Overview
Agents must be members of a redress scheme
All letting agents operating in England must be members of a government-approved redress scheme (The Property Ombudsman or Property Redress Scheme). Operating without membership is a criminal offence. Always verify membership before appointing an agent.
Types of letting agency service
- Let-only (tenant find): The agent markets the property, references tenants, and prepares the tenancy agreement. The landlord then manages the tenancy themselves. Typical fee: 8�12% of the first month's rent
- Rent collection: The agent finds the tenant and collects rent monthly. The landlord manages maintenance and compliance. Typical fee: 10�14% of monthly rent
- Full management: The agent handles everything, marketing, referencing, tenancy agreements, rent collection, maintenance, compliance, tenant communication, and end-of-tenancy. Typical fee: 12�20% of monthly rent
- Some agents charge a flat annual fee rather than a percentage, compare total cost over a typical 12-month tenancy before choosing
- Renewal fees and void period charges: check whether the agent charges for tenancy renewals and whether they charge management fees during void periods, these can significantly affect the total cost
What agents must do by law
- Redress scheme membership: The Property Ombudsman (TPO) or Property Redress Scheme (PRS), display membership certificate at office and on website
- Client Money Protection (CMP): agents who hold client money (rent, deposits) must belong to a government-approved CMP scheme, verify membership at checkmyagent.co.uk
- Tenant Fees Act compliance: agents cannot charge tenants prohibited fees (referencing fees, inventory fees, credit check fees, administrative fees, renewal fees)
- Deposit protection: agents who hold deposits must protect them in a government-approved TDP scheme within 30 days and serve Prescribed Information on the tenant
- Right to Rent checks: agents conducting let-only or management services must conduct Right to Rent checks on all tenants and keep records for 2 years after tenancy end
- Anti-money laundering: agents must register with HMRC for anti-money laundering supervision and conduct due diligence on landlord clients
How to choose a letting agent
- Verify redress scheme membership (TPO or PRS), check the scheme's register, not just the agent's website
- Verify Client Money Protection membership, required since April 2019. Check checkmyagent.co.uk
- Check online reviews: Google, Trustpilot, AllAgents, look for patterns in complaints about communication, maintenance handling, and deposit disputes
- Ask about the management-to-staff ratio: how many properties does each property manager handle? Over 150 is a warning sign for service quality
- Ask about their Renters' Rights Act 2025 compliance process, do they have updated templates, the Information Sheet distribution process, and Section 13 rent increase procedures?
- Get a full fee schedule in writing before signing, including setup fees, renewal fees, void period charges, and fees for specific services (serving Section 8, attending court)
Switching agents and terminating an agency agreement
- Read the termination clause in your agency agreement before signing, some agreements have long notice periods (3�6 months) or prohibit you from using another agent to let to a tenant introduced by them for a period
- Check for 'protection periods': if a tenant introduced by the agent takes a tenancy within a specified period after you leave the agent, you may owe the original agent a fee
- Give notice in writing to the agent, keep a copy of the notice and record the date it was sent
- Instruct the agent in writing to transfer all tenant records, deposit certificates, inventory reports, tenancy agreements, and property keys to you or the new agent
- Notify the tenant in writing that the management has transferred and provide the new point of contact for rent payments and maintenance
- Check that the deposit is still correctly protected and that the TDP registration has been transferred if necessary