svin7654 Posted January 8, 2011 Report Share Posted January 8, 2011 I am having a problem understanding the TDS due to a particular big estate agent in London who makes it so complicated that often I am unsure half of the time if they are protecting the deposit on my behalf or if I am suppossed to be doing it. They collect tenants deposit and 1months rent and take it all as their rent collection fee for the full duration of tenancy. Then they ask me if I want to protect the deposit-of course I would if they pass it on to me. So if I reply in affirmative I have to put in a thousand pounds or more from my own pocket aside. If I ask them to do it they then continue to collect the rent over 2nd and third month (paying me next to nothing)and say that the deposit is now protected by them on my behalf. One can imagine the numbers cash flow, bank interest and and tax implications of this as the agents are probably doing this to 10's of thousands of landlords If one has multiple properties then this gets complicated and pricy. Recently they withheld the last months rent on one of my properties stating that I had not provided them with a TDS certificate so they are witholding the rent. When I pointed out that actually it is they who have collected the deposit and protected it that they refunded it. I had to prove to them that they were holding the deposit!Suppossed to be a big letting agent in London but it appears that they cant add 1 and 1 together. I am phasing them out very rapidly. Can I extend future tenancies directly with the tenant when it comes for renewal? The tenant is happy to stay on, they have also reported their disgust with the estate agents attitude to sorting out any problems when they need them.Will I need to release and reregister their deposit? What I have learnt is that it is best to renew or sign tenancies for no longer than a year(or even 6 months-however 3 estate agents I have contacted in the past have refused to do 6mon AST's-I supposse they want to colllect bigger sums in fee). If the tenant was to leave early it is the landlord who would suffer .The estate agents sit pretty having collected all their fee from first few months rent for the full duration of tenancy. Why can't they just charge their fee every month Thanks Link to comment Share on other sites More sharing options...
Mortitia Posted January 8, 2011 Report Share Posted January 8, 2011 This wouldn't be the agent group James Anderson or Barnard Marcus by any chance? If you have already entered into an agreement with the agent and they have got you a tenant you cannot just decide to dump the agent or phase them out. READ your agreement - it will tell you that. You may be able to buy your way out so ask how much - no doubt it will be extortionate. Agents like this rely on landlords not reading the small print just like you so you are trapped until your tenant leaves and you can use agent only for tenant finding or get a tenant yourself. The agent is not as I understand the law allowed to take the deposit for themselves unless you have signed up to this unwittingly. Make sure you have protected any deposit or the tenant can go to court and get 3X the deposit paid to them. READ what you have signed very carefully. Make the agent write to you with the terms and conditions of the deposit - that would be a start. On an AST tenancy you don't have to do anything once the term of 6 months or 12 months comes to an end - the tenancy goes periodic - no paperwork needed and therefore agent can't charge which is why they don't want you to do that. Under a periodic tenancy both parties carry on with the conditions set out in the AST until landlord gives notice of 2 months or tenant gives notice of 1 month from the rent due date. Simples and free! Mortitia Link to comment Share on other sites More sharing options...
svin7654 Posted January 8, 2011 Author Report Share Posted January 8, 2011 No it is Ludlow Thompson This wouldn't be the agent group James Anderson or Barnard Marcus by any chance? If you have already entered into an agreement with the agent and they have got you a tenant you cannot just decide to dump the agent or phase them out. READ your agreement - it will tell you that. You may be able to buy your way out so ask how much - no doubt it will be extortionate. Agents like this rely on landlords not reading the small print just like you so you are trapped until your tenant leaves and you can use agent only for tenant finding or get a tenant yourself. The agent is not as I understand the law allowed to take the deposit for themselves unless you have signed up to this unwittingly. Make sure you have protected any deposit or the tenant can go to court and get 3X the deposit paid to them. READ what you have signed very carefully. Make the agent write to you with the terms and conditions of the deposit - that would be a start. On an AST tenancy you don't have to do anything once the term of 6 months or 12 months comes to an end - the tenancy goes periodic - no paperwork needed and therefore agent can't charge which is why they don't want you to do that. Under a periodic tenancy both parties carry on with the conditions set out in the AST until landlord gives notice of 2 months or tenant gives notice of 1 month from the rent due date. Simples and free! Mortitia Link to comment Share on other sites More sharing options...
svin7654 Posted January 8, 2011 Author Report Share Posted January 8, 2011 Now I know why they are urging me to renew the tenancy for another year each time it comes to the end of AST Agents are LT, I am learning from my mistakes but it has been a costly experience. Thanks for the reply Link to comment Share on other sites More sharing options...
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