UK Landlord Forum / Life

Hello,

My residential property fully managed by a well known Letting Agency. My old tenants moved out due to not being able to pay the rent for a number of months. The short fall in the rent was covered by the rent guarantee insurance I took out with the Letting Agency and paid them 3% of my rent for this protection. On recent inspection of the property there were a number of issues that needed to be put right before the new tenants moved, this was a result of neglect from the previous tenant.

I was hoping I would be able to claim a small amount against the deposit to have the property repaired. The Letting Agency is now stating to me that they intend to use the deposit to refund themselves for the missing rent they paid out to me. They are stating it is in their policy and there is nothing I can do about it. I have re-requested all contract etc to go through this as this was not pointed out at the time.

This doesn't feel right and wanted to ask if anyone has had any similar issues or stories - is this a common place practice for any rent guarantee insurance?

Any help or advice would be very much appreciated.

It certainly doesn't feel right. The deposit is not for the Letting Agent to dip into as they see fit. It's unclear how that insurance actually benefits you in the scenario you describe... did you pay for it? Yes. Did you benefit from it? No.

Seems strange.

As always, read the terms of business you have signed with the Letting Agent. Maybe they think you are a sucker and ripe for having your pants pulled down?