Rent guarantee agent changed contract without permission?

by Readers Question

9:27 AM, 19th May 2020
About 5 months ago

Rent guarantee agent changed contract without permission?

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Rent guarantee agent changed contract without permission?

Hey all, in February I signed a rent guarantee agreement with an agency for 18 months. I have a 7 bedroom HMO which I have only just finished the refurbishment on.

Unfortunately, Covid-19 came along and the lockdown was enforced before they could fill all the rooms.

She rang me asking for help as in a rent reduction, because of empty rooms and I stated I’m willing to help you, but need to assess my own situation first.

The following rent payment was £1000 down and she changed our agreement to full management without any communication, signatures etc etc.

Her attitude now is basically if you don’t like it, lump it or take your house back. Surely she had no right to change any agreement/contract without consent?

Any advice will be much appreciated.

Dilep


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Comments

Rob Crawford

9:49 AM, 19th May 2020
About 5 months ago

Sounds like the tenant is not paying full rent and the agents rent guarantee insurer is not paying out. The agent is probably paying you all that they can, even if it's against the terms of the contract. How this leaves you legally is difficult. I suspect the agent would be relieved if you left! I have never liked rent guarantee arrangements. You end up with a below market rate income and there are no guarantees in life!

Smartermind

11:52 AM, 19th May 2020
About 5 months ago

Sue the rent guarantee agent for breach of contract. Contracts cannot be changed without both parties' consent. The agent is hoping you will just terminate the contract leaving them off the hook. Without their dishonesty, you could have agreed on a compromise.

Chris Novice Shark Bait

14:37 PM, 19th May 2020
About 5 months ago

We have a rental guarantee in operation on 2 flats with the same National letting agency which has all usual expected accreditations. We were told that Cobid 19 was a force majeure instance and that the guarantee was waived in instances where rent default was due to the same. I questioned this and asked for the terms of agreement. The ones I received had been doctored with a hitherto not present exemption clause relating to pandemics. I found the original without that clause. No re-signings have occurred. We are in delicate discussions with said nameless agency at this time of difficulty. The truth will out eventually.

Landlord

23:44 PM, 19th May 2020
About 5 months ago

Personally, I would speak to a solicitor to explorer all my legal options ASAP. I would then look for another agency and take away the house as they are clearly in breach of contract and dishonest. You can't trust companies like that.

I used to have my reservation about this whole r2r and guaranteed rent scheme. But after staying in a property for a short period, which was managed by an small estate agency that managed it under a 5-year agreement. I was extremely surprised after speaking to one of the Directors about his business model and quite frankly how honest he was about how r2r should be run efficiently.

If I manage to get a property in the area they operate then I'll be looking to hand it over to them. Just Google JC Living Solutions.

Paul Shears

9:21 AM, 20th May 2020
About 5 months ago

Reply to the comment left by Chris Novice Shark Bait at 19/05/2020 - 14:37
It's a tragically indoctrinated misconception that every time one is presented with a problem in life, the way to deal with is to fill out a form and pass it onto someone else. I have found both personally and in observations of others, that, for the most part, all that is accomplished is that you exchange one problem for another problem which can often be far greater. The matter is particularly true when the party that you are dealing with makes claims of leverage scale, and specialisation. The bigger the party is, the worse the potential problem.


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