Even with increased legislation, are letting agent standards up to scratch?
Nothing like a bit of controversy to brighten up your week is there? But in fact, I don’t think ‘standards’ is a topic discussed well enough within the lettings industry
Whether you work in an agency, are a landlord or a tenant, we all have different expectations of agents, and the standards on which they operate espanolviagra.net.
What Standards should we expect?
So what is the right expectation? Good question – and one that you should be able to answer, but right you can’t. Most businesses in England & Wales operate under English Common Law. This is basically ‘unwritten law’ passed by the interpretation of judges, not legislature and therefore not a law until it becomes a law. Part and parcel of that ethos is unregulated industries and for decades the lettings industry has arguably been under-regulated.
How did tenant fees escalate?
Over the years, companies have implemented policies such as tenant fees because nobody told them they couldn’t. Granted, there are industry bodies such as ARLA who try to impose and enforce higher standards – but these are all run by letting agents for letting agents and your average tenant might think that’s actually quite biased. When things do get out of hand, the government step in and enforce legislation – which is what happened with the tenant fee bill.
Instead of internally regulating the industry, companies charged whatever they liked to the tenant. For some, it was a couple of hundred quid and for others (more so in London) was up to and well over a grand! Is that fair? Some might say that the cost of living is higher in the South, and others would suggest you earnt that back in your management fees. Either way, it seems fees didn’t have a ceiling and continued going up and up.
So the government (following strong and effective lobbying from Shelter and other groups) have said enough is enough and instead of capping tenant fees, banned them all together. It was enough to force the industry into panic mode!
Now would that have happened if higher standards were put in place in the first place? If the focus was more towards the client, rather than the business owner’s pockets? If ARLA and other bodies had a unilaterally capped their members’ fees, would there even have been a fee ban?
Personally, I think fees would still be around and it makes you wonder what else agencies could do to be better and ward off future shocks.
How can we manage things differently in future?
Could they be more tenant orientated? Could they be more co-operative with their landlords and could they makes their staff’s lives easier? Without a shadow of a doubt in my opinion. There is so much that can be tidied up, from the front-facing part of the business all the way through to the back office operations, which ultimately dictate the quality of service. From helping tenants move in, to helping staff out with tedious tasks– the list goes on.
If you’ve managed to get to the end of this article. I can imagine there’s a mix of emotions. Good or bad, I’d love to hear your honest feedback. Do you think industry standards still need improvement? What legislation is going to hit the lettings industry next?