What if my Property Agents go bust?

What if my Property Agents go bust?

10:10 AM, 6th July 2013, About 10 years ago 4

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The Property Agents I am using appear to be going downhill.

I have not been paid for 2 months. Is the Rental Income Ring-fenced?

How can I ensure that my tenants future payments come to me?

Do I have to give the tenants their 2-months Notice and get new tenants in via another Agent?


Cedryk van Hoppen What if my Property Agents go bust

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Mark Alexander - Founder of Property118

10:26 AM, 6th July 2013, About 10 years ago


Have you spoken to your tenants?

If not, I suggest you do so, go and meet them. Face to face is far more personal and they more likely to work with you if you can build a rapport with them.

Tell them you are worried for them and ask them whether they have been having problems paying their rents.

If they are shocked that you've even asked the question explain the situation. Decent tenants will probably want to prove to you they have made their payments. They will be as concerned as you are.

Ask your tenants whether they want to stay and also express concern for THEIR rental deposit which is no doubt held by the agents too. It's not just your rent which is at risk, it's also your tenants deposit money.

Help give them peace of mind. Ask them for their Deposit Protection Certificate and check with the provider that all is in order there. If the deposit protection has been cancelled this may even be taken as a fraud case in terms of your agents obtaining money by deception.

If the agent has received the rent and but hasn't passed in on to you that's also a very big sign that something is wrong. They will certainly have breached their contract so you can completely disregard any threats they make to you in terms of exit penalties in the contract you signed. At this point it is time to move to another agent. I'm sure the tenants will work with you when they realise you are in this together.

I suggest you immediately complain in writing to all professional bodies you agent is a member of too.

For more information regarding the letting agency recommended by Property118.com please see the Letting section of this website.

Please let us know how you get on by posting regular updates as this will serve to help other landlords in a similar position when they find this discussion thread on the internet.

Michael Edwards

10:57 AM, 6th July 2013, About 10 years ago

The question to ask is 1. Do they have a ring fenced Clients Account - it's not their money its Client's money and should be kept separate from their business account; 2. Do they have Client Money Protection Insurance in place: Hope you get positive answers to those questions. Use a RICS or ARLA Agent their Codes of Conduct insist on these essentials to protect Clients and Tenants against loss of their monies

5:22 AM, 7th July 2013, About 10 years ago

FIRST thing to do is contact tenants and instruct them they are to pay rent direct to you irrespective of what the LA states.
Advise the LA that rent will now be paid directly to you.
Request the deposit monies be returned to you.
Use mydeposits and issue new DPC and PI to the tenants.
Cancel existing LA agreement.
Possibly source another LA.

andrew townshend

17:30 PM, 8th July 2013, About 10 years ago

i make a point of meeting all my tenants & giving them my contact details, go & see your tenants, explain what is going on, tell them to pay you direct & tell the agent to get lost. i think we are going to see more & more agents going bust.

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