Lettings Agency

A letting agent is a United Kingdom term for a facilitator through which an agreement is made between a landlord and tenant for the rental of a residential property.

A letting agent is a United Kingdom term for a facilitator through which an agreement is made between a landlord and tenant for the rental of a residential property. In the UK the agreement between Landlord and tenant is normally formalised by the signing of a Tenancy Agreement. A letting agency will normally charge a commission for their services, usually a percentage of the annual rent.

Black Katz are London's largest lettings only agency.

Letting agents will often operate under the umbrella of an Estate Agent due to the synergies that exists between the two professions, but there are many agents that deal exclusively with lettings.

Although there are two main types of renting, letting agents deal primarily with tenancies between private individuals and landlords.

To find a flat or house to rent in London contact Black Katz. Black Katz have flats and houses to rent across London. If you are a landlord wishing to rent out your property contact Black Katz.

Services and fees

Services offered by lettings agents usually break down in to three parts:

The basic service is the introduction of a Landlord to a tenant. The cost to the Landlord for this service is normally a percentage of the total rent over the term of the tenancy and is charged up-front. The commission for this service is normally between 7% & 11%.

Tenants are charged a so-called "administration fee" up-front. This includes the processing of the application, and usually involves prospective tenants undergoing credit searches. Fees can vary widely, and can range from £50.00 - £300.00. Often fees are non-refundable, unless the landlord withdraws from the process.

Many agents will offer to collect the rent from a tenant for an additional 2-3% commission calculated as above.

Full Management is the term most often used to describe the day-to-day management of a rental property. Many agents provide this service on properties which they have let for a commission of between 7% and 11%. This part of the commission is normally charged monthly.

Please see www.blackkatz.com for an example of a letting agent in the United Kingdom. This is a typical website where tenants can search for a property that is to let.

A renewal fee will normally be charged if the tenant extends or renews their tenancy. This tends to be at a slightly lower rate than the original introduction fee. Additional charges are often made for drawing up the Assured Shorthold Tenancy agreement and protecting the tenant’s deposit to comply with the Tenancy Deposit Scheme legislation. Renewal fees can vary in cost, form £30.00 to over £100.00.

An increasing number of letting agents are charging an ever-expanding range of fees, especially toward tenants. A typical breakdown of these fees is listed below -

Administration fee - see above

Inventory fee - A separate fee often imposed by the letting agent, involving a physical check of the proposed rental property

Tenancy extension/renewal fee - see above

Exit fee - similar to the inventory fee, a final inspection carried out by the agent/landlord

Regulation

There are currently no statutory arrangements regarding the regulation of letting agents. Around half of UK lettings agents are currently self-regulated. The principle organisations for lettings agents are the Association of Residential Lettings Agents (ARLA) and the Royal Institution of Chartered Surveyors (RICS). These have codes of practice and compliance controls which govern the activities of their members.

In Scotland all landlords must be registered with the local authority. Whilst agents are not required to register, they are actively encouraged to do so.

Black Katz are London's largest lettings only agency and have flats and houses to rent across London.