LL having problems with Letting agency & rent

ber25

I wonder if anyone in this forum can give some advice about a problem with the letting agency I am using to rent out my house?

I am currently try to sell my house, and despite lots of viewings it hasn't sold, so the estate agent suggested renting it for a bit. I agreed, and after being told for the 4th time by the agent that they had tenants, people finally moved in to the house in July.

I had the statement for August's rent/charges from the agent today, and only 1/3 of the rent was on it (minus the agent fee). When I phoned to question this, I was told the tenants had moved out at the end of August and only 1 of the 3 had paid the rent. The agent said she was chasing them for the rent and had told the tenants they would have to pay the rent until the end of the 6 month contract even if they weren't living there. When asked what would happen if they didn't pay the rent, she seemed a bit unsure and said there would be a 'claim' against them.

I have had lots of problems with this estate agent and don't hold out much hope of getting the rent. If the agent doesn't pay me the rent due, do I have any course of legal (or other?) action against the letting agency? I am about to move abroad, and thought using an agency to let the property would be a 'safe' way to do so!

Any advice would be greatly appreciated!

G_M

I'm afraid this is a classic example of what happens if you become a landlord without doing sufficient research, understanding what's involved, and using the right agent.

Firstly you should have been more closely involved in choosing the tenants. And probobly should have chosen the agent with more care. Did you just use the one you happened to be trying to sell through? Selling property is very different to renting.

Did the agent take a deposit on your behalf? How much? Is it in a recognised scheme?
Did the agent not get the 1st months rent paid in full in advance? Why not?
Did the agent vet the tenants? Credit check? references? Employers and previous LL.

Ultimately, you can sue any or all of the tenants (if you can find them, perhaps via employers?) - and yes, for the full 6 months rent unless you get new tenants in that time.

You might possibly have a claim against the agents if they have breached their contract with you (you'd better read the contract closely!), or you could claim they acted negligently by not doing the things above, however you'll have a tough fight there.

I would advise you do not re-let until you know a lot more about what is involved. Being abroad makes it even more important you have faith in your agent. By the way, as a non-resident LL (overseas) your agent will need to deduct your tax before passing on your rent too.

tbs624

G_M wrote: »

I would advise you do not re-let until you know a lot more about what is involved. Being abroad makes it even more important you have faith in your agent. By the way, as a non-resident LL (overseas) your agent {edit: or your tenants} will need to deduct your tax before passing on your rent too.

If out of the UK you *must* provide an Eng/Wales address at which notices relating to the property/tenancy may be served - the Ts do not have to pay you your rent until/unless you do.

tbs624

G_M's post is good.

ber25 wrote: »

..... people finally moved in to the house in July.

I had the statement for August's rent/charges from the agent today, and only 1/3 of the rent was on it (minus the agent fee). When I phoned to question this, I was told the tenants had moved out at the end of August and only 1 of the 3 had paid the rent. The agent said she was chasing them for the rent and had told the tenants they would have to pay the rent until the end of the 6 month contract even if they weren't living there.

That's true but you/an LA need to get the property re-advertised. You can't just sit back, but you can look to those Ts to (a) pay off their arrears (b) pay your reasonable remarketing costs and (c) pay the rent until a new T is in place.

Did the LA vet these former Ts?

Does the LA have a forwarding address or sufficient personal info to be able to trace them?

You either have to get things moving or accept that you will not see your money ( even if you get a judgement against these former Ts, enforcement may be the sticking point)

Sign up to Tessa Shepperson's LL Law site. Tax deductible membership fees, discount on LL ins premiums &much useful support.

Get a new agent in place - look for one that has at least got ARLA membership - and get new properly checked out Ts in place pronto.

There is no formal regulation of LAs and many of them act as a law unto themselves, towards both LL s and Ts.