Letting Agent gone bust! What should i do?

Lucy_Lastic

I have let a property with a local agent for 14 years without problems. The agent has now gone bust owing me a month's rent. The office is shut, the phone on answerphone.

I have left messages and sent an e mail.

The e mail cancels our agreement with immediate effect and asks for the following documents to be available for me to collect today:

A copy of the last inventory.

A copy of the Gas Safety Check Certificate.

A copy of the last Tenancy Agreement.

Details of where the tenant’s deposit is held.

I will contact the tenant today and have engaged another agent.

What else should I do?

martindow

Lucy_Lastic wrote: »

I have left messages and sent an e mail.

The e mail cancels our agreement with immediate effect

This needs to be followed up with a proper letter. I assume you have told your tenant about the new agent and payment details. Again this should be confirmed with a letter.

ging84

How does a letting agent go bust? they are practically printing money at the moment

Lucy_Lastic

I will send a proper letter to the head office, but not sure if anyone will read it because as far as I know none of the offices are open because the staff have not been paid so they have not turned up for work.

I've spoken to the tenant this morning and she will cancel her standing order for the rent.

theartfullodger

If agent was a Ltd co or plc get names & addresses of directors from Companies House:

If operating as sale-trader or partnership enquire of neighbours(to office), Council Housing dept, other traders, tenants & other landlords for names & addresses of owners.

Go & discuss you issues in a free & frank manner with the owners/directors, taking a couple of large friends: That won't fix things but might make you feel better.

As you appear to have no paperwork AT ALL grovel to tenant and beg him if you can copies of what he has. If all else fails offer tenant NEW tenancy for LESS money: Why throw money away like that?? Because that way you end up with paperwork you can rely on & use in court.

If a new tenancy was signed since 2007 (?? earlier??) & there was a deposit find out status of it & if/where it is protected. If not protected within 30 days of receipt (say back in 2008..) then a) You can't use S21 to evict without returning deposit first to tenant &
b) Tenant can sue YOU (yes, you, the landlord) for up to 3x deposit.

Cheers!

Memo to me: Must ask my agent for copies of key paperwork.

G_M

1) ring the tenant immediately and tell them not to pay further to rent to the agent. Give them your phone number

2) follow up with a letter to the tenant, repeating the instruction formally, and telling them where to pay rent to instead (direct to you, or a new agent). Also you must ensure they have a valid address "for the serving of notices" on you. If this was c/o the old agent, give them a new address.

3) Write to the agent (copy head office if there is one) requesting all funds, and copies of all documents.

4) contact each of the 5 deposit schemes and check which has the deposit. If the deposit is registered in the agent's name, they may not answer you - ask the tenant.

5) contact the scheme and find out how to get the deposit put in your name

6) try to find out if the agent has gone bankrupt. Have the Official Receivers been appointed? Who? Register your claim as a creditor with them (though you are unlikely to get much £ back!)

7) getting documents may be hard. If you have nice tenants, they may help eg copyof the tenancy agreement, inventory (important!) etc. I'm not sure if GasSafe keep a record of safety certificates: ask them.

good luck!

See also:


Letting Agents (Tips for selecting, and tips for sacking them)

eddddy

Lucy_Lastic wrote: »

I have let a property with a local agent for 14 years without problems. The agent has now gone bust owing me a month's rent.

Hi Lucy Lastic

Check whether your agent is in ARLA's or the NAEA's Client Money Protection scheme:

A quote from ARLA's website:

The ARLA have the ability to make discretionary grants (up to pre-set limits) if you suffer financial loss due to the bankruptcy or dishonesty of the member and/or their firm...

And another one:

Q. Can I check that my agent's claim of belonging to the Client Money Protection Scheme is genuine?

A. Go to https://www.arla.co.uk or https://www.naea.co.uk and carry out a search under the find a member section or e-mail regulation@nfopp.co.uk

See these links for a few more details:

http://www.arla.co.uk/about-us/why-use-our-members/
http://www.nfopp.co.uk/client-money-protection-general/
https://www.nfopp.co.uk/client-money-protection-general/cmp-faqs/

chanz4

Why not save you and the tenant cash, and deal direct. Letting agents are a waste of time

Lucy_Lastic

I contacted tenant this morning, she is looking out copies of documents for me. I can collect them this evening. I told her to pay no rent to anyone until I have a contract with the new agent.

Bankrupt agent just contacted me! Shocked! They apologised for the problems, said I should get my rent money when the accounts are "unfrozen" and agreed to get me copies of everything that I need to set up an agreement with another agent. I can collect these this afternoon. They are also going to find out where the tenants deposit is held and will let me know when I call on them later.

I was very nice to the office staff and they have been very nice to me. It's not their fault the boss has gone bankrupt, they are also suffering. I find it's the best way to get results.

If that does not work, then I can show that I really do have a hard side!

eddddy

Lucy_Lastic wrote: »

If that does not work, then I can show that I really do have a hard side!

Hi Lucy

Be careful! If this is being done properly, and the agent has gone into Administration, Receivership or Liquidation - you will still be bound by the terms of your contract (as long as the Administrator / Receiver / Liquidator sticks to their side of the contract, by passing on rent payments etc.)

For example, if you agreed to a 6 month notice period with your agent, you must now give the Administrator 6 months notice.

An Administrator may well be trying to sell the business as a going concern, or perhaps selling the assets of the business to another Agent. And your management contract is an asset of the business.

An Administrator or whoever buys your contract can still sue you for breach your contract.

On the plus side, whilst the agency continues to trade in administration, there is practically zero risk of any future rental money being lost.

ethank

If they have gone bankrupt, is their an administrator or liquidator?