Letting Agent claiming back 8 months rent already paid to landlord

PasturesNew

Could it be LHA/(Housing Benefit) that's been reclaimed due to tenants claiming fraudulently? If that was the situation, that could've been the catalyst.

dln

I don't know if housing benefit is involved.

There were two tenants signatures. I was able to obtain rent indemnity insurance so I assume that the tenants checked out okay when the agent did their checks.

If that was the catalyst, my question still remains - can the agent come to me for the rent I have received?

PasturesNew

dln wrote: »

...my question still remains - can the agent come to me for the rent I have received?

Ignoring all else, the agent "works for you", so, if the financial event happened to them, then they can take the money back from you.

Taking a situation where there's no fraudulent or deception on the part of the agent, if they are simply "working for you" as their agent and this thing occurred.... then yes, they can ask you for the money back.

So, you need to find out the details of what occurred.

jjlandlord

The agent's letter is quite fair as they say they'll try to get the money form the tenant first before asking you to refund.
Then, it would be for you to find the tenant and likely sue.

HappyMJ wrote: »

Largest LA in UK seems to be Countrywide and they are investing and appear unlikely to go into administration.

I know know how this particular chain is organised.

However, it is not unusual for chains to be made of independent fanchisees, who can therefore independently (and with a higher risk) go bust.

dln

I also don't know. They are one a large letting agent with offices all over the the UK.

silvercar

"Unfortunately your tenants of ?? ???? Avenue have recalled 8 months rent totalling £3800

So the tenants recalled it, not the bank.

Could this be a company let where the tenants are employers providing accommodation to the employee.

Either way, I'd be inclined to reply that you don't have that much money to hand and suggest they deny the recall or contact their bank.

All sounds very dodgy.

dln

Thank you for your input.

According to the email I received, it was the tenants that recalled it.

Almost certainly, it is not a company let.

It looks as if the recall has already happened i.e. the bank has given the £3,800 back to the tenants. It is the letting agent that says they (the letting agent) may come back to me for monies already paid into my account. I am guessing that the bank has taken/demanding to take the recalled money from my agent.

Can the agent come back to me for this money?

eddddy

Some of the larger letting agents (including Countrywide) collect rent by direct debit.

The Direct Debit guarantee says that if somebody tells their bank that there is an error in direct debit payments (e.g. incorrect amount taken, incorrect time etc), the bank must immediately refund the disputed amount whilst they investigate.

Hopefully, in this case, the bank will ask for the agent's version of events and see that no error was made, and return the money to the agent.

dln

Thank you for that.

There is no mention in the email I received of any kind of investigation, only chasing the tenants and trying to retrieve the money. The track record of these tenants suggest to me that they will not repay any money to the agent. That brings it around again to my worrying question, 'Does the agent have a legal right to demand the money from me?'

Marktheshark

Issue the tenant with a Section 8 notice on ground 8, not a s21, make it clear they are allowed 3 working days for service and then you shall file file forms n119 and N5 at court .
They have 3 days to sort the situation.
Send the S8 by recorded delivery and a second copy by certified post

Or let it carry on and the loss worse.

If you act to mitigate the loss now, you have a chance in court.
If they have deliberately snatched the rent back you need them out now.

This needs halting Monday Morning.