As of the 27th May 2015, letting agents now have a statutory duty to fully publicise the fees they charge to their landlord and tenant clients.
Under the Consumer Rights Act 2015, it’s designed to promote more transparency within the sector, as well as tackling rogue letting agents head-on. This means that agents must now clearly display a list of their fees at each of their offices as well as on their website. Official guidelines issued by the DCLG (Department for Communities and Local Government) and Advertising Standard Authority state that:
“All fees, charges or penalties (however expressed) which are payable to the agent by a landlord or tenant in respect of letting agency work and property management work carried out by the agent in connection with an assured tenancy. This includes fees, charges or penalties in connection with an assured tenancy of a property or a property that is, has been or is proposed to be let under an assured tenancy.”
Announced last year, the government said: “The move ensures a fair deal for landlords and tenants, closing off the opportunity for a small minority of rogue agents to impose unreasonable, hidden charges.”
And those agents that fail to comply with the new rules will face a fine of up to £5,000, which is definitely great news for landlords and tenants. But how will this affect letting agents?
Well we believe that letting agents right across Britain will now be hunting for a much more cost-effective inventory service to what they’re currently using. Because not only are all lettings fees now going to be under deep scrutiny but they will now be battling against other agents in their area (even more so) to offer the cheapest fees around to attract the most clients; landlords and tenants alike.
Furthermore, a comprehensive inventory report shows to your landlord clients that you are dedicated to protecting their property from potential damage, as well as protecting your tenants deposit by providing a transparent and unbiased service.
So as a Letting Agent, what should I be looking for in my next inventory company?
- Are they certified members of APIP or the AIIC?
- Are they fully insured?
- How much experience do they have?
- Are they members of a Property Redress Scheme?
- Do they have reviews or testimonials from previous letting agent clients?
- How detailed are their reports? Can they offer an example report?
- Do they offer mid-term reviews/inspections?
- Do they have a good knowledge of your particular area?
- Do they have extended working hours and days?
- How do their prices compare to other inventory companies in your area?
At Hetsons Property Group we can offer everything mentioned above and more! And we fully understand that as a letting agent you want to provide the best possible service at the most attractive price. So this is why you must always use an independent Inventory Clerk for all inventories, check-ins, mid-terms and check-outs, so as to remain transparent and professional to all of your clients.