Choosing the right letting agent

What a letting agent does and when to use one

A letting agent acts as an intermediary between a landlord and a tenant. The agent markets the property, arranges viewings, and checks prospective tenants. Many agents also draft tenancy agreements, protect deposits in an approved scheme, and manage the move-in process. During a tenancy, an agent can collect rent, handle maintenance requests, and carry out inspections. Some agents also manage renewals and serve notices when needed. Using a letting agent suits landlords who lack time, live far from the property, or prefer professional support with compliance. For example, an agent can help you meet legal duties such as right to rent checks and deposit protection. You can verify whether a deposit scheme meets legal standards through the UK Government guidance on tenancy deposit protection. An agent also helps when you want consistent tenant communication, faster repairs, and clear record keeping. Even with an agent, the landlord remains responsible for meeting legal obligations. For that reason, choose an agent whose service level matches your needs, whether you want tenant-find only or full property management.

Letting agent types: high street, online, and hybrid models

Letting agents tend to operate under three main models: high street, online, and hybrid. A high street agent usually offers a local branch, face-to-face appointments, and strong knowledge of neighbourhood demand and achievable rents. That presence can suit landlords who value in-person support, although fees may reflect higher overheads. Online agents often run services through a portal and telephone support. Many offer fixed-fee packages, which can help with budgeting, yet service levels vary. Before appointing an online provider, check how the agent handles viewings, tenant communication, and out-of-hours issues, as these points affect tenant experience and rent continuity. Hybrid agents combine local staff with online systems for updates, documents, and reporting. This model can balance accessibility with efficiency, especially when a landlord wants a named contact but also prefers digital tracking of tasks. Whichever model you choose, confirm that the business belongs to a redress scheme and protects client money where required. Membership of The Property Redress Scheme or The Property Ombudsman provides a clear complaints route, while Propertymark membership can indicate professional standards.

Regulation and redress schemes to check before instructing

Before instructing a letting agent, check which rules apply and which protections support landlords and tenants if a dispute arises. In England, letting agency work does not require a single national licence, so landlords should verify membership of recognised schemes and compliance with key legal duties.

Redress schemes (mandatory)

Every letting agent must belong to an approved redress scheme. Redress schemes provide an independent complaints route if the agent fails to resolve an issue. Ask for the scheme name and membership number, then confirm membership on the scheme website. Approved schemes include The Property Redress Scheme and The Property Ombudsman.

Client Money Protection (mandatory)

Agents who handle rent, deposits, or other client funds must hold Client Money Protection (CMP). CMP protects landlords if the agent misuses or cannot account for money held on behalf of clients. Request the CMP certificate and check the provider and expiry date. The UK Government lists recognised CMP schemes on GOV.UK.

Professional bodies (useful, not compulsory)

Membership of a professional body can indicate higher standards, training, and a code of practice. Examples include Propertymark and RICS. Confirm whether the specific branch and staff members hold the membership, not only the parent company.

Other compliance checks

• Fees and transparency: confirm the agent displays a clear tariff of landlord fees and redress/CMP details.
• Deposit protection: establish which government-approved scheme the agent uses and how quickly deposits get registered.
• Data protection: ask how the agent stores tenant and landlord data and whether the privacy notice is available.

These checks help you compare agents on accountability, not only price.

Fees, contracts, and key terms to review in the agency agreement

Before signing an agency agreement, confirm exactly what the fee covers and when the agent will charge it. Many agents offer tiered services, such as tenant-find, rent collection, or full management. Ask for a written schedule that shows each charge, the trigger for payment, and whether VAT applies. Under the Consumer Rights Act 2015, fees and key terms must be transparent and fair, so request clarity where wording feels open-ended.

• Set-up and letting fees: marketing, viewings, referencing, and tenancy paperwork.
• Management fees: a percentage of rent, plus any minimum monthly charge.
• Renewal and continuation charges: fees for negotiating a new fixed term or for a periodic tenancy.
• Inventory and check-in/out: who appoints the clerk and who pays.
• Maintenance administration: call-out fees, contractor mark-ups, and limits for pre-approved spend.

Review the contract length and exit terms with care. Some agreements lock landlords into a minimum term or impose notice periods that do not align with tenancy timelines. Check whether the agent can continue charging commission after the agreement ends, especially if a tenant introduced by the agent remains in occupation. That clause can be legitimate, yet the scope and duration should be proportionate and clearly stated. Key operational terms also merit attention. Confirm who holds the deposit and how the agent will register it with an approved scheme, as well as who serves statutory notices and how the agent will obtain your authority. Ensure the agreement sets out reporting, inspection frequency, arrears escalation, and how the agent will handle complaints. Where the agent proposes to sign documents on your behalf, verify the limits of that authority in writing.

Request a complete copy of the agency agreement and the fee schedule before instruction, then keep signed versions with your tenancy records.

Service scope: tenant-find, rent collection, and full property management

Letting agents usually package services into three levels. The right scope depends on how much time a landlord can commit, how far the property sits from the landlord, and how comfortable the landlord feels with compliance and day-to-day decisions. A clear scope also reduces disputes, because both parties can match expectations to the written agreement. Tenant-find focuses on securing a suitable tenant and setting up the tenancy. This option often suits landlords who want help at the start but prefer to manage the tenancy directly once the tenant moves in. Confirm whether the service includes identity and affordability checks, Right to Rent checks where they apply, preparation of the tenancy agreement, and deposit registration. Ask who handles the inventory and check-in, since independent inventory clerks can protect both parties if a deposit dispute arises. Rent collection adds ongoing administration. The agent collects rent, issues statements, and chases arrears under an agreed process. Clarify the arrears timeline, the communication approach with tenants, and whether the agent can recommend escalation steps. Where the agent proposes serving notices, confirm that the agent will follow current government guidance, such as the GOV.UK guidance on evicting tenants, and that the landlord retains control of key decisions. Full property management covers rent collection plus repairs, inspections, renewals, and tenant liaison. This scope can suit landlords who live away from the property or who want a buffer between themselves and the tenant. Establish spending limits for repairs, how the agent selects contractors, and how the agent evidences value for money. Confirm inspection frequency, reporting format, and how the agent manages legal duties such as gas safety and electrical safety, using official requirements set out on GOV.UK: Renting out a property. Before choosing a scope, request a written service schedule that states what the agent will do, what the landlord must do, and what sits outside the fee. That clarity makes comparisons meaningful and helps prevent gaps in compliance.

Tenant selection standards: referencing, right to rent, and affordability checks

Strong tenant selection standards reduce arrears, disputes, and void periods. Ask the agent to explain the referencing process in plain terms, including which checks the agent completes in-house and which checks the agent outsources to a specialist provider. A robust reference usually verifies identity, current address, employment status, and recent credit history, while also seeking a landlord reference where available. Right to Rent checks remain a legal requirement in England. Confirm that the agent will complete the prescribed document checks before the tenancy starts, keep clear records, and repeat checks when a tenant has time-limited permission to rent. Guidance changes from time to time, so the agent should follow the latest instructions from the Home Office. Affordability checks matter as much as credit scoring. Request the agent’s income-to-rent approach, how the agent treats variable income, and what evidence the agent accepts, such as payslips, contracts, or tax returns. When affordability looks marginal, a suitable guarantor may help, provided the agent references the guarantor and issues a properly drafted guarantee.

Communication, reporting, and maintenance handling expectations

Set clear expectations for how the agent will communicate before instruction. Agree preferred channels, typical response times, and who receives updates when more than one landlord or decision-maker exists. Regular reporting should cover rent received, arrears actions, upcoming compliance dates, and any tenancy issues that need approval. A monthly statement often suits most landlords, while managed portfolios may need more frequent summaries during the first few months of a tenancy. Maintenance handling needs equal clarity. Ask how the agent triages repairs, what counts as an emergency, and whether the agent operates a 24-hour contact line. Confirm the spending limit for works without consent and require written quotes for non-urgent jobs above that threshold. Clarify who instructs contractors, how the agent checks quality, and how the agent records evidence, such as photographs and invoices. Also confirm how the agent keeps a repair audit trail, since good records support deposit discussions and dispute resolution. Guidance from How to rent: the checklist for renting in England helps set tenant-facing expectations, while Propertymark provides useful benchmarks for professional management standards.

Comparing agents: questions to ask and warning signs to avoid

When comparing letting agents, treat the conversation as a structured interview. Ask for evidence, not assurances, and request examples from recent instructions that match the property type and location. A reputable agent should answer clearly, provide documents promptly, and explain any limits to the service.

• How will the agent market the property? Request sample listings, typical time to let, and how the agent handles viewings and feedback.
• Who holds client money and how is it protected? Confirm membership of a client money protection scheme and ask where deposits will be registered.
• What happens when rent is late? Ask for the arrears process, timescales, and when the agent escalates to formal notices.
• Which contractors does the agent use? Check how the agent selects contractors, controls costs, and seeks approval for non-urgent work.
• Who will manage the account day to day? Confirm a named contact, cover during holidays, and how handovers work.
• Can the agent provide landlord references? Ask for contact details for current clients, not only testimonials.

Warning signs often appear in the detail. Be cautious if an agent refuses to confirm redress membership, avoids written answers, or pushes for immediate signature without time to review terms. Unusually low fees can also signal gaps, such as extra charges for renewals, inspections, or serving notices. Scrutinise how the agent describes legal compliance. A professional should signpost official guidance, such as GOV.UK private renting, and explain who completes each task. Vague statements such as “we handle everything” can hide exclusions. Equally, pressure to accept a tenant without full referencing, or a reluctance to share the referencing criteria, should prompt a pause.

Choose the agent that provides clear documents, consistent answers, and a service that matches the level of control and risk you are willing to take.