The Letting Partnership pays tribute to the industry for responding quickly to new legislation, which has been changing constantly throughout the pandemic, and for working so hard to allow many people to safely move home. Agents have a challenging job and should champion their hard work during such a difficult year.
House moves are still permitted in the latest lockdown and agents can continue to work as long as they follow the national guidance on moving home safely, due to the value the Government places on the property sector.
Operating safely means they must protect everyone, including staff, landlords, and potential tenants. This has presented them with fresh challenges which agents have bravely taken on.
The industry should stand proud as we head into 2021. Agents play a pivotal role in helping people to find a home, but we think sometimes the incredible service they provide can go unnoticed.
When landlords entrust their home to a letting agent, often it is a property where they have invested time and emotion and it’s frequently their biggest asset. So, when they turn to letting agents for help, it’s because they provide them with the reassurance that all rules and regulations are complied with and the knowledge that their investment is in safe hands.
Safety legislation affecting landlords
Handing over the keys to your home to a stranger can be the cause of immense stress and worry for some landlords and renting out a property always poses a risk.
Once the tenancy has started, landlords lose the right to enter the property except in extreme circumstances. They must ensure that they comply with an ever-growing list of regulations, or risk financial or even custodial penalties.
Advertising the property, carrying out COVID-safe viewings, and finding a suitable tenant is only the beginning. Letting agents must carry out checks to ensure the property is ‘fit for human habitation’ and provides a safe and healthy environment.
This includes possessing an understanding of safety regulations such as the Furnishings (Fire and Safety) Regulations, Electrical Equipment (Safety) Regulations, Gas Safety (Installation and Use) Regulations, and The Smoke and Carbon Monoxide Alarm Regulations for England.
Statutory documentation for tenants
When a tenancy is agreed, the agent must ensure they provide the tenant with statutory documentation such as a current EPC and a Safety Certificate (if applicable). Failure to serve all of the correct documents at the start of the tenancy could jeopardise their chances of taking back possession of the property at a later date.
Agents are also required to provide a detailed inventory and schedule of condition, which records all of the contents, fixtures, and fittings of the property and their state of repair. It is crucial this is carried out thoroughly as any future claim on the deposit for dilapidations will rely on it as evidence.
During the course of the tenancy, the letting agent will monitor the condition of the property and will liaise with the tenant over any repairs. Letting agents have a duty of care to both landlords and tenants, often acting as mediators between the two parties and calming the waters where necessary.
Client money protection
All money received from the tenant must be handled correctly to protect the interests of both the tenant and the landlord, and an audit record kept.
If landlords live overseas then, as well as management of the property, there is also the Non-Resident Landlord tax to consider. Without an agent, it would fall to the tenant to operate the scheme!
The agency must also comply with all of the relevant regulations, such as having Client Money Protection to protect landlords and tenants, while making sure the client accounting runs like clockwork. They remove all the stress for landlords of chasing rent, reconciling payments, paying contractors, and tax. Agents are also on hand to guide landlords through the processes around the end of the tenancy.
There is a very strict process that must be followed to legally obtain possession of a property at the end of a tenancy. The rules surrounding this have been changing constantly over the last year as a result of the pandemic – sometimes on a weekly basis! Letting agents have had to keep up to date with these regular changes.
“The work involved in letting and managing a residential property has never been so involved and yet so underrated, while the role of the letting agent is incredibly important. As we head into this fresh lockdown letting agents should take stock for a moment and allow themselves to feel a sense of pride.
The Letting Partnership: Client accounting
Top outsourcing company for letting agents UK-wide. Award-winning providers of the Client Money HealthCheck.
