Letting Agent

A letting agent is a United Kingdom term for a facilitator through which an agreement is made between a landlord and tenant for the rental of a residential property. In the UK the agreement between Landlord and tenant is normally formalised by the signing of a Tenancy Agreement] . A letting agency will normally charge a commission for their services, usually a percentage of the annual rent.

Letting agents will often operate under the umbrella of an Estate Agent due to the synergies that exists between the two professions, but there are many agents that deal exclusively with lettings.

Although there are two main types of renting, letting agents deal primarily with tenancies between private individuals and landlords.

Services and Fees

Services offered by Lettings Agents usually break down in to three parts:
*The basic service is the introduction of a Landlord to a tenant. The cost to the Landlord for this service is normally a percentage of the total rent over the term of the tenancy and is charged up front. The commission for this service will normally be between 7% & 11%.
*Many agents will offer to collect the rent from a tenant for an additional 2-3% commission calculated as above.
*Full Management is the term most often used to describe the day-to-day management of a rental property. Many agents provide this service on properties which they have let for a commission of between 4% and 6%. This part of the commission is normally charged monthly.

A renewal fee will normally be charged if the tenant extends or renews their tenancy. This tends to be at a slightly lower rate than the original introduction fee. Additional charges are often made for drawing up the Assured Shorthold Tenancy agreement and protecting the tenant’s deposit to comply with the Tenancy Deposit Scheme legislation.

Regulation

There are currently no statutory arrangements regarding the regulation of letting agents. Around half of UK lettings agents are currently self-regulated. The principle organisations for lettings agents are the Association of Residential Lettings Agents (ARLA) and the Royal Institution of Chartered Surveyors (RICS) and these have codes of practice and compliance controls which govern the activities of their members.

External links

*http://www.arla.co.uk/ Association of Residential Letting Agents website
*http://www.rics.org/ Royal Institution of Chartered Surveyors website

Guides

* [http://www.channel4.com/4homes/renting-2.html "A Guide to Renting" from Channel 4] http://letlink.co.uk/ The Letting Centre