Written and sent on behalf of North East Lincolnshire Council:
Trading Standards officers have been given the powers to crackdown on landlords that surprise tenants with hidden costs.
Any landlord or letting agent that fails to comply with the law on protecting tenants and their money face a fine of up to £30,000.
Cabinet members have approved to give Trading Standards the powers to enforce the legislation following North East Lincolnshire Council’s adoption of the Lettings Legislation Penalty Notice policy, which aims to target rogue elements within the renting sector.
Since April 2019, letting agents who hold client money have been required by law to belong to an approved Client Money Protection (CMP) scheme to ensure that tenant and/or landlord money is protected should the business fail. Agents who hold client money are required by law to be registered with an approved CMP scheme and to inform tenants who they are registered with. This means that landlords and tenants can be confident their money is safe once they pay it to the agent. If, for example, the agent goes into administration, the CMP scheme will compensate clients.