Almost one in five landlords do not trust letting agents to handle rental income and tenancy deposits correctly, according to new research from The Letting Partnership.
The survey of 890 landlords across England found that 19% lack confidence in agents when it comes to managing client money, highlighting an ongoing trust challenge for the lettings sector despite increasing professionalisation and regulation.
The findings suggest that while most landlords remain confident in their chosen agent, concerns persist around the handling of rental income, tenancy deposits and wider compliance responsibilities.
The research points to communication as a potential factor behind the trust gap. While two-thirds of landlords (66%) believe their agent clearly communicates its compliance credentials and professional standards, more than a third (34%) said they do not receive sufficient clarity in this area.
COMPLIANCE REVIEWS
Awareness of independent compliance reviews was also found to be low. Three-quarters of landlords (76%) were unaware that some letting agents voluntarily undergo independent assessments of their client accounting and operational processes, with only 24% aware such reviews exist.
However, the research indicates that greater transparency could have a significant impact on landlord confidence. Almost every landlord surveyed (99%) said that an independently verified compliance review would increase their trust in a letting agent.
CLIENT MONEY
Chris Mason, CEO at The Letting Partnership, reckons trust remains one of the most valuable assets for any letting business, particularly as agents take on increasing responsibility for handling client money and ensuring regulatory compliance.
He says: “Whilst most landlords trust their letting agent, there is still a sizeable minority who remain unconvinced.
“More importantly, there appears to be a significant lack of awareness around the independent reviews and compliance standards that many agents already undertake to demonstrate they are operating above board.”
SAFEGUARD EVIDENCE
Mason says the findings showed landlords increasingly want evidence that agents have appropriate safeguards and controls in place, rather than simply assurances that they are compliant.
“The fact that almost every landlord surveyed said an independently verified compliance review would increase their confidence demonstrates that transparency matters,” he added.
“For agents, that presents a real opportunity. Those who can clearly demonstrate how they manage client money, maintain compliance standards and independently verify their processes will be best placed to build trust and differentiate themselves in an increasingly competitive market.”
