UK Landlord Forum / Life

Is it worth trying to get compensation from a referencing agency (or a lettings agency) for approving a bad tenant ?
The eviction process, arrears, damages have cost me 10 k.

The referencing agency did not ask him for a previous landlord reference because he was 'living with family'. There was no employer reference because he was unemployed. No guarantor was requested as he was applying for a joint tenancy with a friend who was employed. The credit check showed he had at some point had a direct debit with a utility company and that he had no CCJ. That was all the evidence they had for him.

The employed tenant had a reference to confirm his employment but no landlord reference as he too was 'living with family'.

To me, this seems an inadequate level of referencing for joint tenants, but I am a newbie and maybe it is normal and acceptable.

A few days after signing the tenancy, the employed tenant moved out and his friend turned the 2 bed flat into a drugs den, drove out my other tenants (in the flat upstairs) and stopped paying. I got him out on a s8 (for rent arrears) and the court awarded the arrears and court costs to me, but I doubt it is worth trying to track down the ex-tenant on benefits, and I have no way of locating the employed one.

So in the first instance my plan is to seek compensation from the vetting agency.

Any thoughts very welcome. 

Thanks

What did you actually pay for, and what was provided? What does the small print (i.e. the actual contract / terms & conditions) say between you and the referencing company.

I would be willing to bet that according to the contract, the company provides a report, but ultimately the decision whether to take on a tenant or not remains the responibility of the landlord.

Sorry to say this,but in my experience you could be wasting your time.My previous LA who I had used for years got me a tenant who never used the flat,just used it for the good postcode area to carry out scams and frauds.The agents brushed aside my concerns about inconsistancies in his story.
The upshot was that I reported the agents initially to the finance Ombudsman,then after months was told I had to take action against the credit check company they used.They were protected against action.On top of the financial loss,I was getting threatening phone calls from the others in his gang,who had my address off the lease.I got nowhere in seeking recompense.The "tenant" got 4 years and made half a million,never recovered.I feel for you,it is very hard to accept such negligence.   

The referencing outfit did not choose the Tenant(s)... you did. They provide a report to you, the decision-maker, based on what they can find out... they might provide a recommendation... like Accept or Accept with Guarantor or Run For The Hills... but you, as Landlord, are always the final decision-maker. How can they, for example, get an Employment Reference for a prospective Tenant if they're unemployed... the whole idea of you bringing that up seems kinda ludicrous, really. How can they get a Landlord Reference if no Landlord existed, again - it's ludicrous to expect it - they can't manufacture it. It is OK to feel as though you've been given short-shrift, and I understand that, so I'm only here to give the viewpoint that this does sound kinda normal (and acceptable, in its own sad - not justifiable - way) and the only person who will look out for you, is you... if in any doubt, don't let them buggers in.

An expensive lesson, I'm sure, and it won't give you much succour to read... but I suspect anyone who responds will advise that you've got to take a bath on this one.

We would be more than happy to hear you pursued some course of action and got satisfaction... we would be happy, and surprised. As a group of Landlords I can bet you we don't think there's an avenue for you to investigate. Sorry!

Quote from: Marisol on February 10, 2019, 11:45:08 PM...and I have no way of locating the employed one.

Even based on very little information, you could try a service like FinderMonkey. I have personally never had to use them (so it's not a recommendation). Good luck.

Actually my contract is with the Lettings Agency, who get the referencing done by a referencing agency. So at the time, all I was told by the lettings agent was that the tenants had been approved.

It was only when the employed tenant left that I discovered that the other one was unemployed. Maybe, therefore, I should be making my complaint to the letting agent for not passing on this important information in the first place ??

The Agent is exactly that - your Agent. They act in your stead... what they do you are said to have done, as it were. Legally you are kinda like the same entity, at least from a Tenant's perspective... they (the Agents) get all the fun and all the money and you (the Landlord) get to deal with all the fallout. This is how Landlord life is... it can suck. This is why so many Landlords don't use Agents... we have fewer people to blame. In this kind of scenario the Agent (your Agent) has a property on their books... all they want is that property off their books... so they put in whoever they can... it might go wrong, it might not... who knows?

I wish you luck in seeking some kind of justice... first port of call would be your Agent, see what response you get from them. You need to speak to people to measure their response before considering going legal. At least your "first instance" plan mentioned in your opening post has now been put to bed as a none-starter.

Thank you for clarity.

One more question, if I may...

Once things had begun to get really bad, the agent told me that the tenant had been in prison, and that was the reason he hadn't been able to provide a landlord reference, but that I hadn't been told this due to confidentiality.
Does anyone know if it is true that the landlord is not allowed to know if an applicant discloses this ?

I would have thought that if this was information disclosed to the referencing company, that I should have been told, and had the opportunity to request an alternative form of reference?

Again,absolutely infuriating,but not necessarily grounds for a claim.I think they make it up as they go along,I got cold feet about my bent tenant,nothing added up despite the glowing credit check.I was given a stern lecture by the LA.As the tenant was from hellostan (which is where all the money ended up) they said I and they would be done for racial discrimination, if he was not granted the tenancy.I wish you luck,and would love to hear that someone has got the better of the agents for once,but I think they are bullet-proof.You need to set limits on how far you are going to go.Trying to get justice can take over your life,and cost you dearly.

https://www.landlordlawblog.co.uk/2018/10/02/judge-awards-landlord-8872-14-after-agents-rent-property-to-nightmare-tenant/

Thanks for the link, KTC.

It seems he also didn't have a bank account, which I would have thought was a red flag, particularly given the other factors - no references and insufficient income.