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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.
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Rip Off Letting Agents Prey on Tenants
Mark Alexander - Founder of Property118
11:49 AM, 11th December 2011, About 13 years ago
Incredibly inspiring post Madelana. As you know, none of our authors here get paid to share their stories with Property 118 readers but I'm sure that thousands of them (we now deliver over half a million Property News updates a week) would be very interested in hearing more about your clients "Landlord Awareness Initiative". Please contact me directly to discuss.
Ben Reeve-Lewis
12:22 PM, 11th December 2011, About 13 years ago
That is my single aim too Madalena, to unify the PRS. Only a holistic view will work. Every single part of the PRS is dependant on the other bits of it but most particpants just see it from their single perspective. It depresses me how many landlords I see writing about how they hate and mistrust their tenants and tenants who only bother posting about how greedy their landlord is, although reading this it appears both parties are united in their dislike of agents haha.
Seriously though even mortgage issues and wage freezes also impact on everyone in the PRS as does the work of the councils who seem to be universally reviled by everyone. Speaking as a council worker I can even appreciate that and agree with much of the criticism.
It will take more than regulation to pull it all together but in an agents case it would be a hell of a start
Mark Alexander - Founder of Property118
12:47 PM, 11th December 2011, About 13 years ago
It was also my goal to unify the PRS so the very fact we are all here sharing the same thoughts demonstrates we are all making progress. There are so many support functions to our industry too with equally mixed standards and many of them unregulated. When we were working on our directory we broke this down into 96 trades and professions. It’s very early days yet but as more and more testimonials get added it will hopefully assist in finding recommended services. I probably know over 100 landlords quite well but do I know who they trust as a mortgage broker or who is their reliable plumber?
13:21 PM, 11th December 2011, About 13 years ago
It can be done though Ben, it's a shift in the mindset that's needed. As copywriters we also collate all the research in the sector along with statistics for news programmes, and campaigns. I can honestly say that everything we have predicted so far has been spot on.
The government have got to get to grips that the PRS plays a dominant part in housing and these shifts need addressing urgently. I feel they are putting to much emphasis on initiatives aimed at getting first-time buyers back on the home ownership ladder and not enough thought into the PRS.
I do not envy your job Ben, but I do believe if enough resources were given to the PRS, a major difference could be made.
One concern we are trying to get across to landlords, especially those who use an agent is to be careful of establishing rent rises. Through our research using eviction stats and rent indexes, rents are rising dramatically. Landlords informed by agents that they can get high prices are leaving themselves susceptible to rent arrears, eviction costs and rental voids, as you will probably agree, increasing rents may look good on paper, but can lead to a false economy for the average landlord.
In my area in a small town in Merseyside, we have never needed to regulate landlords. Our landlords tend to be a great lot with lots of integrity and they frown upon the bad agents and rogues.
We all use each others contacts, we help each other if we need to and even the local MP's office will ask for our help and refer housing cases to us, secure in the knowledge that if we can help we will do.
No-one makes a loss, good tenants can rest easy that they have a flexible landlord and bad agents go out of busy very quickly.
Agents respond more eagerly if landlords themselves put pressure on them to perform in a certain manner. First we must educate the landlords. I've been very impressed with P118 and the companies involved with this site. It's a breath of fresh air to meet online with sensible professionals.
Ben Reeve-Lewis
13:54 PM, 11th December 2011, About 13 years ago
I'm with you all the way on that. Change the mindset and educate everyone concerned.
I used to be head of Homelessness for West Wiltshire District Counil and I would go into schools and do a 40 minute session with 15 and 16 year olds about their expectations of what would happen if they were ever made homeless. Their naivete was as appaling as it was depressing.
Working in my current job I see people handing over money to dodgy agents without even veiwing the property. In one recent case 5 tenants stumped up £2,500 without so much as a deekers inside and all turned up on the same day to move in to find the residents knew nothing about it. Agent? Long gone, leaving an empty office.
Similarly I meet landlords whose tenants owe them £5,000 and they still hold off, trusting the next promise.
As I posted here somewhere too many landlords dont treat renting as a business and this is true of tenants too. So many people I meet move out when the landlord asks them to because, as they tell me they didnt have a written contract so werent tenants. It makes me want to bang my head on the wall.
The UK PRS is bedogged by amateurism and un professional conduct from people who should know better and they arent helped by councils who hide behind data protection and bureacracy when they should be rolling up their sleeves and jumping in.
My new team is going to do just that. I will admit that my biggest probelm isnt going to be the landlords, they are fine, but the traditional council mindset. For many years now I have ignored the rules and just dealt with the problem in front of me. the result is I have a great relationship with my landlords and my tenants and like to think either party can come to me for help anytime. Many even have my personal mobile number.
I think it is brilliant that your local MPs go to you for help but they should be referring you to the council and you should be able to feel you can trust your council to provide that help.
But mark my words, the times are definately a changin Madalena. In small pockets maybe but some of us know how to connect the different pockets up
Ben Reeve-Lewis
14:04 PM, 11th December 2011, About 13 years ago
Emily I didnt realise there were so many people behind it. Even galvanising mates to back you up wouldnt get those sorts of numbers. If this is the case I would say this is beyond a personal grudge stacked up.
But the purpose of this thread is whether or not it is right that a social media campaign should be alowed to tarnish a company's reputation. My Solid answer is 'Yes', it is up to companies to manage these kinds of campaigns and the best way to do that is to be honest, provide a good service and be transparent and responsive.
If I was researching a company with a bad record I would be wary of facebook campaigns because they are too easy to set up but also mindful that if it has 268 genuine supporters that needs to be taken into account. Also the length of time the campaign is running and the way the people posting express themselves.
I think the people posting here, including Ms Campbell to be honest have done so articulately and evenly.
I dont think most of us on here can either back the campaign or rubbish it because we arent invloved, we can only comment on the principals and generalities
16:20 PM, 11th December 2011, About 13 years ago
It costs nowt Ben to help a tenant or a landlord in need with a few phone calls. When they go through the local authority, they can wait a while for a response and be met with a formal approach. It's not the council so much, but the bloody red-tape they are bound by.
I'm quite lucky though in my line of work as I get some positive and inspiring stories. I'd go mad if I had nothing but negativity all the time.
I've refused to represent companies I've felt doubtful about regardless of the money they offer. I always end up feeling grubby by association if I have any doubts about their ethics.
It's good to hear of someone within the local authority addressing these issues without fear and who can effectively relate to their landlords and tenants on a genuine level.
Think you would make a difference training other local authorities....haha.
Paul Routledge
16:34 PM, 11th December 2011, About 13 years ago
I just wonder if the issue's raised at the outset of this forum are now just the crust of the pie and there is a lot more cooking inside we cant see.
That fact is,it is not fair nor right to have public kangaroo courts (And I know first hand) that can act as judge and juror however if there are so many complaints about an Agent or landlord which have never been resolved properly then one has to ask is there a bit to much smoke to have no fire?
Ben Reeve-Lewis
17:11 PM, 11th December 2011, About 13 years ago
Thats my other job. Since 1998 I have been a freelance trainer for the Chartered Institute of Housing, (for whom I also mark housing law diplomas) Shelter etc. I only train housing staff and I do landlord/tenant law, court procedures for eviction and as a qualified NLP trainer I also do a variety of communication skills courses, such as dealing with aggressive people and mediation skills.
Housing is all I do. Sad isnt it? haha
Ben Reeve-Lewis
17:15 PM, 11th December 2011, About 13 years ago
But public courts are what we have Paul. It doesnt do any good to say it isnt fair.
I am sure, as I mentioned earlier, software companies would love to release their new products to a compliant press but the internet allows groups of people to make their own comments unhindered. I am fully in favour of that, although I acknowledge it isnt without it's own dangers and pitfalls. This is the world we live in and I love it, even if it means I get death threats from time to time