An industry expert is warning landlords not to misinterpret or underestimate one critical risk emerging from the Renters Rights Act.

Paul Endacott of the 1st Avenue agency says that a common assumption among landlords is that appointing a letting agent transfers responsibility for compliance. 

But he warns: ”Your letting agent can get your Right to Rent checks wrong, and you can still be the one facing the fine, because the responsibility starts with you, the landlord.  This is not just Right to Rent; it’s the new rules.”

The warning comes as landlords face increasing legal obligations across areas including tenancy management, licensing requirements and property standards, as well as Right to Rent.

According to Endacott, landlords should not assume that hiring an agent removes their legal exposure.

“If your agent gets it wrong, the agent you pay to make sure you’re compliant and legal, you could be on the hook for non-compliance which carries severe consequences. 

“Local authorities can issue civil penalties up to £7,000 per breach for standard procedural contraventions or poor housing conditions which can lead to loss of eviction rights and for more serious or repeated offences, landlords can face fines up to £40,000, criminal prosecution, or Banning Orders.  

“The liability is on you the landlord to make sure your letting agent is doing everything correctly.”

While financial penalties are grabbing headlines, Endacott argues the bigger issue is the changing nature of professional property management.

He continues: “It points to a much bigger change that’s happening in the lettings industry.”

“For years, landlords mainly judged agents on what rent they could get and how quickly they could find a tenant. That’s just nowhere near enough anymore, because property management is becoming a compliance risk management job.

“Right to rent checks, deposits, safety, licensing, legislation, more scrutiny from the local authority, and increasingly it’s the evidence you need to prove you’ve done everything properly.  

“The dangerous assumption is to think that just because you’ve given your authority to your managing agent that you are absolved of all responsibility and it’s your agent’s problem.  It doesn’t work like that anymore.

“Outsourcing the job doesn’t automatically mean you’ve outsourced the risk.”