With so many Lettings Agents hitting the headlines just lately, it’s sending one very clear and loud message to all the private investors… do your due diligence, do your homework, do your referencing, BEFORE you get anywhere near to instructing a Lettings Agent.
Most landlord investors seem to think that all agents are equal, but is this the case? The news has been littered with stories of letting agents closing down and taking hundreds of thousands of pounds of clients’ funds with them. When a Letting agent closes in this manner, Landlords often find themselves with no tenancy agreement, no gas certificate, no rent and no deposit. In many cases, before an agent closes, the agent stops paying rent to the Landlords for several months, so the amount of money owed can run into many, many tens of thousands. This is a story I hear time and time again all over the country and both national and independent companies have been responsible.
To protect yourself against this, make sure that the agent you are using has some backing. What’s very important is “client bond protection” to cover the “client account” in the event of them going down.
If you use an ARLA agent this is a compulsory requirement which means that in the event of the agent disappearing, at least you would get money that was due to you.As a Landlord I would also make sure that you always have your own filing system and check that your agent sends you copies of everything: signed tenancy agreements, inventories, gas certificates, EPC, deposit registration forms too. Don’t abdicate your responsibility to them, delegate it and monitor them.
For more info visit: http://news.brunei.fm