Letting Agent gas & elec antics

LooniesMum

Thanks BRB.

Certainly end up doing a touch up to the paintwork between tenants, or a complete re-do depending how long they've been in, but yes it does eat at the profit. Not that I've made a profit yet, but we've been gradually upgrading the place (double glazing etc).... one day hey.....

The more I think about it, the more I find it bizarre that the LA wants to stipulate which energy supplier. What next - tell them where to shop or which brand of loo roll they must buy, whilst they get a reward from Andrex?! Apparently Spark pay the LA £45 per property converted. I hope this scheme gets stopped.

Will wait to see what response I get from the LA, but I intend to contact the tenant and warn them not to let Spark over the threshold!!

LooniesMum

Hmmm.. Just gone through an old AST contract (this post started regarding the T&Cs between the landlord and the LA, not regarding the AST but......) The old AST states the tenant shall not change the supplier of the utilities. The same clause then goes on to say that if they do breach this clause they should inform the landlord/LA of the new supplier and that they are responsible for reconnection costs. So they have tried to restrict changing the utilities, but only half-heartedly it seems! It basically says "you must not...... but oh well, if you do......"

DVardysShadow

LooniesMum wrote: »

The more I think about it, the more I find it bizarre that the LA wants to stipulate which energy supplier. What next - tell them where to shop or which brand of loo roll they must buy, whilst they get a reward from Andrex?! Apparently Spark pay the LA £45 per property converted. I hope this scheme gets stopped.

Ok, it has been fairly obvious that energy suppliers have been signing up Agents for a while with a backhander - but this is the first time I have seen a price mentioned.

That £45 would rightfully be yours.

But I agree, it is like you specifying that tenants should use Andrex. I think the bottom line is that you TELL - not ask - the Agent that they must take this clause out and also tell them that if they present the same clause again, they are sacked.

LooniesMum

DVardysShadow wrote: »

Ok, it has been fairly obvious that energy suppliers have been signing up Agents for a while with a backhander - but this is the first time I have seen a price mentioned.

That £45 would rightfully be yours.

The £45 is mentioned on Spark's website
http://www.sparkenergy.co.uk/news-about-spark/propertydrum-energy-commission.html

It also mentions who they are partnered with - but doesn't specifically mention my LA, though it does mention they have 219 partners.

tbs624

LooniesMum wrote: »

The £45 is mentioned on Spark's website
http://www.sparkenergy.co.uk/news-about-spark/propertydrum-energy-commission.html

It also mentions who they are partnered with - but doesn't specifically mention my LA, though it does mention they have 219 partners.

At the bottom of that it also says

"New tenants do not have to keep Spark Energy as their utility provider."

Ts who find this sort of restrictive "no changing of utility provider" clause in their tenancy agreements should contact the OFT, the Housing Minister , their local MP, Shelter, CAB etc and ask for the practice to be publicly denounced.

tbs624

LooniesMum wrote: »

They have highlighted the clause regarding Spark, so they're not really trying to hide it, I guess they're just hoping I won't give it much thought. But I just don't think it's for them to say who the supplier should be and I'm surprised that they've tried.

Never be surprised by anything that LAs try on. If it has a £££ sign on it they'll try it: especially if the entire fee is heading their own way.

LooniesMum wrote: »

I have used a LA because that was the condition set by the mortgage provider when I asked for "permission" to rent what was my former home - their consent meant I didn't have to change my mortgage.

If you have been doing it for 7 years with no major disaster then perhaps the mortgagor would now reconsider.:)

dizziblonde

LooniesMum wrote: »

Thanks BRB.

Certainly end up doing a touch up to the paintwork between tenants, or a complete re-do depending how long they've been in, but yes it does eat at the profit. Not that I've made a profit yet, but we've been gradually upgrading the place (double glazing etc).... one day hey.....

The more I think about it, the more I find it bizarre that the LA wants to stipulate which energy supplier. What next - tell them where to shop or which brand of loo roll they must buy, whilst they get a reward from Andrex?! Apparently Spark pay the LA £45 per property converted. I hope this scheme gets stopped.

Will wait to see what response I get from the LA, but I intend to contact the tenant and warn them not to let Spark over the threshold!!

From the tenant's viewpoint - when a certain letting agency in the E.Midlands tried this with us and Utility Warehouse it was pitched, by phone, as a "We're switching all the properties we manage to this supplier - it'll give you a better deal" and I was like, "No you're blooming well not - if I'm not allowed to look for my own supplier that I know is cheaper I'll rent elsewhere"... never seen a backdown go on so quickly but the cheek of it amazed me - we ARE switching a supplier that you have your name on the bill on and pay for... yeah right matey.

I do wonder how many they managed to bully into making the change for fear of losing their homes though.

chris_m

Spark are up to their antics with sales too - a colleague bought a flat a few months ago and after a few weeks he got a "Sorry you're leaving us" letter from Southern Electric, first he'd even heard of it.
It took him some time to get it sorted out too - because only the "gaining" provider can cancel a transfer request, even if the householder didn't instigate it nor know anything about it. Southern Electric couldn't help him other than telling him who the poachers were.

LooniesMum

tbs624 wrote: »

Never be surprised by anything that LAs try on. If it has a £££ sign on it they'll try it: especially if the entire fee is heading their own way.

If you have been doing it for 7 years with no major disaster then perhaps the mortgagor would now reconsider.:)

I'm keeping a low profile as far as the mtg is concerned - it's only got 6 years left to run now and a financial adviser advised me to leave well alone too. If I changed mortgage I'd have to get a "buy to let" type mortgage I think. If it comes to it, I can always change LA though, if I can find one that hasn't already got into bed with Spark

I've had no response from the LA today, apart from the local office saying they're not sure how to proceed (i.e. how to get a new T&Cs without that clause in) and have had to pass it over to HQ. Sounds like the contracts aren't produced "in house" - so I'm a bit worried they'll say they can't change it. Meanwhile I've left a msg for the prospective tenant saying don't sign anything with a Spark Energy clause in it!!:D

All this may cause a delay in the tenant moving in now - hope they appreciate I'm trying to do them a favour!!

LooniesMum

tbs624 wrote: »

At the bottom of that it also says

"New tenants do not have to keep Spark Energy as their utility provider."

Yes I noticed that too - but there's an awful lot of tenants saying they had trouble leaving Spark and some saying they didn't even instigate having an account with them in the first place. I'm concerned that even if I get this clause removed, Spark will still try to take over the account. Maybe I'm overreacting, but I've forewarned the tenant.