Letting agent not paying me owed money!!

nickpike

Hi all, I'm in a bit of a fix. I've been letting my property with Clearlets based in Kircaldy, Fife, for about 2 years now. Up until now they've been fine. However the first sign of a problem was in December when they paid me late. The tenants paid on time however they were a week late paying me and it was only when I chased it up did they transfer the money.
Now, they're late again. However the problem is no one is returning my calls, the only people I can speak to are receptionists in either the branch or the head office which is useless as all they keep saying is they will pass on my problem to the accounts department. There's no direct line to any accounts department or anyone higher than a receptionist!! Since the 15th Jan (when they were due to pay me) I've placed 8 phone calls and sent 3 emails all ignored and not responded to. They've not offered any explanation as to why I've not been paid as the receptionists cannot access my full account.
I've gone through my contract and it states that there's a £250 +VAT termination of contract but surely that's null and void since they've not fulfilled their obligations and paid me what's owed.

So I suppose the questions are;
a) has anyone else had an experience like this either with Clearlets or anyone else,
b) what routes should I go down from here to get my money
c) and if I were to cancel the contract, what rights would I have not to have to pay the £250+vat and go with a different agents

Thanks in advance

Nick

BitterAndTwisted

If the agent isn't paying your tenant's rent over to you, they are probably in trouble. Most especially if no-one is accepting your phone calls. If they are in trouble they will not be in any position to harass you or take you to court for breach of contract.

Under the circumstances I would contact the tenant and ask them to pay the rent direct to you in future. Follow it up IN WRITING.

I would definitely risk maybe having to pay that termination fee. Not paying you your money, whatever their excuses or reasons is outrageous.

jamie11

I agree with B&T, especially about getting the rent paid direct to you, however if the agent has not actually ceased trading you should pay them the commission agreed in your contract.

I have no sympathy for bad agents but a contract is a contract.

DVardysShadow

I agree with Jamie and B&T. Get the tenant to pay you direct. Pay the LA their commission.

G_M

I agree. If possible (are you close?) make an appointment and visit the tenants - explain face to face what the problem is and waht you plan to do. Many tenants think their contract is with the agnt so you need to make clear YOU are the LL, and provided you get their rent, their tenancy is secure.

Then follow up with a formal letter to them so they have it in writing too.

Check the terms of your contract with the agents. there is probobly a notice period (one/two months?) so you'll still owe them their commission. But far better to have the money in your bank and have them chase you for their commsision, than for the rent to be in their account and you trying to chase them!

Once the rent starts coming direct to you (which puts you in control) or to an alternative agent if you prefer, THEN write formally giving notice and sack the agent.

As this is Scotland, I'm unfamilar with deposit arrangements. Do you have it? Or the agent? Again, you need to sort that out because ultimately you are responsible for it, and it is the tenants' money

dotchas

Have you considered going it alone once you are free of Clearlets? You would be ££'s better off each month and can have a more face to face relationship with your tenant.
Just a thought!

PS Thanks for the info, I will stay well clear of Clearlets !

myhouse_2

While very unprofessional, a week late in receiving the rent does not need to be a huge issue. Not returning/answering calls however suggests it could be more serious. Keep following up and start making preparations to change agent.

poppy10_2

Sounds like they are about to go bust.

nickpike

That's some great advice from you all guys, thank you so much.
To go over a few of the points;

My main concern is that they are possibly going bust and have a major cash flow problem. Seen as it's been two months running and although a week is not necessarily long, it's the sheer lack of communication from them. Luckily the house is only a 30min drive away so to take it on and manage myself wouldn't be a huge issue, when starting it up though, I just didn't have the time and didn't want to be a bad landlord!
I think the best route, as much as it pains me, is to pay the cancellation charges and either go it alone or find another agency, having said that, I won't pay anything as the rent due is more than the charges. Hmm, if only you charge late fees to a company!

Thanks again, all.

Nick

mchale

nickpike wrote: »

My main concern is that they are possibly going bust and have a major cash flow problem.

Before you go jumping to conclusions, have the tenants paid the agent?

Its not very professional coming on a public forum and naming a company without knowing the facts

BitterAndTwisted

I agree that it is reckless (and possibly damaging to the owners of this site) to post the name of the agent on here but I suspect the OP is correct. If the tenants hadn't paid the agent they would be prepared to accept calls and say so. It's not a professional short-coming to have rent outstanding and not have been able to collect it yet.