renting out property with letting agent. Not receiving payment or communication.

Ratkin007

Gonna state the obvious, looks like your agent hasn't got a clue. I advise you look into all the requirements of a landlord and ensure they are met. I also suggest you check the local authority website to see if there is a Selective Licensing scheme in place for the location of the property. If the property requires a licence and is being let without one, you could be subject to a civil penalty notice. In addition, the tenants could put in for a rent repayment order.  

NinjaD

macman said:

Did you not sign your own tenancy agreement? Or did you assign the right to the LA to sign on your behalf? I do hope not.

I have not signed anything.  I have not assigned the right either, but I assume by default that is the situation I'm in.  As the LA has arranged everything with the tenant, I am not aware of any details of the tenant. only that it's a professional couple.

Using an agent does not divest you of any of the responsibilities of being a landlord. If they screw up, and there are numerous statutory breaches possible, then it's you that gets fined, not them. You are already liable to be sued for non-protection of the deposit for up to 3 times the value if the tenant is aware: there is no possible defence to this in law.
Given their utter failure to communicate, I would give them the notice required in their contract and terminate the agreement immediately. Very unlikely that you will recover any of the upfront fees paid though. 

Thanks, scary to know I'm liable. I assumed having a LA meant they would deal with/be responsible for everything.  Being a landlord is not something I wanted, it's a situation I find myself in due to the current cladding crisis. So I've never looked deep into it.  

The document I received only has the flat details, the agency details, my details and the agents details and some acknowledgements at the end.  It doesn't mention any notice period required for cancellation,  it just says I lose the right to cancel once a tenant has been found.  But I've never signed the document as it has so many mistakes.  I pointed it out to them and they were supposed to fix it before I signed it.  This is some of the things wrong with it:

• The address is wrong (close, but missing the first line (flat number and building name), and also has my surname as the city). 
• The fields are wrong, e.g. phone number is in the address field.
• The start date is wrong, it's marked as starting last December, when we only started a month ago.

I really doubt this would be accepted as a legal contract. 

Tomorrow is the day I should be receiving some rent from them.  If I do not, I will just keep calling until I can speak to someone, I'll see what can be arranged with cancelling.  It cannot go on like this.  It's taken up more of my time than if I'd just let it out myself

I think I will try the previous advice of getting a high street chain to take over the management, if at all possible.

macman

If you have not signed the TA nor assigned to the LA the right to sign it, then there may be no legal tenancy, nor even a contract for them to act as your agent. Stop calling the agent, make a formal complaint in writing and give notice of your intention to rescind any such contract.
I'm afraid that being a so-called accidental LL does not remove any of your responsibilities once a tenancy is created. i'd be particularly concerned about the potential absence of a GSC, which is a criminal offence.

eddddy

NinjaD said:

But I've never signed the document as it has so many mistakes.  I pointed it out to them and they were supposed to fix it before I signed it.  This is some of the things wrong with it:

• The address is wrong (close, but missing the first line (flat number and building name), and also has my surname as the city). 
• The fields are wrong, e.g. phone number is in the address field.
• The start date is wrong, it's marked as starting last December, when we only started a month ago.

I really doubt this would be accepted as a legal contract. 

On specific these points - I really think you're grasping at straws. I don't think you really have a case. (But see below.)

• As I mentioned, You don't have to sign anything in order to enter into a contract.

• Did you agree with the letting agent that they could start looking for a tenant? If so, you entered into a contract with the agent.

• Or are you suggesting that the agent found a tenant and put them in your flat without your knowledge and agreement? If so, how did the agent get the keys to your flat?

• Did the agent mention to you that they were listing the property, or doing viewings, or that they had found a tenant, or that the tenant was moving in? If they did mention any of these things, did you tell them to stop?

Regarding the errors in the contract...

• Did the errors in the contract mean that you misunderstood the contract?

• For example, did you believe that the contract was describing a different property which you own? (Do you own multiple properties with similar addresses?)

• Have you mentioned the wrong start date to the agent? Do they agree with you that it started a month ago? If so, that's not really an issue.

• If you (as a reasonable person) understood what the contract meant, you don't really have a case

NinjaD said:

The document I received only has the flat details, the agency details, my details and the agents details and some acknowledgements at the end.  It doesn't mention any notice period required for cancellation,  it just says I lose the right to cancel once a tenant has been found.

A contract for full management of a flat would typically be quite a few pages long. Are you saying that you never received anything like that?


Here are some random examples of the type of contract you should expect to receive:
https://www.southernbrook.co.uk/images/pdfs/full-management-service.pdf
https://www.mccartanlettings.co.uk/wp-content/uploads/sites/2/2021/08/Agency-Agreement-10.8.5.pdf
http://www.arlets.co.uk/wp-content/uploads/2016/01/AR-Lettings-Management-agreement-v3.pdf

If you don't think you ever received anything like that, ask the letting agent why not and/or when they believe they gave it to you.

NinjaD

On a sidenote, as expected, I did not receive payment today. I will start chasing later today after a few work meetings, to at least receive a statement so that I know what is due to me.

At the beginning she didn't even mention the fact that they had paid a month in advance, it was only after I called and emailed a few times asking if they are paying 1 month in advance & when I could expect payment from that, that she finally admitted they had, but due to all the costs I actually owed her money and she would take it off the next bill.

I again had to keep requesting for proof, eventually I received a statement with loads more mistakes.  But at least I could see what the costs were.  I've been requesting proof/receipts for some of the costs ever since, but they are just ignoring my requests.

eddddy said:

On specific these points - I really think you're grasping at straws. I don't think you really have a case. (But see below.)

• As I mentioned, You don't have to sign anything in order to enter into a contract.

• Did you agree with the letting agent that they could start looking for a tenant? If so, you entered into a contract with the agent.

• Or are you suggesting that the agent found a tenant and put them in your flat without your knowledge and agreement? If so, how did the agent get the keys to your flat?

• Did the agent mention to you that they were listing the property, or doing viewings, or that they had found a tenant, or that the tenant was moving in? If they did mention any of these things, did you tell them to stop?

Ok, fair point. Yes, last year, Purplebricks gave them my number, but after speaking with them I declined the option to rent as I did not want the hassle and was hoping It would sell soon.  But then after 3 more months of no interest in the flat. Purplebricks highly recommended that I let out my property until the cladding & other defects work is completed as it would give me some income, so I finally agreed and went with their recommendation. My costs are very high each month, as I'm paying for 2 properties & 2 sets of bills at the moment (one rental). My wife had our first baby and was made redundant during her maternity, which had made it very difficult.

Regarding the errors in the contract...

• Did the errors in the contract mean that you misunderstood the contract?

• For example, did you believe that the contract was describing a different property which you own? (Do you own multiple properties with similar addresses?)

• Have you mentioned the wrong start date to the agent? Do they agree with you that it started a month ago? If so, that's not really an issue.

• If you (as a reasonable person) understood what the contract meant, you don't really have a case

No, I own just the 1 shared ownership property, where I have been given permission to sublet it for 12 months. I was aware what this document meant.

A contract for full management of a flat would typically be quite a few pages long. Are you saying that you never received anything like that?

Here are some random examples of the type of contract you should expect to receive:

https://www.southernbrook.co.uk/images/pdfs/full-management-service.pdf
https://www.mccartanlettings.co.uk/wp-content/uploads/sites/2/2021/08/Agency-Agreement-10.8.5.pdf
http://www.arlets.co.uk/wp-content/uploads/2016/01/AR-Lettings-Management-agreement-v3.pdf

If you don't think you ever received anything like that, ask the letting agent why not and/or when they believe they gave it to you.

No, I have never received anything like the first link,  It is a very short version of the third document. It's 2 pages.  I have uploaded a copy here with all personal information omitted if you are interested: 

https://docs.google.com/document/d/1kspr_9NPz03E0m6mDI8m4s7Cf_cQvKJhiNK6-LxFAn4/edit?usp=sharing

I have never signed this due to the mistakes and not ever seeing the terms and conditions that it says I agree to.  I have been chasing a contract ever since, but have never received anything else.

Thank you for taking your time to respond to my messages they have been really helpful.

gwynlas

Whether or not you have signed anything with the agency is partly irrelevant now that they admitted a tenant. You could end your relationship with the agency and either manage tenancy yourself or place it with another letting agency. You should have researched letting agents prior to this but most High St Estate Agents let as well as sell property.

You need to have a copy of the tenant contract hopefully it is a standard assured shorthold with a six month break clause. You need to learn fast about landlord responsibilities and be aware that you will still be liable for service charge. Are you able tp physically visit the letting agency and stand over them whilst they amend the documentation to reflect corrections?

You probably need to also seek advice regarding your  building and the responsibilities of the Housing Association if they have admitted it is poorly built this might impact on a survey which will affect your sale. There should be a NHBC guarantee in place if buiding less than 10 years old.

Sorry that you have found yourself in the accidental landlord position but there are  number of others on the forum. Try to ignore any sarcastic comments in responses others will offer good advice. In order to push the HA for action you might need to contact local councillors, local press and your MP do so by snail mail as well as emil and keep copies of all correspondence with all parties.