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Agent is taking 10% commission of deposit


chriswv3

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Hi All,

I became a reluctant landlord when I moved into Mothers house to act as her full time carer and my house wouldn't sell because of the credit crunch.

Letting Agents found tenants that used the house as a dog kennel (6+ big dogs) and the tenants then complained of broken taps, water leaks and damaged floor coverings! The tenants then stopped paying the rent, changed phone numbers, wouldn't answer door etc etc. The agent issued a section 21 and evicted them, leaving me with a wrecked house (ripped carpets, dog chewed woodwork, dog mess and a ruined conservatory). They applied for a full refund of the 1 month deposit and it has finally been sent through but they are taking 10% as commission. I thought the deposit was for the landlord to make good the property! Or am I being picky? Should I just be grateful that they got back the deposit from the DPS?

Has anyone any experience of this sort of situation?

Chris.

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Hi All,

I became a reluctant landlord when I moved into Mothers house to act as her full time carer and my house wouldn't sell because of the credit crunch.

Letting Agents found tenants that used the house as a dog kennel (6+ big dogs) and the tenants then complained of broken taps, water leaks and damaged floor coverings! The tenants then stopped paying the rent, changed phone numbers, wouldn't answer door etc etc. The agent issued a section 21 and evicted them, leaving me with a wrecked house (ripped carpets, dog chewed woodwork, dog mess and a ruined conservatory). They applied for a full refund of the 1 month deposit and it has finally been sent through but they are taking 10% as commission. I thought the deposit was for the landlord to make good the property! Or am I being picky? Should I just be grateful that they got back the deposit from the DPS?

Has anyone any experience of this sort of situation?

Chris.

Are you saying that the Letting Agent has taken 10% of the deposit sum returned ?

That is absolutely outrageous, check your LA/LL tcs to verify that you have agreed to this, I that happened to me the agent would get such an earbashing he would rather castration.

Yet another reason NOT to use the parasites (LA).

Ask agent why 10% has been deducted ....then verbally smear him/her across the wall.

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Are you saying that the Letting Agent has taken 10% of the deposit sum returned ?

That is absolutely outrageous, check your LA/LL tcs to verify that you have agreed to this, I that happened to me the agent would get such an earbashing he would rather castration.

Yet another reason NOT to use the parasites (LA).

Ask agent why 10% has been deducted ....then verbally smear him/her across the wall.

Yes, the agent has invoiced me for 10% of the returned deposit from the DPS. Your reaction is about the same as mine, so I feel comfortable now in sending them a castigating letter.

Thanks - Chris.

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I have to say I disagree with you both here.

The amount of work involved in recovering the deposit can be huge.

Possible single claim route,with solicitors signature, Putting a case together for arbitrators to actually recover this money from DPS, lots of telephone calls, time etc.

With the Section 21, did the tenant actually leave after the expiry of this or did the agent have to use the APP?

There are a lot of agents that charge for this separately, up to £75 for issuing a Section 21 alone!! Then there are the court costs!

I suppose each individual case has to be looked at but in the event of there being outstanding rent, damages it would also depend if the agent has intentions of chasing ex tenant for these arrears and the cost of the damages on behalf of this LL.

There are instances when a tenant disappears, leaving prior to a fixed term ending and thinking that their deposit will cover their owed rent. Had rent been paid properly then of course the LL would be happy to pay a sum of this as commission so if the agent recovers this as rent arrears why can't the LA take a percentage?

Let's have a little more information before we hang all the agents shall we? :blink:

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I have to say I disagree with you both here.

The amount of work involved in recovering the deposit can be huge.

Possible single claim route,with solicitors signature, Putting a case together for arbitrators to actually recover this money from DPS, lots of telephone calls, time etc.

With the Section 21, did the tenant actually leave after the expiry of this or did the agent have to use the APP?

There are a lot of agents that charge for this separately, up to £75 for issuing a Section 21 alone!! Then there are the court costs!

I suppose each individual case has to be looked at but in the event of there being outstanding rent, damages it would also depend if the agent has intentions of chasing ex tenant for these arrears and the cost of the damages on behalf of this LL.

There are instances when a tenant disappears, leaving prior to a fixed term ending and thinking that their deposit will cover their owed rent. Had rent been paid properly then of course the LL would be happy to pay a sum of this as commission so if the agent recovers this as rent arrears why can't the LA take a percentage?

Let's have a little more information before we hang all the agents shall we? :blink:

I was thinking along those lines as well regarding the extra work involved by the LA to recover money for the LL so I guess if a lot of time effort and money has gone into resecuring the deposit money then it is not unreasonable for the LA to cover his outgoings and time spent.

Mel.

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I was thinking along those lines as well regarding the extra work involved by the LA to recover money for the LL so I guess if a lot of time effort and money has gone into resecuring the deposit money then it is not unreasonable for the LA to cover his outgoings and time spent.

Mel.

Some agents charge huge amounts separately for these works where I disagree with this and don't.

I think a percentage of recovered monies is a fair cost to a LL and this is stated in our T&C's. (obviously it's not always charged, it's left to my discretion.)

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Sending a copy of ckeck in/check out inventory prop condition report ...which is what this would amount to does not justify 10% of dep.

I also object to a % being charged ....I have dep as low as £400 upto a deposit of £2500 held ...if agent happy to do it for £40(10% £400) ..then i see no reason why he should charge £250 (10% £2500) .. a fixed fee for time would be fairer...but i would expect a simple bond claim to be included as part of the management service.

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Sending a copy of ckeck in/check out inventory prop condition report ...which is what this would amount to does not justify 10% of dep.

I also object to a % being charged ....I have deo as low as £400 upto deposi&&&&&&&& of £2500 held ...if agent happy to do it for £40(10% £400) ..then i see no reason why he should charge £250(10% £2500) .. a fixed fee for time would be fairer...but i would expect a simple bond claim to be included as part of the management service.

This is a little confusing as to what you're saying here but a 'simple bond claim' would not be charged, this above bond claim is not 'simple'.

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A set fee may be the way forward for you but if a Landlord said to me that he wasn't prepared to pay a percentage on recovery of deposit I'd let him / her crack on with it themselves. They'd soon understand how much work this entails when they have problems.

Of course when there's none then of course we wouldn't be charging.

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Did you pay a management fee or letting fee only?

If you paid a letting fee only then, in my view, the LA can charge you for additional services you request from them.

If you have paid them a management fee I would expect deposit return to be included - regardless of how difficult it was to recover. LAs are happy enough to collect management fees on 'routine' tenancies with few or no problems. If you are expected to pay for a deposit return because it's proved difficult, then following that logic you should be reimbursed the management fee for the months that the LA did nothing!

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Did you pay a management fee or letting fee only?

If you paid a letting fee only then, in my view, the LA can charge you for additional services you request from them.

If you have paid them a management fee I would expect deposit return to be included - regardless of how difficult it was to recover. LAs are happy enough to collect management fees on 'routine' tenancies with few or no problems. If you are expected to pay for a deposit return because it's proved difficult, then following that logic you should be reimbursed the management fee for the months that the LA did nothing!

Yep ..good idea.gets my vote !!

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Did you pay a management fee or letting fee only?

If you paid a letting fee only then, in my view, the LA can charge you for additional services you request from them.

If you have paid them a management fee I would expect deposit return to be included - regardless of how difficult it was to recover. LAs are happy enough to collect management fees on 'routine' tenancies with few or no problems. If you are expected to pay for a deposit return because it's proved difficult, then following that logic you should be reimbursed the management fee for the months that the LA did nothing!

Haha, you've just recruited Rodent in your fan club!

Sorry I disagree.

Let's say that a tenant is 2 months in arrears with their rent? The agent works hard to recover these monies and a month of this has been paid? The agent takes a %age from this and you are happy. Then he works for the recovery of the bond (as rent arrears) why shouldn't he have a %age of that?

Like I said previously, each case is different but in this instance I'd be charging fees on the recovered amount, you'd have been happy to pay it if it was rent income so where's the difference?

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