UK Landlord Forum / Life

Dear All

I leased a property through what I though was a reputable letting agent and a major high street name  c. 1 year ago,  under duress due to the emotional pressure that was placed on me by the agent/potential tenants: on the morning the new tenants were due to move in, the agent contacted me to inform me that one of the tenants had failed the credit check and they recommended I did not accept them.  I naturally concurred with this course of action.   

At midday the same day the agents informed me the tenants were in a van outside the property waiting for the keys, as they had informed the tenant previously that it was fine for them to give notice at their previous address.    We stated that we had not agreed for them to move in. 

The following day, I was informed by the agent that the tenants had broken into the property! I promptly jumped into the car and visited the property, and was greeted by the father of one of the tenants. It transpired that the agent had informed the individuals several weeks earlier that all was OK and that they could give notice in respect of their existing flat and that I as the landlord had suddenly decided to change my mind on the day they were sat outside the property in the van waiting for the keys.   The tenants had explained that out of desperation (they have a young child), they felt compelled to break into the property as there was no other accommodation available at such short notice and as such they would have been homeless. This was made easy for them by the agent who left a back door key by the window to the rear of the property.  No damage was done to the property as a result.

We (the tenants, their parents and I) visited the agent to sort out this mess......after several hours,  and much pleading by the prospective tenant, I relented on the basis that the prospective tenants could provide two guarantors. I also had to sign a disclaimer in favour of the agent.

We are now at the renewal stage, the now single tenant (her partner left several months ago) has failed the credit check (£10K in CCJ's) and we have served notice. Not surprisingly the tenant is in arrears and I fear she will not vacate the property at the beginning of October. Worst thing of all is I feel my landlord's insurance has been voided due to us accepting a tenant with CCJ's and having signed the disclaimer....my act of kindness I know was short sighted and those of you who read this post will probably say I deserve what is coming to me for being so soft! Has anyone found themselves in a similar position? I will be pursuing the guarantors, but do I have any recourse against the agent who put in this position in the first instance....I look forward to your wisdom! Yours gratefully a very naïve and stressed landlord!

Firstly... let's not pretend you were being kind or altruistic or anything high-minded like that. We don't need to pretend. No-one believes you're an entirely injured party here... but things simply have not gone right for you. Let's just try to deal with facts... facts about where you are today... not the history. The history is interesting... but it would've been entirely unreasonable for you to say (or your Agent on your behalf) to incoming Tenants, on the morning no less, that they now have no home to go to... you are supposed to be professional and have all your ducks lined-up well before the morning of the move-in. The entire notion that you could try to turn around (whatever information comes to light, really) as the incoming Tenants are probably driving to the property is ludicrous in the extreme.

I say this understanding that you were thrown a curve-ball by your Agent. You still can't do that. That's just basic common sense and you're not moral if you even try that one. Sorry. Most Landlords, even new ones, would want to check some things about what their Agent is up to... and you certainly don't grant a tenancy before you get the result of the checks. That's backwards!

Now... all you should care about is the current situation. You have served notice. If you did everything correctly in the setup of this tenancy... or your Agent did (as you appear quite "hands-off") then you should have no real problems... yes, your Tenant may huff-and-puff and protest and delay... but the beauty of a Section 21 is that there's no defence, other than pointing out things you have not done correctly yourself... like protecting the Deposit, like serving all the information, like providing an EPC at time of viewing, like testing all the smoke alarms, like having a GSC, like providing the Government's How To Rent booklet.

If you did all of those things and they're evidenced, then it could still be a long road... but you will be successful in the end. If you did not do all of those things, you will struggle if the Tenants fight back... don't fret, there is always a chance that they'll leave meekly too.

For now forget about the Agent. For now forget about the Guarantor. Forget about the Insurance (you say this is worst of all, I can't agree, that's nothing, that's admin.). Everything has an order. What you need - I believe - is to get your property back and start again - after that is soundly achieved you can then (and only then) start to worry about follow-ups... keep them separate, for now. Separation of concerns. Keep things in order. Focus on one thing at a time.

Have you Served a Section 21 - or did the Agent do it on your behalf? - or a Section 8?
If Section 21, have all of your obligations been met - probably by the Agent? Can you confirm this?

I have to admit I have been guilty of letting agents just get on with it.I learned pretty quickly though.I would never have signed a lease  without knowing all the checks were kosher.
If the tenants had signed a lease,paid advance rent and a deposit,you can hardly blame them for expecting to move in.Even if they had broken a door down, I doubt if the police would have taken action.
Don't get your hopes up about the guarantors.They probably take the same attitude to financial responsibilities as the tenant does.Relatives will sign anything rather than be lumbered with people sleeping on their sofa.Certainly don't send good money after bad trying to get redress.

Hi...thank you both for your objective comments.

The agent has issued the section 21 and we have fulfilled our obligations as you referred to.

OK... so the Section 21 has no defence. All you need to do is follow the process through and, eventually, you'll have your property back. It might take a while and it might cost a bit of money, but you'll get there. Then, once that part is resolved, worry about all of the other stuff. And try to keep a tight rein on your Agent as well. At this stage don't worry needlessly about things you can't control... or redress... just get your property earning you proper money again.

Wise words and Many thanks!

I have given the matter considerable thought and agree greater control needs to be taken re the Landlord/agent relationship going forward.

I also  believe an equally robust stance needs to be taken (if necessary) with the Guarantors who at the end of the day,  as I understand it, have made a legally enforceable undertaking to cover rental costs in the event of a default scenario - in my case there are two, one of which is a successful business man, the other is the Tenant's mother. Not withstanding the fact that the tenants partner who left the property several months ago also remains jointly & severally liable for unpaid rents/damages?

Where the Guarantors are called on...what role should the agent be taking on the basis they organised the completion of the documentation?

Should I need to take legal action against the tenant would the guarantors be joint & severally liable for my legal costs and
back- capture of rents due?

Has anyone had experience of claiming costs from Guarantors?

As said... everything has an order... get your property back first, then assess... you're asking questions for things you don't need to address right now, certainly not in parallel. The debt doesn't disappear once you have possession back.

1, 2, 3, 4, 5... order.

The fact that one of the guarantors has a business could possibly work in your favour.Did the agents carry out the necessary checks into both guarantors? I have refused guarantors for years,and it is generally agreed that the contracts are not worth the paper they are written on.A couple of times in the past I did accept them,and on both occasions they failed to pay up.One did pay for just a month I think.I did not pursue the matter,just decided not to get caught out again.The agents in your case may be of little use in doing the legwork.Trust you will not be using them ever again?
Nothing you have said about this tenant or her partner suggests you would get anywhere chasing them.The people who are owed that ten grand tried,and lost their legal fees.

Totally agree with Hippogriff,your first priority is getting the house back.Let's hope she has kept the place in good condition.Getting a bad tenant out,even when they owe arrears,is such a great feeling.

Thanks guys.....but I am somewhat surprised re the negative comments surrounding Guarantors. The guarantor contracts were drawn up by the agents  and the guarantors were all credit checked. My research is showing that if an official deed has been drawn up then they are legally enforceable to the extent the guarantors risk a CCJ for non-payment of what may become their liability.

You have to weigh up the difference between what your legal rights are,and what will happen in real life.Looking at the current situation-both guarantors ,or certainly the mother,will know about the arrears and the eviction notice.Have either of them stepped in so far to pay her debts? Of course,it is possible they have given money to her,and she has failed to pass it on.It is also possible that the circumstances of the guarantors will have changed in a year,and they may plead that they can no longer keep their promises.The tenant clearly does not give a toss about another CCJ being added to her record.
You have to decide how far you are prepared to go,set limits.I am unsure if the agents have contacted the guarantors already-they should have done so.
You are understandably angry and anxious,I have been there.I have also opened a bottle of  proper champers and cried with relief and joy sitting in the filth and damage of a  vacated property.
       

Quote from: heavykarma on August 15, 2019, 07:20:25 AMI have also opened a bottle of  proper champers and cried with relief and joy sitting in the filth and damage of a  vacated property.

I like you much more now than I did at first... partially because of these little experiences you relay without reservation. Partially because of... other reasons.

I have to confess I have a soft spot for you too.I hate that you are always right of course,but no one is perfect.

I have a tenant who moved in with a guarantor, and guarantor (mum) has paid his rent every single month since he moved in.  But now I know them, I'm confident that she would have paid his rent even if she wasn't the guarantor -- lettings is about dealing with people you can trust.

Which is one of the several reasons why it's such a bad idea to deal with lettings agents.  You're stuck with the company even after the people you trusted have moved on.

Legal rights can only succeed if people behave properly.A lot of money awarded in small claims cases is never actually paid.