Housing Services
Accommodation Agencies
All you need to know about Accommodation Agencies
When you look for accommodation you may use lettings agencies. Some agencies are very professional and provide a good service; unfortunately, some do not. You may find that an agency is not very organised, or makes unrealistic promises hoping you will take a flat or house that is not suitable for you. This information explains what you need to know when dealing with agencies.
When dealing with an agency always....
- Read any contract or other document they give you and make sure you understand it before you sign it
- Ask them to give you a copy of the contract (and keep it!)
- Avoid paying any money if you are confused or do not understand the contract
- get a receipt for any money you pay.
A good agent should give you time to make sure you understand your rights and responsibilities as a tenant. Housing Services can check contracts for you.
To find agencies, we suggest you start with the agencies registered with our colleagues at University of London Housing Services (ULHS). The agencies have agreed to the ULHS Code of Good Practice (a set of basic rules), which you can also find on the website.
Generally, we recommend that you only use agencies that are a member of one of the following professional organisations:
- ARLA (the Association of Residential Letting Agents)
- NALS (the National Approved Letting Scheme)
- NAEA (the National Association of Estate Agents)
These organisations impose minimum sets of standards on their members. You can check membership by looking at an agency's shop window - they will advertise the fact that they are a member. You can also ask the agent or go to the organisation's website and search for members.
Be careful about 'registration', 'administration' or 'joining' fees
The Accommodation Agencies Act of 1953 makes it a criminal offence for an agency to charge for registering a person's details and/or supplying addresses of places to rent. This means it is illegal for an agency to ask you to pay a fee before they show you a flat or house.
Unfortunately, this isa common trick. Agencies can and do charge fees (remember: this is how they earn their money!) but they should only do this when you have decided to accept an accommodation offer. You can use as many agencies as you want. You do not need to accept any of the accommodation they show you.
Holding Deposits
If you like a flat or house, you may be asked to pay a holding deposit - this is a fee you pay to the agency or landlord to 'hold' the property for you while you decide whether to rent it or not. When you have paid the holding deposit the agency should not show the property to other prospective tenants.
Think twice before you pay a holding deposit. Only pay it if you
- are fairly sure you want to accept the accommodation; and
- the accommodation is the right size for you (for example a 2 bedroom flat for you and your friend); and
- you are sure you can afford the rent; and
- the accommodation was in a good condition when you viewed it (this means it does not need lots of repairs or redecorating before you move in).
If you change your mind and decide not to take the accommodation you will not get the money back, even if you have very good reasons. This can be expensive. However, if the landlord or the agency decides to give the accommodation to someone else, you can get a refund of the holding deposit.
Guarantors
Agents run a business, their job is to find tenants who are able to pay the rent. This means they will often ask you to provide a guarantor. This is someone who agrees to pay rent in case you can't pay. Guarantors usually need to be UK-based.
If you do not have a guarantor, the agent may ask you for extra rent before you move in. Stop and think before you pay extra rent! We recommend you talk to Housing Services before doing this. You should never pay ALL rent before you move in!
Work to be done?
We recommend that you only accept accommodation
- that is clean and in a good condition when you view it;
- that does not need extra repairs or redecoration;
- that has all the furniture you need.
If you accept accommodation that requires extra repairs (or furniture) and the agency agrees to do this work before you move in you should get this written in to the tenancy agreement / contract. This is called an addendum, and it should list any items to be provided (for example, a bed, mattress, and desk) and / or a schedule of work (a list of all the work or repairs the agency has promised to do), with a date fwhen the work will be completed.
Ensure you know the role of the agency
You need to know what type of service the agency will provide once you have moved into your accommodation. Are they
- an introductory agency? If this is the case, you will need to contact the landlord if you have any problems during the tenancy
- a managing agency? If they manage the accommodation on behalf of the landlord, they will collect rent, do repairs and deal with any problems you may have.
Who is holding your (returnable) Damage Deposit?
If your contract is an Assured Shorthold Tenancy, the agent (or landlord) will need to use a Tenancy Deposit Protection (TDP) scheme, and they will need to tell you which scheme they are using. If your contract is not an Assured Shorthold Tenancy, the deposit is likely to be held by the landlord. Agencies holding deposits should keep them in a 'client' account, separate from their own business bank account. This will ensure that, should the agency go bankrupt, you should still get your deposit money back.
If things go wrong (or you are not sure whether they are going right) contact Housing Services for advice.
When dealing with an agency always....
- Read any contract or other document they give you and make sure you understand it before you sign it
- Ask them to give you a copy of the contract (and keep it!)
- Avoid paying any money if you are confused or do not understand the contract
- get a receipt for any money you pay.
A good agent should give you time to make sure you understand your rights and responsibilities as a tenant. Housing Services can check contracts for you.
To find agencies, we suggest you start with the agencies registered with our colleagues at University of London Housing Services (ULHS). The agencies have agreed to the ULHS Code of Good Practice (a set of basic rules), which you can also find on the website.
Generally, we recommend that you only use agencies that are a member of one of the following professional organisations:
- ARLA (the Association of Residential Letting Agents)
- NALS (the National Approved Letting Scheme)
- NAEA (the National Association of Estate Agents)
These organisations impose minimum sets of standards on their members. You can check membership by looking at an agency's shop window - they will advertise the fact that they are a member. You can also ask the agent or go to the organisation's website and search for members.
Be careful about 'registration', 'administration' or 'joining' fees
The Accommodation Agencies Act of 1953 makes it a criminal offence for an agency to charge for registering a person's details and/or supplying addresses of places to rent. This means it is illegal for an agency to ask you to pay a fee before they show you a flat or house.
Unfortunately, this isa common trick. Agencies can and do charge fees (remember: this is how they earn their money!) but they should only do this when you have decided to accept an accommodation offer. You can use as many agencies as you want. You do not need to accept any of the accommodation they show you.
Holding Deposits
If you like a flat or house, you may be asked to pay a holding deposit - this is a fee you pay to the agency or landlord to 'hold' the property for you while you decide whether to rent it or not. When you have paid the holding deposit the agency should not show the property to other prospective tenants.
Think twice before you pay a holding deposit. Only pay it if you
- are fairly sure you want to accept the accommodation; and
- the accommodation is the right size for you (for example a 2 bedroom flat for you and your friend); and
- you are sure you can afford the rent; and
- the accommodation was in a good condition when you viewed it (this means it does not need lots of repairs or redecorating before you move in).
If you change your mind and decide not to take the accommodation you will not get the money back, even if you have very good reasons. This can be expensive. However, if the landlord or the agency decides to give the accommodation to someone else, you can get a refund of the holding deposit.
Guarantors
Agents run a business, their job is to find tenants who are able to pay the rent. This means they will often ask you to provide a guarantor. This is someone who agrees to pay rent in case you can't pay. Guarantors usually need to be UK-based.
If you do not have a guarantor, the agent may ask you for extra rent before you move in. Stop and think before you pay extra rent! We recommend you talk to Housing Services before doing this. You should never pay ALL rent before you move in!
Work to be done?
We recommend that you only accept accommodation
- that is clean and in a good condition when you view it;
- that does not need extra repairs or redecoration;
- that has all the furniture you need.
If you accept accommodation that requires extra repairs (or furniture) and the agency agrees to do this work before you move in you should get this written in to the tenancy agreement / contract. This is called an addendum, and it should list any items to be provided (for example, a bed, mattress, and desk) and / or a schedule of work (a list of all the work or repairs the agency has promised to do), with a date fwhen the work will be completed.
Ensure you know the role of the agency
You need to know what type of service the agency will provide once you have moved into your accommodation. Are they
- an introductory agency? If this is the case, you will need to contact the landlord if you have any problems during the tenancy
- a managing agency? If they manage the accommodation on behalf of the landlord, they will collect rent, do repairs and deal with any problems you may have.
Who is holding your (returnable) Damage Deposit?
If your contract is an Assured Shorthold Tenancy, the agent (or landlord) will need to use a Tenancy Deposit Protection (TDP) scheme, and they will need to tell you which scheme they are using. If your contract is not an Assured Shorthold Tenancy, the deposit is likely to be held by the landlord. Agencies holding deposits should keep them in a 'client' account, separate from their own business bank account. This will ensure that, should the agency go bankrupt, you should still get your deposit money back.