Estate Agent not forwarding the rental payment

john12111

Hi 

It's been over a month since the estate agent have received the rental payment from the tenant for the previous month and they have not forwarded the payment over to me. I spoke to tenant directly and they confirmed that they always pay on time (sometimes before time) but I always get my rental payment late from the estate agent. I have been using them for about a year now. Recent google reviews seems to suggest that their service have gone bad to worse.

I sent official letter by email to them and asked them to respond regarding the delay but haven't had the response so I have send them a notice to inform that they have breached their contract and hence tenant will pay to me directly now.

There is no response from Estate agent despite trying different communication channel. They still hold a month rent and also the deposit paid by the tenant.

I know for sure that the estate agent is still working as they sent a message to the tenant few days ago to make a payment for the next month's rent but luckily I told tenant not to make any further payments to them until issue is resolved.

What is the best way to get the rent payment (plus deposit) that is now with the estate agent? Should I start a small claims court?

Brie

Isn't the deposit supposed to be in a particular fund?  

In any case it does sound like there's a real cash flow issue and that you may need to start proceedings at some point.  You don't appear to say how much time you have been waiting for a response.  Given the time of year it's possible that they've been away or short staffed so I would certainly try again contacting them at the beginning of next week.

RAS

You need to check all three schemes.

One is insurance based but the others require payment AFAIK. Legally you are responsible for returning the deposit if the agency hasn't sorted it, and could be sued for a penalty.

dinosaur66

you have done the exact right thing so far

check the letting agents website to see if it is registered with CMP

if it is they are your protection by law they have to be.

your tenants deposit will be in TDS govt scheme

ask your tennants did they receive a text message from tenancy deposit scheme when they first started this is govt backed and the landlord has to have deposited the tenants deposit there or they will be criminally liable

dinosaur66

ammend that last sentance watching rangers v celtic 

not the landlord

the letting agent has to have deposited the tenants deposit in TDS 

a landlord like myself i have to sign up to it  myself because i self manage some of my rentals.

PRAISETHESUN

I agree with the posts above - it'd be worth checking what the agent has/hasn't done with respect to deposit and the other required information. Legally you are on the hook for anything they fail to do.

I'd also be checking if your agent is a member of a professional body and looking into their formal complaints procedure. Exhaust that process first before you take any legal action.

john12111

Its been around a month since the conversation began.
First they said that the issue is with the bank and will take few days to sort out. The bank issue then went on payment still not forwarded after 2 weeks. Since then no response from the EA and messages/emails are being ignored.
Last week they sent tenant a different bank account details to transfer the rent payment to.

EA is registered with 

The Property Ombudsman

RAS

If the EA is changing bank details, ask the tenant to hold. If you don't get a satisfactory explanation from the EA, give the tenant your details.

Might be best to open a new account for the purposes. I think you can open a business account on-line with either Starling or Monzo.

dinosaur66

take over and self manage the property yourself as you are doing

i think in this situation you will lose a months rent

complain to PO

never used them so not sure of how they help

check with TDS that your property and tenants have there deposit with the scheme-they have always texted my tenants when tenancy  first starts telling them there deposit is with them/ i know this because i have received a few calls from tenants asking what the text meant.

saajan_12

Do you pay them for full management or just rent collection? Read your management contract - this may not be a large enough breach to tear up the entire contract to be torn up, and if you still have to pay them for management then it may be worth still getting them to sort out the repairs side. However I'd get the rent payments sent to your bank directly from the tenant - that bit is relatively easy and avoids the hassle of chasing an agent who is already flaky. 

You don't have to have a specific business bank account, but it might be easier to open a separate current account just to make it easier to spot when payments are / are not made. 

Hoenir

john12111 said:

 I spoke to tenant directly and they confirmed that they always pay on time (sometimes before time) but I always get my rental payment late from the estate agent.

What evidence did they provide? Be surprised if it was before time.