Letting agencies

This content applies to England only.

Housing laws vary between England and Scotland. This page applies to England only. Get advice relating to Scotland

This section gives information about finding private rented accommodation through letting agencies and explains what letting agencies do.

What do letting agencies do?

Letting agencies act on behalf of landlords, not tenants. In most cases they are paid by the landlord.

There are various different types of letting agencies. Some just find tenants for properties (these are often known as accommodation agencies). Others manage properties on behalf of landlords and the tenants may never have any direct contact with the landlord. It is common for estate agents to have a lettings department.

Letting agencies often:

• find a tenant for a property
• collect rent
• manage the property for the landlord
• arrange repairs
• provide tenancy agreements and inventories.

You will usually need to register with a letting agency before they offer you any accommodation. You can register with more than one agency at a time. They should not charge you for this (see below).

The agency will ask what sort of accommodation you are looking for and how much you can pay. Once you are registered, agencies normally let you know when suitable accommodation becomes available. When a property is found, you will often need to arrange to view it as quickly as possible.

How do I find a letting agency?

Accommodation and letting agencies are listed in the Yellow Pages. They also advertise in local papers. Local advice centres like Shelter or Citizens Advice may keep a list of agencies in your area. Use our directory to find the ones near you.

Some letting agencies are members of self-regulatory bodies such as:

• the National Approved Lettings Scheme (NALS)
• the Association of Residential Letting Agents (ARLA)
• the National Association of Estate Agents (NAEA).

Using an agency that is a member of one of these organisations gives you some added protection. You may be able to complain to their regulator if you feel that the agency has treated you unfairly.

What should I ask the agency?

Before agreeing to take accommodation from a letting agency find out:

• what the agency does on behalf of the landlord
• what sort of tenancy agreement they are offering
• what charges you will have to pay before you move in (see below)
• whether the agency is a member of any trade body (eg ARLA, NAEA, or NALS)
  
• which authorised scheme they will use to protect your depsoit
• how your deposit will be protected
  
• how long you can stay
• how much the rent is and exactly when/how often you have to pay it
  
• how the rent will be paid (for example, by cheque or standing order)
• how any repairs are to be arranged.

What do agencies charge?

Some agencies don't charge tenants at all, and the amount you have to pay can vary a great deal so it is worth shopping around. All agencies should give you clear information about their charges before you agree to take up a tenancy.

Holding deposits

Some agencies ask prospective tenants to pay a holding deposit to 'reserve' a particular property while references are checked and the tenancy agreement is drawn up.

Any holding deposit that you pay should be deducted from the tenancy deposit you have to pay before moving in.

If you do not move in after all, the holding deposit is not likely to be returned to you. However, there are exceptions:

• if the landlord chooses not to go ahead with the tenancy, you should should receive a refund of all pre-payments.
• if you are not able to move in because of reasons beyond your control (for example, if you are made redundant) it may be unfair for the agency not to return your holding deposit.

Contact a local advice centre if you are in one of these situations - use our directory to find one.

Other reasonable charges

Many agencies will ask tenants to pay fees for:

• drawing up tenancy agreements and providing an inventory
• collecting references from your employer, bank and/or previous landlord
• administrative costs such as phone calls and postage
• renewing the tenancy agreement when the fixed term ends.

Most agencies will also ask you to pay a deposit (usually one month's rent) and the first month's rent in advance before you move in. The amount of deposit and rent in advance required can be more than this, especially if the letting is going to be for a long period of time or if the property is of high value.

If you are claiming housing benefit, bear in mind that it will not help you to pay for any of these costs.

Charges that may be unfair

If you believe an agency is acting illegally you can make a complaint and/or report them to your local council's trading standards department or tenancy relations officer.

You should not have to pay any fees until the agency has found a place for you. It is a criminal offence for agencies to charge you just to register or to supply addresses and details of accommodation.

If you had to pay unreasonably high charges or the agency did not give you full details of the charges in advance, you may be able to challenge the charges on the grounds they are unfair. You should contact a specialist housing adviser or your local council's trading standards officer for further advice.

Does it matter whether I'm claiming housing benefit?

Some agencies won't accept tenants on housing benefit. Housing benefit is paid four weeks in arrears. You may therefore need to find the first month's rent yourself. Housing benefit will not cover the deposit or any agency fees.

You can find out the maximum amount of housing benefit you can get before you move in by applying to the council for what is called a pre-tenancy determination, with the letting agency's co-operation.