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9:30 AM, 9th December 2011, About 13 years ago
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I am writing this blog to balance out another article on this website and to raise a question about whether it is reasonable for a business to be exposed to a trial by social media.
Is it even possible that a group formed on Facebook could muster up enough support to potentially bring an established business to its knees without a fair trial? Until this week I would have thought not but I have evidence that it is happening right now.
Now I’m not taking sides here, nor do I want to be a judge or a jury in a case that doesn’t effect me or my business. However, I am aware of a scenario whereby one persons word against another has been escalated to a point that could result in the collapse of an established business.
Is it right that media attention mustered up by a small group of disgruntled students and their parents could result in the suspension of a letting agent from a variety of trade organisations without a case ever going close to a court room?
The problems started when letting agent Campbells Property made a financial claim against a guarantor of a student who had allegedly soiled a mattress. The student denies the allegations and the guarantor refuses to pay the disputed damage claim.
I have spoken to a Director at Campbells who has confirmed their policy is not to take damage deposits. Instead they charge a none refundable letting fee of £220 per student and take guarantees from parents or an alternative guarantor to pay for any damages and any necessary cleaning to put the property back into a lettable condition at the end of the tenancy. Victoria campbell, a Director of the firm, told me “these terms of business are willingly entered into by around 1,500 tenants and guarantors every year with Campbells”.
The disputed bill for the soiled mattress has escalated to the point where a facebook page has been created to solicit more complaints against the letting agent. People thought to be posting in defence of the agent have been blocked from posting and had their posts removed. A completely independent letting agent was blocked mistakenly and reported this on Property118.com. He was commenting completely independently without taking sides and made this point on property118.com. He very quickly received a public apology (also on Property118.com) from the creator of the facebook thread.
To my knowledge the number of complaints equates to less that 1% of all tenants that let throughCampbellslast year. Despite this, the agents business model has been criticised to a point that the owners don’t know which way to turn.
The letting agent has been suspended from two organisations they subscribe to and now need to account for these complaints during their busiest season for letting. Note that first year students often seek accommodation 10 months in advance to secure a roof over their heads for their second and third years in university education. Some universities only allow agents that have valid accreditation to advertise to their students. Suspended agents are not allowed to advertise and their suspension is publicly displayed.
In the meantime, whilst their cases are being prepared and heard by the trade associations, the agent feels aggrieved that the reputation of their business has been besmirched to the extent that they will find it far more difficult to attract students and fill their properties in the coming year. Even if the trade organisations to which they subscribe find in their favour on every one of the complaints levied against them they stand to lose a significant amount of income and reputation whilst the case is under investigation and their memberships are under suspension.
Will the trade organisations take responsibility for any financial losses or defamation?
Is it right that a letting agent can be held to ransom by an aggrieved client in this way?
Will the trade associations risk finding in favour of their member with such financial implications as a potential court case against them by the agent on the grounds of lost income resulting in defamation of innuendo during their suspension?
From my very limited understanding of the cases in point, the agents procedures may be flawed. If I am right, they would be unlikely to be awarded the right to retain deposit moneys if they had taken them and the complaints had gone to arbitration. On this basis, I also doubt that the agents procedures would hold up to a small claims court hearing for the financial claims levied.
My understanding of the agents procedures in this case is that detailed inventories are completed, together with photographic evidence, at the commencement of each tenancy and are signed for. Inventories are also completed at the end of the tenancy and further photographic evidence is also collected. The possible flaw I can see in this procedure is that the end of tenancy the inventory is very rarely signed for as they are completed after the tenant has vacated. Therefore, it’s easy for disputes to arise and if there are two sets of photographs, one from the agent, the other from the tenants, which is to be believed?
In most cases it’s easy for landlords to demonstrate with a good inventory and photographic or video evidence when a property has been damaged, regardless of whether the tenant signs the checkout inventory or not. This is because most properties and their contents are very different. However, when there are several identical rooms within properties and the disputed damages relate to a carpet stain, a soiled mattress or a damaged piece of furniture, how can a decision as to whether the damaged item was actually the one in the room that’s subject to a damage claim? Who’s to say that mattresses were not switched between rooms by tenants or the agent? Who’s to say that either set of pictures taken even relate to the same room?
I have asked myself whether I would have joined the trade associations at all and put my business at risk in this way if I were a student landlord. However, if the best way to advertise to students was to be a member of the trade associations what choice would there be?
I would be very interested to hear what Inventory Clerks, Letting Agents and other student landlords feel about this case.
Previous Article
Rip Off Letting Agents Prey on Tenants
20:55 PM, 9th December 2011, About 13 years ago
Mark, not posh, just practical!
Glenn, how is paying a massive fee a "massive benefit" to tenants? Yes, i can see that accepting a guarantor in lieu of a deposit is beneficial but I doubt tenants walk out of an agency £220 lighter saying "Yay, I just got myself a great deal!". After paying such a high fee I imagine they believe the agent will do something to earn it, possibly explaining to the landlord the terms "wear and tear" and "reasonable charges" when they move out rather than simply trying to sting them for even more cash.
No wonder the private rented sector has such a bad reputation - it didn't need social media to come along and tarnish it, it managed it all by itself.
Mark Alexander - Founder of Property118
21:04 PM, 9th December 2011, About 13 years ago
I have been asked how people get their picture against their comments.
Please see http://en.gravatar.com/
Globally recognised avatars "Gravatars" allow you to have your picture and details on any blog you post comments on automatically.
21:39 PM, 9th December 2011, About 13 years ago
I'm starting to feel like one of those women who sat knitting while they watched be-headings in the French Revolution.
To discuss the ethical financial practices employed by letting agents, now that would cause some heated debate.
Anyway, I do hope Campbell's and their ex-tenant sort out their differences, draw a line under it all, compromise on both sides and learn something from it. I'm sure it's left a bitter taste in everyone's mouth and they just want to get on with life as normal.
Surprisingly, for a blogger, I'm not that keen on social media campaigns, in my opinion they can get out of hand and under the influence of knee-jerk reactions, become one step removed from an episode of Jeremy Kyle.
22:40 PM, 9th December 2011, About 13 years ago
I love this post! black and white, if your good at it you get praised......................... if your bad at it??? what can i say? i have searched long and hard for a positive testimonial for this company and can not find one???
Mark Alexander - Founder of Property118
22:43 PM, 9th December 2011, About 13 years ago
I think this could be the wake up call that Campbells need on social media and you have provided their inspiration 🙂 Check again in a years time, I will.
23:05 PM, 9th December 2011, About 13 years ago
Mark, i am just an everyday person with morals and my take on life is treat people how you wish to be treated, i feel both Katie and I have been served a very unfair punishment that neither of us deserve, i would like to say i have absolutely nothing to do with the Face book page that was set up, i don't even know who did, but i would shake their hand openly as it has only reiterated what we thought all along about the charges that were served on Katie, unfair and unjust, i can only hope and pray that Campbell do a complete u turn and listen to the views that are spoken here and on Facebook that they need to change the system they use now and be 100% honest. I hate being negative, i wish i could be at 11pm writing something positive? and i hope in the future i can, i do not wan't to be biased i wish i could read a review about Campbell that made me think, oh they aren't so bad? but at the moment there seems to be little evidence to sway me in that direction? I hope Victoria Campbell reply's to my request and there can be some sort of closure for us, however i will be interested to maintain an interest in future comments good or bad :/
Jonathan Clarke
8:26 AM, 10th December 2011, About 13 years ago
I really hope what Vanessa says is close to the mark ..........``I think this story highlight how important it is for businesses to build up a long tail of contribution to the social web. If they do, all the positive can easily outweigh the negative as people generally consider an overall view, and do not take one incident like this FaceBook page in isolation.``
We all make comments every now and then but on reflection think i could have put that better perhaps. The trouble is as we know in SM your audience is worldwide and your comments there forever. Unless one is a master of deception over a period of time personalities yes shine through and it isnt so hard to be dismissed BUT the speed of the world now is so quick that the damage is often done when the crowd turns on you and gets stuck in. Mob mentality. Humans are like that. Predator and survival instinct and all that. ...
Thats why high profile folk ( eg politicians) regulary resign from high office over a bit of tittle tattle wait a bit for the baying crowd to go away then resurface when a sense of proportion has returned. The crowd is exhausted and have long since turned on somebody else. I feel sorry for those who will never get a 2nd chance though and are fatally wounded by social media. Regulation will always be too late I fear to save some of these before the damage is done.
British culture seems to love the build up knock down then sometimes rebuild . Often we love to watch from the sidelines like a soap. As long as it doesnt happen to us that is seen often to be somehow ok. Of course its not acceptable at all in a `civilised ` society and we should aim to be civilised I believe as a goal for humankind and over time aim to erradicate the lynch mob mentality from within us. I fear though sadly we have our work cut out for the next few hundred years! ....
Ben Reeve-Lewis
9:05 AM, 10th December 2011, About 13 years ago
What an interesting debate this has turned out to be with views from all sides, including fair and articulate views from concerned parties.
It is obvious from the views expressed here that in today’s climate it is vital to openly promote an image and manage online criticism and the cornerstone of that is being good at what you do but lets not forget that the regulation of agents is also essential, and not all this ARLA, NALS, RICS nonsense, a single set of standards governed by a single body from whom expulsion for properly investigated and proven complaints is the sanction. Even a temporary downgraded status would help people choose who to use and put pressure on agents to tidy up mistakes.
If prices were similarly standardised and clearly understood by all, then and the industry would become professionalised and agents would have to compete on quality of services.
I worked in landlord-tenant law disputes from 1990 – 2001 before running my own business as a housing law trainer, then went back into my old job, in the same area (even scarily on the same extension number) in 2009 and do you know what has been the single biggest change to happen in the 8 years I was doing my own thang? I now spend 50% of my time dealing with the actions of criminal and fraudulent agents who flooded the market in that time, an unregulated, unmonitored market looking for a quick buck and don’t care about any laws or who they rip off.
My area is full of them these days. They steal from tenants and landlords alike, they run an array of fake companies allied to the main shop-front that cant be traced. I wish I could tell you more about them but this isn’t social media and I’m not anonymous.
I don’t mean they just charge excessive fees, I mean they are letting agents who force me to work on special teams of Met Police, EDF energy fraud and even Serious Organised Crime Agency bods to try and bring to book.
Agents who don’t exist outside of their website and a mobile phone taking rent and depsoits up front for properties that they don’t pass on to the landlord, that’s if they even have the properties to let in the first place. Agents who are fronts for people trafficking. I could go on.
I know, as with rogue landlords most agents aren’t that bad but I cant tell you what a huge problem this is, with gangsters moving in by the day. I can assure you I’m not exaggerating.
A single regulatory body would put them out of business and professionalise the industry
9:37 AM, 10th December 2011, About 13 years ago
This is the first time I have bothered to read the exchanges on this subject and I am fascinated by it. Sadly, for me, it seems that we British thrive on bad news stories and little or no mention is made of excellent landlords doing a very good service of which I know many. I have 4 children who all went through the university student letting regime and none of them reported such bad experiences I am pleased to say. For Fay and other guarantors please be more careful when signing up as the risks can be very high, especially if the accommodation rented is shared by several folk. Nothing is free in life for sure. It is a shame that face to face relations are becoming rarer and I am certain that if more effort was made to do them then these disputes would be amicably settled quickly and without public battles where one party will suffer humiliation unnecessarily.
10:01 AM, 10th December 2011, About 13 years ago
I've discussed this very topic Ben with the Department of Communities & Local Government.
Unfortunately, the response was that they did not want to create a barrier for landlords and the private rented sector. With 5 tenants applying for each available property, the government are relying on the PRS to support the housing market I guess.
One worry I do feel though, (and I will probably be shot down by letting agents for this) there are a some fraudsters just jumping on the tenant demand spike, charging each tenant who apply for a property the admin fee and tenant referencing fee that can add to a couple of hundred pounds and knowing full well that only one tenant will be offered the tenancy, that's if like you said Ben, the property exists at all.
I think that the reputable and responsible agents would indeed benefit from a change in policy and maintain a better profile if under a no-nonsense umbrella.