Letting Agent Nightmare

[garymaher@btconnect.com]

HI Everyone, new to the site but not so new to letting.

I have a major issue with the letting agent. I bought two properties from them and have sold a property through them so there is a long..ish standing relationship here, no emotions this is business.

The letting agents, let my property to an unsavoury charecter, shall we say! thats not really the issue!!!

They recommended him and did not set up direct debit to get his payments. Each time I complained, because he was late paying, they got more cash from him but still did not set up direct debits. more complaints, still no DD set up. All tenants docs are false, all could have been identified if they have set up direct debits. etc. I think they could be in on the scam.....

Basically tenant, did a runner, agents did not advise me of late payment on numerous occasions etc. so well out of pocket.

I also sold a property through them, and have refused to pay sales commision, as they screwed up and owed me thousands. I know at this point they should have been kicked into touch.

I have new tenant in through them as they asked if they could have one more chance (stupid me agreed), now they are withholding rent.....???. as they want sales commison paying.

I have tenant in I cant really do anything about, as they are paying ok.

Summary,

agents breched contract and false documents and process etc, all breech of contract, withme out of pocket big time

I will pay commison when I get re imbursed for letting cock up.

They are now wothholding rent, because I owe commison, so they are in breech of this agreemnent also.

Any suggestions appreciated on how best to deal with these people.

I know I should kick my own backside.

cheers folks.

[Trenners]

Hi Gary,

Well - if the letting agent wants to be difficult ..... you can be just as difficult....

I would take immediate control of the tenancy by contacting the tenant directly and tell them that all future rent payments and everything relating to

the tenancy should be made directly to you.

This will upset the agent - who might threaten court action .... but I would be amazed if they followed through .....

If the agent tries claiming money from you (in the Small Claims Court) then I would respond with a counter-claim.

In summary, hit the agent where it hurts most ....... by not paying them anymore fees !

Good luck,

Mark

[vinvin]

FIRST AND FOREMOST..................Take the emotion out of the situation, stick the facts and the LEGALITIES.

If in a court of law if can be proved, that they are in breach of contract!!!! Most agents will say in there contracts that they will act in the best of faith and with due diligence.........note the word due dilligence.

Also one assumes you signed a management contract with them, if you did you cannot just walk away from it and take control. FOLLOW THE LETTER OF THE LAW, it will strengthen your case. He who has information has power.

As far as tit for tat, (yes we appreciate your emotions are high) not the way to do it.

They can sue you as they DO HAVE A CASE regarding commision fees, whilst it might seem to be the same, they would be seen as two separate issues, in the eyes of the Law.

Go read your sales contract and then go read your manangement contract, as to terms and conditions.

It is not a matter of hitting them where it hurts, its a matter of doing it RIGHT and then you will win.

They will (or should have) professional indemnity insurance.

But please read the contracts. Before blindly going forward, which will only cost you more money

[garymaher@btconnect.com]

Hi Gary,

Well - if the letting agent wants to be difficult ..... you can be just as difficult....

I would take immediate control of the tenancy by contacting the tenant directly and tell them that all future rent payments and everything relating to

the tenancy should be made directly to you.

This will upset the agent - who might threaten court action .... but I would be amazed if they followed through .....

If the agent tries claiming money from you (in the Small Claims Court) then I would respond with a counter-claim.

In summary, hit the agent where it hurts most ....... by not paying them anymore fees !

Good luck,

Mark

Thank Mark Will do, but what if Tenant wont pay me direct???

[garymaher@btconnect.com]

FIRST AND FOREMOST..................Take the emotion out of the situation, stick the facts and the LEGALITIES.

If in a court of law if can be proved, that they are in breach of contract!!!! Most agents will say in there contracts that they will act in the best of faith and with due diligence.........note the word due dilligence.

Also one assumes you signed a management contract with them, if you did you cannot just walk away from it and take control. FOLLOW THE LETTER OF THE LAW, it will strengthen your case. He who has information has power.

As far as tit for tat, (yes we appreciate your emotions are high) not the way to do it.

They can sue you as they DO HAVE A CASE regarding commision fees, whilst it might seem to be the same, they would be seen as two separate issues, in the eyes of the Law.

Go read your sales contract and then go read your manangement contract, as to terms and conditions.

It is not a matter of hitting them where it hurts, its a matter of doing it RIGHT and then you will win.

They will (or should have) professional indemnity insurance.

But please read the contracts. Before blindly going forward, which will only cost you more money

Thanks Vin vin, taking just that facts into account.

The sales commission is in dispute as they did not do a complete job. I am not saying I will not pay , just disputing the amount. The sales and Letting agents although the same name are different registered companies so the are in breach of data protection by passing each other information.

With regards to letting of existing property, the tenants have been informed of the issue, they have paid the first two months rent but the letting agent will not pass this on to me, and will not respond.

Looks like the only option I have is the solicitor, unless you can suggest anything.

Thanks

Gary

[web2dude]

Letting agents can be tricky. I would go and see them face to fact to see if the issue can be resolved. I would also get the tenant to pay direct and issue a revised contract direct with them if it can't be resolved.

[Trenners]

Gary,

If the tenant won't pay you direct then you need to make it clear that you will evict at the end of the tenancy and pursue HIM for the rent arrears.

It is the tenant's responsibility to pay the landlord, not the letting agent, rent. If you have specifically instructed the tenant - in writing - that the rent

must be paid directly to you then the tenant must suffer the consequences if he ignores you ....

Mark

[vinvin]

Lets slow down a bit here guys, and not just shoot from the hip;

Firstly you cant just issue a revised contract, the tenant already has a ligitimate contract, for six months, he has done nothing wrong at this stage.

With regard to EVICTION!! you can only do that if the you have gone to court, I guess maybe you mean bring the tenancy to and end in the ligitimate way by issuing a SECTION 21. However, lets not forget at this stage the tenant has done nothing wrong, HE HAS paid his rent to the agent as per, what he should do as the agent is so say managing the property. Just on heresay to suddenly stop and start paying the L/L directly just by a verbal instruction is not correct, just imagine me knocking on your door and saying i represent your mortgage company, but now pay me directly not the mortgage company!!!! i think not. So you might be the L/L but prove it.

DO EVERYTHING IN WRITING to both the tenant and agent. Verbals are worth nothing, he said she said, did anyone actually say anything!!!!! or all HEARSAY.

CALM DOWN.................Look at the facts, look into the small print of the contract with Landlord and or Seller with the agent and then go forward with a good strong case.

On this occasion dont threaten the tenant with eviction, the trouble is with the agent no the tenant.

The person who wins the game of chess, is the one who makes the smartest and calculated move.

Most people, dont read the small print in contracts, and after all if you have spend bucket loads of money getting to court you dont want to loose or have egg on face

Otherwise the only people who gain are the lawyers, you loose OH and the agent doesn't cos he will i feel sure have professional indemnity.

So few landlords, actually appreciate that is most cases, to de-instruct their agent actually takes 3 months as per there contracts, and they would therefore be entitled to 3 months commision.

So as I said previously go read both contracts, and make sure you have a strong case.

Gary,

If the tenant won't pay you direct then you need to make it clear that you will evict at the end of the tenancy and pursue HIM for the rent arrears.

It is the tenant's responsibility to pay the landlord, not the letting agent, rent. If you have specifically instructed the tenant - in writing - that the rent

must be paid directly to you then the tenant must suffer the consequences if he ignores you ....

Mark

[SPEEDTWIN]

Firstly you cant just issue a revised contract, the tenant already has a ligitimate contract, for six months, he has done nothing wrong at this stage.

I see no reason why the owner of the property the L/L cannot issue/draw up a new contract for the tenant to sign regardless to the fact the previous one hasnt yet "run" out. Any new one will make the old invalid and will have no ref or conection to the agent. Is this the best way to go? I'm not sure but if i was in his shoes i would be leaning in that direction.

[Trenners]

I see no reason why the owner of the property the L/L cannot issue/draw up a new contract for the tenant to sign regardless to the fact the previous one hasnt yet "run" out. Any new one will make the old invalid and will have no ref or conection to the agent. Is this the best way to go? I'm not sure but if i was in his shoes i would be leaning in that direction.

I totally agree with Speedtwin .....

[Gee]

Hi Vin

I generally agree with what you say, there are clearly two cases here (with two separate companies) and should be dealt with as such.

I would query your assertion that the agent won't lose money if the case went to court because of professional indemnity.

Professional indemnity has an "excess" like on a motor vehicle insurance policy. This is not cheap. Working for a firm of Surveyors, my employer has to pay the 1st £5000 of each and every claim. The number of claims each year (whether valid or not) and regardless of whether they are are settled by the excess or by the insurance company are taken into account in assessing the next years insurance premium.

In other words, the agent has as much to lose as Gary.

Cheers

Gee

[J4L]

I must say I have to agree with Trenners and speedtwin on this one.

Go to the tenant, take a letter from the mortgage company, a letter from yourself stating that you now wish to be paid directly. You could take some photographic proof of identity like a drivers licence or passport to prove your identity.

All this will help. Explain to the tenant that you've not received their rent and although you understand that this is not their doing you must ensure that all future payments are made to you.

We have done this many many times as we regularly take over from other agents and if handled correctly you should have no problems

Court action can take a considerable time and by going down this route you take the chance that the agent receives even more rent that he may or may not pass over.

I agree that the argument with the agent really has nothing to do with the tenant but this is business here so the first thought has to be recovery of rent.

With regard to the agent, yes, check your contract with them (if indeed you had or signed one) You may find that you didn't and then you have only your word against theirs.

Chances are they are not going to start any legal action against you because there's always the chance they'll lose in this case and believe me they won't take that chance.

Like I said earlier we've had to do this many times so if you want further advice please give me a PM or a call and we can make sure you're following the correct route.