Joining a Redress Scheme
In the UK there are two government-approved redress schemes and here's how to join them:
The Property Ombudsman (TPO):
Property managers can join TPO by completing the application process on TPO's website and paying the membership fees. By joining TPO, property managers agree to abide by its code of practice and cooperate with its dispute resolution process.
The Property Redress Scheme (PRS):
Property managers can join PRS by completing the application process on PRS's website and paying the membership fees. By joining PRS, property managers commit to resolving complaints in accordance with its code of practice and participating in its dispute resolution process.
What happens if I don’t join a redress scheme?
In England, Wales and Scotland, a property management agent who does not join an approved redress scheme can be fined up to £5,000 by the local authority. You could be closed down if you continue to operate illegally.
Additional property management licence requirements in the UK
Depending on where you choose to carry out property management, you may also need to register with the local authority and by doing so obtain a property management licence. The specific requirements are set by each country within the UK; England, Scotland, Wales, and Northern Ireland.
England:
Property managers in England are not required to apply for a property management licence. Instead, you must register with a government-approved redress scheme.
Scotland:
The requirement of a redress scheme membership also applies in Scotland but there are additional obligations. A property manager must also register with the Scottish Letting Agent Register. Their definition of managing a property includes a person or business collecting rent, inspecting the property and arranging for repairs and maintenance.
Wales:
Property managers in Wales must have an agent licence for which they can apply through the Rent Smart Wales scheme, which is administered by the Welsh Government. The application process includes completing approved training, passing background checks, and registering with Rent Smart Wales as well as being a member of a redress scheme and having the right property management insurance.
Northern Ireland:
Northern Ireland has the least regulations. In fact none at all for property managers who don’t even need to be members of a redress scheme. However, landlords and their property must be registered with the NI Landlord Registration Scheme which could be your responsibility if you offer that service.
Property manager trade associations
For now, there is no legal obligation for you or your company to belong to any specific trade association but they do exist. You may choose to join one to give yourself more credibility with your customers.
These trade associations provide training, set standards for the industry and provide a level of confidence to customers of the property management industry. The two organisations to look into are the United Kingdom Apartment Association (UKAA) and the Association of Residential Managing Agents (ARMA).
The training might be particularly useful because when it comes to property manager qualifications UK, namely Wales and Scotland, requires a minimum level before you can register your activities.
Property manager insurance
Professional indemnity insurance for property managers a must in most cases. Both UK redress schemes make certain insurance for property managers a condition for joining. And since a redress scheme membership is a legal requirement for property managers in most part of the UK, it is something you will have to sort out.
