Letting Agent - Responsibilities and Risk

The Letting Agent must not fall foul of their legal obligations towards their clients and perform within the terms of their Management Agreement.

From 6th April 2012 all Letting Agents will now need to be satisfied that an EPC has been commissioned prior to marketing a property for rental
The Localism Bill (Royal Assent on 15 November 2011) introduces amedments to the Deposit Legislation with penalties and fines
Best practice is considered that the Landlord be vetted and staff work to a check list.
Letting Agents who complete inventories must understand obligations about Agent Inspections.
Agents are expected to advise and comply with Lettings Legislation and Landlord Repair Obligations.
Agents should know defences Tenants are using to delay eviction read more, for if a Tenants is able to delay eviction due to a failure on the part of the Letting Agent, the Landlord may bring a claim for negligence and have a claim for consequential loss against the agent more.
Where a Letting Agent collects the rent in respect of a shared House [HMO], the Agent can be held liable for non compliance with HMO Licensing, this can result in a £20,000 fine payable by the Agent for they are deemed the 'rent receiver'.
In respect of the tenant, the Agent must do everything a Landlord is expected to do (sometimes to a higher level) see Scope of Agency Law. Agents and customer facing staff should be familiar with the vetting process and possession process .
Agents should know if any areas in their territory are designated under selective licensing, as this has significant impact on the validity of a Section 21 Notice.
The Agent should have an audit trail so they can minimise exposure to claims of Professional Negligence.
Monitor current and local events and continually invest in staff education. Register with their local Council run Landlord forums so they can receive updates on local issues- specifically enforcement and expansion within their business territory, or propose introduction of selective Licensing- this has significant impact on the validity of a Section 21 Notice. In April 19 2010, the Government devolved powers of selective licensing so we are likely to see its introduction in more areas of low demand housing.
Letting Agents can issue Section 8 & 21 Notices but CANNOT apply for a possession order - some do but this is false representaition, for they are neither the