Estate agent changing names.... do we need new paperwork?

aimingforadebtfreelife

Hi all,

We let out a property and our agent has changed their name saying they had a dispute with a director and split from them.

My question is do we need a new tenancy agreement signing in the new company name?

I am concerned as I did a bit of delving last night. The company was formed in 2007 and it shows its companies accounts are overdue at Companies House. Now with the accounts being overdue a new company has been formed. Is it me being too cautious???

Many thanks in advance

princeofpounds

Your contract is your contract. If the 'new' agency is just changing its name then its still valid. If it's a 'new' entity do you really want to sign a new contract and have the old entity, if still in existence, to chase you?

It might not be a case of one director tryign to steal a customer from another, but it might be.

Companies house info is a bit worrying but frankly many businesses have incomplete records there, small businesses especially. It isn't an immediate sign of concern.

princeofpounds

Oh, I see you are a tenant? Thought you were a landlord.

Tenants have no contracts with agencies. Your AST might be signed by them but this is only on behalf of your landlord. Carry on as normal.

Jowo_2

To be honest, I interpreted the thread as being originated by a landlord. However, landlord or tenant, I regard the behaviour of the agency as deeply worrying.

As far as I'm concerned, an agency that can't do basic administration as compelled to by law, such as submit their accounts, should not be let loose on the significantly harder area of managing properties.

Also, the alleged falling out between the business partners is also a bad sign that they can't manage relationships.

One sign of a rogue agent is the serial opening and closing of new companies to evade creditors and the taxman. If the company no longer exists at the point when tenants and landlords and suppliers realise the owner has absconded without paying their bills or passing on rent and deposits. Many dodgy agents operate this way and will just start up a new business, walking away from the ruins of the previous.

Does this agency belong to a professional body? This reduces the risk of dealing with a cowboy and means that client funds are protected in the event that the company goes under.

http://www.landlordzone.co.uk/agents.htm

aimingforadebtfreelife

Sorry if unclear, I am the landlord. The office has moved 2 doors up from its previous office, they change the name of the company slightly and fail to submit accounts..... it was ringing alarm bells.

Jowo_2

aimingforadebtfreelife wrote: »

Sorry if unclear, I am the landlord. The office has moved 2 doors up from its previous office, they change the name of the company slightly and fail to submit accounts..... it was ringing alarm bells.

Sounds like standard cowboy letting agent practice. Presumably, they'd like to divert their income to the new one while the old one later gets dissolved or put into administration by creditors.

Where you stand with your contract with the old company which by the sounds of it is still currently trading, I don't know. Perhaps some of the legal bods on the Landlordzone forum will know if you don't get a decent answer here. I'd be surprised if you are under any obligation to move to the new company even if it is owned by the same directors.

I reckon you need to review your existing contract to see how it can be terminated and find yourself a more professional agent or if the dissolution of the company will automatically cease it. I think it can take a long period of time for companies house to dissolve a company that has overdue accounts if the company directors or creditors don't initiate it.

Out of curiosity, have you been happy with their service?