Rogue Agent offering guaranteed rent exposed on – Evicted! Nightmare Tenants

Rogue Agent offering guaranteed rent exposed on – Evicted! Nightmare Tenants

17:08 PM, 14th July 2021, About 2 months ago 5

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This week, on Channel 5’s ‘Evicted! Nightmare Tenants, Slum Landlords’ [Thursday 15 July, 10pm] I expose a rogue letting agent offering “guaranteed rent” and confront the agent at his office in Walthamstow.

Landlords Suketu and Minesha Patel own a three-bedroom property in East London. They used a local letting agent to manage their property and signed up on a “guaranteed rent” scheme. However, after receiving only one month’s full rent, payments became sporadic, before stopping altogether. “I would call the agent to follow up on where the rent was and suddenly, he would transfer a nominal amount, sometimes £300, sometimes £100, but never the full £1,800 owed. He claimed he was paying us from his own pocket as the tenants had not paid rent.  However, the agreement we had was supposed to guarantee our rental income regardless of whether or not the property was occupied, or the tenants had fallen into arrears,” said Mr Patel.

When the agent became increasingly difficult to contact and arrears reached nearly £7,000, the Patel’s contacted Landlord Action and we can be seen on this week’s show taking a direct approach to resolving the issue by confronting the agent at his office in an attempt to recover the missing rent.

It becomes quite fractious.

The prospect of guaranteed rent, also known as a rent-to-rent scheme, can seem like an attractive proposition to landlords, saving them the trouble of dealing with voids, rent arrears, and eviction. However, across each series of the show, I always make sure I expose the problem of guaranteed rent/ rent-to-rent, and try to educate landlords about this sector of the industry, because significant pitfalls remain for landlords if they choose the wrong company. Clearly more needs to be done, and we know this has already been mentioned in the RoPA (Regulation of Property Agents) Report, so we are confident in future such agents will fall within the scope of the new regulatory regime. At present, it is still like the Wild West with far too many landlords being duped.

The agent, in this case, claims that he is the victim and that the tenants have not been paying any rent, but when the Patel’s meet the tenant, they hear a different story.

There is another rogue guaranteed rent operator, also in Walthamstow, which we expose later in the series.

Watch ‘Evicted! Nightmare Tenants, Slum Landlords’ on Channel 5, every Thursday at 10pm.

Contact Landlord Action

Specialists in tenant eviction and debt collection. Regulated by The Law Society.


Comments

by Paul Essex

21:15 PM, 14th July 2021, About 2 months ago

I guess most of us have seen the Tina Newman case on the news. Finding out she was the sub tenant of one of those RTR scammers means that the 5000 in UC payment is being clawed back.
But guess what - the reporters are saying that it is the landlord refusing to give her a tenancy agreement. No mention at all that they are equally the victim of a scam here!

by Dylan Morris

10:24 AM, 15th July 2021, About 2 months ago

Steer well clear of Rent To Rent. You lose control over your property. Most of these people are chancers trying to make a few bucks with “no money down” rent models. Loads of stuff on Youtube, how to get into the rental business when you’ve got no money etc. The contract will be commercial not an AST so you’re in a completely different world.

by John Mac

10:33 AM, 15th July 2021, About 2 months ago

I agree stay clear of R2R.

Quick way to weed out the chancers is to ask "what is the guarantee backed by"? - I've been approached numerous times when I have advertised available properties, NOT ONE person has replied to my question !!

by Ian Narbeth

12:36 PM, 16th July 2021, About 2 months ago

When a company capitalised at £100 at most offers to "guarantee" to pay you £1000+ per month for five years the guarantee might as well be written on a used Kleenex. Unless you get a personal guarantee from a person of substance, forget it. Landlords should also be aware that if the R2R merchant does not run the HMO properly the tenants and the Council may pursue the landlord, e.g. for Rent Repayment Orders.

Only proceed with a R2R company if you (a) you want to help a stranger get rich (b) don't mind making no income and paying for the experience and (c) don't mind having your property damaged and being left with a claim against an insolvent company.

by Moshe Strugano

14:14 PM, 16th July 2021, About 2 months ago

Israeli lawyer Moshe Strugano (Attorney - Moshe Strugano and Co Law firm), an expert in the “formation of offshore companies" says, "I agree stay clear of R2R."


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