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Dissolved letting agent

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Author Topic: Dissolved letting agent  (Read 109 times)
Newbie
Posts: 3

I like property

« on: December 27, 2020, 07:06:39 PM »

Hi All,

I am a new Landlord. I recently rushed in to a rent guaranteed scheme due to covid-19  and months later realised that the company has dissolved in a few years ago. The Agency has been paying rent on time but having scrutiny a bit further I find it's quite dodgy so I have a few questions regarding this "dissolved status" hoping you could clarify.

1. Are they allowed to continue the trading?
2. In the scenario where they fail to make the guaranteed rent payment, can I ask the tenant to make the payment to me directly?
3. Am I allowed to ask for the tenant background checks, deposit DPS ID from the letting agent?
4. Can I carry out my own inspection?

Thanks
Hero Member
Posts: 501

I like property

« Reply #1 on: December 27, 2020, 08:29:18 PM »

Who even is the immediate landlord of the occupier? Most such "rent guaranteed scheme" is rent-to-rent where you are the "agent's" landlord, and they in turn the landlord of the occupier.

In any event, you need to get yourself out of this mess as soon as possible. Even if they weren't dissolved, they usually have no assets so the "guarantee" is meaningless.
Newbie
Posts: 3

I like property

« Reply #2 on: December 27, 2020, 09:06:35 PM »


I do not have the details of the tenant so I'm assuming the letting agent is the immediate landlord of the occupier. In the worst case scenario where the letting agent do a runner, can I ask the occupier to pay me directly or is this illegal?
 
My contract is ending soon, are you suggesting I should not renew the contract with them?

Thanks
Hero Member
Posts: 501

I like property

« Reply #3 on: December 28, 2020, 02:08:03 AM »

Read the agreement you have with this "agent". Did you or did you not grant them a tenancy explicitly for a rent of X, or grant them permission to let out your property and they in turn will pay you a guarantee of X. In either case, you are (almost certainly) not the landlord of the occupier, so you have no business asking them to pay you rent. Any payment they made you would not discharge their liabilities for rent to their actual landlord (i.e. the "agent"). Do not be suprised if they have no idea who you are in any case.

Yes, I am suggesting you do not do business with someone who is (knowingly or otherwise) trading illegaly as a dissolved company. Rent to rent is just bad news. Either accept the risk of non-paying tenant directly, or take out rent guarantee insurance though in that case make sure you read the policy cover to cover and comply with it fully to the letter if you want it to payout if needed.
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