Neil Cobbold of a PropTech company is sending out a stark warning to lettings agents that they should not to be tempted into charging any form of extra fees that are illegal.

@LittleIvan via Twenty20

He believes that with the current state of the economy and with many people facing uncertainly over their jobs some agents may charge tenants an extra fee, and they need to be aware that they could be on the radar of the National Trading Standards Estate and Letting Agency Team.

Cobbold advises agents that their best course of action to make the most out of the booming market is to establish closer relations with both tenants and landlords.

Cobbold said:"Letting agencies have an opportunity to educate tenants about the fees ban so consumers aren’t taken advantage of by any firms attempting to charge prohibited payments.

"During this challenging period for many people, it's crucial that agents support tenants to help protect the long-term future of the rental sector for all parties. Taking this approach will further improve the public perception of letting agents and landlords, which is vital at a time when the industry is moving towards greater self-regulation."

He also says that tenants should make themselves aware of the new rules in the Tenant Fees Act and the redress options.

He continued: "Although industry-wide compliance with the fees ban continues to be very high, tenants should not assume all agencies are operating on a level playing field. If renters are aware of which fees they can and cannot be charged, as well as the maximum values of security and holding deposits, they can flag any issues early on to reduce the chances of being left out of pocket later."

He does understand that ‘experienced renters’ are more than likely up to speed with the ban on fees, however many potential tenants new to renting could end up having to pay illegal fees or exorbitant deposits because of their naivety.

Cobbold adds: “Many agents and landlords will still be dealing with the financial effects of the pandemic, while the workload for many agencies will have increased significantly in recent weeks.

"Many renters across the country will have found it more difficult to pay rent in recent months and the winding down of the furlough scheme is likely to cause further uncertainty in the employment market."

“However, property professionals should be aware that there are effective, legal and fair ways to ensure continued rental income during this period of lockdown easing, including automated invoice generation and arrears reminders."