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Help please on legals with letting agents


Nighow

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Hi everyone,

I'm new to the forums, so apologies if I'm opening up a topic that's already been addressed.

I've got a majpr problem with a letting agent in Atherton, Greater Manchester. I can't contact them. They don't return any calls. Their fax isn't working and I can't get any replies to my emails. Today I've discovered that their website is now defunct and the only person I am having any dialogue with is a 'webmaster'.

I am owed 3 months rental income from them, and the tenancy agreement actually expires today (2nd Jan). I don't know whether the tenant is behind with his payments, or as seems more likely, the letting agent is going bust!!

I'm not really clear on what course of action to take, so any advice would be very welcome. The property and letting agent are 250 miles away from where I live, so it's not easy to visit and resolve directly. I am planning on writing directly to the tenant at the property on the assumption he's still there, but I don't know that for a fact!

Any ideas or anyone else experiencing a similar problem?

Many thanks

Nige

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Hi Nige,

The first thing to do is get in touch with the TENANT. Call them or write to them or both and get them to URGENTLY contact you. Take control of the tenancy. Get the tenant to pay the rent directly to you. Go and visit the tenant.

Secondly, once you have taken control of the tenancy, find a more suitable letting agent to manage your property (as it is not really easy for you to do this from 250 miles away).

Finally, chase the existing letting agent - through the small claims court if necessary - for the money that you are owed.

Only one last consideration ... what happened to the Security Deposit - is it being held by you or the agent ... because if the agent is holding it then you best warn the tenant that there is a chance that they are going to lose their money if the agent goes bust.

Good luck,

Mark

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Hi Nige,

The first thing to do is get in touch with the TENANT. Call them or write to them or both and get them to URGENTLY contact you. Take control of the tenancy. Get the tenant to pay the rent directly to you. Go and visit the tenant.

Secondly, once you have taken control of the tenancy, find a more suitable letting agent to manage your property (as it is not really easy for you to do this from 250 miles away).

Finally, chase the existing letting agent - through the small claims court if necessary - for the money that you are owed.

Only one last consideration ... what happened to the Security Deposit - is it being held by you or the agent ... because if the agent is holding it then you best warn the tenant that there is a chance that they are going to lose their money if the agent goes bust.

Good luck,

Mark

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Hi Mark and many thanks for your response.

As you suggested, I have made direct contact with the tenant, initially via a registered letter and he called me earlier today. He can provide proof that he is fully up to date with payments and until my letter he was completely unaware of any problems. I have agreed with him that he will not make any further payments to the agent, and that the tenancy agreement has effectively moved to a 'rolling basis' until the 2nd February, by which time I hope to have matters resolved one way or the other. We did talk about him paying me directly, but haven't put that in place just yet. The agent is holding his security deposit.

As per your advice, I will make arrangements with a new letting agent next week, and plan to visit next weekend. From a legal perspective, can I set up an agreement with a new agent with the existing tenant even if that tenant originally came from the 'dodgy' agent??

Finally I am about to send a letter to the existing agent simply pointing out that I'm unable to contact them, I've had no replies to my various communications and that they owe me 3 months rental income. I'm giving them until 31st January to pay me after which time I will pursure legal proceedings.

I do appreciate your reply which has confirmed the course of action I should take, and the logical sequence.

Many thanks and regards

Nige

Hi Nige,

The first thing to do is get in touch with the TENANT. Call them or write to them or both and get them to URGENTLY contact you. Take control of the tenancy. Get the tenant to pay the rent directly to you. Go and visit the tenant.

Secondly, once you have taken control of the tenancy, find a more suitable letting agent to manage your property (as it is not really easy for you to do this from 250 miles away).

Finally, chase the existing letting agent - through the small claims court if necessary - for the money that you are owed.

Only one last consideration ... what happened to the Security Deposit - is it being held by you or the agent ... because if the agent is holding it then you best warn the tenant that there is a chance that they are going to lose their money if the agent goes bust.

Good luck,

Mark

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Hi Nige,

I think - now that you are communicating directly with your tenant and have taken effective control of the tenancy - you are free to move your business to any letting agent that you choose.

The "dodgy agent" might complain and threaten you .... but I would argue that they are in breach of contract (by not providing the services that they agreed to deliver and by not communicating with you) .. and you have therefore terminated the agreement.

I am still concerned about the tenant's Security Deposit though ... who is currently holding this money .... you or the "dodgy agent" ..... because the tenant will expect YOU to return his money at the end of the tenancy ......

Let us know,

Mark

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For those interested to know, I've now established the relationship directly with the tenant. He doesn't hold me accountable for the security deposiit and is not expecting me to pay this at the end of the tenancy, which hopefully is someway off!

The 'dodgy agent' is still not contactable, and their website states that they haven't gone out of business, but the website doesn't exist. I've now learnt through another letting agent in the area that over 35+ landlords have been 'ripped off' by this agent, and some are owed more money than me!! They also been placing ASBO tenants in properties without the landlords consent or knowledge, resulting in damaged properties. I've further learnt that the co-owner of the 'dodgy agent' is already subject to a bankruptcy order. It's pretty clear to me that they have done this before, ripped of landlords and probably tenants, gone into bankruptcy one day and started up a new business the next.

What can be done to stop this kind of practice, or is our safety net as landlords to only go with letting agents who are ARLA registered?

One final question if anyone can help? I now need to set the wheels in motion for debt recovery and need to appoint a solicitor who is experience with buy-to-let, and ideally based in the north. Any particular recommendations?

Thanks

Nige

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