The National Approved Letting Scheme (NALS) is to tighten up its financial auditing procedures and will review its procedures about publicising agents who are expelled.
The organisation has been criticised after apparently failing to alert local tenants and landlords when one of its NALS agents was expelled after holes in its finances were spotted.
From now on, new NLS agents will not be able to use their own accountants but have to submit their accounts to one specific NALS-approved accountancy firm.
Isobel Thomson, operations director, said that the firm in question offers competitive rates.
In another new development, a helpline offered by employment law firm Peninsula will give NALS agents advice, and there will also be a health and safety helpline. Eight seminars in different venues are to be run this year, in conjunction with Peninsula.
Thomson also revealed that membership of NALS now stands at 1,800 offices representing 1,400 firms, with the organisation likely to grow. “We are talking to various other companies about NALS membership – it is looking promising,” she said.
Thomson and NALS chair Caroline Pickering made it plain that NALS is hoping to become the regulatory body should the Government introduce mandatory licensing of letting and managing agents.
They said that they thought that NALS was in an ideal position to act as regulator, saying that NALS is independent. It is also relatively cheap to join, with a £175 administration fee on joining, and then £110 annual subscription. Client Money Protection, offered through Royal & SunAlliance and the broker Jardine Lloyd Thompson, costs £259 per office.
However, NALS has had a bumpy time over the last 12 months, in the light of some member agents, notably in the Martin & Co chain, having gone to the wall or misappropriating client money – including rent and tenants’ deposits.
Thomson revealed that one full-time member of staff (out of a total of five) is concentrating purely on handling the resulting claims – some of which may not be covered by tenancy deposit schemes.
Some of the claims may also fail, because they cover periods after the agent’s membership of NALS lapsed, but the agent continued to trade, without CMP.
One affected landlord, of Martin & Co in Chester, said he is owed £2,000 in lost rent. This office continued to trade for some three months after its membership of NALS was terminated when accounting errors were noticed.
Thomson said of this case that, given that solicitors and police are involved, it would not be appropriate for NALS to comment.
Asked if, with the benefit of hindsight, NALS should have publicised the expulsion of this business so that Chester tenants and landlords could have realised that there was no longer CMP in place, she said: “NALS continues to review its procedures and processes, and it will take into consideration the points raised for the future.
“As part of its procedures NALS notifies franchisors within 24 hours where a franchisee has its licence terminated, providing details of the circumstances surrounding it.”
Comments
Nerves remain untouched. Just because I agree with them doesnt mean I have a 'vested interested'which is a special interest in protecting or promoting that which is to one's own personal advantage. Do you imagine I am getting a cut of the accountsants fees? No. I joined the licensing panel because I have been an advocate of improving agency standards and ensuring every agent is accountable for the benefit of the consumer. Rather than just spout opinions - I have tried to do something about it. There is a difference. If agents dont try and resolve the issues which we face, we will all find CMP Insurance premiums spiralling and distrust spreading more than it already has.
Eric Walker.
Must have touched a nerve. No vested interest then!
I note this applies to "Brand new customersonly" AT THE MOMENT. What commission are NALS on for this?
I have used my accountant for nearly 30 years in three businesses. The day NALS dictate which accountant I use, two things will happen. His association will take action against NALS for restraint of trade and I will tell NALS where to stick their membership and will, if necessary, do so personally.
NALS, as they have told my firm on more than one occasion, are not there for the members but for the public so all this waffle about ARLA, NAEA & RICS is just that - waffle. NAEA - an estate agent body and RICS, chartered surveyors - just HOW do they benefit LETTING agents? The clue is in their names. The one good thing for NALS is that they are Lettings specific, but so are the Guild of Letting & Management as well as UK Association of Lettings agents. We are members of NALS, UKALA & GLM.
The NALS announcement is interesting. I am a member of NALS and ARLA.
NALS has such a large membership primarily because it offered the least stringent membership criteria. If the ARLA criteria were applied to all NALS members I suspect many would be declined. That doesn't mean that NALS agents are a risk but clearly some have been able to display the NALS logo and create the impression that they are honest and endorsed. NALS have a lot to answer for in my view.
As a Martin & Co franchisee I think it unfair and inaccurate to single out this Group. Belvoir also has problems but for both businesses the vast majority of offices are professional and honest. A landlord should also understand that the franchisor will take action to address issues and protect the brand.
AND - for the record - we are members of ARLA, NAEA & NALS and sit on the NALS licensing advisory panel - so I sincerely believe in this issue and am trying to do something about it.
Ray - dont put words in my mouth!! I believe a some organisations give the impression of being trade associations to the general public rather than regulatory bodies. I don't put all in that category. BUT I would like to see them campaign for proper licensing. I think ARLA in particular do a great deal for standards in agency and have huge respect from the Public - but I would like them to fly their flag more and spread the message especially at a time such as this when the industry is taking a hammering every time another agent holds their hands up.
Eric Walker.
So you think that the NAEA, ARLA and RICS are just Trade Associations?
If you are a member of one you will know that they are much more than that!
Personally, I am a huge fan of what Caroline and Isobel are trying to achieve. As I understand it, they do not require an audit if the member agent is a member of ARLA anyway, perhaps they just require submission of accounts - not a new audit. Their talks with the Government over licensing are an excellent initiative - at least they are trying to do something other than be a trade association - and I believe they will emerge as the licensing body.
So NALS are announcing today that they do not trust audited Clients' Account Reports from ANY Chartered or Certified accountacy firm in the country are they? Except, of course, their own little firm who suddenly gets 1400 new clients at a stroke - dear God just who do they think they are? Or have I misunderstood?
I too was a 'member' of NALS. I consider it to be a superfluous quango.
All agents should belong to NAEA, ARLA or RICS - no need for anyone else.
NALS!!! I was a memeber the only thing they delivered was headache, they want this document that document, this insurance that insurance. All these organistions are a waste of Time & Money. They have teeth