First time UK landlords beware of novice letting agents

Posted under Advice by Jermaine

The credit crunch and falling property prices have badly affected the housing market. UK homeowners who are unable to sell are choosing to become landlords.

First time landlords who are more interested in getting a steady income must be aware of novice letting agents who may not be in a position to provide the right advice due to lack of experience in the housing sector.

According to the ex-president of the Association of Residential Letting Agents, a number of desperate real estate agents have switched over their role to become letting agents or added lettings to their business.

According to Robert Jordan, chairman of Jordan, with 6 offices in the UK, more estate agents are becoming letting agents and being unqualified would be putting more tenants and landlords at risk. He said there were basic differences in being a letting agent and an estate agent.

According to Jordan, unqualified agents had no bonded client accounts hence there was greater risk of clients losing money. Landlords and tenants get protection for deposit and rent money by depositing an amount in a bonded account which is covered by the deposit compensation scheme.

Jordan’s advice is to use services of a reputable agent who should be a member of ARLA with bonded deposit scheme.