As a tenant,
I want to rent. What should I ask?
First: Is the agent a member of ARLA? You will benefit from their
experience, professionalism and compliance with ARLA’s bye laws,
regulations and accounting procedures. Their professional indemnity
insurance which complies with the requirements of the Association’s
Fidelity Bond will protect your deposit. ARLA members are
Principles of
Professional Conduct providing a framework of ethical and professional
standards at a level far higher than the law demands
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.
Click here for full
details of the bond.
Do I pay any fees
to the Agent?
You should not pay introductory fees but there will
be certain costs for you to cover, for inventories and for administration
including the preparation of the tenancy agreement and taking up
references.
What money do I
need to find at the beginning?
Normally at least a month’s rent in advance and the
equivalent of a month to six weeks’ rent to be held as a deposit against
damage (and the administrative charges noted above).
What information
will I need to supply?
The addresses of referees for the agent to write and
confirm your ability to meet the rental commitment. These will normally
include your bank or building society, employer, previous landlords, or
for some, your solicitor and/or accountant.
What are my
responsibilities?
These should be clearly set out in your tenancy
agreement, which you should read carefully before you sign. If in doubt,
ask the agent. There is a duty for professional agents to ensure that
anyone relying on them is offered correct advice.
What is a tenancy
agreement?
It is a legally binding document between you and the
landlord, applicable only to you and the property you are renting, that
states the amount of rent, the length of the tenancy, your rights and
responsibilities. Your agreement will most probably be an Assured or an
Assured Shorthold tenancy under the Housing Act 1988. For bona fide
companies and/or rental values over £25000 a year, the agreement will be
drawn up under contract law.
How long does it
all take?
Normally, about ten working days to take up and
confirm references, clear your cheque covering the first rent period and
the deposit, arrange for inventories and the transfer of utility accounts
into your name. No professional agent should allow you possession before
all this has been done.
How long is a
typical let?
Most agents require it to be a minimum if six months
and rarely write a tenancy agreement for longer than a year. But...
What happens if I
want to stay on or leave early?
Tenancies are frequently renewed and agents often agree the terms for
renewal at the beginning and include them in the tenancy agreement. If
you’re likely to leave before the end of the original term agreed, you
must negotiate break clauses to be written into the agreement. If not, you
will remain responsible for the rent until the end of the term agreed,
unless a new and satisfactory tenant can be found.
What else do I
have to pay for?
The tenant usually pays the utility bills such
as gas, electricity, water and telephone during the course of the tenancy,
TV. licence, etc; and the Council Tax applicable to the property.
What must I do at
the end of a tenancy?
Ensure you fulfil your obligations stated in the tenancy
agreement to leave the property in the condition it was in at the start,
or deductions will be made from your deposit. These will include thorough
cleaning and all linen, used or not, freshly laundered. If you have moved
furniture, return it to where you found it at the time of the inventory.
How do I get my
deposit back?
After an inventory check and condition inspection,
provided there are no missing items or damage, your deposit should be
returned shortly after you leave the property. You cannot set your deposit
against the last rent payment due.
Who has been
holding my deposit?
Normally, the agent in a designated client’s deposit
account. That is why it is important to use an ARLA agent.
What is a holding
deposit? Do I get it back?
Holding Deposits - usually a nominal amount — can be
required when you make an offer on a property. If, for any reason, you
decide not to go ahead by an agreed date, the holding deposit or part of
it will be retained against administrative costs already incurred.
Otherwise it will be off-set against the first rent and
full deposit payments. If the landlord decides not to proceed then the
holding deposit will be returned. Paying a holding deposit in no way
legally obliges either party to enter into the tenancy.
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.
Whilst ARLA has made every endeavour to
publish information it believes is correct, it has not made any specific
enquiries or verification from the provider of the information and ARLA
does not accept any liability for any information given on this website.
Any person reading this information must make their own independent
enquiries and verification and nothing should be relied on in connection
with any letting or business decision.
