As the private rental industry becomes an increasingly important part of the country’s housing sector, landlords and tenants are being advised to make sure they have property insurance for landlords and are not duped by rogue letting agents.
Landlords and tenants at risk
With the stagnation of the housing sector threatening to become permanent, more and more prospective buyers are finding themselves forced into rented accommodation. At the same moment investors looking for a profitable home for their savings are taking the plunge and taking out landlord insurance for the very first time. According to experts in the sector both sets of people have to be wary of unregulated letting agents who are also entering the sector in the hope of making a “fast buck”.
Regulation not compulsory
Unfortunately there is still no legal requirement for letting agents to register with regulatory bodies and the loophole in the law is creating problems. There are a number of regulatory bodies around though, and landlords should ensure that their letting agent is a member of one of the following associations; the Association of Residential letting Agents, the Property Ombudsman or the National Approved Letting Scheme. Although landlords may still find that they are unhappy with the charges some of them make, they do at least have some sort of recourse. A professional landlord will always ensure his business property insurance covers him for legal problems, and any newcomer to the business would be well advised to follow suit.
Tenants an easy target
Tenants have in the past been considered easy fodder for letting agents. Administration charges are often outrageously high and in some cases are implemented without any reason. Students and the parents of students will know just how difficult it is to get a deposit back from an agent when the property is vacated, and unscrupulous agents are quick to charge inflated fees for security checks, inventory lists and administration fees.
Don’t deal without proof
With the prospect of millions more tenants in the near future, the Government are now backing the idea of a regulated tenant body which may well help in the coming years, but in the meantime landlords and tenants alike should examine the small print of their agreement and check the agent is registered with a national organisation before they deal with them or hand over any cash.