London Rental Standard - Greater London Authority

THE LONDON RENTAL STANDARD

UPDATED MAY 2014

London Rental Standard 1.

Introduction

1.1 The London Rental Standard The London Rental Standard is a voluntary set of minimum standards that the Mayor expects from landlords, managing agents and letting agents that operate in London’s private rented sector. The aim of the London Rental Standard is to raise professional standards in the capital’s private rented sector by providing a consistent standard of accreditation to consumers and a vehicle for increasing the number of accredited landlords and agents. The London Rental Standard will underpin a major expansion in landlord and agent accreditation, support the development of a single badge of accreditation for all accrediting organisations, and help to expose the small minority of rogue landlords and agents who neglect their responsibilities. It will be implemented by the Greater London Authority (GLA) in partnership with boroughs, the industry and tenant bodies. Consumers will benefit from increased transparency, accountability and redress, while landlords and agents will beneft from incentives, training and a commercial advantage in a highly competitive market. The aim is for the London Rental Standard to be adopted by all accreditation organisations so that there is consistency across the entire sector. The London Rental Standard has been subject to extensive consultation, including a three month public consultation between December 2012 and February 2013. 1.2 Definitions A landlord is defined as the legal owner of a house, flat or other residential accommodation which is located in London and rented or leased to a tenant or lessee for a fee, whether they are an individual or business. A letting agent is defined as someone who is instructed by a landlord and is paid to find a tenant for a residential property, located in London, in accordance with the contract they have agreed, whether in writing or not. A managing agent is defined as someone who is instructed by a landlord and is paid to carry out some or all of the functions associated with managing some or all of that landlord’s residential property and tenancy portfolio in accordance with the contract they have agreed, whether in writing or not. Managing the property and tenancy is often shared between a landlord and an agent. In all cases, all relevant standards should be applied.

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2.

FINAL VERSION – JULY 2013

Defined standards

2.1 Landlord accreditation Accreditation schemes that accredit landlords should do the following:

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have a robust code of practice in place which requires those being accredited to comply with certain requirements in relation to landlord services. These requirements must include: i.

Written rental agreement: this must always be provided and should include the rent terms, frequency of payment, and the period of tenancy or license.

ii. Deposit: must be protected, the amount must be specified and a copy of how the deposit is protected must be provided to the tenant. iii. Contact details: providing the tenant with their contact details including their address and two contact telephone numbers (mobile and landline) and an email address. Landlords should endeavour to respond to tenant communication in a prompt manner. iv. Availability: landlords should always be contactable and must respond within a reasonable period of time. If unavailable, tenants should be informed and given alternative contact details. v. Reasonable notice of access: except in case of an emergency, landlords should give the tenant at least 24 hours notice, in writing and stating reasons, when access to the property is required by the landlord, contractor or agent. vi. Emergency repairs: these should be dealt with or made safe as soon as practically possible and normally on the same day that a landlord is notified. Emergency repairs are defined as any defect where there is a risk of danger to the health, safety and security of the tenant or a third party on the premises, or that affects the structure of the building adversely. vii. Urgent repairs: wherever possible these should be dealt with within three working days of a landlord being notified. viii. Property conditions: landlords must ensure that properties comply with legal requirements, including having no category 1 hazards or significant/multiple category 2 hazards. Where relevant, properties must also comply with licensing schemes and landlords will always comply with statutory notices served by a local authority. ix. Energy efficiency: landlords must work towards compliance with duties imposed upon them by the Energy Act 2011, especially related to requests for energy efficiency improvements by tenants and in relation to low ratings in energy performance. x. End of tenancy: the deposit should be returned promptly and in full, minus verified costs that are chargeable to the tenant’s deposit. Landlords should provide tenant references if requested. xi. Complaints: landlords must respond to tenant complaints promptly and accreditation schemes must have their own complaints process in place if complaints are escalated. xii. Dealing with tenants: landlords must always act in a fair, reasonable and professional manner in their dealings with tenants, and must not discriminate in their dealings with prospective and/or existing tenants or treat them less favorably than others because of their colour, creed, ethnic or national origin, disability, age, sex, marital status, sexuality, politics, or their responsibility for dependents.

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provide training to member landlords (see annex 1 for a model training syllabus)

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have certain requirements of landlords themselves, including the following: i.

be a fit and proper person as defined by the Housing Act 2004

ii. a commitment to undertake Continuous Professional Development beyond the initial training (at least ten hours a year, or equivalent, will normally be expected).

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have an appropriate process for ensuring that accredited landlords continue to meet the requirements for accreditation and a process for disciplining, removing or unaccrediting those who fail to meet the requirements of their scheme.

2.2 Managing agent accreditation Accreditation schemes that accredit managing agents should do the following:

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meet all of the code of practice standards in 2.1.

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where the managing agent also performs letting agent functions, all relevant standards in 2.3 should also apply.

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encourage members to operate a consumer complaints procedure and offer a means of independent consumer redress.

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provide training to member managing agents (see annexes 1 and 2 for model training syllabus).

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require managing agents to have at least 1 member of staff accredited (those who are actively managing properties) in each branch office of the agent.

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have an appropriate process for ensuring that accredited managing agents continue to meet the requirements for accreditation and a process for disciplining, removing or unaccrediting those who fail to meet the requirements of their scheme.

2.3 Letting agent accreditation Accreditation schemes that accredit letting agents should do the following:

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have a robust code of practice in place which requires those being accredited to comply with certain requirements in relation to letting agent services. As a minimum, these requirements must include: i.

Fees and charges: landlords and tenants should be provided with a written statement setting out services to be provided and charges. Tenant charges should be published, preferably on a website.

ii. Insurance: maintain professional indemnity insurance and have in place client money protection insurance cover through a designated scheme for example RICs, ARLA/NAEA, Law Society or NALs.

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iii. Pre-tenancy: give clients advice on the level of rent they can expect to pay, arrange for relevant safety checks of properties and inform clients of defects, provide and fill in a rental agreement and take a deposit where instructed. iv. During tenancy: collect the rent if instructed, keeping a separate clients account to hold all money, belong to a client money protection scheme for example SAFEagent v. End of tenancy: give clients advice on their options including reviewing the rent, serving correct notice on the tenant, dealing with return of the deposit in a prompt manner. vi. Complaints: maintain and operate a consumer complaints procedure and offer a means of independent consumer redress such as being a member of an appropriate ombudsman.

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provide training to member letting agents (see annex 2 a model training syllabus).

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require letting agents to have at least 1 member of staff accredited in each branch office of the agent.

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take all reasonable steps to ensure that advice to landlords, tenants and prospective tenants is accurate and compliant with current legal requirements.

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have an appropriate process for ensuring that accredited letting agents continue to meet the requirements for accreditation and a process for disciplining, removing or unaccrediting those who fail to meet the requirements of their scheme.

3.

Implementation

3.1 Accrediting organisations The aim is for all accrediting organisations to be compliant with, and promote, the London Rental Standard. To achieve this, they will be ‘licensed’ to use the London Rental Standard brand and the ‘single badge’ of accreditation. In return, accrediting organisations will be expected to do the following:

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accredit individual landlords or agents according to existing established criteria and protocols that must, as a minimum, meet the London Rental Standard

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provide the facility to check on the current accreditation status of landlords and agents

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distribute marketing material promoting the London Rental Standard and single badge

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monitor accredited landlords and agents to ensure that they are meeting the London Rental Standard requirements

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review accredited landlords and agents to make sure that they still comply with the requirements of accreditation

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participate in the governance arrangements for the London Rental Standard.

3.2 The role of the Greater London Authority The GLA will be responsible for the following:

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working with accreditation schemes in London to deliver the London Rental Standard

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the creation of a single badge of accreditation

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delivering a major public awareness campaign to promote the London Rental Standard and accreditation.

The GLA will not be responsible for the following:

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accrediting landlords or agents – this is the responsibility of the accrediting organisations

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dealing directly with any complaints about accredited landlords or agents – these will be directed to the appropriate organisation.

3.3 The role of the London Rental Standard steering group

A London Rental Standard steering group has been set up comprising the LRS accreditation schemes, several key London Boroughs, London Councils, Shelter and the GLA. The LRS Steering group is responsible for: 

Deciding the policy and processes of the London Rental Standard

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Conducting the London Rental Standard annual review to determine any improvements or changes that should be made to the Standard and how it is administered

3.4 The role of the London Rental Standard licensing and compliance officer A London Rental Standard Licensing and Compliance officer will be hosted in the first instance by the London Borough of Camden, though this is subject to change. The officer’s duties will be determined by the LRS Steering Group and the GLA, in discussion with the London Borough of Camden. The officer will be responsible for:  monitoring licensed accreditation schemes to ensure their continued compliance with the London Rental Standard 

collecting performance data about the London Rental Standard

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

making recommendations to the GLA concerning the revocation of licenses granted to existing LRS providers, where necessary

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assessing applications from new prospective providers of the LRS and issuing licenses where appropriate

3.4 The role of the London boroughs The boroughs will be responsible for the following:

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recognising and promoting the London Rental Standard locally

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continuing their support for the local authority funded London Landlord Accreditation Scheme (LLAS)

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encouraging landlords and agents with whom they have a relationship with to become accredited.

4.

Marketing and promotion

A marketing and communication plan for the London Rental Standard will be produced by the GLA, in consultation with the industry. It will include the following:

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the development of a single badge of accreditation, which will be displayed on any advertising and marketing materials of properties and services by landlords, letting agents and management agents, such as promotional material, websites and offices of the letting agents and management agents

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a major public awareness campaign, lasting for at least one year, to promote the London Rental Standard and accreditation

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promotion to tenants of the benefits of using landlords, letting agents and management agents that are accredited when advising tenants and prospective tenants about accessing private rented sector homes

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promotion of the London Rental Standard at a range of events such as local authority landlord forums and events organised by accrediting organisations such as branch meetings.

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Annex 1 Minimum defined standards for a training syllabus for landlords and managing agents Format of training (schemes will be encouraged to work towards compliant training format)

Training should normally be face to face, delivered by representatives of the scheme to the member(s) or prospective member(s). If online training is used, this training should normally be externally validated with links to the National Qualification Framework (NQF).

Section 1 Pre-tenancy issues

• • • • • • • • • •

Who’s who – landlord and tenant Landlord-agent relationship Permissions required Energy performance certificates Insurances Income tax and other tax issues Council tax Where to get information Landlord associations Accreditation and continuous professional development

Section 2 Responsibilities and liabilities

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Common law implied terms Statutorily implied terms HHSRS o hazards o process o enforcement Specific issues o condensation o gas safety o electrical equipment and installation o furniture o fire safety o energy performance certificates (EPCs) o the Green Deal Houses in Multiple Occupation o Planning permissions o HMO types o HMO household o HMO – self contained o Management regulations o Licensing – mandatory/additional o Selective/enforcement

Training should be available at a variety of times and days of the week to accommodate the requirements of members.

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Section 3 Setting up a tenancy

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Discrimination Types of tenancies Tenancy agreement types Tenancy options Rent Referencing and vetting tenants Tenant application o Taking references

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• • • •

o Alternatives to doing it yourself o Giving references o Guarantors o Unfair terms Deposits Housing Benefit and welfare reform Utilities Move in – summary

Section 4 During the tenancy

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What to do during the tenancy Changing tenancy terms Tenant wants to leave Managing rent arrears Anti-social behaviour Maintaining records

Section 5 Ending a tenancy

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How to end the tenancy Termination by landlord Grounds for possession Section 21 notice/restrictions Service of documents Accelerated possession Non-Housing Act tenancies Unlawful eviction Harassment Termination by the tenant Move out - summary • Read meters • Check inventory • Outstanding bills • Refund of deposits

Section 6 Other

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Verification tests Update landlords on what happens next including when to expect certificates and continuous professional development reminder

Annex 2 Minimum defined standards for a training syllabus for letting agents and, where relevant, managing agents Section 1 Pre-tenancy issues

• • • • • • • • • •

Who’s who – landlord and tenant Landlord-agent relationship Permissions required Energy performance certificates Insurances Income tax and other tax issues Council tax Where to get information Landlord associations Accreditation and continued professional development

Section 2 Responsibilities and liabilities

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Common law implied terms Statutorily implied terms HHSRS • Hazards

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•

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Section 3 Setting up a tenancy

Section 4 During the tenancy

Section 5 Ending a tenancy

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• • • • • • • • • • • • • • • • • • • • •


• Process • Enforcement Specific issues • Condensation • Gas safety • Electrical equipment and installation • Furniture • Fire safety • Energy performance certificates • The Green Deal Houses in Multiple Occupation • Planning permissions • HMO types • HMO household • HMO – self-contained • Management regulations • Licensing – mandatory/additional • Selective/enforcement Discrimination Types of tenancies Tenancy agreement types Tenancy options Rent Referencing and vetting tenants Tenant application • Taking references • Alternatives to doing it yourself • Giving references • Guarantors • Unfair terms Deposits Housing Benefit and welfare reform Utilities Move in – summary What to do during the tenancy Changing tenancy terms Tenant wants to leave Managing rent arrears Anti-social behaviour Maintaining records How to end the tenancy Termination by landlord Grounds for possession Section 21 notice/restrictions Service of documents Accelerated possession Non-Housing Act tenancies Unlawful eviction Harassment Termination by the tenant Move out - summary • Read meters • Check inventory

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Outstanding bills Refund of deposits

Section 6 General law concepts, statute v contract

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Contracts Terms of business Employment contracts

Section 7 Relationships

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Agent with landlord Agent with tenant Local authorities and other agencies

Section 8 Obligations

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Agent’s duties to landlord Agent’s duties to tenant Landlord’s obligations Tenant’s obligations Handling of client monies (to include client money accounts, and client money protection)

Section 9 Process

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Before start Viewings Paperwork with tenant

Section 10 Considerations for corporate tenants

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Financial and other considerations FSA general insurance requirements Finance Act Proceeds of Crime Act Money laundering Vicarious liability

Section 11 Verification and close

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Verification tests What next, including distribution of certificates Reiteration of continuous professional development requirement

Annex 3: List of currently approved London Rental Standard training:       

London Landlord Accreditation Scheme Official Accreditation Training National Landlords Association Landlord Foundation Course (online or via attendance course) Residential Landlords Association Letting for Landlords Course (venue based course) Residential Landlords Association On-line Learning – Letting for Landlords Parts 1, 2 &3 NFoPP Level 2 Award in Introduction to Residential Property Management Practice England & Wales NFoPP Technical Award in Residential Letting & Property Management - England and Wales NFoPP Level 4 Certificate in Residential Letting & Property Management, England & Wales

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     

National Approved Lettings Scheme Foundation Lettings Course ABBE L2 Certificate in Property: Residential Property Letting and Management ABBE L3 Diploma in Property: Residential Property Letting and Management BTEC Level 4 Professional Diploma in Residential Letting & Management BTEC Level 3 Advanced Certificate in Residential Letting BTEC Level 2 Intermediate Certificate in Residential Letting

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Degree-level qualifications in residential lettings and property management will also be accepted

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