Around one in five landlords say they don’t trust agents to correctly handle rental income and tenancy deposits.
The Letting Partnership surveyed 890 landlords across England to understand attitudes towards trust, compliance and professional standards.
The research found that 19% of landlords do not trust letting agents to handle rental income and tenancy deposits correctly.
The partnership says one potential factor behind this trust gap is the way compliance standards are communicated.
Whilst 66% of landlords believe their letting agent is clear when communicating their compliance credentials and professional standards, more than a third (34%) do not.
The research also found that awareness of independent compliance reviews remains low.
Three quarters of landlords (76%) were unaware that some letting agents voluntarily undergo independent reviews of their client accounting and operational processes, with just 24% aware that such reviews exist.
The partnership says the findings suggest that greater visibility around compliance standards could play a significant role in improving trust. An overwhelming 99% of landlords stated that an independently verified compliance review would increase their confidence in a letting agent.
The findings indicate that whilst many landlords already trust their agent, there is a clear appetite for greater transparency and independent verification when it comes to how client money is handled and how compliance standards are maintained.
Chris Mason, chief operating officer of The Letting Partnership, comments: “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.”
