Before Start
A landlord will instruct an agent for a variety of reasons. The landlord may not live locally and may not have sufficient time to manage a property or the expertise in managing a student let or a house in multiple occupation.
The cheapest agent is not always the best, and those who can demonstrate a good business model, well-trained staff, good references from other landlords and a good reputation with the local authority are the agents who will enjoy a sustainable place in the market.
The agent must have a good knowledge of the private rented sector in the area so that the agent can give reliable advice on rental values, market demand and needs. It is insufficient for an agent to advertise a property at the rental requested by the landlord; the agent has a duty of care to advise the landlord on the correct rental value and recommend a marketing plan.
Preparation of the property is essential, and the agent must guide the landlord about ensuring the property is a safe environment for a tenant, has a reasonable level of amenities, and is free of defects.
An Energy Performance Certificate is required, and once these steps have been taken, the agent may commence the marketing. The agent must also ensure the property will be vacant and ready to let before committing new tenants. The agent must proceed cautiously when the property to be let is already occupied because a prospective tenant could waste time and money. Also, advertising a property that is not genuinely available to let can lead to prosecution for the agent.
The agent's business terms must be discussed with the landlord, and the level of service must be selected. The business terms should be agreed upon and signed before marketing the property. Under the Accommodation Agencies Act 1953, it is an offence to advertise a property as available to let without a lawful instruction to let. Signed terms of business are part of your defence to such a claim.
Finally, the agent must be clear about the landlord's general requirements for a tenant. Most tenancies will be for a short initial fixed term, but the agent should find out if the property is available for a longer term. Whilst the first tenant may only have a short tenancy, it can be helpful for a tenant to know that this could be a longer let. Where sharers are an option, the agent must regard HMO management regulations and the agent's and landlord's more significant obligations around safety and possibly licence and planning laws. These matters must be addressed before advertising to ensure this property's legal requirements can be met.