Have I been conned by letting agent?

Have I been conned by letting agent?

0:01 AM, 20th October 2023, About 12 months ago 5

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Dear all, I need some help and advice desperately and urgently as I feel as if I am being exploited by an letting agent. My property in Dover was not selling so I placed it with a letting agent as I do not live locally.

The agency offers a scheme where they pay contractors upfront and agree a monthly rental split with the landlord to recoup the debt. This seemed ideal as various certificates were required, except that there have never been any discussions with me about the split. The tenants had paid three months rental in advance which was swallowed by the agency as well as the follow-up monthly rents.

Although the October statement indicated that £78 was due to me there was no deposit into my account and my text was simply ignored. The tenants have now paid the final sixth month rent and to date I have received no rental.

I have had a continuous battle with the agency. The estimates from the contractors were excessive for small jobs and my objections either received no response or some fabrication was offered. The invoices were simply paid. The building contractor had agreed with the agent to reduce his bill by a measly £100 and he had additionally agreed with me to put a skirt on the front door without cost to me as “he needed to keep landlords happy.”

The adjusted invoice showed £65 for the front door and the £100 was never deducted. My request for a refund was initially ignored. When I persisted the letting agent fabricated roof repairs done as a favour to him which should offset the amount owing. The cost of the repairs quoted as £300 became £400. He knew the process of informing landlords about required work. There had not previously been any mention of roof repairs and the photos provided had been taken by the gutter cleaner and showed no evidence of repair work to the roof.

The gas engineer seemed clueless and in my presence stated that a new pump was required for the boiler. I showed him that there was no credit on the pay as you go meters but he nevertheless assessed the boiler and provided a gas certificate. He instructed a company to replace the pump. The tenants arrived in mid May, fed the meter and reported that the boiler was not working. The company attended and they found a break in the circuit. I refused to pay for a pump which had been a wrong assessment and the two invoices were nearly half the price of a new boiler. No response.

The electrician produced an estimate for nearly £2.500 which was not itemised. I requested an itemised invoice which set out the EICR work, a new double oven and he had included a small sum for transporting the appliance. In October my statement included an invoice from a different contractor for the removal of “electrician appliance and packaging” in May. This agency simply deducted this from the rental despite my objections.

The tenants moved into the property in May 2023 and for over two months I received no agreement or details about the tenants. I threatened to take action as it was illegal to sign a contract in my name with no information about the tenants or my contractual obligations. I had twice made it clear that I did not want council tenants as Dover instructs tenants not to move and it took me nearly eight months to evict a council tenant. I don’t know whether this is a council tenant.

When I was finally provided with the agreements, I found that the agency had created a six month AST. I was concerned that I would receive no rental for the duration of the AST so I instructed them to serve a Section 21 notice. I gave the agency two months notice as well but received no acknowledgement. They were reluctant to serve the Section 21 and when I asked for details that it had been properly served, no precise details were given. I was later advised to seek a possession order if the tenant failed to move. I have now received the first inspection report which states that the premises are tidy and the tenants are happy. I still have no proof that the Section 21 has been served although I was charged for the service and I am concerned that the agents can request compensation for tenant finding if the tenants are still in situ.

I have informed the agency that I will be complaining to the PRS and seeking further advice and assistance. No response from the Agency. The PRS indicated that I could complain but their process is drawn out and eight weeks should elapse from the formal written complaint to the agency before referral to the PRS. This will be far too late.

This has been an appalling experience. I am retired and the financial impact has been devastating during the mortgage hikes. I am really at a loss how to progress this and I would be grateful for advice from anyone who has had similar experience so I can move matters on.

Thanks,

Linda


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Tessa Shepperson

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10:30 AM, 20th October 2023, About 12 months ago

This does not sound good. You may have grounds to cancel the agency agreement. But it depends on what the agency agreement you have (presumably) signed actually says!
We have a guide for landlords here https://landlordlaw.co.uk/openaccess_trails/dealing-with-problem-letting-agents-a-guide-for-landlords/ which is available to members of Landlord Law. The guide takes you through all the things you need to check when you have a dispute with your agents, and advises on your legal remedies.
However, landlords have very limited rights to set aside agreements that have been made on their behalf with tenants - as you can't expect the tenants to know that your agent was exceeding their authority. This is all part of 'agency law' (a specific area of contract law), which is also explained in some detail on Landlord Law, for members. https://landlordlaw.co.uk/the-landlord-law-legal-basics-courses/.

Complaining to their Property Redress Scheme is a good idea, but they will expect you to have tried to resolve things with the agents direct first.

Michael Freer

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10:36 AM, 20th October 2023, About 12 months ago

Is the agent registered with UKALA or something similar? If so, maybe they can assist you.

Marlena Topple

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10:38 AM, 20th October 2023, About 12 months ago

I would do whatever I needed to to to get out from under that contract with the agent. Regardless of what the contract says in relation to termination clauses, I would view the lack of communication and proper information regarding the tenancy and works as grounds enough for me to terminate our arrangement. I would visit the tenants and explain the situation (with proof of ID and ownership). I would ask them to change the rent account details to mine and change the locks. Others may say this is risky behaviour which may expose me to legal action but that is what I would do. I fact I had an agent that was a saint in comparison to your agent; however I found out he had let a couple move into one of my properties prior to signing a tenancy agreement and that was enough for me to terminate. Good luck.

William Parkinson

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14:24 PM, 20th October 2023, About 12 months ago

With regards to the clueless gas engineer which stated that a new pump was required for the boiler, but later the company re-attended and found a break in the circuit. You refused to pay for a pump which had been a wrong assessment and the two invoices were nearly half the price of a new boiler.

As you showed him that there was no credit on the pay as you go meters the engineer could not legally assess and re-commission the boiler. Despite no gas supply the engineer went ahead and allegedly assessed the boiler and provided a gas certificate. The engineer is clearly in breach of gas safety rules.

By law engineers have to be registered on the 'Gas Safe Register'. Under the Gas Safety (Installation and Use) Regulations 1998, a gas engineering business must be registered on the Gas Safe Register to legally undertake gas work within the regulation’s scope. If there are any gas safety concerns related to work performed by a registered engineer or information about individuals or businesses involved in illegal gas work, it is recommended to file a formal complaint and report the issues to the 'Gas Safe Register’. (You can do this on-line). The ‘Gas Safe Register’ will investigate this matter, but can’t get your money back. You would need to seek redress through civil action. In court you will need to show ‘Burden of Proof’.

However, no ‘Gas Safe’ heating engineer or business wants formal complaints made about their heating work. The 'Gas Safe Register’ is set-up by the Health & Safety Executive, the legal enforcer of gas safety legislation in Great Britain. You can easily prove the gas engineer could not have followed the Gas Safety (Installation and Use) Regulations 1998 procedure because of no gas supply.

Email your energy supplier and explain the situation. As for proof about the gas fuel credit available on the day the engineer conducted the assessment. The suppliers will be able to obtain this information through ‘key transaction data’, ‘energy usage data’ etc. Once you have the proof it was impossible to comply with the Gas Safety (Installation and Use) Regulations 1998, due to no gas supply, present your findings to the company who did the work. Inform them if they do not refund both invoices immediately, you will report them to the 'Gas Safe Register’.

You might find they will refund your money with no questions asked.

Graham Bowcock

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17:07 PM, 20th October 2023, About 12 months ago

You ask the question "Have I been conned?"; the strong likelihood is yes. However, the agreement you seems to have entered into seems so unusual that I really wonder what you have got into. I've never heard of any agent splitting rental to cover contractors' costs.

Are you sure you've entered a management agreement? Normally the agent would charge all costs (at invoice rate plus any agreed mark up) back to the landlord. Most agents keep a float so that they may instruct contractors.

With respect it sounds like there's a whole story here as regards the agreement you have entered into. Despite this you have painted a picture of total incompetence by the agent and you really need to address this. If I were you I'd get the tenant to pay you directly whilst you sort the agency out - that way they won't get any more of your money.

Legally the agent must keep clients' money separate from office money so they should have clear records and should provide you with proper statements.

Good luck!

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