Landlords warned over possible dangers of unqualified letting agents

UK homeowners who are becoming landlords for the first time as they can't sell are urged to be aware of novice letting agents who may not have much experience in the sector.

There has been a rise in the number of 'desperate' real estate agents either turning into letting agents or adding a lettings section to their business, according to the past president of the Association of Residential Letting Agents.

Robert Jordan, who is now chairman of residential letting agents Jordan's which has six offices in the UK, believes that more estate agents are expected to turn to this sector and if they are not fully qualified they are putting landlords and tenants at risk.

There are fundamental differences between being an estate agent and being a letting agent, he points out.

'The risk is that non qualified agents do not have bonded client accounts and therefore clients could lose money. Bonded accounts give protection to tenants and landlords by ensuring deposit and rent money is held in a separate bonded account,' he said.

'The turmoil with the banks means it is even more important to use a professional letting agent as a bonded client account will also be covered by the deposit compensation scheme,' he added.

He advises those who are going to rent out their property to put it on the market with a reputable agent with a proven track record. 'They should be an ARLA member and have a bonded or secure deposit scheme in place. Landlords and tenants must do their homework,' he advised.

The latest figures from ARLA show that there has been a rise of 20% in the three months to the end of August. The organisation also points out that a bonding scheme protects landlord and tenant. 'It ensures the complete protection from the misappropriation of any money that belongs to landlords and tenants and held by ARLA members. ARLA protection gives rapid restitution of any misappropriated money,' it says.