The importance of promoting consumer choice for letting agents
Summary
The article argues that letting agents should offer tenants genuine choice when recommending rent guarantor services, particularly in the context of changes following the Renters’ Rights Act. It warns that steering tenants toward a single provider, or rejecting a tenant’s chosen provider without valid reasons, could create compliance risks under the Tenant Fees Act and damage trust.
Why it matters
Residential property surveyors may encounter the downstream effects of changing tenancy practices, especially where landlord risk management, tenant affordability and compliance expectations intersect. The piece also highlights the need to distinguish between professional guarantor services and regulated insurance products when assessing arrangements linked to lettings.
Key points
- Letting agents are being encouraged to offer multiple rent guarantor options rather than a single preferred provider.
- The article says tenants should be free to choose their own provider, subject to landlord acceptance and valid suitability checks.
- Transparency over commercial arrangements, such as commissions or revenue share, is presented as important.
- Agents are urged to carry out due diligence on guarantor services, including the scope and duration of cover.
- The article distinguishes professional rent guarantor services from insurance products, noting different regulatory treatment.
This is an RPSA summary of a publicly available article. The full content remains with the original publisher.
