Problems With Letting Agent

SWSteve

A few years ago we started letting out a 3 bedroom property and used a local well-known estate agent (EA). They found us 3 tenants, did all the checks, basically sorted everything out for us.
Since then, each tenant has left one at a time, but found a replacement themselves. This happened a few times so we are now on our 4th generation of tenants.

Due to a catalogue of recent issues we have decided to terminate our agreement with the agency, giving them their required 2 months notice, and moving to a new agency who we've used previously.

Our current EA has now told us that our ORIGINAL tenants (who moved out almost 3 years ago) need to confirm that they're happy with release of the deposit from the DPS, stating that each time a new tenant took over the place of the previous they did not bother telling the DPS of the new tenants. We cannot get in touch with the original tenants, none of which reside in the UK.
The current tenants, who are happy to move to a new agency with us, are also stating they've never received a tenancy agreement from the current EA.

The current EA is also telling us that they are not obliged to terminate our contract with tenants in the flat, despite them not actually finding the tenants.

What would you recommend in this situation?

Thanks in advance

Comms69

Recommend you research being a landlord as the buck stops with you.

G_M

You are ultimately responsible for the deposit being returned.


haing said that the schemes have procedures for single applications. You request the deposit and the scheme tries to contact the tenants. If they don't respond, it is released.


have you read:


* Letting agents: how should a landlord select or sack?

SWSteve

Comms, blunt but precise. I’ll definitely do that. For the last 6 years we’ve not had a problem, now it seems like we need to research.

G_M, thanks. I’ll get onto that. It’s not that we even want the deposit, we just want to register it in the correct names.

G_M

So did the current tenants pay a deposit?
If yes, did they pay it to you? The original agent? Or the outgoing tenant(s) :eek:?


If paid to you or the agent, was it not protected (:eek:) and if not why not?


What is your relationship like with the current tenants? Are they happy to'start afresh' eg sign a new tenancy agreement?


What is the situation with the inventory? Do you have one? Agreed /signed by current tenants?

SWSteve

Current tenants paid deposit to outgoing tenants, so outgoing tenant got their deposit back and the original deposit remained protected.

Tenants have already signed a tenancy agreement with us and new letting agent. They’ve experienced problems similar to us so are equally happy to move to a new agent.

We’ve never recieved any money direct from any tenant - everything has gone through the agent who then pass it on to us.

Regarding inventory, we recently found out that the current tenants were not shown an inventory, nor ask to sign anything regarding an inventory.

G_M

SWSteve wrote: »

Current tenants paid deposit to outgoing tenants, so outgoing tenant got their deposit back and the original deposit remained protected.

Well obviously that is NOT how it should be done. You have several choices:

1) You never received a deposit from the current tenants. They (foolishly) paid some 'money' to the outgoing tenants. That is a matter between the current and outgoing tenants. If they want it back they'll have to ask the people they paid it to!

As you did not receive it, you do not have to protect it.

2) That is obviously harsh on your current tenants, who were (presumbly) badly advised by the ex-agent. And that agent was yours so you have considerable moral responsibiliy even if your legal liability is as explained in 1 above.

3) So you might decide to take responsiblity, both on moral grounds, and business grounds (to keep current tenants sweet!). ie either
* give them back the money they paid the outgoing tenants or
* act as if they paid you, use your own cash, and protect that as if it had been paid to you as a deposit by the current tenants
In either case, then try to reclaim it yourelf from the scheme used for the original tenancy - this might take time, but, well, yiu've got a messed up business that needs sorting and it's really up to you to sort, rather than penalising the innocent, current tenants (1 above)

G_M

SWSteve wrote: »

Regarding inventory, we recently found out that the current tenants were not shown an inventory, nor ask to sign anything regarding an inventory.

Well that is an issue for later - when the tenancy ends. Just cross your fingers you don't then want to make deductions from their deposit. Oh! They didn't pay you one! So in any case you'd have to make a claim for cash compensation if there's damage. Damage you'll be unable to easily prove without an invenory.........


Too late now.

SWSteve

Thanks for the advice.

The last thing I want to do is penalise the tenants. None of them have ever given us any problems at all. I’d even say they’ve been perfect tenants in every way.

It seems that all problems, for them and us, were all caused by the agents.

SWSteve

We’ve been to the property a few times, and it really has been kept immaculate.

G_M

Addional to all the above, you could consider a claim for whatever costs you incur resulting from the ex-agent's breach of contract.

Of course, you have not described your contract with them so I don't know what it said, but I assume they were responsble for

* properly ending each tenancy as tenants left? check-out inspection? Deposit return etc?
* properly setting upnew tenncies? New inventory? New tenancy agreement? Taking and protecting new deposit?

If you were paying the agent todo these things, and they did not, you have a potential legal case. Whether it's worth the time/stress/money/effort to pursue is a matter of personal choice. Base on proper legal advice.

Are you a member of a Landlords Association?

And are you now getting a handle on your new agent contract, and monitoring what they are doing......?


See also
* New landlords: advice, information & links