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’ handling of client money, highlighting ongoing concerns around transparency and compliance within the lettings sector.
While most landlords said they trust their agent, the research suggests there is still a gap in confidence when it comes to the management of rents, deposits and other financial responsibilities.
The study also found that 34% of landlords do not believe their agent clearly communicates its compliance credentials or professional standards. Awareness of independent compliance reviews was also low, with 76% of landlords unaware that some agents voluntarily undergo external assessments of their client accounting and operational procedures.
However, landlords appear receptive to greater transparency, with 99% saying that independently verified compliance reviews would increase their confidence in a letting agent.
The findings suggest that clearer communication around compliance processes and independent verification could help agents strengthen trust with landlord clients.
Chris Mason, COO of The Letting Partnership, commented: “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.
“What our research shows is that 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.
“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.
“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.”
