Letting Agent not Paying on rent
Discussion
Hi, I know a few genuine legal eagles do visit this forum so I am after a little advice.
Before I get the normal answers, I am snowed under at work driving HGV so sat mornings are the only time I will get and mum is going into hospital for some operations so will be out of order so to speak for a while.
I have just had a phone call from my 75 year old mum, who rents out a property she owns through a lettings agent.
She has said she has not received the last 3 rent payments, she has a good relationship with the tennants and they have payed the agent on time as usual and provided proof.
Both tennancy and lettings contract are with company "A" (approx 8 years), at some point recently company "A" has created an offshoot company "B" ran by the same person (companies house amongst others are usefull) and are now saying that its company "B" you need to contact but it is themselves. She has also recently paid for repairs needed to the property (patio doors to be replaced) as their supply and fit quote was very resonable, these have not been fitted yet.
She is getting the run around now and no contact back from calls to the person running company "B".
I am going there sat morning to express displeasure in this process, but a quick google is not giving much help as it mainly brings up tennants having problem with agents and not landlords having the issues.
Before I say we want X,Y & Z now, giving them the first and last chance to sort it out I was just trying to find some base facts on what I can throw at them and who or which ombudsman etc they would have to answer too if needed.
We will be pulling the property from them after this so im not fussed about keeping ongoing business but would like what my mum is owed as its not a small amount.
Thanks Gav.
Before I get the normal answers, I am snowed under at work driving HGV so sat mornings are the only time I will get and mum is going into hospital for some operations so will be out of order so to speak for a while.
I have just had a phone call from my 75 year old mum, who rents out a property she owns through a lettings agent.
She has said she has not received the last 3 rent payments, she has a good relationship with the tennants and they have payed the agent on time as usual and provided proof.
Both tennancy and lettings contract are with company "A" (approx 8 years), at some point recently company "A" has created an offshoot company "B" ran by the same person (companies house amongst others are usefull) and are now saying that its company "B" you need to contact but it is themselves. She has also recently paid for repairs needed to the property (patio doors to be replaced) as their supply and fit quote was very resonable, these have not been fitted yet.
She is getting the run around now and no contact back from calls to the person running company "B".
I am going there sat morning to express displeasure in this process, but a quick google is not giving much help as it mainly brings up tennants having problem with agents and not landlords having the issues.
Before I say we want X,Y & Z now, giving them the first and last chance to sort it out I was just trying to find some base facts on what I can throw at them and who or which ombudsman etc they would have to answer too if needed.
We will be pulling the property from them after this so im not fussed about keeping ongoing business but would like what my mum is owed as its not a small amount.
Thanks Gav.
You can check on the TPOS website if they are a member.
Best also find out if they have client money protection.
If you’re in touch with tenants, perhaps get them to pay your mother direct until you’ve got to the bottom of things and appointed a new agent.
Is there def not an innocent explanation - a big refurb job, the bank doing weird AML stuff?
Best also find out if they have client money protection.
If you’re in touch with tenants, perhaps get them to pay your mother direct until you’ve got to the bottom of things and appointed a new agent.
Is there def not an innocent explanation - a big refurb job, the bank doing weird AML stuff?
My son and his wife had a problem with a letting agent. Weasley little s
ts.
I was at his father in laws house discussing it and I was leaving as someone was at the door. As I left, walking past this little bloke at the door I said "if you want any help sorting out that letting agent, let me know"
Was all sorted in a week.
Didn't know he was the agent
Anyway, surely you need to terminate the contract immediately with a letter for breach. Also I bet they haven't put the deposit in a registered scheme so make sure that is sorted as the tenant can sue you for that.
ts.I was at his father in laws house discussing it and I was leaving as someone was at the door. As I left, walking past this little bloke at the door I said "if you want any help sorting out that letting agent, let me know"
Was all sorted in a week.
Didn't know he was the agent
Anyway, surely you need to terminate the contract immediately with a letter for breach. Also I bet they haven't put the deposit in a registered scheme so make sure that is sorted as the tenant can sue you for that.
blindspot said:
You can check on the TPOS website if they are a member.
Best also find out if they have client money protection.
If you’re in touch with tenants, perhaps get them to pay your mother direct until you’ve got to the bottom of things and appointed a new agent.
Is there def not an innocent explanation - a big refurb job, the bank doing weird AML stuff?
Company "A" is/was company "B" is not.Best also find out if they have client money protection.
If you’re in touch with tenants, perhaps get them to pay your mother direct until you’ve got to the bottom of things and appointed a new agent.
Is there def not an innocent explanation - a big refurb job, the bank doing weird AML stuff?
If you mean Tennancy deposit that is lodged in the correct place.
We have set that up.
No, giving mum the run around and not getting back to her at all. No excuses given.
Gary C said:
My son and his wife had a problem with a letting agent. Weasley little sts.
I was at his father in laws house discussing it and I was leaving as someone was at the door. As I left, walking past this little bloke at the door I said "if you want any help sorting out that letting agent, let me know"
Was all sorted in a week.
Didn't know he was the agent
Anyway, surely you need to terminate the contract immediately with a letter for breach. Also I bet they haven't put the deposit in a registered scheme so make sure that is sorted as the tenant can sue you for that.
Deposit is in the correct location.ts.I was at his father in laws house discussing it and I was leaving as someone was at the door. As I left, walking past this little bloke at the door I said "if you want any help sorting out that letting agent, let me know"
Was all sorted in a week.
Didn't know he was the agent
Anyway, surely you need to terminate the contract immediately with a letter for breach. Also I bet they haven't put the deposit in a registered scheme so make sure that is sorted as the tenant can sue you for that.
Reading all the paperwork closely to see about the breach, all paperwork is in company "A" name.
blindspot said:
You can check on the TPOS website if they are a member.
Best also find out if they have client money protection.
If you’re in touch with tenants, perhaps get them to pay your mother direct until you’ve got to the bottom of things and appointed a new agent.
Is there def not an innocent explanation - a big refurb job, the bank doing weird AML stuff?
There could be, but the the fact that the agents have also asked for money up front for a organising a maintenance job is a massive red flag and points to them having a substantial cash flow issue. I have a rented flat and have used our letting agent's contractors a couple of times for work when the estimate has been ok and have never paid a penny until the job is completed and inspected. If I was the OP I would be getting along to the agents post haste and find out what is going onBest also find out if they have client money protection.
If you’re in touch with tenants, perhaps get them to pay your mother direct until you’ve got to the bottom of things and appointed a new agent.
Is there def not an innocent explanation - a big refurb job, the bank doing weird AML stuff?
Gavin0478 said:
Both tennancy and lettings contract are with company "A" (approx 8 years), at some point recently company "A" has created an offshoot company "B" ran by the same person (companies house amongst others are usefull) and are now saying that its company "B" you need to contact but it is themselves.
If your mum's contract is with company A then they can't transfer it to company B without her agreement.It sounds as though company A may be insolvent and they're trying to transfer its business to a new company they've formed.
Can you give the actual names of the companies, so we can have a look at them?
Appreciate it is difficult but I would get down there in person as soon as you can. We experienced similar from the other side - we were paying rent regularly but got a letter from the landlord asking why we had missed the previous three months. It was the top agent in the area but they basically told all of their clients the same story of tenants having money troubles over a number of months, put the shutters down and fled abroad after rinsing the accounts. This was before the deposit scheme as well so they held a big chunk of money.
If the tenants are paying and there is no contact from the agent something is definitely amiss.
If the tenants are paying and there is no contact from the agent something is definitely amiss.
Gavin0478 said:
Deposit is in the correct location.
Reading all the paperwork closely to see about the breach, all paperwork is in company "A" name.
So ignore company B. Terminate contract with company A.Reading all the paperwork closely to see about the breach, all paperwork is in company "A" name.
Not sure how you get the money out of the registered scheme
But I wouldn't let anymore money go to them.
Seen this before, the agent is normally having cash flow issues or is embezzling the money, I hope the deposit is in a scheme. They normally grab as much money as they can, then go pop owing thousands in rent. Once an agent does this to landlord there is normally no going back for them!
Its not great I would recommend you write to agent demanding the money and that if it not paid in 7 days you will instruct the tenants to stop paying them direct.
Its not great I would recommend you write to agent demanding the money and that if it not paid in 7 days you will instruct the tenants to stop paying them direct.
Gary C said:
So ignore company B. Terminate contract with company A.
Not sure how you get the money out of the registered scheme
But I wouldn't let anymore money go to them.
The tenant deposit is not really relevant here, except to cover the owner in the event of a claim. The owner is owed money by company A for rents received and not forwarded on. Also with either A or B for works.Not sure how you get the money out of the registered scheme
But I wouldn't let anymore money go to them.
Visit to agent is definitely the way forward here.
OP, not a nice situation for you and your Mum to be in.
On Saturday make it clear that the contract is with Company A and any mention of Company B is irrelavent to you.
make sure you take a sign copy of he contract with you.
You could always take a letter demanding they pay the outstanding rent and money handed over for the patio doors in 7 days and also give notice that you will be terminating your contract with them.
Threaten them with legal action if they aren't playing ball.
You may not want to go that route but it may jolt them into action if you mention it.
Also a free phone consultation with a solicitor may be a good idea if you can get the time when you're on a break.
Good luck
On Saturday make it clear that the contract is with Company A and any mention of Company B is irrelavent to you.
make sure you take a sign copy of he contract with you.
You could always take a letter demanding they pay the outstanding rent and money handed over for the patio doors in 7 days and also give notice that you will be terminating your contract with them.
Threaten them with legal action if they aren't playing ball.
You may not want to go that route but it may jolt them into action if you mention it.
Also a free phone consultation with a solicitor may be a good idea if you can get the time when you're on a break.
Good luck
GreatGranny said:
OP, not a nice situation for you and your Mum to be in.
On Saturday make it clear that the contract is with Company A and any mention of Company B is irrelavent to you.
make sure you take a sign copy of he contract with you.
You could always take a letter demanding they pay the outstanding rent and money handed over for the patio doors in 7 days and also give notice that you will be terminating your contract with them.
Threaten them with legal action if they aren't playing ball.
You may not want to go that route but it may jolt them into action if you mention it.
Also a free phone consultation with a solicitor may be a good idea if you can get the time when you're on a break.
Good luck
As GG said. On Saturday make it clear that the contract is with Company A and any mention of Company B is irrelavent to you.
make sure you take a sign copy of he contract with you.
You could always take a letter demanding they pay the outstanding rent and money handed over for the patio doors in 7 days and also give notice that you will be terminating your contract with them.
Threaten them with legal action if they aren't playing ball.
You may not want to go that route but it may jolt them into action if you mention it.
Also a free phone consultation with a solicitor may be a good idea if you can get the time when you're on a break.
Good luck
Don't be too confrontational at first; there may be an innocent explanation and if there is then give them time to explain.
Be careful about terminating the contract with them as there may be penalty clauses for doing this. Just because they aren't doing as they should doesn't make you can end your responsibilities as well.
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