Rent2Rent Scheme Gone Wrong

Then you did right just signed the wrong type of agreement!!

It would not bother me if the case is changed into the company name. That is a clear confirmation the claimants admit it is a company let. Of couse had it stayed in the individual's name you could have turned up on the day and applied for the case to be "struck out". In my experience the other side hate that!

Nobody has mentioned that County Courts have a duty solicitor usually available to give free advice by appointment. Contact your court telling them it is a tenancy case ask see if this worth pursuing.

Otherwise it is a matter of turning up on the day and doing your best. Frankly if you have asked for papers that are not provided this can only work in your favour. If papers are produced on the day ask that they are not admitted or for a postponement.

However, I would be tempted to write to the court in advance with a copy of the tenancy agreement pointing out that it is a company let and therefore not subject to the deposit law and asking for the case to be struck out on an error in law.

Finally, however tempting, do not go down the path of increasing your claim unreasonably. You can always present a list of other items you have not claimed for as part of your evidence disclosed to the other side to make you appear even more reasonable.

Thanks Robert for the advice. I popped in to a litigation solicitor with the paperwork. He says that the claim for 3 X deposit won't work as it is a Company Let. I have only asked the Court to rule on the deduction I have taken from the deposit and have not counter claimed in any way. The 'Company' did cash the refunded part of the deposit I sent them, they refused to discuss anything either in person or by correspondence and each time I wrote to them I stated I was happy to meet and discuss the discrepancies and provided contact details. I can only think they are doing this to make life difficult, I imagine they may not even attend on the day, I really think that any Court sitting to hear this case will take a very dim view of having the Courts time wasted where the litigant has constantly refused to discuss or resolve the matter?

"I really think that any Court sitting to hear this case will take a very dim view of having the Courts time wasted where the litigant has constantly refused to discuss or resolve the matter?"

Yes. County Court Judges can be very full of their own importance and disrespecting the Court or other party in this way will not help. Just do what you are required re exchanging copies of documents and any evidence of your suggestions to negotiate. On the day they have to turn up (evens chance) and made their case (low chance) and you defend.

Remember, just put your case clearly, never interupt any party (speak when asked to by the judge) and go for it.

Don't forget to put your photographs is as evidence. (You didn't take any? Make sure you do next time.)

Marie,

Thanks for sharing your tale of woe.

Like Property 118, we have been warning against illegal sub-letting scams on Property Tribes for some time now.

Landlord Action report that they are a worrying trend and that they are hearing from more and more landlords who are victims of these scams.

Landlord Action's worst most recent case was 32 people in a 3 bed semi in North London.

As Francis says, some Rent to Rent tenants are ethical with the intention to pay the landlord. Others are out and out scammers.

Marie, I would be grateful if you could add this story to this thread on Property Tribes to warn the landlord community of what can happen when sub-letting goes bad.

http://www.propertytribes.com/huge-rise-subletting-scams-past-two-months-dont-t-7790.html

I do not believe that most people doing R2R strategies think that they are not going to end up paying the rent.

However, once they get control of the property, they may come unstuck.

Only the other day on a group on FaceBook I saw someone who had taken on a R2R property struggling because the multiple tenants were reporting that there was not enough hot water for them to all shower in the mornings i.e. the boiler of the property could not cope with the demand for hot water.

The R2R-er was suddenly faced with the possibility that he might have to replace the boiler! A lot of money ...

Unfortunately, most R2R teachers target people with promises of getting £1K cash flow per month per property from R2R with no financial input, and this can attract people of limited financial resources to get involved.

As with any property strategy, you DO need contingency money and attracting people of limited financial means into this scenario can only end one way imho.

I believe that all these "Guaranteed Rent" schemes cropping up are mainly people believing they can sub-let a property to multiple tenants and keep the difference without doing any other work.

Northwood Lettings have a guaranteed rent scheme that is reliable and trustworthy.

Landlords should only accept sub-let tenants from a professional person or company who sets the agreement up correctly with the interim tenant acting as a managing agent.

I have read with interest the comments here.

I think the main lesson is that the correct Agreements were not used. Hindsight is a wonderful thing but if you had felt the wrong agreement was being used then there are any number of organisations you could have spoken to for advice. However, you are where you are!

The more that cases like this are highlighted, the better it will be for those operating R2R legitimately and with the correct legal framework.

The individual operating this should named and shamed so that we all know who h/she is!

Hi Mark

Other than in exceptional circumstances we operate a "no name and shame" policy here at Property118, please see this article explaining why >>> http://www.property118.com/what-property118-is-not/

Hi All.

Today was D day for my court appearance in respect of defending the 'tenants' claim for not insuring the deposit. You may recall it was a matter of a sub-let guarantee arrangement with a limited company where an Ast contract was used instead of a company let. I defended the claim without legal representation armed with all the additional knowledge gained here and online. I thought at one point this morning that they would not attend given I did not receive any argument from them prior to the case as directed by the Court. Arriving late with a solicitor in tow, we entered the Court and the 'tenant' put forward the argument that the tenancy was now an Assured tenancy on the basis that the Limited Company was seen in the eyes of the law an an individual. I cross examined the claimant and he confirmed that he had an Ast for my property between him (the company) and the tenants, he claimed he issued documents but sent them to the initial Court where the paper application was sent, despite the fact he changed the claim from his name to the company name and sent that request to the Court we were directed to attend........ To cut a long story short, the Judge ruled that it was a Company let and the case was dismissed......Hurray.......I'm absolutely delighted with the outcome. On an aside he didn't bring a claim for the return of the disputed part of the actual deposit however the Judge said he could do so but that given the argument that he (the company) would be very unlikely to win the case. The Judge asked me as to costs which I was very happy to decline being so delighted that this 'company' was unsuccessful in winning £5,000 compensation and it cost me nothing (apart from a lot of stress and time) and he had to meet his own costs. Having said that he has 21 days to appeal the case if he believes the was an error on a point of law. So to all out there, if you are faced with a small claims from unscrupulous agents/companies regarding protection of the deposit in respect of a Company Let whether accommodated on the correct tenancy agreement or not, do not settle, fight your corner. A person I spoke with working at Northampton Court, where the case was originally filed said, when I called them early on in the case for information said that it was very unusual for someone to appeal these types of cases. So a BIG THANK YOU to everyone who commented here with their valuable thoughts and advice. I can't say that I enjoyed the experience but it has made me a lot wiser, given me confidence in our legal system (in this case anyway) and made me realise that you don't need to be intimidated by people who try and work the system by using the law to line their pockets in an unsavoury manner. Finally you can represent yourself in Court, research everything, keep excellent records and follow the direction of the Court to the letter in support of your defence or claim (as the case may be) against the possibility that you may have to attend Court when dealing in property matters.

This is fantastic news Marie. Well done!

I would really appreciate you telling your story on this thread about Rent to Rent issues:

http://www.propertytribes.com/professional-landlords-reputations-damaged-by-rent2renters-t-8388.html

Congratulations Marie and thank you so much for sharing your good news with us all 🙂

I am sending you a private email.