Are letting agents responsible for their tenants?
A letting agent is responsible for managing property for private landlords. Depending on the level of service purchased, the broker may include searching for tenants, collecting the rent, and fully managing the lease. In some cases, rent collection may be part of the rental invention service. The rental agent will collect the legal requirements to protect the deposit and collect the rent from the tenant..
They will also track any arrears of rent, issue notices and advise you if tenants continue to not pay rent.. Some brokers even offer insurance that protects your income in the event of rent arrears.. It is difficult to hold landlords legally responsible for their tenants. Unless the landlord is intentionally encouraging antisocial behavior..
As part of the lease agreement, the tenant agrees to pay the landlord a set rent, often on a specific date each month. If a broker has been instructed to collect the rent, they should have procedures in place to inform both the landlord and the tenant (and the guarantor if applicable) in a timely manner of the significantly overdue rent and take appropriate steps to notify rental guarantee insurers (if applicable). Regardless of whether the broker has been hired to manage the lease, the responsibility for paying the rent lies with the tenant. The broker is not a party to the rental agreement. Therefore, any claim to arrears of rent should be made to the tenant, stating his obligations set out in the lease agreement.
In these cases, the landlord is not liable, in the eyes of the law, for the actions of a broker who has acted outside the scope of the things that a normal landlord does.. The tasks range from procuring tenants and collecting rent to full responsibility and administration. With students returning home for the festive season and people stop moving by the New Year, it can become difficult to find tenants in the winter and some landlords and letting agents may start to feel the pinch. This is necessary, otherwise the broker will not be able to conclude rental agreements on behalf of the landlord. This is one of the main tasks for which a rental agent is hired.
A good business arrangement allows a rental agency to protect their liability in case something goes wrong and ensures the landlord knows what they could be personally liable for. If you perform an electrical safety inspection, perform a legionella risk assessment, send the tenant a copy of the state guide “How to Rent” but do not meet these obligations or if they meet an unlawful standard, the landlord will continue to be liable. National Approved Lettings Scheme (NALS), Association of Residential Letting Agents (ARLA), UK Association of Letting Agents (UKALA) or National Association of Estate Agents (NAEA) are organizations that standardize a code of conduct to be followed. Another potential landlord was horrified when they realized they had a shared home that was supposed to be technically licensed but isn’t currently, due to poor advice from a broker.
The service you use may depend entirely on how many properties you rent out, where they are located, and how convenient you are as a landlord. A rental agent collects the deposit for a new rent and the first month’s rent based on the rental conditions and the tenant’s move-in date. According to the law of the agency, the client (landlord) is treated by law as if he is the one who carried out the actions of the intermediary (rental agent). If the rental agent does not have a full leadership role, you need to make sure you understand what their responsibilities are and on what occasions you should contact the landlord directly..
This is ultimately the landlord’s legal obligation, but landlords usually assume this responsibility on behalf of their customers.. Rental agents must also pre-qualify customers to rent homes once potential tenants have expressed interest in a property.. A rental agent may need to produce reports that contain positive or negative information about the potential tenant’s history and present the information to clients in a professional manner..