As many as one in five landlords do not trust letting agents to handle rental income and tenancy deposits correctly, according to research from The Letting Partnership.

Chris Mason (pictured), COO of The Letting Partnership, says: “Trust is one of the most valuable assets any letting agent can have, particularly when landlords are entrusting them with rental income, tenancy deposits and increasingly complex compliance obligations.

There is still a sizeable minority who remain unconvinced.”

“What our research shows is that whilst most landlords trust their letting agent, there is still a sizeable minority who remain unconvinced.”

The survey of 890 landlords in England by the accounting and client money protection specialist found that 19% lack confidence in agents’ handling of client money.

More than a third (34%) say their agent does not clearly communicate its compliance credentials and professional standards.”

More than a third (34%) say their agent does not clearly communicate its compliance credentials and professional standards.

Awareness of independent compliance reviews is also low. Three-quarters of landlords – at 76% –  were unaware that some agents voluntarily undergo reviews of their client accounting and operational processes, with only 24% aware that such reviews exist.

More transparency

The research, however, suggests that greater transparency could help close the trust gap. Almost every landlord surveyed – at 99% – says an independently verified compliance review would increase their confidence in a letting agent.

Mason adds: “The fact that almost every landlord surveyed said an independently verified compliance review would increase their confidence demonstrates that transparency matters. It’s not enough to be compliant; increasingly, landlords want evidence that the right controls, processes and safeguards are actually in place.

“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.”