Agents urged to use appropriate lettings safeguards

News Category: Industry News

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Tenants' deposits and landlords' rents could be at risk from letting agents that do not insure their holdings, one letting agent has claimed.

According to Chris John & Partners, many estate agents are looking to set up lettings arms in a bid to capitalise on increasing numbers of tenants turning to rental properties.

However, they may not fully understand the legislation, or introduce the appropriate safeguards to protect landlord and tenant money should the business not do so well.

The letting agent's Andrew Thomas claims that the increase in estate agents opening up residential lettings arms is motivated by a desire to "offset" falling sales incomes.

He said: "They may not be trained correctly, may not have any client money safeguards and be unaware of much of the current legislation. As a result they could put their landlords at risk. "

Mr Thomas,who was recently elected vice-president of the Association of Residential Lettings Agents (Arla), notes that letting agents that fail to introduce the appropriate legal safeguards may face heavy fines.

"The first couple of cases are apparently going through Cardiff County Court at the moment," he added.

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