UK Landlord Forum / Life

Hello
I have a problem regarding agents offering guarantee rents to landlord . Has anyone joined this sceem . I let a couple of my properties using a london based agent, the agreement for  a  period three years. initially for the first few months the rent was being paid on time then a bit late, then months being missed so the rent was always in arrears. In the third year the rent was in arrears by over 4 months on each property - a lot of £££, I chased then every day by email , text and phone but was getting no where. I issued then a notice to hand over the properties , as per the agreement , this they did not do . I then later on found out that the agent had become insolvent.
The properties are occupied by families on priority  housing from the council. I have spoken to the families occupying the properties and have explained the satiation to them and asked to contact the housing department and let the know. The council have ignored the matter and informed me that I should not contact them but address this with the agents.
The council still continue to pay the rent to the agent, even though there is no contract between the council and the agent or me .

So if there is anyone who has been the same satiation as me - can you advise me how to get my properties back . I feel sorry for the families involved as the are just bystanders.

PLEASE HELP.

If it's rent-to-rent, which appears to be the case from your suggestion of "guarantee rent", then the landlord to the occupier is the agent, and the council rightly have no direct contract or contact with you. What exactly do you mean by the agent being insolvent? Are they a limited company that have been winded up or dissolved, or in formal insolvancy proceedings? Or are they a human being trading as a business? What does your contract with the agent say about what happens to the tenancy between you and the agent (as that's what it is if rent-to-rent) in the event of their insolvancy or bankruptancy?

Either way you need specialist legal advice.

You’re going to need to post a lot more info if you want help:

What does your agreement with the agent say about terminating the agreement?
Your first step should be to terminate the agreement with the agent. (It’s not an AST so you need to refer to the agreement).

Your next step should be to tell the council as the Head Tenancy has now determined (ended) the current tenant is now your direct tenant (this happens by operation of law when the Head Tenancy determines (ends)  [can explain but will wait to see if you repost].

The difficulty will be to prove you have terminated the Head Tenancy or even you have any interest in this matter.  Why would the council believe a random man who they have had no connection with and the agent is not going to corroborate your version of events.  This is why it’s important to understand the questions/answers to KTC questions as you could be creditor to the insolvent company.

You may need to explain to the council that they must stop paying the company (at least) and you will be pursuing a claim against them for outstanding rent from the point that you notified them. (Good luck with that!!).

I’m afraid you are In need of professional legal assistance.

[PS how do you know the council is still paying the company?]

Hi
I have posted my remarks and details to the response made , 3 times - neither it has been saved or sent - I am new to this forum and not sure if I am doing same thing wrong.
so before I  re- write it - just checking if this goes through.

Rafik

Yes, it did.

If you're unsure about the forum auto-removing your posts (which it should not) then write your text into an email program or Notepad or something and then copy-and-paste it - then you won't lose it (at least). However, I've not heard of problems like this before.

1st - thank you KTC, Motimer and The angryLandlord for your comments to my post. The whole thing is a mess. I will try to explain as much as I can.
Agent X Ltd took over the property on the 2nd February 2015 - on a 3 years period. The property was offered to Social Services ( london Brough) for housing familes requiring emergency housing .
The agreement contained a clause that the Landlord can regain possession of the property after the 2nd year by giving a 2 months notice. Notice was issued in May 2018, by email - No response from the agent again another  2 months Notice issued on the 15/1/19 - again no response, I tried contacting them by email and phone - had no luck - call at office - locked. I got in touch with the occupier and informed her of the situation and requested if she could contact the Social services and let them know - as she also was not been able to contact the agents regarding Maintenance issues in the property. I checked companies House regarding the status of the company - Liquidation . I contacted the council ( Housing Manager) and explained the matter - In the beginning she was quite helpful and agree to sort out the mater but later on said that the matters should be addressed direct to the agent.  The agents also got in touch - what a shock, saying that they were having issues getting money from the council and the rent will be paid as soon as they receive it . A payment for 1 months rent was received ( the agent were now operating under a new name- Xlettings ltd. and not xServices ltd) same personal. I was asked if a new agreement should be drawn out  with this new company. I refused and informed them that i wanted possession of it. I wasforcefully informed by the agent that I should issue them a right notice and gain possession through the courts. I again approached the council and again gave them the information and requested the to stop pay the rent any more ( the occupier had asked the council if rent is still paid to the agent and was confirmed by the council that it was) . I requested  from the council a copy of the agreement they have  with the agent - apparently  there is non. So I do not have an agreement with the new company, the agent do not have one with the council ?? , rent is being paid to the new company
So- Notice has been issued
council have been informed and requested to stop paying rent.
copy of the notice and original agreement forwarded to council and also my Mortgage statement - showing my interest in the property.
I have also informed them that I will be pursuing them for the recovery of the outstanding rent.
The agent are a company under Liquidation.

If there was a contract between you and the Council, or a contract between you and the occupants, then that would be enforceable.  Normally any contract you have with the agency that's ceased trading is frustrated.  You can seek damages via the Courts but they probably don't have any money to pay you, so that usually goes nowhere.

If there's no agreement between the Council and the agent, then the Council is probably in breach of its own procurement rules.  You could contact the Chief Executive about that but I don't think it leads to you getting possession of the property.

If the Council is legally your tenant, then you can serve notice on them but Councils have access to plenty of free legal advice and they're buggers for making you follow the whole eviction process, including Court hearings and bailiffs.

The fact that the same person is still receiving the rent but they've changed the name of their agency is highly suspect.  Well dodgy.  That reeks of sharp practice.  See a solicitor.