Rent Fraud by Estate agent

RHemmings

I'm not sure if this is relevant, but is this one of those guaranteed rent deals? I.e. the agent provides a guaranteed rent of say £100 per week, and then tries to rent the property for a higher amount, e.g. £150 per week. Which can give them a profit even after voids or other problems. 

I'm not saying this is the case, and my own belief, based on the information in this thread only, is that it all looks a bit dodgy. But, if this was a guaranteed rent scheme, then I would consider it a lot less dodgy. 

propertyrental

RHemmings said:

I'm not sure if this is relevant, but is this one of those guaranteed rent deals? I.e. the agent provides a guaranteed rent of say £100 per week, and then tries to rent the property for a higher amount, e.g. £150 per week. Which can give them a profit even after voids or other problems. 

I'm not saying this is the case, and my own belief, based on the information in this thread only, is that it all looks a bit dodgy. But, if this was a guaranteed rent scheme, then I would consider it a lot less dodgy. 

As suggested by Penny_Dreadful 2 posts up!

_Penny_Dreadful said:

This sounds like a rent to rent scheme. Who is named as the tenant on the tenancy you signed? The letting agency or the person occupying the property? 

RHemmings

propertyrental said:

RHemmings said:

I'm not sure if this is relevant, but is this one of those guaranteed rent deals? I.e. the agent provides a guaranteed rent of say £100 per week, and then tries to rent the property for a higher amount, e.g. £150 per week. Which can give them a profit even after voids or other problems. 

I'm not saying this is the case, and my own belief, based on the information in this thread only, is that it all looks a bit dodgy. But, if this was a guaranteed rent scheme, then I would consider it a lot less dodgy. 

As suggested by Penny_Dreadful 2 posts up!

_Penny_Dreadful said:

This sounds like a rent to rent scheme. Who is named as the tenant on the tenancy you signed? The letting agency or the person occupying the property? 

Oh, I didn't recognise the term 'rent to rent' as a guaranteed rent scheme. My bad. 

Marvel1

Wonder how many others they are doing it too and both agents doing it to each other - taking a cut of the higher price.

RHemmings

Marvel1 said:

Wonder how many others they are doing it too and both agents doing it to each other - taking a cut of the higher price.

I am not saying that this is happening here, or even that it's likely. But, it seems that 'rent to rent' happens in some circumstances where it is criminal as well. 

I'm reading this: https://www.landlordlawblog.co.uk/2018/07/24/criminal-rent-rent/

It seems that one of the possible issues when this happens is if the 'to rent' part includes the property becoming an unlicenced HMO. 

Again, not saying that this is happening here. 

LukeForrest

This happens all the time, I was using a rent to rent agent and they put tenants in there that literally destroyed the property and tried to charge me, I got in touch with another agent to see what they thought and they helped me take the existing agent to court for not abiding by the rules and regulations, it was this property management firm that helped me: https://mypropertyspecialists.co.uk

eddddy

RHemmings said:

Oh, I didn't recognise the term 'rent to rent' as a guaranteed rent scheme. My bad. 

Colloquially...

• 'Guaranteed Rent Scheme' is the term that companies use that do this legitimately. i.e. It is with the knowledge and agreement of the property owner - and clear contracts/tenancy agreements have been signed, etc

• 'Rent to rent' tends to be the term used when illegality is involved. i.e. somebody dodgy rents a property and sub-lets it without the knowledge and agreement of the property owner.

'Rent to rent' schemes can sometimes be even dodgier... for example...

Somebody rents a 3 bedroom house for £500 per month, pretending that they are going to live in it. But they then rent out 5 rooms to 5 people (i.e. 3 bedrooms, 1 living room, 1 dining room), charging £200 per month for each room.