Estate agents, looking for another revenue stream in the current property slump are putting landlords and tenants at risk, claims the past president of the Association of Residential Letting Agents (ARLA).
Robert Jordan says he has noticed a rise in the number of estate agents who are now advertising themselves as letting agents for the first time and he believes more could follow as predictions state that as many as 10,000 agents could lose their jobs by the end of the year.
These predictions say a third of estate agencies could be forced to close this year as the number of house sales continues to plummet.
Jordan, a past president of ARLA and chairman of residential letting agents Jordan's which has six offices, says there are fundamental differences between an estate agent and a letting agent.
He said: 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.
“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.
“Landlords should be wary of putting their property on the rental market with an unqualified agent. If you're going to let a property, make sure you go to 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.”
