Letting agency - dissolved

peterc2609

The agency whom I deal with when renting my apartment has gone bust.

The landlord (owner) has contacted me and asked me to pay him direct into his bank account, whilst he arranges another management company.

Is this OK to do?

The agency was based in Liverpool, just around the corner, whilst the landlord lives in London. He has promised me that all contracts etc will stay the same and nothing will change. I just wonder how he can support me when he is based so far away.

Do I have rights to pay him a lesser amount?? I'm guessing the agency took their own cut!?!?!

Debt_Free_Chick

peterc2609 wrote: »

The agency whom I deal with when renting my apartment has gone bust.

The landlord (owner) has contacted me and asked me to pay him direct into his bank account, whilst he arranges another management company.

Is this OK to do?

You should check your agreement, but it ought to make it clear that the agent was simply collecting rent on behalf of the landlord. The LL can terminate his appointment of the agent at any time, in which case the rent is then paid directly to the LL or to another agent nominated by him.

The agency was based in Liverpool, just around the corner, whilst the landlord lives in London. He has promised me that all contracts etc will stay the same and nothing will change. I just wonder how he can support me when he is based so far away.

He may have contacts locally. It may not take him long to appoint a new agent. No point in sweating this one unless there's a problem in the future - if there is, let's deal with that particular problem based on the circumstances.

Do I have rights to pay him a lesser amount?? I'm guessing the agency took their own cut!?!?!

Err .... no. The rent will be set out in the agreement. What the LL pays as a fee to any agent is for him and the agent.

If you had been paying the LL the full rent, with him then paying a fee to the agent, would this question apply?

poppy10_2

You need a new contract, your old one was with the letting agent.

lynzpower

poppy10 wrote: »

You need a new contract, your old one was with the letting agent.

Not neccesarily. Some LAs can sigh the AST on behalf of the LL, as the LLs fiduciary.

PasturesNew

And ... who has/had your deposit?

Notlob

peterc2609 wrote: »

Do I have rights to pay him a lesser amount?? I'm guessing the agency took their own cut!?!?!

The same right if you were paying the LL direct then the LL instructed an Agent and the rent increased to pay the Agents fee!!!

You need a new contract, your old one was with the letting agent.

Why would a tenant require a new contract? Please explain.

kunekune

Best case scenario is that the deposit is in the appropriate scheme. Even if it is not, so long as there is SOME money in the agency's accounts, your money is probably safe. I would imagine that it is held on trust, in which case it is not available to any other creditors. Given the nature of the business, it would be hard for a bank to say they didn't know that the money they were holding (if that's where it is) was or included customer deposits.

SquatNow

The landlord is liable for the deposit, which was collect by the LA on his behalf.

Landlord pays the tennant, then the landlord has to try to recover the money from the LA.

guppy

poppy10 wrote: »

You need a new contract, your old one was with the letting agent.

That would make the agent the landlord. Not an agent An agent just acts on behalf of someone else.

peterc2609

Right... more developments...

The LA is gone... dissolved. Unable to contact.

On the 22nd Nov, I logged onto Internet banking and cancelled my Standing Order to the LA and set a new one up for the LL.

Now, after checking my account on the 28th I realised that the money had still come out for the LA... on the 26th as it has done for the past 2 years! I contacted the bank and they are not admitting that there must have been a glitch in the system for the Standing Order not to actually delete... but say that there is no way that they can get the money back and it is down to me... I can do nothing as the LA is uncontactable and basically gone!

Spoke to the LL, who basically said, he's not bothered. He still wants his rent, and he'll use the deposit if need be.

I've said that this is wrong, as I have done nothing wrong and it should be down to him to get the money off LA. He doesn't see it this way! He advised me to take Legal Advice.

I've read my tenancy agreement and one point says:

1.7.2 The Rent shall be paid clear of unreasonable or unlawful deductions or set off to the Landlord's Agent by banker's standing order or such other method as the Landlord's Agent shall require.

And I can see nothing else regarding paying the Landlord instead of the Agent.

Does this make me in the right?? I can see where the LL is coming from but as far as I can see I've paid my rent... and I'm not going to pay again!

We also have no written agreement to change the payment method kinda thing.

Help.

kunekune

With the agreement, you have already agreed to pay the LL instead, so it is too late to go back to the other arrangement. I don't think the lack of writing will make any difference. You have not actually paid the rent, unfortunately, some of your money has been poured into a big black hole, but without your permission. If LA is in liquidation, no-one is going to get that money off them - you (or, hopefully, the bank) is yet another unsecured creditor. But you need to go back to your bank. If you instructed them not to pay, and they paid, that is their problem not theirs.