UK Landlord Forum / Life

Hi all, myself and my husband rent out a house through a local estate agent.
We have a new tenant who has paid 12 months rent in advance through the estate agent. Much to our amazement, the estate agent is only paying us monthly, minus their fees,despite having the full amount from the tenant.

I have spoken to the estate agent about this and have said that this is not right as the money, minus their fees, should be paid to us as it is our money.  So far, their response has been unforthcoming but we can't help that feel this is all wrong! The agents are presumably making yet more money on top of the fees already paid by us- money which does not actually belong to them!
Surely they are not entitled to do this?

Sounds suspect.  I wouldn't be happy.  Have you asked for the annual rent minus the annual charges?

I'd also be suspicious about any tenant that willingly pays 12 months rent as that is outside the norm.  I hope you've conducted an early inspection and plan to do so on a regular basis?

Hi Riptide
Yes I have had conversations with the Estate Agents where I have asked for the 12 months rent due to us, minus their fees of course.
At the moment they are saying that this is their' " usual procedure" when a tenant pays 12 months up front.ie to keep all the money and pay the landlord monthly.

I have asked for a copy of this" procedure" to be emailed to us- we have not had a reply to this request.

I have pointed out that, if our money is kept in a bank, we receive interest as the bank is using our money during this time - I have asked if this will be the case with the agency re our rent!

I have pointed out that at no time prior to the tenant moving in, were we informed that we would be paid monthly even though we were informed that he was paying 12 months up front.

I have repeated that, minus the fees, the money actually belongs to us and not them ( the Estate Agent).
This last point they will not acknowledge.

At this time, I am awaiting a response from their "Director of lettings"
We are not prepared to let this  matter drop and I am wanting to know if there is any legal advice we can take in order to recover our rent; and from whom we would get this.
Many thanks

I have let a property via an Agent (doing Tenant Find) in the past where the Tenants paid 6 months rent up front - this was paid to me in one lump sum (there were no Agent fees to deduct).

This seems like common sense to such a degree you hardly think anyone would try to do the opposite. Your Agent is obviously in some kind of cloud-cuckoo land and I advise that you do all you can to get your money (minus those nasty fees, of course) and then fire them at a time that suits you. Take pleasure in firing them.

Thanks Hippogriff - yes it would seem obvious- all seems very greedy and sneakily done to me.

Does anyone know who I could contact regarding our legal rights in this matter?

Quote from: Annep on April 11, 2015, 02:51:49 PM
Thanks Hippogriff - yes it would seem obvious- all seems very greedy and sneakily done to me.

Does anyone know who I could contact regarding our legal rights in this matter?

No.  Maybe one of the associations that lettings agents can be part of?

Are you close enough to their office to camp there and rant all day?

What are you doing about the inspections?

I would not lose sight of the fact, though, that - if everything goes according to plan - you will end up with all the rent due you at the end of the year.

It's not as though it's been stolen.

I'd just be worried about someone holding onto a large amount of cash of mine for a long period of time... businesses go bust and although all monies belonging to a client should be in some separate client account and protected, I'd not just assume that this is truly the case.

A reluctance to hand over the money would concern me even more... maybe it's gone to the wage bill this month?

You say "local estate agent" and, from that, I inferred "small operation"... I could be wrong.

Hippogriff, it is the local office of a National Estate Agent. There is no problem getting tenants for the property; in fact the agents said they were getting ' overwhelmed ' with folk wanting viewings.

What concerns us is that the Estate Agents are benefitting from this 12 months in advance arrangement at our expense. We were not made aware of this when we were told that the tenant was paying in advance. We were asked to sign a '10 month Agreement' whereby we agreed that we were not able to serve notice to the tenant before 10 months of the 12 month period had elapsed.

Seems like a " heads we win,tails you lose" scenario to me.

Hi Riptide
I am going to find out which ' body' they are under and get in touch with them.
As it is a local branch office, I doubt I'd achieve much sitting outside ( apart frim getting very wet at the moment).
I will be monitoring the property myself as check ups are not part of the agreement we have with the agent.

Quote from: Annep on April 12, 2015, 10:14:58 AMWhat concerns us is that the Estate Agents are benefitting from this 12 months in advance arrangement at our expense.

Yes, but only nominally... interest rates being what they are and all that. I agree with your position, I'm just pointing out that if all goes to plan (and you'd not expect a national chain to go bust) then you will get the rent, just in instalments (which is the same as most of us, right?). So it's not like a theft has occurred... don't get me wrong, I'd be wanting to give the Agent a good kicking and I'd certainly not use them again.

I think that would be your main discussion point when talking to someone in authority, this Director, that it's left a bad taste in your mouth - they're not benefiting hugely from their actions - and it'll make you think twice about continuing with their services. Make common sense will prevail.

Hi Hippogriff, I have found that the Agency in question are registered with TPO. I will be following the procedure stated on their website and will lodge a formal complaint.
As you suggest, I will not be using this agency again.
Landlords Beware!!

thanks for the advice  beware of agents and  rightly so  i have spoken to some landlords who have letting agents manage their properties and some are just causing headaches for them and money grappers on the other hand i know a few landlords who manage 3 or more properties quite successfully  by doing it them selves
As Riptide mentioned i would be  suspicious about any tenant that willingly  to pay 12 months rent   so would I. coffee