Withholding Deposit in lieu of fees?

Mistral001

bluebaron wrote: »

I asked them why they have not billed me in 3 years and no real excuse other than thought tenant had moved out .

This I would have thought is crucial to your case. Have you a note of the conversation, date and the name of the person who said it?

Mistral001

jamie11 wrote: »

www.findermonkey.co.uk

This is a service for tracing people.

bluebaron

I'm on good terms with the tenant so may ask them to claim the deposit back and then pay me directly. As stated it I'd their money just hope the agent hasn't already claimed it back with the letter they have me.

Then the agent can just sue me.

dodger1

bluebaron wrote: »

Looking at the agreement is it simply a one page document stating 10% of annual rent 6 monthLY fee.

So what they are charging is correct? Or are you disputing what that phrase actually means?

Werdnal

Mistral001 wrote: »

What is a "tenant finding service". Do they exist anywhere?

Agents usually offer 2 levels of service:

Tenant find only - advertise, conduct viewings, credit check tenant, set up payment of deposit and first month's rent, prepare and sign tenancy agreement/inventory and arrange check-in (or some of these and not all).

Fully managed - the above, plus monthly rent collection, handling tenant queries and repair requests, inspections and notice/end of tenancy check out.

OP seems to have signed up for the Tenant Find service, but overlooked the T&C in the contract saying he was liable for ongoing fees throughout the tenancy.

CKhalvashi

Mistral001 wrote: »

What is a "tenant finding service". Do they exist anywhere?

I don't think that this is the correct term, but the agents we use find the tenant/do the checks, then hold the deposit for the tenancy duration for £199 + VAT.

This could be something similar.

CK

dotdash79

bluebaron wrote: »

Looking at the agreement is it simply a one page document stating 10% of annual rent 6 monthLY fee.

That makes no sense at all?

what exactly does it say?

bluebaron

The previous posters are correct.

I approached the agent and asked for a tenant finding service (back in 2011). I had a quote from my previous agent of £750. Trying to be a keen money saver I asked around for a better deal.

The agent offered me 10% of the 6 monthly rent a figure with VAT of £600. So i said sure and that was that. They found me a tenant did the references and i never heard from them again.

Now they say I actually signed a tenancy agreement to pay 10% of the rent every six months. I asked why I had never, in the last 3 years been billed and was told they thought the tenant had vacated. (despite them holding the deposit so they knew they hadn't).

So now they say 'opps's we should have been billing you so please pay the £3000 odd now and we've taken the deposit as part payment as it is no longer the tenants but your money!!!'

The contract they showed me is printed but they said the hand written bit on the front from their agent saying "10% of rent six monthly". So could well have been added on later, I don't have a copy as it was 3 years ago and my business with them was completed.

Clearly if I could have got this service fro £750 I wouldn't have signed up to pay £1000 per year forever for no service what so ever!

dotdash79

If the "10% of rent six monthly" is hand written then on a printed document they should have got you to initial it.

Werdnal

The evidence they have is sketchy to say the least, with the hand-written addition, and I think you have a good case to contest the fees, but as I said earlier, you have muddied the waters by trying to do your best for the tenant and give them their deposit back first. The agent is now holding money which you are trying to convince him is YOURS, when infact had it still legitimately have been the tenant's deposit, there would be no issue here at all.

You could try to sue the agent for return of the money they have in lieu of the tenant's deposit, if you have proof the tenant has "signed it over" to you. Otherwise the tenant should apply for its return and you as LL can sanction that return through the agents as you have the final say on any deductions from the tenant's money - however this is no longer the tenant's money - its far too hot today to try to get my head around this, maybe someone else can make sense of best route for OP to get this sorted ....