Look before you rent
This guidance is for Wales
If you decide to rent a house, flat or a room in a shared house, you can use the services of a letting agent (acts on behalf of property landlords). The letting agent's role is to find a suitable tenant for the client's property. They deal with, amongst other things, the tenancy agreement, rental payments, charges and any repairs to the property. Whilst the tenancy agreement is between you and the landlord, the letting agent must treat you fairly and honestly.
A landlord or letting agent must not require you, or someone acting on your behalf or as your guarantor, to make certain prohibited (banned) payments in connection with a tenancy.
Private landlords in Wales must legally be registered with Rent Smart Wales and if they manage their own properties they must obtain a licence from Rent Smart Wales. Letting agents must also have a licence. You can check if a landlord is registered and if the person who lets and manages the property is licensed by checking the public register.
THE LAW
Even though the tenancy agreement is between you and the landlord, the letting agent is providing you with a service therefore the Consumer Rights Act 2015 applies. This law sets out what you are entitled to expect from every contract that involves the supply of a service, such as a letting agent's service.
The key rights are:
- the service must be carried out with reasonable care and skill. A letting agent must carry out the service to the same or similar standard to that which is considered acceptable for letting agents
- information about a trader or a service is legally binding. Anything said or written down by a letting agent (or someone acting on their behalf) about the letting agency service forms part of the contract if you take the information into consideration before you agree the contract or if you make a decision about the service after the contract is made
- reasonable price to be paid for a service. You are only required to pay a 'reasonable' price for the service that a letting agent provides unless the price (or the way in which the price is worked out) is fixed as part of the contract
- the service must be carried out within a reasonable time. Sometimes the contract will fix the time that a letting agency service must be completed by. If the time has not been fixed then the service must be completed 'within a reasonable time'
The key remedies are:
- right to repeat performance. If you are dissatisfied with the letting agent's service because it has not been carried out with reasonable care and skill, or the letting agent failed to provide the service in line with information they gave you beforehand, then they must perform the service again. This should be carried out within a reasonable time, without significant inconvenience and at no cost to you
- right to a price reduction. If a repeat performance of the letting agent's service fails to resolve the problem (perhaps it is impossible or it cannot be carried out within a reasonable time or without causing you significant inconvenience) then you are entitled to a price reduction, which can be as much as a full refund
See our guide 'Supply of services: your consumer rights' for more information.
Under the Consumer Rights Act 2015, letting agents must publicise fees that relate to letting agency or property management work. A list of the fees must be prominently displayed at each of the letting agent's business premises and on their website, if they have one. The list of fees must include:
- a clear and understandable description of each fee
- in the case of a fee that a tenant is liable to pay, an indication of whether the fee relates to each property or to each tenant under a tenancy within a property
- the amount of each fee (including any taxes). If the fee cannot be worked out in advance, there should be a description of how the fee is calculated
The requirement to display details of relevant fees and membership of redress and client money protection schemes also applies to third party websites that advertise properties to let.
Letting agents must be a member of an approved letting agency redress scheme. These schemes provide a free and independent dispute resolution service for letting agents, landlords and tenants. The redress schemes are the Property Ombudsman and the Property Redress Scheme. In addition, all letting agents need professional indemnity insurance and if they handle client money, they require client money protection.
The Consumer Rights Act 2015 also covers unfair terms in all consumer contracts (contracts between a trader and a consumer), including those for letting agency services, whether they are in writing or not. It also covers notices if they are 'consumer notices', which means they set out rights or obligations between you and a trader or try to deny or restrict a trader's responsibility to you.
Traders must draft and present their contracts and notices to you in a way that is fair, open and respectful of your lawful interests. Terms and notices should be transparent; the wording used should be plain (no legal jargon), capable of being understood and legible. They should not be designed to trick or trap you and any terms that are important (because they may put you at a disadvantage) must be prominent.
You are not legally tied to an unfair contract term or a consumer notice and you have the right to challenge it, in court if necessary.
The 'Unfair terms in consumer contracts and notices' guide gives more information.
If you are an 'assured tenant' (which, for most assured tenants, means that you pay rent to a private landlord who does not live in the same building, you moved in between 15 January 1989 and 27 February 1997 and you control who enters the property) the Consumer Protection from Unfair Trading Regulations 2008 protect you against misleading or aggressive practices and give you rights to redress: the right to unwind a contract, the right to a discount and the right to damages. These rights are in addition to the rights you already have under the Consumer Rights Act 2015. The 'Misleading and aggressive practices: rights to redress' guide gives more information.
TENANT FEES
Under the Renting Homes (Fees etc) (Wales) Act 2019, you do not have to make payments which are 'prohibited', in other words they are banned. Examples of prohibited payments are as follows:
- fees to view a property
- check in / out fees
- you cannot be required to pay fees to third parties, for example where a landlord or letting agent requires you to obtain a reference from a third-party reference service or to pay for an inventory service through a third party
- fees for setting up the tenancy
- fees for professional cleaning at the end of the tenancy
Payments you CAN be asked to make are as follows:
- rent
- security deposits
- holding deposits (a small deposit paid to secure a property)
- payments required in the event of a default arising from a breach of the tenancy agreement by you, such as late payment of rent
- payment of council tax
- utilities payments (gas, water, electric, etc)
- payment of television licence
- payment of communication services (includes internet access, cable or satellite television and landline telephone)
See Letting Fees: Guidance for Tenants for more information.
HOLDING DEPOSITS
You may be asked to make a payment to a landlord to 'hold' the property whilst references and credit checks are carried out. A holding deposit can be any amount, but it is capped at the equivalent of one week's rent. Before you pay a holding deposit, you must be given key information that covers, amongst other things, the deposit amount, rental address and the rental period, in writing, by the landlord or letting agent.
The holding deposit must be repaid to you by the deadline for agreement, which means within 15 calendar days of payment. However, it can be extended if you and the landlord agree in writing. If you both agree to enter into a tenancy, your deposit must be reimbursed within seven calendar days of the agreement. If you do not agree to enter into a tenancy, your deposit must be reimbursed within seven calendar days of the deadline for agreement (15 days from payment, or another date agreed in writing).
The holding deposit does not have to be repaid where:
- you put it towards your first payment of rent or your security deposit
- you provided false or misleading information at the time you applied for the tenancy, such as giving false references
- you choose not to enter or fail to take reasonable steps to enter a tenancy agreement
KEY POINTS TO CONSIDER WHEN DECIDING TO RENT
Before you register with a letting agent, you should obtain clear information about the charges you will be expected to pay if you go ahead (look for the list of fees), the details of the tenancy agreements they operate and the typical rental costs. Find out what the letting agent is responsible for and the circumstances when you may need to contact the landlord directly.
You should use a letting agent that is a member of a professional body (details below) that requires its members to comply with a code of practice.
Check to see which redress scheme accepted by Rent Smart Wales (details below) the letting agent has joined. These schemes deal with complaints about their members and should provide you with a cheaper and easier way to seek compensation.
Always shop around and do not sign a tenancy agreement until you have read, understood and are satisfied with the terms and conditions.
The letting agent will carry out checks before agreeing to accept you as a tenant. These may include credit history checks, finding out about your employment circumstances and proof of identity.
If you decide to go ahead with a rental, the landlord or letting agent must, by law, place the deposit you pay in a tenancy deposit scheme (TDP) within 30 days of you making the payment. You must be told which scheme has been used, how to get your deposit back at the end of the tenancy and what the process is if there is a dispute about any deductions from the deposit. If you comply with your tenancy agreement, such as making the required payments and not causing damage to the property, you will receive your deposit back. Your deposit must be returned to you within 10 days of the end of the tenancy. If you leave the property before the end of the tenancy period, you may be responsible for the outstanding rent for the remainder of that period, together with the outstanding rent of those who rented with you. If you are in this position, contact the Citizens Advice consumer service for advice.
Landlords must provide you with a gas safety certificate and an energy performance certificate.
When choosing rented furnished accommodation, check the furnishings and appliances carefully. They must be safe to use. Often letting agents, as well as landlords, are liable if goods supplied with the tenancy are not of the standard required by law.
Upholstered furniture must generally have covers that resist ignition from a match flame test, upholstery that resists ignition from a smouldering cigarette test, appropriate filling materials and the required labelling.
Electrical goods and gas appliances must be safe with appropriate instructions where necessary.
Please see the 'Product safety in rented accommodation for tenants' guide for more information.
If you do not pay your rent on time, the law sets out limits on charges for non-payment that you may be responsible for. Where locks, keys or any other security device have to be changed, you are only required to pay the actual cost of the replacement, change, addition or removal.
I HAVE A COMPLAINT ABOUT A LETTING AGENT: WHAT CAN I DO?
There are a number of routes that you can take to resolve a complaint against a letting agent.
All letting agents must join a letting agent redress scheme accepted by Rent Smart Wales. These schemes provide a free and impartial dispute resolution service for landlords and tenants to use. You should complain to the letting agent in the first instance but if your complaint is not resolved within eight weeks, you can use the scheme that the letting agent is a member of.
The current schemes are operated by the Property Ombudsman Limited and the Property Redress Scheme.
If a landlord or letting agent asks you to pay a prohibited fee, you are entitled to refuse. If you have paid such a fee, you are entitled to recover it. If you want to report a landlord or letting agent for charging a prohibited fee, contact the Citizens Advice consumer service on 0808 223 1133 for referral to an enforcement authority.
Check to see if the letting agent is a member of a professional body that requires members to comply with a code of practice. If you have a complaint against one of their members, the professional body can investigate the matter.
The main professional bodies are:
If you have a complaint against a landlord or a letting agent, such as about the condition of the property you are renting, you can contact your local authority housing team.
If you received poor service from the letting agent and you wish to make a claim for money, you are entitled to take your case to court. There are different routes (referred to as 'tracks') in the County Court. If your claim is for £10,000 or less and the letting agent is based in England or Wales, it can be dealt with as a small claim using the court's 'small claims track'. Taking this route can be a relatively simple and informal way of seeking a remedy. If the value of your claim is above the small claims limit of £10,000, your claim may be allocated to the fast track or multi track. In this case, you should seek the advice of a solicitor as you will probably need representation in court. The 'Thinking of suing in court?' guide gives more information.
USEFUL CONTACT
Shelter Cymru
Tel: 08000 495 495 (urgent helpline) / Webchat
IN THIS UPDATE
No major changes.
Last reviewed / updated: October 2023
Key legislation
Please note
This information is intended for guidance; only the courts can give an authoritative interpretation of the law.
The guide's 'Key legislation' links may only show the original version of the legislation, although some amending legislation is linked to separately where it is directly related to the content of a guide. Information on amendments to legislation can be found on each link's 'More Resources' tab.
For further information in England and Wales contact the Citizens Advice consumer service on 0808 2231133. In Scotland contact Advice Direct Scotland on 0808 164 6000. Both provide free, confidential and impartial advice on consumer issues.
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