Letting Agents doing a runner!!!

My property was managed on a rent collection basis by an agents. I've recently discovered that they have disappeared overnight along with last months rent and the tenants deposit. :mad: Although it was protected by mydeposits.com, would they pay out to the tenant and would mydeposits send the heavies over to get me even though it was the agents who had the deposit? :cry:

I've read that the requirements for the agent to join mydeposit was that the deposit needed to be held in a client deposit account where they have no hold on it (see below)....If the agents have done a runner, this requirement is rather worthless is it not? Where could I get evidence that such an account existed?

Finding it really frustrating as no one is interested as I am a landlord... even CAB and Trading Standards weren't too helpful; so any advice appreciated.

:huh:


"Where you hold the deposit on behalf of your landlord client, your membership of the Scheme is dependent on you holding deposits in a segregated client money bank account which is not mixed with any other monies used by your business. You may be required to provide evidence of this bank account when you first join the Scheme."

Replies

  • PasturesNewPasturesNew Forumite
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    Part of the Furniture 10,000 Posts Name Dropper Photogenic
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    It is a legal requirement that the tenant should have received the details of where their deposit was held. They should have received this in writing within 14 days. So they might have a letter. If they have a letter it's probably safe. Ask them. I presume you are in touch with them in any case as you need to make sure they don't pay any more rent to the agent.
  • chapperschappers Forumite
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    The problem here is that mydeposits isn't an actual holder of the monies but just an administration scheme.The problem I see is that in most cases in tenancy law the agent is just that an agent, and ultimately it is the LLs responsibility.If you knew where the agents were you could sue them for proffesional negligence/theft, but ultimately I think you will be responsible for their deposit.
  • tbs624tbs624 Forumite
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    If your LA was a member of either NAEA or ARLA there may be some insurance to cover this. Do any of your own LL insurances have legal expenses cover?
    You need to get some qualified legal advice on this one asap because with mydeposits, they can withdraw membership immediately if the LL/LA who registered ceases to carry on business, becomes insolvent etc: if that happens you'll need to not only need to try to recoup from the LA the actual money involved, but also re-register the deposit with one of the schemes so that you have covered your legal obligations to the tenant. Shelter will help LL too - not just tenants- maybe try their helpline?
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