Communication, education, transparency and fairness should underpin all dealings between landlords, letting agents and tenants.
This is good for business and good for everyone who makes their home in the sector.
That is why at UKALA we actively promote declaring all fees clearly at the earliest practical stage. In theory, this should include detailing all fees and charges in all advertisements, but in practice this simply isn’t feasible for most agents.
No two properties or households are the same, and it’s this flexibility and diversity of the private renting that makes it so valuable to society and the UK economy. However, it also makes it very difficult to operate a business according to standard ‘book prices’.
Within such a variable environment, agents cannot be expected to include all potential charges in advertisements, when they don’t know the prospective tenants’ requirements. In short, how can a letting agent be expected to provide a cost when they have no facts on which to base it? It would be irresponsible, and quite possibly misleading, to do so when there is so much that is subject to change.
At UKALA, we strongly believe that professional letting agents should be free to set their own reasonable fee levels in order to cover their costs and provide sufficient margin to make their business viable.
As long as they explain, at the earliest opportunity, their fees and the value which they represent to potential clients and tenants, we see no reason why they should be expected to provide a ‘best guess’ in advertisements.
Last week’s announcement by the ASA is well-meaning, but shows lack of understanding of the marketplace upon which it has passed judgement.
It inadvertently risks hitting tenants with higher fees, as letting agents will have no choice but to specify a generic fee. In some cases, this fee may be higher than if a letting agent retained the ability to evaluate fees based on a tenant’s circumstance.
Whilst UKALA recommends that all letting agents comply with the ASA ruling, we are also of the view that a far better approach exists in the UKALA Code of Practice.
Prior to an applicant’s offer being formally accepted, UKALA members have to set out in writing any significant tenancy pre-conditions and terms for the letting, such as their potential liability for fees and charges. Any failure to do so represents a breach in the agent’s duty of care and may mean that tenants will not be liable for fees or charges arising later on.
We believe this approach is the best way to ensure quality of service and transparency in the lettings sector when it comes to the issue of fees.
The lettings market needs greater transparency and fairness at all stages, and in all communications. UKALA is helping to drive this change as well as raising awareness of the challenges that letting agents face.
Caroline Kenny is executive at the UK Association of Letting Agents (UKALA)
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Comments
I think CK is missing an important point. In any market competition is what keeps prices in check. When prices are hidden there is no longer that pressure. With the fees published the tenants will take them into account viewing properties. Equally importantly, the landlords will take them into account selecting agents. How many UKALA agents disclose tenants fees to landlords on first contact? A landlord may be more reluctant choose an agent if he sees excessive fees next to his property in the listing.
At last, someone who is willing to stand up for letting agents!!!
Good on you Caroline.......UKALA gets my vote!