Being in compliance to the laws and keeping current is the biggest hurdle to managing and renting properties. Over 400 different laws and regulations are in existence and many are being constantly revised or updated, often without notice.
Over 50 rules were changed in the initial two years following the epidemic, many of them were temporary However, certain rules, such as the changes to right-to-rent checks are still in place. After the release of the government’s White Paper on rental reform further important changes, including the removal of Section 21 and the AST as it is currently implemented and the introduction of periodic tenancies are coming up for the entire industry of letting. The new regulations on carbon monoxide and smoke alarms are set to go into the market in October.
Self-managing landlords might have a difficult time staying current with the latest legal developments due to the fact that they’re rarely well-publicized. It is also important to be conscious of any modifications in the law and understand what they could mean for you as well as your property. This is one of the main reasons in the reason why so many landlords choose to employ an agent to let out their properties and manage them as we invest a large amount of money training and support in order to stay current and be ahead of any new legislation. We also have procedures in place to streamline the everyday operations of renting and supervising tenants, which is very time-consuming for landlords on their own.
Even if you’re convinced of the benefits of employing agents, how do be sure you select the best one?
Although there aren’t any legal standards to agents working in England and Wales, agents who manage lettings as well as management companies who operate in Scotland and Wales must be licensed/registered and undergo specialized training and adhere to a Code of Practice. How do you know which ones are trustworthy?
Here’s our list of what you should be looking for in a reputable and knowledgeable agent who can assist you:
What is required in order to allow agents operate legally?
Legally let agents must be able to demonstrate the following qualities:
- Participating in a reparations program which has been approved by the government. This will ensure that in the event that tenants or landlords are not able to resolve a dispute with the property management or an agent directly, they can seek out an impartial third party to examine the situation. There is the Property Ombudsman, of which Reeds Rains is a member as well as the Property Redress Scheme are both recognised programs within England as well as Wales. Property managers or agents who are not members of one of these groups could face a PS5,000 fine along with additional penalties in the event of continued violations of the laws.
Be aware that having insurance for professional indemnity is a prerequisite for membership of agents. That means, the expenses of the agent are insured in the event one of their clients decides to sue and seek damages in the amount of incorrect advice or any other mistakes. As a result the landlord are legally entitled to recover any amount due to you.
- Protection of the customer’s money (CMP). This is basically an insurance policy that protects any assets your agent manages for you, which includes rental payments or property maintenance. This CMP system will pay you in the event that they fail to steal money.
Even though these are legal requirements however, there are some agents who do not have the qualifications mentioned above, so you should verify them for yourself to avoid going out of pocket, getting poor service, or with no options to seek recourse.
What qualifications or affiliations should an agent with professional status have?
A reputable company should be a member of an industry group that is professional self-policing groups in the lettings sector.
- The leading organization that creates standards for letting agents in the market is known as Property mark. It was established in 2017 and combines all the brand names ARLA, NAEA, NAVA, ICBA, and APIP. Agents who are members must adhere to a code of ethics and undergo training and receive assistance by the law as well regularly educating themselves.
- The Royal Institution of Chartered Surveyors and Safe Agent (formerly it was the National Approved Lettings Scheme) and the UK Association of Letting Agents (UKALA) are the three other major organisations (RICS).
We are extremely pleased with offering the best service to landlords as well as the tenants we serve by being an ARLA Property mark member. Being a member guarantees of knowing that Property mark will investigate your complaint in the event of evidence that membership or conduct rules have been violated and the Property Ombudsman has failed to solve the issue.
What else is a good agent provide?
A good real estate agent in Coventry should be very knowledgeable about the neighborhood, not only in terms of the property’s value and rents, but also regards to things like what streets tenants are most interested in as well as what licensing programs and regulations for planning the council of the area has in place, as well as the best places to find affordable priced furniture to furnish your new home. Find out from the agent how many years they have been in operation , and also how long its staff have been in the area.
Most reputable agents also have portals for landlords, where you can login and stay up on all the activities of your property. They must also send out a periodic newsletter, such as this one to inform you of the latest developments in business and any upcoming changes to the law. Therefore, ask how they communicate with directly with landlords.
How can I find an honest agent?
asking other landlords in the area who they work with and reviewing reviews online are two ways to make sure you get the best possible service since personal recommendations are usually the most reliable. Find out which agents are most effective in your region by checking out listing websites such as Right move and Zoopla.
Keep in mind that you can be certain you are hiring a Property mark agent member is up at the top of the line when you employ them. On their website, you can search for agents near you.
A knowledgeable agent can save you some money and time , while providing peace of mind that your home and tenant are in good hands.
