just get in touch with your local Your Move branch and one of the team will be very happy to help.
The Your Move Content Marketing Team
