Legionnaire’s disease and the HSE

We are aware that certain companies have been contacting landlords and agents in an effort to sell their services to carry out risk assessments for legionella bacteria in rental properties. These tests are often expensive and in most situations are completely unnecessary as is recognised by the Health and Safety Executive in its mythbusters section of the website.

The above mirrors the advice that we have always given in our past blogs here : yes there must be a written risk assessment, and that risk assessment must be done by a competent person BUT “competent” does not mean having any specific qualifications – all that is required is for the person carrying out the risk assessment to understand the circumstances in which legionella bacteria grows and becomes a risk; and what steps can be taken to reduce the risk of disease. That could be the landlord or agent.

Filed under: England & Wales

Consumer Rights Act 2015 and lettings agent fees. More duties for lettings agents?

From 27 May 2015 there will be a statutory duty on lettings agents in England  to publicise the fees they charge.

What needs doing?

1. Agents need to display prominently in each office and on the agent’s website ( if there is one):
   1. A list of fees. The list must give enough information so that a person can work out what exactly they are paying for, and why, and how much it will cost. The list must set out whether the fees are per property or per individual. Where there is a joint tenancy is it one fee for all, or for each individual to pay? The fees must be set out inclusive of VAT ( and any other applicable tax), and where that fee is not determinable in advance, a description of how the fee is calculated, for example Landlord’s commission fees.
   2. If the agent holds client monies, a statement as to whether the agent is a member of a client money protection scheme.
   3. A statement to say that they are member of a redress scheme and giving the name of that scheme.

Who needs to do it?

Lettings agents in the Private Rental sector. Local authorities are excluded. The duty (and therefore any penalty) falls upon the agent and not salaried employees of the agent.

What does “fees” mean in this context?

For the purposes of this legislation “fees” means “ the fees, charges or penalties which a landlord or tenant pays to the agent in relation to letting agency work, property management work or otherwise in connection with an assured tenancy or a dwelling-house let under an assured tenancy”. Some exclusions are set out. Rent and Deposits are excluded ( but not “holding deposits”) and some third party fees e.g. agent paying a contractor on behalf of a landlord.

Penalties for non compliance

Trading Standards can fine an agent up to £5000.00. The first step is that they would serve a “notice of intent” upon the agent setting out the proposed penalty and reasons for it. The agent has 28 days to respond. Trading Standards then decides whether to impose the penalty and if it does, will send a “final notice” requiring payment within 28 days. If the penalty is imposed an agent has a right to appeal through the FTT .

More detail can be found in the explanatory notes to the act.

When does it need doing?

Agents will need to be in compliance by 27^th May 2015

In fact, most agents who are already adhering to the requirements of membership of a particular professional body and complying with the rules of their redress scheme, are likely to already be doing the above.   Of course all agents should check that they are compliant with the new legislation, but those who are not already doing the above need to put measures in place to ensure that they are doing so by 27 May 2015.

Filed under: England only, consumer protection, fees, guidance, tenancy agreements, Unfair Terms