What to do if letting agent stops to pay out

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    What to do if letting agent stops to pay out

    I feel my letting agent is going under. He delayed rent payout in last 2 months. And I heard 2 of his other tenants suing him. This month he hasn't send the money for few days.

    What's the correct strategy to deal with it? I have no other source of income. How do I plug the money bleeding to the agent? Can I tell the tenant to pay me directly instead? And how to recover what's owed?

    #2
    Originally posted by maxima View Post
    Can I tell the tenant to pay me directly instead?
    Absolutely. Do it now.

    Comment


      #3
      Have you visited their premises?

      Comment


        #4
        Check that the agent is a member of the client money protection, also if they are member of a redress scheme. You should have checked this before instructing them to be your agent.

        Are you sure the T hasn't paid them. If it is the agent holding the money contact the T and tell them to pay you directly, put you may need to provide proof of who you are etc.

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          #5
          Depends slightly how serious the problem is. If you are just receiving payment a few days later than expected, this may or may not indicate a serious problem.

          If your agent really is not paying, then -

          Terminate your agreement with the agent
          Redress scheme
          Letter before Claim
          MCOL
          There is a fine line between irony and stupidity. If I say something absurd please assume that I am being facetious.

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            #6
            Originally posted by doobrey View Post
            If your agent really is not paying, then -

            TELL THE TENANT TO PAY YOU DIRECT!
            Terminate your agreement with the agent
            Redress scheme
            Letter before Claim
            MCOL
            Amended version.
            When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
            Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

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              #7
              Understood. Thank you all for your help!

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                #8
                I would search on the internet for another Letting Agent and ask them if they have heard if the letting agent you use has gone into liquidation and ask if they can take the tenancy over.
                Assuming that they are a Limited Company I would search on Endole for their Limited Company and see it they have gone into liquidation.
                In addition I would go one the Land Registry website, pay £3, find out who ownes the property they are/were trading from and ring them up and find out if their rent is up to date.
                If the premises are on a business lease where it is normal that a tenant has to pay 3 months rent in advance, many businesses which are insolvent carry on trading until the last day that their rent is paid, then close down, and today 25th September is one of those Quarter Days.

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                  #9
                  In fairness how do you know that the tenant is paying on time, is the tenant being late with their rental payment? This could, stress could, be reason for late payment.

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                    #10
                    The agent comes up with excuses like computer failure or whatever. They would have said I'd it was tenant. I use them for 6 yrs and this is unusual all the delays.

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