Being stitched up by tenat and agent-need advice

clumsycloggs0305

As FTB for BTL, we recently purchased a 2 bed flat. Agent we bought from found us tenants straightway and signed 6 month contract. 3 months in, the tenant calls to advse because of a death in the family, they need to leave to go to brazil. The agent took 6 mths advance fees from the holding deposit being £512. Now we said to tenant as a breech in contract we are entitled to retain their deposit to which things have gone sour. They should be leaving on 21st July, but said they'd stay on 1 month to get their moneys worth. Having approached the agent, he says nothing can do, and best to let them go before they cause damage. We are trying to recover the 3 months advance fees from either tenant or agent, but tenant will not leave until return of full deposit. this is a real issue and we are very stressed at our first experience. Aother agent suggest we forwarrd date the chq and cancl the cheque a few days after they have vacated. Really need sme recommendations from experienced BTL landlords as we feel we are robbed of commission through on fault of our own.

We plan to rent out though another agent but he too is really pushy into taking on tenants when refs havnt been checked etc, and we need to sign up to 1 year so he will take 1 yrs commission in advance and he will not negotiate. we are worried that the EA may know the real truth of the new tenants but in order to house them, and earn his commission we are being pushed into it. General question-should a tenant hand notice at previous landlord prior to agreeing terms at new place? Or is that just EA chat to make the ssituation look good?

MissMotivation

I don't know as much about lettings as I do about sales and hopefully there will be someone along soon who can advise you better than I can, however I'm sure that the agent cannot take their fees from the Bond as that is there in case there are any repairs to be done at the end of the tenancy. One thing you don't make clear is whether the tenants have paid the 6 months rent in advance or are they paying monthly? Again it's my understanding that the tenants are liable for rent for the entire period of the tenancy even if the move out before the 6 months is up.

I would also be hesitant to pay an agent a year's fees in advance, It's normally taken out the monthly rent and the rest forwarded to you.

Sorry i can't be of more help.

BobProperty

Welcome to the easy world of being a landlord. :eek:
You do realise you need a court order to get the tenant out? Or didn't the letting agent tell you/know?
One of the problems in this business is not enough people actually know the law and the best way to go about certain things and that includes solicitors and letting agents. Has the tenant been given a S21(? I think, I haven't got my notes) notice?
Joining a landlord association would be a step I would reccommend. Check around the net for landlord forums and see if you can find the answers to your situation as it will have happend before. Some of the landlords on here may well know the answers straight off, but I've been out of letting for a couple of years.

clumsycloggs0305

What is meant by a Bond? Is thsi the same as AST agreement? The tenants are paying monthly and not in advance. Can you pay agents commission on a monthly basis. The impression I get from London EA is that they take the holding deposit and deduct their fees before passing you the remainder. So once they got their commission whay should they care about your situation? We are only using them as letting only and not mgt services. Also, given all of this, shouldn;t the tenant provide a written notice, as all we have is a verbal notice by telephone.

MissMotivation

Bond is just another name for the holding deposit. I guess London agents do things there own way, every agent I've worked for in the Midlands take their commision monthly from the rent, appreciate this may not be the same with every agent.

I think you need to speak to CAB as this just doesn't sound right to me.

Guinea_2

Just wondered whether you have time to manage your own lettings. It could work out cheaper for you in the long run and you'd be the ones drawing up the contracts and such like? My parents do it themselves and of course have had some problems with some tenants but they know a good solicitor!:rotfl:

MarkyMarkD

As MissM says, they are liable for the rent for the six months and they don't have the right to leave early.

The story of staying an extra month "to get their money's worth" clearly doesn't stack up with the story of their death in the family, so they are lying to you.

Paying a post-dated cheque is unlikely to work for two reasons:

(1) the tenant isn't going to accept it, unless they are stupid;
(2) the bank will clear it if the tenant banks it straight away anyway - post-dating cheques is NOT allowed under banks' terms and conditions and banks are not required to take any notice of the date being in advance.

Irrespective of the legal rights and wrongs, the reality is that if a tenant does a bunk in the circumstances you describe (and genuinely goes overseas) you have next to no chance of recovering the rent owed.

Whether the agency is liable to repay the advance fees is dependent on the contract between you and the agency - it isn't particularly unreasonable IMHO but it would be worth arguing the point with them.

clumsycloggs0305

Really appreciate all the advice, keep it coming.

I found a Notice of Terimination of Tenancy (by Tenant) example on the Net and will try to get the tenant to complete this by apoointment tonight. Should we also write up a separate notice, acknowlwdging the tenants notice and mention the return of the deposit and both parties sign this doc on full vacant possession?

I couldn't sleep last night as I am so worried now. Both about the current tenants and the proposed new ones. YOu know when you know something isn't right and that you seem to have no control over the situation...?

The current tenants - husband flown to brazil and left a wife, a 14 yr old and a young kid to deal with things. She can't speak english so has some representative who is using threatening and bullyinh tactics with regard to the deposit.

I too dont believe their is a death in the family as why can they stay for another month when they have booked tickets for 31st july? seems they are lying. The lady is here on a student visa but when we asked to see her college documents she could not produce them...and she works as a cleaner... so why do EA throw people like this at innocent landlords?

I am about to move to a new house and rent out my current house but this experience is making me re-consider my options...the EA says its rare this happens, is this really true. I can't believe a word that comes out of EA's now - sorry to any EA's reading this, but they are the most full of *hit people I've come across...

Suewre

Are you using the agents to manage the property or just to find a tenant?

Searcher2

A difficult one. You said 'the tenant will not leave until the return of the deposit'. Well technically they have a contract for 6 months and you should return the deposit at the end of 6 months - so let them stay the duration of the 6 months then. However, in practice it won't work this way.

It sounds like (but guessing here) that you paid the agent for finding you a tenant rather than managing the property which could be why you are getting bullying tactics rather than the EA having to deal with the tenant.... in which case the EA fees make more sense asa one off. However, when I rented the EA still would have taken a % of the monthly income as a fee rather than taking money in advance. I think you could do with a new EA for your next rental.

If it is starting to make you ill you may actually be as well returning the deposit and learning from the experience. It makes it harder that they could just go abroad and wreck your flat before going.

Prudent

Is the wife legally in the country? Might be worth finding out -as it may be fruitless taking court action if she is an illegal immigrant.

I can see the advantages of managing the let yourself if you have time - you could make sure you check out and feel ok about the tennent. I appreciate this may be too much hassle if you have a full time job as well.