Property and Business Insurance

Choosing a letting agent

National Approved Letting Scheme (NALS)
Members of the National Approved Letting Scheme (NALS) (which is government financed) have to abide by a code of conduct and must:

  • Be a member of ARLA, RICS or NAEA.
  • Operate an internal complaints procedure.
  • Be linked to a legally binding arbitration service.
  • Maintain professional indemnity insurance.
  • Have a client’s money protection scheme covering any landlord or tenant’s monies misappropriated or lost by the agent.

The UK Association of Letting Agents has its own code of practice and also supports the NALS scheme.

The good news for landlord insurance customers is that there are about approximately 3000 letting agents in the UK who are members of trade bodies, which offer some kind of regulation. The bad news is that that leaves possibly as many as 10,000 agents who are not regulated at all, working in a growing market with high demand in which people are likely to enthusiastically sign up to rent their new home without checking the small print, which sometimes has outrageous clauses hidden away.

The golden rule is: landlord insurance policyholders should go for an agent who is a member of the National Approved Letting Scheme or belongs to one of the professional bodies who support it: the Association of Residential Letting Agents (ARLA), the Royal Institution of Chartered Surveyors (RICS) or the National Association of Estate Agents (NAEA) and the UK Association of Letting Agents (UKALA. In addition, make sure you opt for an agent who deals with the market you want to serve as they will have the expertise you need.

Many estate agents are setting up lettings businesses due to a lack of sales. Be warned that they may well not be as up to speed on letting legals and rules and regulations.
The reason this is so important is that there is a clear course of action if you have difficulties and can’t come to a conclusion yourselves. This can be an invaluable time and money saver, just when you will need support and help if things are not working out.

“For more information regarding this article, or to compare landlord Insurance quotes, simply complete our online let property insurance quote form.”

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  4. Why Let a Property through a Management Agent
  5. How to Get Tenants for Buy to Let Property
  6. Using Property Letting Agents
  7. Read Letting Agents Contract
  8. Preparing a rental property for Letting
  9. Tenant Deposit Schemes
  10. Common Terms for Landlords Let Property

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