Problems with letting agents - cont!!

AlwaysHappy

I posted a couple of days ago about problems with the company we use to manage our buy to let property as they are trying to charge us fees that we hadn't agreed and aren't mentioned in our agreement with them. Nobody had any suggestions for me, BUT today the cheque they had paid into our account - for the rent for last month (paid 3 weeks late) has bounced due to lack of funds!!! Where do I go now - I'm too upset to ring them at the moment - will compose myself! Thanks in advance.

princeofpounds

Instruct your tenants using the appropriate form (I forget what it is but its on landlordzone) to pay rent direct to you.

Dig out you contract and any T&Cs you were given prior to signing up.

Terminate your contract as per the notice procedures in the contract.

Issue a letter before action for any funds missing.

Issue small claims court proceeding for your mising funds (unless they are bust when you might as well forget about it).

Jowo_2

Does your agency belong to a professional body, such as ARLA, who insist their clients money is insured? If so, raise a complaint with them. Have they protected the tenants deposit in a tenancy deposit scheme if the property is in England and Wales, do you have proof that they've lodged it?

Approach the tenants directly, explaining that the agency has defaulted on your agreement with them and are not passing on the rent, ask them to pay their rent to you while you seek a new agent to manage the property and to ignore any communication from the previous. Choose one that belongs to a professional body who are far less likely to be cowboys.

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

Contact your local trading standards. They will regard this issue as a civil problem between you and the agency but they may have knowledge of other landlords in that situation, other reports of poor practices with them, and perhaps you can band together to take action and share knowledge.

Apparently there is an online site where tenants and landlords can rate their agents. Find it and report their poor practice on it.

Send the agency a 'letter before action' recorded delivery or in person with a witness that gives them 1 week to pay the outstanding sum or you will take them to court and letting them know you are terminating their contract for breaching it (I assume there is a clause in your contract with them, or notice period?). The HM court or other consumer sites should have a template. If not refunded by then, raise a Moneyclaim online claim and take them to court.

If the agency is a limited company, check the status of the company via the Webcheck service of the Companies House website to see if their accounts are overdue or if the company is in administration.

Google the name of the agency - you may find posts from other disgruntled landlords and tenants.

AlwaysHappy

Thanks for the quick responses, my carpet has been worn thin! They don't appear to be a member of any organisation that I can see, and I have now spoken with another agency in the same town as them and they have heard of problems in the past which doesn't give me confidence. I am going to have to change agent but not sure how to proceed with the fact I owe them money for work carried out on the property, and they owe me rent - all I want from them is honesty!!

princeofpounds

I am going to have to change agent but not sure how to proceed with the fact I owe them money for work carried out on the property, and they owe me rent - all I want from them is honesty!!

Can probably be offset - if it goes to court might be a claim and counter-claim job. I don't know how that works in bankruptcies as companies can still chase debtors whilst creditors get little from the official receivers... If it's that complex you may wany to get a lawyer to help you disentangle.

Don't hire a new agent without terminating the old agreement first.

AlwaysHappy

I don't think bankruptcy is involved here, I have the money and am quite willing to pay what I agreed, all I have asked for is for the original quotes and invoices to be sent to me so that I can work out what I have been charged for, but I am not happy to pay for a fee that wasn't agreed nor has been accounted for in writing. I don't think I have been unreasonable asking for the paperwork and I am rewarded by them hanging on to the rent - they have only been waiting for my money since I received their bill on Monday (14th) so its not like I have been dragging my feet.

samroo

Any agent should keep clients money, ie rent, in a separate client account. Then there are no chances of your money being spent by the agent. It may be worth asking your current agent and any prospective new agent about client accounts and getting confirmation in writing

AlwaysHappy

Crikey, just read my last post, I should have said I don't think they are facing bankruptcy either.

clutton_2

you need to be able to prove to your tenants who you are before they can realistically stop paying rent to the agent - as far as they are concerned you cou ld be anyone

if it were me, and if it were possible i would visit the tenants personally with solicitors completion statementn for your purchase of the property - and copies of your signed agreement with the agent - along with prooof of you r identity.

they may well ask for time to take advice from CAB as to whether they can legally cancel their Standing order to the agent for their rent and then transfer it ot your account

good luck

AlwaysHappy

I have today had the cancelled cheque back and its come back payment cancelled ( not for lack of funds as I had been led to believe!!) so it would appear that the agents are playing hard ball because we haven't paid for the work done - we only had their bill a week ago and as the figures are massively different from those that we had agreed I have asked for copies of the quotes and invoices - which as yet they haven't provided - I don't think I am being unreasonable am I?

sp1987

AlwaysHappy wrote: »

I have today had the cancelled cheque back and its come back payment cancelled ( not for lack of funds as I had been led to believe!!) so it would appear that the agents are playing hard ball because we haven't paid for the work done - we only had their bill a week ago and as the figures are massively different from those that we had agreed I have asked for copies of the quotes and invoices - which as yet they haven't provided - I don't think I am being unreasonable am I?

I'm no landlord but how can it be unreasonable to wish to see proof of what they are asking you to pay prior to payment? Ridiculous. Hopefully the work cost more than the rent so it is them losing out for hanging around sending you the documents!