Landlords advised not to take advantage of crunch

With demand for housing in the Private Rented Sector likely to soar due to the credit crunch, the Association of Residential Letting Agents, ARLA, has warned agents and landlords not to take advantage by cutting corners.

ARLA pointed out that both the law and best practice has moved on a long way since the early nineties when the last housing crisis produced soaring rental demand, cowboy agents and rogue landlords.

Nowadays, as well as the duty of care that landlords and letting agents owe to tenants, compliance with new legislation and operating to a code of best practice is seen by most to be in the interests of everyone.

However, speaking at The Landlord and Buy to Let Show at the weekend, ARLA Head of Operations, Ian Potter, said, “We are still worried that some landlords may try to cut corners and not comply with legislation covering safety and the protection of tenancy deposits. We are also worried that there could be an upsurge in lettings agencies opening for business, without being members of the professional bodies, having the right qualifications and providing clients money protection.”

Ian Potter pointed out that it was the upsurge in the number of rogue agents and cowboy landlords in the early nineties that led ARLA to introduce bonding to protect deposits and rents and to insist on qualified staff in the offices of all their regulated members.

“As a result,” he said, “The lettings industry has grown from a cottage industry into a highly professional sector of the housing market. It is now widely understood that it is however, in the interest of landlords and agents to comply with regulation and best practice because it helps to prevent problems.”

Problems can be avoided by drawing up a proper Tenancy Agreement, taking inventories and being covered by mandatory Tenancy Deposit Protection. Best practice also includes taking out specialist insurance cover for the lettings market and service contracts for gas and electrical appliances.

Said Ian Potter, “The lettings industry is better able than it was nearly two decades ago to cope with rogues and cowboys. This is due to the activities of the professional bodies leading to increased expectations from the consumer. These are complimented by the legislative framework now in place. But, it still remains ARLA’s stated aim that every letting agent must be licensed and landlords should become members of accreditation schemes.”