12 Reasons to join a Property Redress scheme
Most investors don’t realise the benefits and also legal requirements to be a member of a property redress scheme
Good news is Property Investor Reward club for the last 3 years have helped members save money on their Property Redress Scheme membership – using code PIRC2019 for less than £100 a year.
First thing I hear you ask is “Do you need to be a member of a PRS (Property Redress Scheme)”
See 4 areas of property investing and the comments below for each to decide if you need to or maybe benefit from registering.
1 Deal Sourcing
Often investors are led to believe you can begin as an investor by deal sourcing with no outlay.
A deal sourcer is acting as an agent and expected to comply with the Estate Agents Act and it is a mandatory requirement to be a member of a redress scheme. You might like our article 9 Deal Sourcing tips
Although it is not a legal requirement to be a member of a PRS scheme at the moment – For the first time ever, buy-to-let landlords will be legally required to become members of a redress scheme, as part of measures for a new Housing Complaints Resolution Service, date to be confirmed.
For those landlords who already are a member of a Redress scheme, they became a member in advance of mandatory registration as it gives comfort and reassurance to their tenants that they are a good landlord and happy to be held to account. That they provide quality properties and operate in a professional manner.
3 Guaranteed Rent businesses
‘Rent to Rent’ models do not fit the traditional definition of lettings or property management work, meaning there is a question as to whether Rent to Rent companies currently have to be signed up to a redress scheme by law.
4 Tenant find and management
It would be highly recommended to register with a Redress scheme to demonstrate to landlords you are a professional guaranteed rent business and subject yourself to a recognised framework to offer landlords protection.
If you help other landlords find tenants or manage their properties for them, then you must be registered with one of the Government approved consumer redress schemes such as PRS and you must protect all tenancy deposits through one of the approved schemes such as MyDeposits as this activity is deemed to be that of an agent and you must also join the Register of Letting Agents.
12 Reasons to join the Property Redress Scheme.
- Competitive and affordable membership fees on our models
- A quick and easy joining process
- Consumers must exhaust the Member’s own complaints process before contacting PRS
- No Code of Practice to adhere to
- The Member has 10 working days to resolve a complaint directly before PRS become formally involved.
- Only at this point will the Member on the Entry level membership incur an administrative fee for PRS dealing with the complaint.
- A PRS Case Assessor will collect the evidence and try to resolve the complaint directly with the parties.
- Only if the parties remain unable to come to a resolution will a binding decision be be made.
- General advice and guidance available on the PRS website and by telephone/email.
- PRS experienced and trained staff will aim to provide everyone with the best possible experience every time.
- PRS logo provided to Members by email and window sticker to show Membership provided in post.
- Enhanced Model members are provided with access to an independent legal advice helpline.
So how much does membership cost
Entry Level annual subscription is £ 110 + VAT In the event of a complaint being made against you an additional complaints handling fee of £110 is changed for every complaint.
Enhanced membership annual subscription is £ 199 + VAT but there are no additional complaints handling fees subject to a fair use policy.
With the likely stampede when legislation arrives I’d recommend signing up today!
The discount code is: PIRC2019
The link to the Property Redress Scheme membership application page is https://www.theprs.co.uk/propertyagent/register/
Is mandatory registration in a Redress scheme good?
Being part of an independent body will encourage landlords to operate their business to higher standards of service and product quality as it opens your business up to scrutiny by an external agency. It could also potentially remove the requirement of
Property Investor Reward Club have partnered with Property Redress Scheme Ombudsman – PRS – to bring you exclusive discounts and cash back on your purchases quote your PIRC membership number to access exclusive PIRC rates
PIRC is an exclusive membership club for property traders, investors and landlords which gives you immediate access to discounts from all the suppliers you need in your property business.
Benefit from EXCLUSIVE rates on everything from building materials to solicitors’ fees. You also earn cash back and rewards with every purchase at PIRC-Card.co.uk.