Letting Agent - Liability for bankrupt tenant

dan1000

Hi, I'm looking for some advice. I am a landlord, who after a string of problems renting a property directly decided to go for a safer approach and use a major agency to provide a complete managed service. About 11 mths on, the tenant they provided is in arrears and has declared themselves bankrupt and they started getting into arrears within a few months of moving in leading me to question the quality of the agency's credit checks. Not only that but the agent is required to check the house at least once a year and I have been chasing them and they still haven't completed a single check. They are beginning the process of providing notice on the tenant, but I feel that the agency is at least partially responsible for not providing a decent tenant from a financial perspective. Does anyone have any experience of this type of situation?

clutton_2

ask to see the copies of the credit check documents that they have on the tenant - just to check that they did indeed do the checks

but, in the overall scheme of things - folks can be made redundant at any time - the date after all checks come back good - thats life

if the tenant was mucking about with the rent a few months into the tenancy, why didn't the agency issue a Section 8 notice then ?

but, i doubt, legally, that you have any claim against the agent - if they are a national chain their agreement will be full of disclaimers

write it down to experience - instruct them to get the tenants out ASAP and whilst all this is happening, read till your eyes turn red and learn how to be a managing agent yourself - https://www.singingpig.co.uk https://www.landlordzone.co.uk and join national landlords association and learn how to be a professional

dan1000

Thanks for the quick reply, I will request that information from them.

I was a managing agent myself, for 8 years, until the house got turned into a cannabis factory by another set of tenants. That's why I decided to play safer and use a management agent, but that hasn't proved any more successful.

dan1000

I am trying to get proof that a general credit check did take place but they say they cannot provide details of the check even to the landlord due to data protection laws. Is this correct?

N79

Nope

Sounds like you may be on to something!

RainMaker_2

dan1000 wrote: »

I am trying to get proof that a general credit check did take place but they say they cannot provide details of the check even to the landlord due to data protection laws. Is this correct?

No. The credit checks were done for you, by them. You are entitled to see what was done on your behalf !

Although what good it will do you to have sight of them I don't know. At the end of the day it's a judgement call, which again, they made on your behalf.

dan1000

An interesting update on the issue, the tenant originally got into arrears about 6 months ago, which was 6 months after they moved into the property. I have done my own search and discovered that the tenant was declared bankrupt then, therefore it is likely that the tenant was already in financial difficulties when he moved into the property and also that the agent didn't do a simple bankruptcy check when the tenant originally fell into arrears which would seem to me to be negligent on their part. Any thoughts?

dan1000

I don't suppose we have anyone with legal experience on here, who knows for definate the situation with requesting the credit check and whether they can provide it to me within data protection laws? As Rainmaker says the checks were created on my behalf, therefore why shouldn't I have access to them?

poppysarah

You should go and get half an hour free with a solicitor - the agent sounds liable.

RainMaker_2

dan1000 wrote: »

An interesting update on the issue, the tenant originally got into arrears about 6 months ago, which was 6 months after they moved into the property. I have done my own search and discovered that the tenant was declared bankrupt then, therefore it is likely that the tenant was already in financial difficulties when he moved into the property and also that the agent didn't do a simple bankruptcy check when the tenant originally fell into arrears which would seem to me to be negligent on their part. Any thoughts?

Very "interesting "! I don't think you can hold the agent liable for not doing a bankruptcy check after they'd moved in. After all, vetting is not an ongoing process. I've no legal experience (only many years Landlording), but would have thought that if the agents knew (or ought to have known) that the Tenant was in financial difficulties before they moved in, you'd have a good case to sue the agents for damages caused by their negligence.

If it was me, at this stage, I'd be inclined to invest a few quid in an initial consultation with a good brief.

Do keep us updated.

dan1000

Update - I have spoken to a friend who is a solicitor, they believe the excuse about data protection laws is incorrect so the agent is now reviewing my request. The solicitor also believes that the long list of issues I have had with the agent coupled with these give a decent case for compensation.
We shall see how this progresses.