Two sets of duties
A letting agent has duties of its own, which apply to the agency, and duties it takes on for landlords, which apply to each property. Fines for the first set fall on you. For the second, liability depends on the law and on your management agreement, but the council will often ask the agent for the records first.
Your agency: what you need to trade
| Requirement | Applies to | Maximum penalty |
|---|---|---|
| Membership of a government-approved redress scheme | Every letting and property management agent | £5,000 |
| Client money protection (CMP) scheme membership | Agents who hold client money, such as rent or deposits | £30,000 |
| Fees, redress and CMP details on display in your office and on your website | Every letting agent | £5,000 |
| Only permitted payments taken from tenants | Every tenancy | £5,000, or £30,000 for a repeat breach |
| Registration with HMRC for anti-money laundering supervision | Agents letting at a monthly rent at or above HMRC's threshold | HMRC penalties |
The two approved redress schemes are The Property Ombudsman and the Property Redress Scheme.
Your CMP certificate must be on display in each office and on your website. If your membership changes or is revoked, tell your clients within 14 days.
For anti-money laundering, register with HMRC before you take on any let with a monthly rent at or above its threshold, currently £10,000, and check the identity of the landlord and the tenant for those lets.
What changed for agents on 1 May 2026
The Renters' Rights Act applies to agents as well as landlords. Councils can fine an agent up to £7,000 for each breach of these rules:
- Advertise every property with a stated rent, and don't ask for, encourage or accept offers above it.
- Don't take rent before the tenancy is agreed.
- Don't refuse, discourage or stop viewings by tenants with children or who receive benefits.
- Use the written statement of terms for every new tenancy. Fixed terms and Section 21 have gone.
- Don't market a property without an active PRS database entry once the landlord's region window has closed.
Every managed property: the records to hold
If you manage a property, you are usually the one the tenant, the council and the court go to. Hold a current copy of each of these:
| Record | Renew or check |
|---|---|
| Gas safety record (CP12) | Every 12 months, copy to tenant within 28 days |
| Electrical safety report (EICR) | Every 5 years, copy to tenant within 28 days |
| EPC at band E or above | Every 10 years, shown in every advert |
| Smoke and carbon monoxide alarm check | First day of every tenancy |
| Deposit protection and prescribed information | Within 30 days of taking the deposit |
| Right to Rent check | Before the tenancy, and follow-ups for time-limited permission |
| Written statement of terms or Information Sheet | Before the tenancy is agreed |
| HMO or selective licence | Usually every 5 years |
| PRS database registration number | Yearly |
Who is liable: you or the landlord?
- Right to Rent: you are liable instead of the landlord if you have agreed in writing to do the checks.
- HMO and selective licensing: a managing agent can be the person managing or in control, and can be prosecuted or fined.
- Deposit: whoever takes the deposit must protect it. If that is you, the claim is against you too.
- Gas, electrical and alarms: the legal duty stays with the landlord, but if your agreement says you arrange the checks and you don't, the landlord can claim against you.
Write down in each management agreement exactly which checks you do, and keep proof that you did them.
When a landlord won't pay for work
Put every request for safety work to the landlord in writing, with the deadline and the risk. If the landlord still refuses, record it, take advice from your redress scheme or trade body, and consider whether you can keep managing the property. Letting a property you know is unsafe puts you in the frame as well.
How LetRecord helps
LetRecord holds every client's properties in one account. Each property shows its duties, which ones have evidence, and what runs out next, so you can see across a portfolio what needs doing this month, and hand a landlord or council a complete record when they ask.
Common questions
Do all letting agents need client money protection?
Every agent in England who holds client money, such as rent or deposits, must belong to a government-approved CMP scheme. The fine for not belonging is up to £30,000.
Can a letting agent charge tenants fees?
Only the permitted payments: rent, a capped deposit, a holding deposit of up to one week's rent, and set charges such as a lost key or an early exit the tenant asks for. Admin and referencing fees are banned.
Can an agent be fined under the Renters' Rights Act?
Yes. The rules on rent bidding, rent in advance and discrimination apply to agents directly, with fines of up to £7,000 per breach.
Does a letting agent need to register for anti-money laundering?
Only if the agency handles lets at a monthly rent at or above HMRC's threshold. Check HMRC's guidance, and register before you take on such a let.
Official sources
This guide explains the rules in general terms and is not legal advice.
Free PRS registration checklist
Not ready to sign up? Get the step-by-step checklist for registering on the private rented sector database, with the dates for every region.