Estate agents 'fighting for survival'

News Category: Legal

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Many estate agents have been forced to enter the lettings market to survive the current economic climate, an expert has said.

According to an Investors Chronicle report cited by the Financial Times, some 'reluctant landlords' are being taken advantage of and could be at risks of receiving large fines by breaching legislation.

Letting agents wanting to make sure they are legally compliant might consider property software.

David Lawrenson of Letting Focus was quoted by the Financial Times as noting that some accidental landlords are being charged high fees by estate agents.

Not taking out adequate insurance, checking tenant references or registering deposits in an approved scheme are among the errors being made by such landlords, the report noted.

Mr Lawrenson added: "Estate agents who previously didn't do lettings at all now find they have to, or else they won't survive."

Statistics published in October's Rugg Review showed that 60 per cent of private landlords used estate agents in 2006 compared to 47 per cent three years earlier.

How to stay legally compliant with letting agency software.