Rental woes - where do I stand?

DaringDon

Hello all. I'm looking for some advice on the following rental issue.

I let out my flat through a letting agent at the start of June this year. I'm a first time landlord and have no prior experience renting, I only got into as I have moved due to family reasons.

My contract with the letting agents stated that I had free rental insurance for the first six months, which would then be renewed automatically (unless i decided to opt out) after six months. This was a major bonus to me as I was reassured that regardless of any problems I would receive my payment and allow me to pay my mortgage on the property.

First two months went fine and then out of the blue the tenants upped and moved out without any notice. They have obviously since failed to pay the rent. The first month of non-payment the letting agent made the payment of my rent, which I assumed was from the insurance company.

The second month I received no payment and called to query this. I was then told by the letting agents that the insurance doesn't actually cover you unless the tenant is still in the property! To me this is madness. Anyway, I checked my contract with the letting agents and nowhere does it state this is the case. There are no notices to terms and conditions of the insurance (I can type word for word what it says with regards to the insurance on the contract if requested).

I obviously disputed this and said I felt that I'd been missold the insurance (i got it free but it was one of the major reasons i went with this letting agent) and that I had never been made aware it didn't cover you if tenants moved out i wasnt covered. The letting agents advised me they didn't know this was the case and that they have appealed to the insurance company.

I have managed to get a tenant through another agency, however I am still owed two months rent. The letting agents have advised they are chasing the tenants through a debt recovery company. To be honest I simply want to be rid of this situation and advised them that if they paid me one months rent just now I would consider the matter closed and any money they reclaimed through the debt recovery company would be theirs to keep. They have said they will consider this and get back to me.

My question really is; if they get back and say they wont do this then how do i take this forward. I feel they have mis-sold me insurance. Would I have grounds to take the claim to the small claims court? If so how do I quantify the cost of mis-selling the insurance or would i simply claim them directly for the two months rent I am owed (plus costs)?

Many thanks to those who have read through this, if anything isn't clear or you'd like me to expand on it then please let me know. Any help or advice would be greatly appreciated.

Fire_Fox

Have you formally taken possession of the house or are the tenants still legally under contract?

DaringDon

Hi, the tenants are still legally under contract until the end of November.

m1ntie

"Hi, the tenants are still legally under contract until the end of November."

Not if you have already let it to someone else!

Jowo_2

What tenant screening did your agency perform on these tenants? Did you see a copy of the references, credit check and so forth? Does your agent belong to a professional body, such as ARLA?

Fire_Fox

DaringDon wrote: »

Hi, the tenants are still legally under contract until the end of November.

Then you can't legally find tenants through another agency: you will have to go through the proper eviction process with the original tenants on grounds of abandonment. I strongly recommend you join a landlord's association immediately and get yourself up to speed with your rights and responsibilities as a landlord, as you are risking getting into a lot of trouble by letting a property that is already let.