'Unreasonable' for letting agents to vet landlords

News Category: Legal

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It should not be the duty of letting agents to scrutinise the finances of landlords on their books in the current economic climate, an industry official has said.

Caroline Kavanagh, lettings director at Townends, an estate and letting agency, told the BBC that agents already conform to a code of conduct and that lenders need to take greater responsibility for this issue.

Her comments come after a tenant told the news provider that he was evicted with just two weeks notice after his landlord got into financial difficulties - he questioned why the property owner was not subjected to the same credit and reference checks he was.

"Credit checks are not something any agent would do on a client," Ms Kavanagh said. "Landlords sign a contract … ultimately the ball is in the lender's court - they make the conscious decision to evict the tenant."

Letting agents were recently advised to promote the benefits of rental guarantee insurance to landlords, as some tenants are struggling to afford their rent payments amid the impact of the recession.

Keshav Thukaram, managing director of landlord advice firm Smartlandlord.co.uk, said landlords need to protect themselves during times of economic uncertainty.

How to stay legally compliant with letting agency software.