Wanting to stop using Letting Agent

Bobby_Peel

Hi,

I currently rent out my property for £895 a month and the Lenting Agency take a Management Fee of £96.66 (around 11% of the rent).

They haven't been the best company, don't do regular visits and when I had a previous tenant, the house was left in a terrible condition which would of been picked up on routine visits.

I'm lucky now there's a great tenant in place, but for the 11% they take, they aren't currently doing anything and I've just noticed the Gas Certificate should of been renewed in December and they haven't contacted me about this.

It's changed hands recently and the standards seemed to of slipped, so I would like to stop using them but unsure where to start.

Can I just email them and state I would like to stop using their service?

Some questions I have already:

• What would happen to the tenants deposit? Would I receive it then have to secure it securely?

• Would I need to create a new contract for the tenant? 

• With the Gas Certificate being lapsed, if something was to happen, who would be liable? The current letting agency or myself? 

I'm going to message the tenant who I have a great relationship with and if there's any issues, we sort between ourselves and see if he's ok with this. I might use this time to speak to him on how long he plans to stay there for and when the time comes that I do need to get a new tenant, would it be advisable to use something like https://www.openrent.co.uk/our-pricing to help create the tenant agreement and do credit checks etc.


Any advice appreciated and help on anything I might of missed.

Thanks

Mr.Generous

What provider and what scheme is the deposit in?

The gas safe needs doing ASAP - openrent can sort this for an immediate visit.

The lack of a gas cert is in my opinion a good enough reason to immediately terminate the contract with the agent. having it checked for gas safety is a legal requirement for which you are liable. You can download a contract from any number of sites, but how about just adding a couple of new clauses to the existing one saying due to agents failings you will now be self managing and all notice, rent and other arrangements will be directly between you. Provide an email address and phone number in writing to the tenant, and get the tenant and yourself to sign.

Have the electrics been checked? Have you got up to date landlord insurance?

Myself I use an agent for a tenant finding service only, then self manage. I set reminders in my phone for all the things that need looking at periodically - I have never missed a gas check or rent review etc.

Bobby_Peel

Mr.Generous said:

What provider and what scheme is the deposit in?

Looking at their website it states:

We are an accredited member of the UK Association of Letting Agents (UKALA), members of a redress scheme named The Property Redress Scheme (PRS) and hold Total Loss Client Money Protection Insurance.

I'll check my paperwork to see if it gives any more detail.

The gas safe needs doing ASAP - openrent can sort this for an immediate visit.

I've got a good plumber I use so I'll message him tomorrow to arrange that. Just looked on openrent and that's a good service also if my plumber is busy, thanks for that.

The lack of a gas cert is in my opinion a good enough reason to immediately terminate the contract with the agent. having it checked for gas safety is a legal requirement for which you are liable. You can download a contract from any number of sites, but how about just adding a couple of new clauses to the existing one saying due to agents failings you will now be self managing and all notice, rent and other arrangements will be directly between you. Provide an email address and phone number in writing to the tenant, and get the tenant and yourself to sign.

That's great, thanks.

Have the electrics been checked? Have you got up to date landlord insurance?

I have landlord insurance but I don't think the electrics have every been check or I was aware these needed doing. I've rented it out since 2019.

Myself I use an agent for a tenant finding service only, then self manage. I set reminders in my phone for all the things that need looking at periodically - I have never missed a gas check or rent review etc.

Sounds the way forward

Thanks for the reply, I've answered in bold above.

Thanks again

Mr.Generous

There are 3 schemes in England for tenant deposits

Deposit Protection Service (DPS), MyDeposits, or Tenancy Deposit Scheme (TDS)

I have joined TDS as a landlord (free) and lodge my own deposits for a small fee. Which of these schemes is your tenant's money safegaurded with? (assuming England)

FlorayG

Agent can't give the deposit to you. They have to return it to the tenant. You then give the tenant a new tenancy agreement, take the deposit money and secure it in a scheme yourself.
Please ensure the tenant understands why you are doing all this because they may start worrying about eviction if their money is returned
Alternatively, you CAN leave the money agreement with the agent; I have done this when I bought an already tenanted property. Of course that depends on you trusting the agent and their control of their records, especially if your tenant intends to stay a long time

housebuyer143

FlorayG said:

Agent can't give the deposit to you. They have to return it to the tenant. You then give the tenant a new tenancy agreement, take the deposit money and secure it in a scheme yourself.
Please ensure the tenant understands why you are doing all this because they may start worrying about eviction if their money is returned
Alternatively, you CAN leave the money agreement with the agent; I have done this when I bought an already tenanted property. Of course that depends on you trusting the agent and their control of their records, especially if your tenant intends to stay a long time

This isn't correct. I worked in lettings for years, specifically in dealing with landlords leaving and the landlord is told to register with a deposit scheme. Depending on the scheme, and whether it's insured or custodial then the money is either sent to the landlord directly on them producing the registration certificate, or moved within the scheme. 

We would recommend a landlord join the same scheme the agent is with for ease of transfer. We never returned a tenants deposit mid tenancy and I don't think this is the correct way, because the contract doesn't end because management does and therefore you have no requirement to return the deposit or try and get a new one. 

You shouldn't leave the deposit with the agent, because again, depending on the scheme you need to update the register and pay a new fee on contract renewals and in the case of disputes you won't be notified etc. It's best to ensure you have everything to manage the property yourself if you are managing the property.

housebuyer143

Bobby_Peel said:

Hi,

I currently rent out my property for £895 a month and the Lenting Agency take a Management Fee of £96.66 (around 11% of the rent).

They haven't been the best company, don't do regular visits and when I had a previous tenant, the house was left in a terrible condition which would of been picked up on routine visits.

I'm lucky now there's a great tenant in place, but for the 11% they take, they aren't currently doing anything and I've just noticed the Gas Certificate should of been renewed in December and they haven't contacted me about this.

It's changed hands recently and the standards seemed to of slipped, so I would like to stop using them but unsure where to start.

Can I just email them and state I would like to stop using their service?

Some questions I have already:

• What would happen to the tenants deposit? Would I receive it then have to secure it securely?

• Would I need to create a new contract for the tenant? 

• With the Gas Certificate being lapsed, if something was to happen, who would be liable? The current letting agency or myself? 

I'm going to message the tenant who I have a great relationship with and if there's any issues, we sort between ourselves and see if he's ok with this. I might use this time to speak to him on how long he plans to stay there for and when the time comes that I do need to get a new tenant, would it be advisable to use something like https://www.openrent.co.uk/our-pricing to help create the tenant agreement and do credit checks etc.


Any advice appreciated and help on anything I might of missed.

Thanks

Have you looked at property hawk? This is a free site and I used it to manage my property, and I thought it was good.
They also have a contract drawing thing but I admit I haven't used that so can't comment. 

https://www.propertyhawk.co.uk/pm3s/

https://www.propertyhawk.co.uk/pm3s/pm3freeast.htm

I would just check with your agent they didn't do the GSC and didn't tell you before instructing your own. If they haven't then I think it's a grounds to leaving immediately with no penalty and potentially a refund of management fees. 

theartfullodger

Agent changed hands.  What did your contract or terms agreed say about what happens when agent changes?  Common that landlord does not have to continue with them or contract.  

Mr.Generous

On the gas safe / electrical testing issue if the agent did carry out these legally required checks without the knowledge of the landlord OR TENANT and didn't subsequently bill the landlord then I'll send the OP the money myself!!