Letting agencies can help to raise tenant awareness about those breaking the law in the private rented sector by demonstrating their own compliance, it is suggested.
Spreading the word about industry rules and being seen to honour them will help raise industry standards, according to lettings payment automation provider PayProp.
It also says that if renters have a better understanding of the tell-tale signs to look out for, they can avoid non-compliant agencies.
It comes as research from London Trading Standards has shown that in the 15 months to June 2019, some 46% of 1,922 firms inspected failed to comply with either the Consumer Rights Act or their obligation to join a redress scheme.
‘The number of London agencies that have failed to comply with their obligations is a cause for concern as the industry’s proportion of law-breakers is often described as a ‘minority’,” said Neil Cobbold, chief operating officer of PayProp UK.
‘It’s positive to see that Trading Standards is taking a proactive approach to enforcement. However, following the introduction of the Tenant Fees Act and compulsory Client Money Protection scheme membership earlier this year, there is now more regulation for them to police,’ he explained.
‘If everyone associated with the industry was equipped with the knowledge of what is required, we could avoid non-compliant agencies and improve industry standards as a whole,’ he added.
The firm believes that many tenants may not be aware of what they need to look out for, including agency’s fees templates, CMP certificates and redress scheme memberships prominently displayed.
‘Although the average renter will be aware of poor service when they come across it, they may not be aware of all the little things which could mean an agency is breaking the law,’ Cobbold pointed out.
‘That’s where the leading agencies can help by demonstrating to their customers how they are fully compliant and committed to transparency. This could have a knock-on effect of raising awareness among renters and landlords,’ he said.
‘These statistics should act as a wakeup call for the industry to get their house in order and distance themselves from wrongdoing as more agencies are operating outside of the law than many people may have previously thought,’ he added.
‘At a time when the lettings sector is in the spotlight due to its growing size, the huge number of private renters and its political importance, agents must do everything they can to protect their public reputation. This can be done by improving consumer knowledge of what agencies do and what is required of them, as well as operating professionally and transparently at all times,’ he concluded.
