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Letting Agent Check Out Inventory Fees

I've recently posted about a nightmare letting agent we're dealing with. Thankfully our time with them is coming to an end (tenants have handed in their notice).

However, the LA in question is demanding that they carry out the check out inventory (they use a subcontractor on their behalf).

Recent events led us to believe that the LA could be in trouble financially (a civil enforcement company had entered their office to take repossession on behalf of their landlord!!).

As we'd not heard back from them concerning the check out process, we tracked down the original inventory clerk who informed us that he would no longer deal with said LA due to non-payment or late payment of bills.

We've agreed to deal with him directly and he has agreed to do the check out.

However, the LA have informed us that they have booked a different inventory clerk to do the check out. Should they cancel it, the tenants would still be liable for the check out inventory costs (£150 +VAT) as this is in the contract. I have told them in no uncertain terms to cancel their check out and under no circumstances attempt to charge the tenants.

Now, from my understanding, the LA is acting on our behalf (as we are the landlords). We can deal with this matter directly if we feel this necessary (considering their unreliability, I believe this is the case). If they don't deliver the check out inventory, can they still charge for it? I have a feeling they can't (as you can't charge for a service if you haven't delivered it).

I've scoured the consumer rights act 2015, but can't seem to find a definitive answer.

Or am I being naive yet again?
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Comments

  • G_M
    G_M Posts: 51,977
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    Yes, the agent works for you, so yes you can instruct them not to do it.

    Having said that, I assume you have already instructed them to arrange the check-out inspection (via your contract with them), and if they have already done this, or have commited to a sub-contract with an inventory clerk, then clearly you'd have to pay them for the service you instructed them to do (and which they did).

    So the question is: how far have they gone in arranging the inspection?
  • I suspect the inventory check is in both of your contracts.

    Not sure what you can do if it's between the tenant and the agents. If their tenant check isn't up to scratch you could argue they are liable for your costs to get another one in. But if they're about to go bust you wouldn't want that.

    I'd cancel your own check and just let the tenants deal with your lettings agent personally.
  • tadgh_99
    tadgh_99 Posts: 60 Forumite
    About two weeks ago, I was sent a copy of a notice that a Civil enforcement Agent had posted on the window of the LA. stating that they had repossessed the offices on behalf of their landlord (not a good sign).

    As such, I contacted the LA asking how that would impact the check out process & inventory. Didn't hear back.

    Located a copy of the original inventory (sent 18 months after the tenants had moved in) and contacted the clerk. Explained the situation and after he had finished relishing some nightmare stories of the LA (including that they charge for a check out inventory but go around doing it themselves rather than engage in an accredited clerk) he agreed to do it as long as he had nothing to do with the LA.

    I want to get shot of them, and don't want them doing the inventory as I just do not trust them (understatement). The tenant has not had any communication other than giving their notice. and is not aware of any inventory being booked other than the one we've arranged and the LA has only today confirmed that they have booked one.

    They haven't carried out the check out, which is due in two weeks.

    They have paid all outstanding rent, so the only thing outstanding is the deposit (which changed providers as they were banned from using DPS).

    Can they withhold the check out fee from the deposit? I would think not?
  • Guest101
    Guest101 Posts: 15,764 Forumite
    tadgh_99 wrote: »
    I've recently posted about a nightmare letting agent we're dealing with. Thankfully our time with them is coming to an end (tenants have handed in their notice).

    However, the LA in question is demanding that they carry out the check out inventory (they use a subcontractor on their behalf). - Are you paying for this? It's all irrelevant really. Who cares who does it.

    Recent events led us to believe that the LA could be in trouble financially (a civil enforcement company had entered their office to take repossession on behalf of their landlord!!). - That doesn't necessarily mean they are in financial difficulty. No idea what a civil enforcement company is - I presume you mean bailiffs or HCEOs

    As we'd not heard back from them concerning the check out process, we tracked down the original inventory clerk who informed us that he would no longer deal with said LA due to non-payment or late payment of bills. - So?

    We've agreed to deal with him directly and he has agreed to do the check out. - Great.

    However, the LA have informed us that they have booked a different inventory clerk to do the check out. Should they cancel it, the tenants would still be liable for the check out inventory costs (£150 +VAT) as this is in the contract. - The contract with you. Not the agent. I have told them in no uncertain terms to cancel their check out and under no circumstances attempt to charge the tenants.

    Now, from my understanding, the LA is acting on our behalf (as we are the landlords). We can deal with this matter directly if we feel this necessary (considering their unreliability, I believe this is the case). If they don't deliver the check out inventory, can they still charge for it? I have a feeling they can't (as you can't charge for a service if you haven't delivered it). - depends on if they take you to court.

    I've scoured the consumer rights act 2015, but can't seem to find a definitive answer.

    Or am I being naive yet again?



    It's fine. Just carry on as you are. I cant see the agent taking you to court.
  • Guest101
    Guest101 Posts: 15,764 Forumite
    sheff6107 wrote: »
    I suspect the inventory check is in both of your contracts.

    Not sure what you can do if it's between the tenant and the agents. If their tenant check isn't up to scratch you could argue they are liable for your costs to get another one in. But if they're about to go bust you wouldn't want that.

    I'd cancel your own check and just let the tenants deal with your lettings agent personally.

    The tenants have no contract with the letting agent.....
  • Guest101
    Guest101 Posts: 15,764 Forumite
    tadgh_99 wrote: »
    About two weeks ago, I was sent a copy of a notice that a Civil enforcement Agent had posted on the window of the LA. stating that they had repossessed the offices on behalf of their landlord (not a good sign).

    As such, I contacted the LA asking how that would impact the check out process & inventory. Didn't hear back.

    Located a copy of the original inventory (sent 18 months after the tenants had moved in) and contacted the clerk. Explained the situation and after he had finished relishing some nightmare stories of the LA (including that they charge for a check out inventory but go around doing it themselves rather than engage in an accredited clerk) he agreed to do it as long as he had nothing to do with the LA.

    I want to get shot of them, and don't want them doing the inventory as I just do not trust them (understatement). The tenant has not had any communication other than giving their notice. and is not aware of any inventory being booked other than the one we've arranged and the LA has only today confirmed that they have booked one.

    They haven't carried out the check out, which is due in two weeks.

    They have paid all outstanding rent, so the only thing outstanding is the deposit (which changed providers as they were banned from using DPS).

    Can they withhold the check out fee from the deposit? I would think not?

    YOU are in charge of the deposit, not them. YOU.
  • G_M
    G_M Posts: 51,977
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    Guest101 wrote: »
    YOU are in charge of the deposit, not them. YOU.
    'in charge of'.

    But it is not yours. It belongs to the tenant.

    And if the tenant does not receive it back (without good cause) it is YOU the tenant will take to court....
  • tadgh_99
    tadgh_99 Posts: 60 Forumite
    Thanks Guest101

    Just to be clear, they want to charge the tenants the £150 + VAT for check out.
  • tadgh_99
    tadgh_99 Posts: 60 Forumite
    G_M wrote: »
    'in charge of'.

    But it is not yours. It belongs to the tenant.

    And if the tenant does not receive it back (without good cause) it is YOU the tenant will take to court....


    i totally understand that and concerns me greatly. I have no faith in this LA whatsoever.
  • DoaM
    DoaM Posts: 11,863
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    tadgh_99 wrote: »
    I've scoured the consumer rights act 2015, but can't seem to find a definitive answer.

    I'll let others handle the specifics of the other questions you've asked, but I'll respond on this ...

    Neither you (landlord) or the letting agency are consumers - you don't have a business to consumer relationship - therefore consumer focused elements of the Consumer Rights Act will not apply. What matters is what the contract between you states.
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