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| Whichever service you choose, Frost
Letting & Management Ltd will provide you with a rental
evaluation, references for all potential tenants, correctly
drawn up legal paperwork and negotiation of the terms
of the tenancy in line with your instructions. |
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About
ARLA
This page has been designed to aid landlords who are looking to
let their property through a residential letting agency and consists
of questions that every landlord should ask and the answers they
should receive.
Why is it so important to use an ARLA agent?
ARLA is the only professional and regulatory body solely concerned
with residential lettings. It keeps members up-to-date with changes
in legislation and the many other requirements for a successful
lettings practice. ARLA members are governed by Principles of Professional
Conduct providing a framework of ethical and professional standards
at a level far higher than the law demands.
In order to comply with ARLA's membership requirements, an ARLA
member will have been formally interviewed to confirm their business
meets our stringent code of conduct, holds separate client accounts
and demonstrate these are professionally managed and audited; holds
professional indemnity insurance cover to comply with the requirements
of ARLA's Fidelity Bond; and offers a full management service to
landlords in addition to letting and rent collection.
What is ARLA's Fidelity Bond?
The ARLA Fidelity Bond is designed as a protection of first resort
for monies entrusted to ARLA members by landlords and tenants during
the ordinary course of their business as letting agents.
In the event of proven theft or fraud of client monies by a member
agent or its staff, if you cannot recover monies deposited with
the agent during its period of membership of ARLA from the agent
and the agent's own insurance does not cover the loss, you may make
a claim to ARLA for reimbursement of the money you have lost.
What are the fee structures for letting agents? Do you charge
me or the tenant?
Obviously fees vary and each letting agent will have their own
scale of charges and terms and conditions of business. They cover
letting the property; or letting and rent collection; or letting
and full management. The landlord is the ARLA member's client and
fees are paid by you as a percentage of rental income according
to the scale of charges. You should ask for a copy.
What do you do for your money?
Introduce and vet prospective tenants; prepare the tenancy agreements;
advise on Inventories, changes to utility accounts and Council Tax;
collect the rent and pay the balances to the landlord's account.
When retained on management: pay bills for the landlord, regularly
inspect the property, recommending, overseeing and accounting for
necessary maintenance.
What kind of tenancy agreement should you use?
An ARLA member will use tenancy agreements that comply with the
Housing Act 1988, or under contract law for bona fide companies
and/or rental values over £25,000 a year. Most members will
have their own 'in-house' tenancy agreement drafted by solicitors,
incorporating clauses covering the potential problem areas experienced
agents recognise. These agreements should be far more comprehensive
than the standard printed agreements bought for self-completion
and are regularly up-dated to take account of changes in legislation.
Is letting safe? Can I get my property back?
Yes. It's safe provided the tenancy agreements are properly drawn
up and the correct Notices served. Then, in those cases where legal
action is needed for repossession the court should make an order
in the landlord's favour. New Accelerated Court Procedures speed
up the process, without the necessity for a court hearing and take
the hassle out of the very occasional problem.
What if the tenant wants to extend the term of the let?
This is very common, presenting no problem provided both parties
agree and a professional agent conducts the negotiations and prepares
the necessary paperwork and renewal documentation.
What about inventories?
These are essential and it is recommended that an inventory is
made by a professional to avoid omissions or errors. They should
always be made at the start and finish of the tenancy to identify
missing items, breakage's and damages liable to be covered out of
the tenant's deposit.
Obvious legislation aside, what other regulations could affect
me?
Regulations are constantly changing, particularly with regard to
safety. Currently these cover furnishings, gas and electrical installations.
An ARLA member agent will be able to advise you about compliance
with these new and difficult regulations. New regulations came into
force in 1996 on responsibility for tax liabilities on rental income
for non-U.K. resident landlords. Again, your ARLA agent will advise
you of your liabilities and the procedures to be followed to satisfy
the Inland Revenue.
What insurance covers can protect a landlord?
There are two types of cover for use when letting property: Legal
expenses cover, available to most landlords, and rental insurance
cover, available through some agents, calculated as a percentage
of the rent achieved. You must be certain to insure your property
for letting and the possible empty periods between lets.
What does your agent do if it all goes wrong?
Solicitors have to be instructed on your behalf to take the tenant
to court to regain possession, or correct whatever breach of contract
the tenant has committed. An experienced agent will know when this
is unavoidable, will advise of likely costs and timescales, can
instruct solicitors on your behalf, make all appropriate files available
to them, appear as a witness and do everything to facilitate a speedy
solution.
As a landlord or a tenant, I want to know, What is Management?
Management is a service provided by the agent to protect and maintain
a property to the standard it was in at the beginning of the tenancy,
fair wear and tear excepted. It includes all maintenance and running
repairs, except for those items that are clearly the tenant's responsibility.
These were expressed by Lord Denning when he said "The tenant
must take proper care of the premises...he must do the little jobs
around the house which a reasonable tenant would do". Both
Landlord and tenant should clearly understand whether or not management
services have been agreed at the outset.
In the event of unresolved disputes, ARLA can offer an arbitration
service for landlords and tenants who use ARLA member firms.
What are the ARLA Membership Requirements?
There are stringent requirements for membership of the Association
of Residential Letting Agents.
A firm must satisfy the Association at interview of its competence
and ability to operate to our Principles of Professional Conduct
- All member firms must carry Professional Indemnity Insurance
to a required standard.
- Separate client accounts must be held.
- Commissions for letting property may only be obtained from landlords.
- Business must be carried out from a properly designated business
premises
- All ARLA members most lodge a copy of their professional Indemnity
Insurance policy with the Association to comply with the requirements
of the Associations Fidelity Bond.
This ARLA page is intended as a guide only to illustrate the questions
that should be asked by the landlords and tenants when first approaching
a letting agent. It is a guide to good practice but practices may
vary from agent to agent.
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