Is your Agency following the law?

  • Is your Agency following the law?

    The new Consumer Rights Bill for letting agents is being introduced on May 27th 2015.

    Letting agents will have to clearly display all their fees, for both landlords and tenants. Failure to do so could lead to a £3,000 fine.

    This transparency is aimed to encourage fairer fees, and avoid double charging – where letting agents charge both the tenant and the landlord for the same service. It also means that tenants will know exactly how much they’ll be required to pay before they decide to rent a property, instead of being faced with surprise extra fees further down the road.

    Which fees need to be displayed?

    If it’s payable to the agent, for letting or property management work, it needs to be displayed. It includes all fees, charges, and penalties for an assured tenancy.

    The only exemptions are:

    • Rent, payable to the landlord.
    • The tenancy deposit, which is secured against damage or violation of the tenancy agreement.
    • Any fees, charges, or penalties that the letting agent receives from a landlord under tenancy on behalf of another person.
    • The last one is a little tricky, but it basically means that if the letting agent, for example, recommends a plumber, the landlord can pay via the letting agent so long as the agent does not take a cut.

    Where should I display these fees?

    You must display these fees clearly, at your office. Ideally, a casual visitor at your premises should be able to see them without having to ask. If they do have to ask, it should be clearly in view, and not, for example, hidden in a drawer.

    If you have a website, they also need to be displayed there. If you’ve got your website with AgentPro, and would like advice on adding a page for your fees, get in touch and we’ll do our best to help you.

    What do I write my list of fees?

    The most important thing is that your set of fees is clear, with no hidden charges possible. It must say what they are for – you are not allowed to simply write ‘administration charges’. All charges must include tax.

    It’s also important that it says what fees apply to the property, and which fees apply to each individual tenant.

    If your fee cannot be determined in advance, you must say how it will be calculated, for example as a percentage of the rent.

    You must also say if you’re a member of a client money protection scheme, and which redress scheme you have joined. If you are not a member of such a scheme, you must also make this very clear.

    If you’d like more advice on the new legislation, the ARLA have a detailed guide, and also a template that you can use.

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