Beware of incompetent letting agents

Landlords are urged to be cautious and do extensive research before signing up to a letting agent in the face of growing legislation and falling agency profits.

The warning comes from Landlord Licensing & Defence.

Its compliance expert Phil Turtle says: “We have lots of experience in dealing with agents who simply do not know the law when it comes to licensing a landlord’s property and other important aspects, including fire regulations.

“In particular, they don’t always know the HMO regulations that apply to letting three- and four-person shared homes.”

He adds that council regulations and licensing is becoming a growing worry for part-time and ‘accidental’ landlords.

“There’s a danger of a landlord switching to an incompetent agent who will not be much help because agents don’t always understand the law and regulations. Some agents, as a result, get landlords into trouble and face fines.

“That might be hard to believe, but there’s no doubt that half of the landlord clients we deal with have been dropped into trouble with local authorities by their letting agent.”

Turtle suggests landlords should check a potential agent is suitably qualified by contacting other landlord clients or checking testimonials.

He continues: “The bottom line to appreciate is that while a letting agent will be taking a slice of the monthly rent, if there are any problems such as not being properly licensed with the local authority, then it will be for the landlord to resolve – and to pay the fines and, potentially, face a Rent Repayment Order.

“Both the landlord and agent face being fined £30,000 if there is a licensing issue.”

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John Thomspon
19 May 2023 08:05 AM

As the proprietor of a small independent with over 35 years experience, I have dealt with hundreds of thousands of landlords, tenants and tenancies. I can count on one hand the DIY landlords encountered that have the same knowledge and experience I possess. On more than one occasion I have even found myself successfully guiding an advocate through a court hearing!
I would challenge any landlord to list the 170 pieces of legislative compliance it takes to set up a simple AST correctly.
DIY landlords are in for a huge shock in the coming years. The Renters' Reform Bill is specifically aimed at getting rid of DIY landlords and will provide the foundations for authorities to come gunning for them. The fines coming their way will be mouth watering.
Only the other day I had a landlord trying to knock me on fees. I politely reminded him of just a few of the ever increasing loopholes and trip wires i guide him safely thorough on an annual basis; also pointing out that he was subsiding his tenant with a below market rent to the tune of £3000 per annum + (by his choice).
A false economy i advised...brains of a rocking horse i thought!
I agree the larger chains don't provide the skill set at customer level but a small, established, regulated proprietor agent certainly does. Dismiss their value at your peril.

Nick Van Hoogstraaten
19 May 2023 10:31 AM

John,
You are a small independent and you say knowledgeable. I don't doubt you have more knowledge than DIY landlords. In my experience my chain agent has been negligent in filling out my paperwork and blocked me issuing a S21 (perhaps deliberately). I paid them to do it right and they did not. I told them to fix it and they resisted the deposit paperwork. It took 10-15 emails back and forth to try and work out where I was financially with the in an out transactions with the tenant. I just got some crappy table of numbers with vague descriptions not telling me what was what. It didn't. I had the tenant's bank account and paid back the money / got myself in the clear myself. I could have done all the paperwork myself no problem with a lot less hassle.

They also have not booked the gas inspection in good time with an obstructive tenant under a S21 notice. I instructed them 4 weeks before. I chased them maybe 6-8 time over the 2 weeks before due. Not having my calls returned or telling me 'Dave the plumber always get in'. It will be my fault if we don't do it on time. Again I could just book direct.

Their referencing system is appalling. A well known system. They chose the 'light' package for obvious reasons. I went along with it as I struggled to find a tenant. But I was under no illusion that they could not be trusted.

I haven't really seen any value from them at all except to alert me to new licensing requirements which I would have kept my ear to the ground more without an agent.

TBH I have found them an extra unnecessary layer so I had less of a relationship with my tenant and with them being rubbish with the tenant further causing a bad tenancy. They tried to charge £2,200+ VAT for an new vinyl floor to a kitchen of a 3 bed semi. £15,000 for a new flat roof covering to a bathroom and kitchen, including repainting a ceiling???? I got it down for £4,000. I am getting the kitchen floor done for £500.

Not to mentioned their monthly fee. They do NOTHING FOR IT.

Rip off merchants in my own experience.

I could not name the 170 pieces of legislation for an AST. I would just get an AST off the shelf from the NRLA and save the letting agent's fees.

It seems you are proactive and wish to do well by your clients and offer a good service. Another prominent member on here speaks highly of his local small agent.

B L
19 May 2023 12:45 PM

Incompetent or competent, they all have license to run the business and this successfully confused our judgement when we were in letting agents' offices. So far, we haven't found any to meet our basic requirement in terms of service and efficiency, let alone to manage our interests. DIY landlords are sufficient enough to prevent 99% of the things are going wrong. This is all we need. We don't deny there is an exceptional agent like John. The fundamental issues in letting agents business are - limited staffs managing unlimited properties; minimum working hours which is not enough to handle details and its workload; customer service standards not good enough to meet the needs. It is very often, letting agents take the side of the tenants because of convenience. Having say this, we still work with some agents once in awhile, we are after all in the same business, we shouldn't allow third parties to dictate how we manage our business.