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Advice from the Guild of Professional Estate Agents on how to choose a lettings agent has been endorsed by the Guild’s Regional Estate Agency of the Year, Arnolds.

The Guild, which is a national network of over 600 independent agencies, has highlighted the fact that estate agents are not currently required to meet standards of compliance, leading to both tenants and landlords being unprotected in this often confusing market. 

“With rental properties in short supply it can be all too easy for an eager tenant to ‘snap up a bargain’ and not worry too much about the record of the agent and landlord,” says The Guild’s latest report. “Yet the Property Ombudsman recently reported that the number of claims involving lettings disputes has risen sharply. 

“According to its 2011 Interim Report (1^st Jan – 31^st Aug), complaints against lettings agents totalled 5142, up 13% from 4,644 over the same period in 2010.  Shelter has also reported complaints against rogue landlords increasing by almost a quarter in the past year rising from 70,813 to 86,628.”

With the rental market continuing to expand due to increasing difficulty in obtaining mortgage finance, a growing number of first-time tenants and landlords are now entering the market, many unaware that the rules and regulations surrounding rentals can be complicated and demanding, says Jan Hÿtch, Residential Partner at Arnolds.

“It is a worry that there is no requirement for lettings agents to meet any standards of compliance nor is any accreditation qualification required,” said Mrs Hÿtch.  “Tenants and landlords may never actually meet, so It is therefore vital to work with an agent that can be trusted, and that is a member of relevant professional bodies such as the Guild, or Association of Residential Lettings Agents (ARLA) which operates a system to license firms which meet its strict criteria, or The Royal Institution of Chartered Surveyors (RICS).”

The Guild of Professional Estate Agents has created a checklist to help potential tenants and landlords choose a suitable lettings agent:

• Is the agent a member of a recognised tenancy deposit scheme?
• Does the Agent have a bonded client account, where the Landlord and Tenant’s monies are protected?
• Does the agent employ an independent firm to provide tenant references?
• Does the agent check that landlords have a suitable mortgage in place, and permission from their lender to let the property?
• Do the staff in the agency receive regular training from an accredited body?
• Does the agent regularly visit the properties in its rental portfolio to check everything is in order?
• Are the appropriate checks undertaken, such as gas safety and electrical testing at all the lettings properties?
• Are you clearly informed of your obligations, and the process and choices available should you have a problem?
• Is the paperwork clear, accurate, on time, and correct (including all contracts, and receipts for any cash / sums paid)?
• Is the agent part of a leading national network, such as ARLA, RICS, NALS, or The Guild of Professional Estate Agents?