Landlords and UKALA (The UK Association of Letting Agents)
Letting your residential property is much easier and safer since the Housing Act 1988 and the implementation of the 1996 amendments. It is important, however, that the various notices and forms relating to a tenancy are correctly used.

Ensure that the agent you appoint is a member of UKALA - the fact they have joined the organisation demonstrates their professionalism and that they have agreed to abide by the Code of Practice. They will also be familiar with the statutory regulations that it is imperative that you comply with.

How to contact a UKALA member in my area
Go to (Contact members in your area) button above.

Insurance
UKALA recommend that their members hold Professional Indemnity Insurance. You must ensure that both the property and your contents are insured. You may well find your UKALA agent can give you advice and perhaps arrange the insurance on your behalf.

Terms of engagement of a letting agent
Your agent will set out his individual terms but as an indication we list services that are normally offered. Basically there are two aspects:

  • Advertising and finding the tenant which typically attracts a fee of 10% of the value of the rent to be paid.

  • Management thereafter, which includes collecting the rent, which typically costs 5% of the rent to be paid.

We list below what you could normally expect in terms of services encompassing both the above:

  • A visit to the property to agree the type of tenant, the rent required, any maintenance and repairs required, and the legislation which might affect you.

  • Advertising the property in selected newspapers and/or other media.

  • Interviewing prospective tenants on your behalf. Prospective tenants will be shown the property by a representative from the agent's office.

  • Take up all necessary references including identification, financial and character.

  • Collecting a deposit from the tenant to be held by the agent and registered with one of the government appointed insurance backed tenants' deposit protection schemes - or passed to the government appointed custodial scheme - until the end of the tenancy when the property and inventory have been checked.

  • Checking new tenants into the property.

  • Collecting the rent monthly and paying it to the landlord less any fees due and any expenses incurred during the month. It will not be paid until received by the agent.

  • Co-ordinating any repairs or maintenance required including making arrangements for any tradesmen to attend the property, obtaining estimates, supervising works and settling accounts from monthly rents received.

  • Corresponding with the various utilities when a tenancy changes.

  • Liaise with the tenant and visit the property when necessary to deal with any requests, repairs, maintenance etc.

  • Carry out a full inspection of the property and inventory check at the end of the tenancy before the return of the tenant's deposit.

  • Provide all administration services concerning the management of the property.

Additional services
These additional services will attract additional fees:

  • Most agents will offer to prepare the tenancy agreement. This is a legally binding document which will have been provided by solicitors. Although very simple ones are obtainable from stationers, they are rarely adequate and can leave either the landlord or tenant, or both, vulnerable. Your UKALA agent will be able to provide a more comprehensive agreement that is acceptable to the landlord and will still be fair to the tenant. You will be asked to pay half the costs of preparing the agreement and the tenant will pay the other half.

  • Agents can also prepare the inventory unless you wish to use inventory clerks. You will be required to pay for the check-in inventory and the tenant will pay for the check-out inventory.

  • Many UKALA members offer additional services such as arranging refurbishing and refurnishing of properties. Some also act as estate agents and can help in buying and selling property.
  • Preparation of Tax Statements for Inland Revenue purposes.
  • For overseas clients many members offer a tax service to simplify the calculation of a landlord's tax liability.

Is there a difference between a short and a long tenancy?
The shortest tenancy is for a holiday let and in many parts of the country, such as central London, these are not allowed unless it is a guest house or similar. For example, Westminster Council will not agree to short holiday lets in property classified for residential purposes. The vast majority of residential tenancies are called Assured Shorthold Tenancies and are usually for a minimum of six months and many landlords will not accept less than six months. Probably the most common tenancy is for 12 months, although if a property is available for long term rent, it is likely, if all has gone well in the first 12 months, that the landlord will offer a further 12 months. This may well continue for year-after-year but gives both landlord and tenant the opportunity to review the arrangement annually. This means that a tenant can decide to leave at the end of any 12 month period, however, it also means that the landlord may request an increase in rent particularly if market rents have moved higher.

Assured Shorthold Tenancies are probably the best from the point of view of both landlord and tenant. However you cannot have an Assured Shorthold Tenancy if the tenant is a company or if the rental value of the property is over £25,000 in a year. Under these circumstances the law of contract will apply. Basically the law of contract is very sensible and this should not be seen as a reason not to progress such a let.

What if I want my property back?
Normally agents will recommend a fixed term tenancy which is exactly what the name implies. Once you have committed to a 12 months tenancy then, providing the tenant pays the rent and does not cause any problem by breaching the tenancy agreement, they have a legal right to continue in that property. Therefore you should not take on a tenancy agreement lightly. However, you can get your property back at the end of the fixed term tenancy although it is important that you issue a notice to this effect a minimum of 2 months before the tenancy ends. Your agent can arrange this legal notice. Although you may say that the tenant is aware of the approach of the end of the tenancy, the law still requires that you give this reminder a minimum of two months before the conclusion of the tenancy.

Is it possible to extend a fixed term agreement?
If you are happy with the tenant and they want to stay then the agent can negotiate an extension of the original fixed term agreement. The term and the rent will be as agreed between the parties. The simplest method is then to issue a new tenancy agreement for the new fixed term. It is common practice, and sensible, to arrange tenancies for 12 months which means that either landlord or tenant can conclude if they wish at the end of a 12 month period, or if both sides want to continue, the landlord may request a rent increase, particularly if market rent levels have moved higher.

Inventories
It will be necessary to have an inventory which lists the contents of the property and also describes the condition of both the property and contents. The agent can offer to compile this or suggest that a third party is used (inventory clerks). Whatever arrangements are made you will normally pay half. This usually means that the landlord will pay for the inventory when the tenant first moves in and the tenant will be required to pay for the check out inventory.

Inventories must be completed at the start and finish of a tenancy and must identify missing items, breakages, and damage to the property and furnishings.

Are there other legal requirements?
There are three legal requirements of which you should be aware:

  1. The Fire and Safety Regulations (soft furnishings) require that all soft furnishings (beds, sofas, pillows, easy chairs etc.) provided in rental accommodation, comply with the latest fire regulations. Your UKALA agent can explain this in more detail. It is vitally important that you do not have any non-compliant furnishings in a rental property as to do so is a criminal offence.

  2. You must have an electrical safety check prior to the commencement of a new tenancy. This must be carried out by a competent person (preferably a qualified electrician) to ensure that the electricity supply, and appliances, are safe. This includes supplying instruction books where these are necessary for safe operation. Your UKALA agent can explain further and arrange for such a check. Please note only 'Part P' qualified electricians can carry out work in kitchens and bathrooms. Your UKALA agent can explain more.

  3. You must have an annual inspection of gas supply and gas appliances (if applicable). This must be carried out by a CORGI (Council of Registered Gas Installers) registered engineer. Your UKALA agent can explain further and can arrange for such a check.

What if I am not happy with the performance of the UKALA agent?
If you are not happy with the performance of your agent then firstly talk seriously to them about your concerns. The majority of disputes involving landlords and tenants come about because either landlord or tenant or both misunderstand their responsibilities. Therefore read your tenancy agreement very carefully and make sure that you are keeping to your side of the agreement. If you still believe that the performance of your UKALA agent is unacceptable then you can request that we consider the situation.

The procedure for making a complaint against a member is for you to put it in writing to this office, clearly explaining the circumstances and the reason for your complaint. Your letter will then be sent to the member against whom you are making the complaint, with a request that they put in writing their side of the story. Their letter will be sent to you together with the conclusions of this Association.

Please note that we must receive a letter over your original signature. We cannot accept anonymous complaints or e-mails. If you fax a complaint you must also send the original in the post.

We should explain what this Association is and is not. We are a trade association funded by subscriptions from the member letting agencies. We are not an ombudsman, Trading Standards or a replacement for the county court service. Our primary concern is whether a member agency has complied, or not, with our Code of Practice.