How to Take Over Property Management from Your Letting Agent: A Guide for Landlords

Are you considering taking over the management of your rental property from your letting agent? There could be various reasons why you may want to do so, such as cost-saving or dissatisfaction with the service provided. However, before making a decision, you need to consider several factors.

Legal Duties and Responsibilities

As a landlord, you have certain legal duties and responsibilities to fulfill, such as deposit protection, fire safety, and property maintenance. Make sure you know your legal obligations and have a reliable contractor to carry out maintenance work for you. If the property has a license, ensure you are aware of your legal duties as the landlord or HMO manager.

Steps to Take

If you have decided to take back the management of your rental property from the letting agent, follow these steps:

Step 1.

Review the agent’s terms of business to know how to terminate the business agreement. You must serve notice to your agent and provide the adequate notice period as stated in the contract. Be aware that you may be liable to pay a termination fee, so ensure you read the business clauses carefully and seek legal advice if necessary.

Step 2.

Inform your tenant/s of the change in circumstances. Send a letter with the date you will start managing the property, and include a copy of your own privacy notice to comply with GDPR.

Step 3.

Check the AST to see the address provided to the tenant/s for them to serve a valid notice to end their liability. If the agent’s address has been used, update it, and provide an address in England or Wales to the tenants. You can use the Section 48 notice to document this.

Step 4.

Instruct the tenant/s to cancel their existing standing order/direct debit and provide your own bank details to set up a new standing order for future rent payments.

Collect all property keys from the agent, along with any other relevant information they hold relating to the tenancy, such as the written tenancy agreement, deposit information, all tenant data, and invoices for any repairs.

What if I was informed by my agent that they couldn't provide me with the tenant's information due to General Data Protection rules.

it's important to note that the agent is employed by the landlord, so they should not be withholding the tenant's information from the landlord.

In fact, the agent's privacy notice should already detail all the third parties with whom they can share the tenant's information. If you're not included in this list, the agent must update their privacy notice and send it to the tenants. After that, they can proceed to provide you with the required information.

If your former agent has been holding your deposit, and you plan to end your agreement, you need to take over protecting the deposit and serve the scheme's prescribed information to the tenants and anyone who contributed to the deposit.

To simplify the process, you can use the same deposit protection scheme as the agent. Usually, agents use a 'custodial' scheme where the scheme holds the deposit. If this is the case, you should set up your own account with the same deposit protection scheme, and the agent can request the scheme to transfer the deposit protection from their account to yours.

If the deposit is currently protected in an insurance-based deposit scheme, the agent holds the money, and you need to transfer it to yourself. The agent may ask for evidence that you have registered to protect the deposit in a scheme before releasing the money to you. Once you have provided evidence and protected the deposit, the agent will transfer the money to you.

After the transfer, you must send the tenants a copy of the new deposit certificate, prescribed information, and scheme rules. This ensures that the deposit remains protected, and no potential issues occur in the future.

It is essential to keep evidence that the agent protected the deposit correctly and provided you with the prescribed information when they received it. This documentation may be useful if you need to seek possession from the tenant later and prove that you always complied with the deposit regulations.

Frequently Asked Questions:

Q: Do I need to register as a landlord with my local authority?

A: Yes, in most cases, you are legally required to register as a landlord with your local authority if you rent out a property in England. Check with your local council for specific requirements.

Q: How do I ensure the safety of my tenants?

Q: What if I have issues with the tenants after taking over management?

Q: What happens to the deposit that was paid to the letting agent?

Q: Can I increase the rent once I take over management?

Q: What if the tenants refuse to pay rent after I take over management?

Q: Can I evict the tenants if I want to sell the property?