In This Guide
Choosing an area
Getting in
Leaving
Lettings agents
1. Using an agent
2. Tricks of the trade
3. ARLA
Living
Looking for property
Renting introduction
Tenancy agreements
Viewing property
Lettings agents
ARLA
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ARLA is the Association of Residential Lettings Agents. It is a representative body for the lettings and property management industry.
Hopefully, firms that are members of ARLA, will display a certain level of professionalism, experience, customer care, and compliance with regulations, bye laws and procedures. In the event of unresolved disputes between landlords and tenants, ARLA can offer an arbitration service for landlords and tenants who use ARLA member firms.
However, there is no regulatory requirement for a business or individual to be a member of ARLA and the body does not have legal powers over its members. However, since many lettings agents work on the basis of their reputation, the threat of having their membership withdrawn is enough to make most ARL members to adhere to the standards of business that are recommended.
The requirements for firms wishing to become members of the organisation are aimed at weeding out some of the cowboy lettings agents that exist:
- Firms must have been in lettings and management business
for at least 2 years.
- All firms must carry professional indemnity insurance to the
required standard.
- Separate client accounts must be held for each landlord whose
properties the firm manages.
- Commissions for letting property may only be obtained from
landlords.
- Business must be carried out from properly designated business
premises.
- All ARLA members are required to lodge a copy of professional indemnity insurance policy with the association to comply with the requirements of the ARLA bonding scheme.
As you can see, the requirements are not hugely stringent and it wouldn't take a great deal of effort for a renegade agent to ensure that they met all of them. Furthermore, the standards appear to do little to ensure customer care, client communication, or various other aspects of professional conduct.
ARLA also run a bonding scheme, which is designed to protect landlords
and tenants against the misuse of any bond or deposit money that
may be held by the lettings agent. ARLA protection should give
rapid reimbursement of any money that is misappropriated.
The basic premise is that the public can be secure in the knowledge that any money of theirs that is held by the lettings agent is safe and cannot simply go walkabouts.
When you are talking about one months rent in advance, plus a deposit of possibly 6 weeks' worth of rent, we are talking about a sizeable amount of money. It therefore pays to be cautious. Read about some of the bond scams that go on to find out why.
To find out more about ARLA and their bonding scheme, you can visit their website at www.arla.co.uk
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