Trading standards officers have warned student landlords that their cash is at risk from unscrupulous letting agents who divert business funds in to their own pockets.
The comments followed the trial of student letting agent Zulfiqar Hussain in Oxford, who admitted dipping in to rents and deposits paid by unsuspecting tenants and landlords.
At one stage, Hussain managed hundreds of properties trading as Charles Lawson Lettings in the city.
He was caught following a trading standards investigation following complaints about the way his firm handled client cash.
Now, he is on bail awaiting sentence after admitting eight charges relating to unfair commercial practice and transferring criminal property at Oxford Crown Court.
The investigators claim he took £157,000 of client cash - but Hussain would only plead guilty to offences involving ‘no less than £33,000’.
Hussain told the court that his business hit financial problems in 2007, so he took the money to keep going.
Trading standards denied this was true and believe he took the money to fund his own lifestyle.
Oxfordshire Trading Standards officer Ian Marriott, who commented the conviction warned student landlords about rogue letting agents.
He said: “I do not think this is exceptional. There is a large amount of rented property in Oxford, particularly for students, and it is difficult for people to go on recommendations because of the high turnover of students.
“That gives an environment where something like this could carry on for quite some time.
“Letting agencies handle an awful lot of money and the cash flow is enormous.
“That gives an opportunity for somebody to exploit it if they so wish.”
The case comes as professional letting agents launch the SafeAgent scheme for protecting landlord and tenant money.
The scheme, backed by Housing Minister Grant Shapps and consumer organisations aims to prevent letting agents like Hussain from pocketing client money.
