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| WEDNESDAY 4TH MAY 2005 |
 LANDLORDS
REMINDED TO VET AGENTS & TENANTS
Every landlord knows the importance of vetting tenants before
letting their property to them. Just as crucial – but
often overlooked - is vetting the agent to whom you are entrusting
your investment.
With rental demand continuing to grow across the South East,
many agents are finding themselves short of properties to
offer the high number of tenants registering with them. As
a result, some are becoming desperate to gain instructions
from landlords and are resorting to tactics such as discounting
fees, over-inflated rental valuations, and even poaching
the clients of other agents.
This means landlords face the danger of choosing an agent
for the wrong reasons, which could put their investment in
jeopardy, says Leaders, the UK’s largest independent
letting specialist.
"Choosing the wrong agent can have dire consequences
for landlords, including huge legal expenses, loss of rent,
long void periods, loss of tenant’s deposit and penalties
for not complying with legislation," said Paul Weller,
joint managing director of Leaders.
"By contrast," said Mr Weller, "the right
letting agent can maximise your chances of enjoying a trouble-free
and profitable let and give you the confidence of knowing
that everything is being looked after legally and reliably
on your behalf. Consulting a professional, experienced and
trustworthy letting agent is often the key to a successful
investment."
To help landlords, Leaders, which has been specialising
in lettings for 22 years, highlights the most vital points
to consider when choosing an agent to let and/or manage your
property.
RLA Membership
Only consider an agent that is a fully bonded member of
the Association of Residential Letting Agents (ARLA), so
you can be sure they will give trustworthy advice, hold professional
indemnity insurance, have a minimum of two years lettings
experience, and above all, comply with ARLA’s strict
rules on holding deposits and rent safely on your behalf.
Fees
Each agent has their own scale of charges, usually based
on a percentage of the annual rent. But be warned, the cheapest
option is not always the best; you get what you pay for in
terms of service and discounted fees should be treated with
caution. When making comparisons between agents, ask for
a list of all charges, what they relate to, and the total
amount payable for your specific tenancy. Make sure there
are no hidden charges.
Expertise
Choose an agent that specialises in lettings, with many
years of experience in the industry. Staff should be ARLA
trained with an excellent understanding of your local market.
They should also be completely impartial; never take the
advice of an agent who is also selling you a property.
Also, be wary of high rental valuations; some less scrupulous
agents may exaggerate the figures in order to win your instruction,
in which case you could lose out on rental income whilst
your property remains vacant because it is too highly priced.
Professionalism and Reputation
Choose a well-known agent with a good reputation - they
will not have achieved their good name by default - and don’t
hesitate to seek recommendations from other clients. Look
also for friendly, helpful staff; clear and well-presented
literature; a well-maintained website; comprehensive marketing;
and an organised office.
Tenant Vetting
The agent should carry out stringent checks on all prospective
tenants, including bad debt history, previous address details;
salary details; an employer’s reference, and previous
landlord’s reference, if applicable.
Tenancy Agreements
Check that the agent’s Tenancy Agreements comply with
the Housing Act (or contract law if it is a company let and/or
a let with a rental value of over £25,000) and with
the Office of Fair Trading recommendations. An experienced
agent will incorporate clauses to cover any potential problem
areas that have been encountered in the past.
Property Management
Choose an agent with well-trained Property Managers who
have access to reliable, efficient and reasonably priced
contractors.
Complying with the Law
With more than twenty different regulations, Acts and rules
that landlords must abide by - and recent changes to the
Housing Act (2004) allowing Ministers to introduce further
regulations without reverting to the House of Commons - it
is now more important than ever that you and your letting
agent keep up to date with legislation affecting your investment.
Make sure your agent has the resources in place to stay
informed about legislative changes in order to protect your
interests and the safety of your tenants. (You can download
a FREE copy of The Knowledge – a unique 8-page document
published by Leaders outlining all the legislation relevant
to lettings – from www.leaders.co.uk)
Leaders are fully bonded members of ARLA and have built
their reputation on providing a friendly, reliable and professional
service. They have remained the first choice for thousands
of landlords and tenants across Sussex, Surrey and Hampshire
since they were established in 1983.
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