Letting Agencies
What can letting agencies charge for?
Most letting agencies opt to charge landlords for their services, and then
offer a free service to tenants. However, before you sign up with an
agency, find out whether you'll be expected to pay any extra charges on top
of rent.
Once they have found you a property, letting agencies can charge you an
administration or finding fee (this may be up to two week's rent). They can
also ask you to sign an agreement promising to pay the fee once they have
found you a property.
The agency's fee can cover things such as checking references, arranging an
inventory and making copies of the lease - ask the agency exactly what their
fee covers. Remember, by law your landlord has to give you a written
tenancy agreement, so the agency cannot charge you for that.
If you think the agency is charging too much (for example, more than two
week's rent), get advice: if the charge is excessive, it could be considered
to be an illegal premium. You may be able to take the agency to the small
claims court to get the sum of money back.
How do I find a letting agency?
Don't go with the first letting agency you find: shop around. Make sure any
agency you choose is a member of the Association of Residential Letting
Agents (ARLA) or accredited by the National Approved Letting Scheme
(NALS), and that it is registered with the council.
You can find letting agencies listed in the Yellow Pages and on the NALS
website. You can also register online with all the letting agencies in your
area at the Pastures New property website.
Legal liability
Although the letting agency may be responsible for the day-to-day
maintenance of your tenancy, such as rent and repairs, your contract is with
your landlord. For that reason, your landlord's name and address must
appear on your tenancy agreement.
Any legal action arising from your tenancy (for example, over the return of
your deposit) would be raised against your landlord, not the letting agency.
In particular, your landlord is legally responsible for ensuring that all safety
regulations concerning furniture, gas and electrical installations and
appliances and smoke alarms are met. Landlords can be prosecuted if they
don't comply with safety regulations.