Letting agent

A letting agent is a United Kingdom term for a facilitator through which an agreement is made between a landlord and tenant for the rental of a residential property. In the UK the agreement between landlord and tenant is normally formalised by the signing of a tenancy agreement. A letting agency will normally charge a commission for their services, usually a percentage of the annual rent.

Letting agents will often operate under the umbrella of an Estate Agent due to the synergies that exists between the two professions, but there are many agents that deal exclusively with lettings.

Although there are two main types of renting, letting agents deal primarily with tenancies between private individuals and landlords.

Services and fees

Services offered by lettings agents usually break down in to three parts:

A renewal fee will normally be charged if the tenant extends or renews their tenancy. This tends to be at a slightly lower rate than the original introduction fee. Additional charges are often made for drawing up the Assured Shorthold Tenancy agreement and protecting the tenant’s deposit to comply with the Tenancy Deposit Scheme legislation. Renewal fees can vary in cost, form £30.00 to over £100.00.

An increasing number of letting agents are charging an ever-expanding range of fees, especially toward tenants. A typical breakdown of these fees is listed below -

Regulation

There are currently no statutory arrangements regarding the regulation of letting agents. Around half of UK lettings agents are currently self-regulated. The principle organisations for lettings agents are the Association of Residential Letting Agents (ARLA) and the Royal Institution of Chartered Surveyors (RICS). These have codes of practice and compliance controls which govern the activities of their members.

The English government also provides its own accrediting body for letting agents, this body is called NALS (National Assured Letting Scheme) . See http://www.nalscheme.co.uk/whatis.htm

In Scotland all landlords must be registered with the local authority. Whilst agents are not required to register, they are actively encouraged to do so.

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