Shelter’s Income and expenditure figures highlighted13:57 PM, 4th February 2019
About 2 weeks ago 35
Looks like my first attempt to enter the rental market has turned into a disaster. I just completed a flat purchase and made two agreements (AST and Letting Agency Agreement) with Rent2Rent company – they were supposed to sub-let the flat to their corporate client. This was nearly a month ago
Easy way to enter a market, I thought. It turned out to be not so. Their tenant moved in last week (after paying a deposit to them 3 weeks ago!). I have not signed any agreements with that tenant and I still haven’t received any payment, not even a deposit. Despite my request to pass me deposit directly, the company has has protected it with mydeposit.co.uk. When I said I do not agree with that, they promised to send me the money but nothing came my way.
I would like to know where to start. From reading some posts here I now understand that AST I signed with with the Rent2Rent company is not appropriate as they are a limited company, however, I don’t know exactly what it means to me. Does it mean that document has no legal meaning to either side?
The second agreement I signed, Letting Agency Agreement, is very simple. It states that they will retain my first month payment from the tenant and give subsequent 11 payments to me. It also states that they will pass the deposit to me to put into DPS.
I spoke to the local solicitor today who advised me to look in this forum for advise or similar cases. I hope someone can help me to get started on this.
I met the actual tenants and they are nice people but it looks like they also got themselves into a bit of trouble. In addition to paying first month’s rent and 6 weeks deposit (for which I believe they still have not received the protection evidence), the Rent2Rent company managed to convince them to pay extra 3 months in advance to save £50 a week so they will not be happy moving out.
My first mortgage payment came through yesterday, I will struggle to afford the second one if I don’t start getting money.
What happens if the Rent2Rent company never pays me but keeps on collecting money from their tenant – will I have no choice but default on my mortgage?
The Rent2Rent seem to have an office in the town, perhaps I can just go there and sit until I get paid – perhaps not the best strategy though.
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