RLA : RPI : Briefing: Letting agencies

News from the Residential Property Investor, the bi-monthly magazine for RLA members

other artilces from the August / September 2000 issue

Briefing: Letting agencies - August / September 2000

If you put your property in the hands of a letting agent you need to know just what standard of care he or she should exercise.

Before taking on an agent you should check that he or she has kept up to date and can show you proof of training or suitable accreditation such as membership of the National Approved Letting Scheme. Once in place, the relationship between a landlord and his or her agent is defined by contract law. You should have a written agreement which specifies, among other things:

the type of tenant you want (for example, no DSS);
the target rent;
the amount that can be spent by the agent on repairs without first referring back to you;
how frequently the agent will inspect the property;
what steps the agency will take if there is a breach of the tenancy agreement;
the charges that may be made for various professional services;
who will hold the deposit;
when rent will be forwarded to you;
whether the agency has the right to extend or renew the tenancy; and
how long the agency agreement is to last.

In return for your fee, you have the right to expect all persons holding themselves out to be professional letting agents to exercise due care and diligence. There is a fiduciary relationship between landlord and agent, which means trust is a two way thing. You can expect the agent to account accurately for money received on your account. But the agent can expect you to maintain the property and deal with repairs promptly.

You can expect all tenancy agreements drawn up and notices issued by the agent to comply with the law and be correct. If they do not or are not, and as a consequence you suffer loss of rent, you can sue the agent for recovery.

If either of you breach the trust implicit in the relationship - for example by the agent dipping his or her fingers in your till, or by your refusal to maintain your property - each party is entitled to resign the agency without giving notice.

As with any professional service provider, you are entitled to expect the agent to exercise 'due care and diligence' and undertake his or her duties efficiently and professionally. If this is not the case and you suffer loss as a result you are entitled to sue for negligence and recover damages.

other artilces from the August / September 2000 issue