Month's rent retained

Collie_Collie

I've just re-let my house to a couple who have lived abroad. It's gone really well. The agent (not me!) asked them to pay 6 months in advance because they had no UK credit record. That was no problem so OK. Trouble is the agent has now retained 1 month's rent from what the tenant paid in case any bills crop up in the following 6 months.
Is this usual practise? I've let through them for years and years! Until now tenants have paid monthly and the agent has asked permission then deducted any repair bills from the following month's rent. I often use a local company so not all repairs are organised by the agent.
I've told them I'd prefer not to work like this and that I'll pay any bills that crop up. I suppose they are covering their back in case they get something done I they always as me first, then I don't pay so taking no chances at all!

I've never heard of this before and wondered if others have and if it is normal or not.

Thanks.

thesaint

What does the agreement that you have with the agency say about this?

Collie_Collie

It's not mentioned. It does say they can have up to 150 pounds done and then I am responsible for payment. Over 150 I have to arrange the whole thing. I keep the house very up-to-date so apart from an odd plumber, a new cooker etc. there have been no problems. It just suddenly appeared in the account. I didn't like the new tenant being asked for 6 months rent, but they said it caused them no problems so I didn't make a problem out of it. I did though then expect to receive 6 months rent (minus commission etc of course!)

chanz4

Due to data protection, the agency wouldn't be told about bills. Besides its zero todo with them.

thesaint

Personally, I would let it be. It isn't causing you any problems, and you've got more money than expected.

You can of course demand it, but I don't see the point.

chanz4 wrote: »

Due to data protection, the agency wouldn't be told about bills. Besides its zero todo with them.

It's not utility bills, it's maintenace bills that may arise.

ValHaller

Collie_Collie wrote: »

It's not mentioned. It does say they can have up to 150 pounds done and then I am responsible for payment.

That is what I would go with. The onus is on them to show that they should hold on to the money, rather than on you to show they should not!

On a little reflection, I think you need to investigate this some more. I think if I were tenant and asked for 6 months up front, I would argue that a deposit was unreasonable, so may be a deal has been settled upon, where 6 months has been paid but 1 month is deposit? I would be checking up on whether the agent has taken a deposit and whether he has protected it. Because if this is wrong, you will carry the can.

Also bear in mind the Cannabis Farm possibility. A couple who have lived abroad looks like a good cover for a lack of traceable ID. Perhaps the tenants are the ones who suggested 6 months up front? This is only a possibility - not a cert!

Yorkie1

If it's for maintenance bills, surely that's either the LL's responsibility, or if the T caused damage then it comes out of the deposit.

If the money is therefore being retained in the event of covering damage, it should be treated as a deposit and thus protected. And failure to protect causes the LL problems.

Or have I completely missed the point?

Collie_Collie

Thanks for all your input.
Chanz - it's in case something breaks down rather than bills. But that is always discussed with me first in case I want the local company to do it.

The saint, you are right, but now for 6 months the agent also has my money in their account and that irritates me a bit. Yes, maybe life is too short to worry about this. They have their commission now they just decoded to keep one month for themself and get the interest too! It's not a windfall for me, but will have to last for the 6 months of course.

Val Haller, it appeared as rent in the statement and the agent said they will pay it to me at the end of the 6 months so I'm certain it's not the deposit. And I've been charged for the deposit registration for that so I feel secure that has been correctly handled. It's a fairly normal, honest enough agent, I just feel this is pushing the boundaries.
It's good advice to be cautious about that of course but I am and take good care that is not happening. That is not happening.

Yorkie1 As far as I can see, it's just being kept in case, eg there is a plumber needed, to pay them with. It's not about any damage the tenant may do. Certainly any repairs like that are totally my responsibility and that's fine. The point is previously, if a plumber was needed (unless in an emergency of course) the agent first contacts me, I either get it done privately or say the agent can arrange it. If the agent arranges it, they ask me if they can deduct the cost from the next month's rent. Of course now there will be 6 months without rent and I believe they are keeping it in case I get them to call e.g. a plumber then I won't pay them. That's the only reason I can think of. But I've rented via them for many, many years so they know I pay my bills.
This just seems to be overdoing it, like taking a deposit from me as well without talking it over first.

anselld

They work for you. Instruct them to forward your money. Otherwise find another agent.

G_M

The agent is....your agent. They work foryou. They dowhat you tell them.

The money is not theirs. It is either yours, or the tenants. If the tenants have agreed to pay it up front, then it is yours.

If the contract/arrangement with the agent is that
1) they can hold £150 and
2) all repairs, expenses etc have tobe approved by you before the agent completes them, why does the agent need a 'pot' of money?

WRITE to them, giving them appropriate instructions.

It really annoys me that agents think they are in charge.......

Collie_Collie

You are right G_M.
I'm embarrassed. This thread now reminds me of that Fawlty Towers episode with the American telling Basil Fawlty to be more strict with Terry the chef!