SAL has a wealth of guidance and resources available to landlords who prefer to self-manage their properties. However, self-management doesn’t suit everyone and we are often asked how to go about choosing a letting agent. For those who are considering using a letting agent there are a number of factors to consider when choosing who to trust with one of your most valuable assets. The legal responsibility for many aspects of Scottish letting lies with the landlord rather than the agent so it’s essential to get this right.
Please remember if you have any questions about any aspect of letting in Scotland, SAL members have unlimited access to our helpline.
Members – read our guide to choosing a letting agent (remember you need to log in first to view member only content).
Not yet a SAL member and want to access this guide plus all our other member resources? Join SAL online nowfor instant access.
- Is the agent registered? In Scotland any person or company operating as a letting agent must be registered. If they are not on this site do not consider them at all as without registration any agent is operating illegally. Registered agents must hold professional indemnity insurance (to cover the cost of compensation for loss or damage caused by the letting agent) and client money protection insurance (to protect the money of landlords and tenants in case the owners of the letting agency steal or misuse it). Agents are required to provide client with details of both insurance policies on request.
- Voluntary memberships/accreditations – whilst all agents must be registered, some will choose to join organisations that promote and recognise best practice like Landlord Accreditation Scotland, or that offer support and guidance to agents like the Scottish Association of Landlords (Council of Letting Agents membership).
- Location – an agent who is based nearby is likely to have a better knowledge of the local market and also be able to visit the property at short notice if problems arise.
- Recommendation – a positive referral from someone you know and trust is invaluable. Ask any landlord friends or contacts who they use to manage their properties.
- Check for letting agent enforcement orders – letting agents in Scotland have to adhere to
the letting agent code of practice. If they breach this they can be issued with an enforcement order by the housing tribunal. You can search for previous decisions against agents here. Even the best letting agent can slip up occasionally and receive an order for a minor breach of the code but it may be a concern if an agent has received multiple orders against them for significant breaches.
- Type of property the agent specialises in – some agents will focus on particular areas of the market e.g. affordable housing, student HMOs or premium properties. Do they have expertise managing properties like yours?
- Commission – as with most things in life you get what you pay for to a certain extent. Expect to pay a percentage of the monthly rent as an ongoing management fee as well as a fee for setting up a tenancy. Some agents also charge extra for preparing inventories, carrying out inspections, overseeing renovations and renewing HMO licenses.
- Set-up – agents come in all shapes and sizes. Some will offer a “one point of contact” service where one member of staff is responsible for every aspect of the management and letting of your property. They will come to know you, your tenants and your property inside out. Others offer a departmental set up where different teams will deal with letting, rent collection, arranging repairs and overseeing move outs. Each team will have particular expertise in the area they cover.
- Staffing – how many people work at the agency? What proportion of them meet the training requirement that those in more senior roles must adhere to? A high staff turnover would be a concern – what is their average length of service?
- Terms of business – make sure you are provided with a written contract to sign and read the small print first. This should make it clear how often inspections will be carried out, what their fee structure is and what the procedure is to end the contract if you decide to change agents,self manage or sell your property.
Remember that as a landlord you are the person responsible for adhering to a number of legal requirements around letting. This includes for instance, essential fire, electrical and gas safety matters and adherence to tenancy deposit laws. Therefore when deciding who to choose to look after your property, make sure it is an agent you feel you can trust. Landlords can be penalised and be held responsible for failing to comply with legislation, even if they have engaged an agent to fully manage their property.
