Although an ombudsman scheme adds a layer of consumer protection, letting agents who sign up do not have to join a money protection scheme as well.
Landlords can only safeguard rent and deposits by working with a letting agent in a client money protection scheme, like SafeAgent or those provided through the Association of Residential Letting Agents (ARLA) or the Royal Institution of Chartered Surveyors (RICS).
If an agent stops trading and does not belong to a money protection scheme, landlords face a tough task of reclaiming their cash. – and often lose everything held by the agent.
The Enterprise and Regulatory Reform Act 2013, requires letting agents to offer a complaints procedure as members of an ombudsman scheme.
“This is in the process of being implemented and will undoubtedly have a welcome influence on raising standards in the sector,” said Ina Fletcher, director of policy at the BPF.
“Landlords need to be wise in their choice of letting agent. Just because the letting agency sector is facing increased regulation does not mean their money will be protected.”
Even if a letting agent displays a client money protection scheme logo on their documentation, check out their membership of a scheme on line.
The main letting agent money protection schemes are:
• ARLA
• SafeAgent
• RICS
• National Approved Letting Scheme
Meanwhile, letting agent Tim Glasson, 50, of Tim Glasson Estate Agents in Camborne, Cornwall, was charged with 12 counts of fraud and bailed to Truro Magistrates Court on June 13, 2013.
“He has been charged in relation to his business in Camborne. His bail conditions do not prevent him from trading,” said a police spokesman.
