Rental Arrears

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    Rental Arrears

    Hi,
    I am been letting a flat through a letting Agency for nearly two years ( same tenant) but the agency have discovered the for the past 8 months they have
    not been getting any money from the tenant. Apparantly someone had changed the standing order of the tenant at her bank and all the money was being diverted elsewhere. The Agency have stopped all payments to me for the past 2 months and say payments will only continue once the tenant has paid all the outstanding money owed to them . I think the Agency are being unfair to me as they should have noticed the error 8 months ago and I do pay them an extra 2% rent collection fee on top of their normal fees. The tenant has been paying them cash for the last two months while her Bank sorts out who has been tampering with her Bank account. I feel the Agent should still pay me monthly and really they should sort out with the tenant the outstanding balance. I don't want to wait any longer for non payment
    and would be grateful if someone could advise.

    #2
    It certainly seems this agent has been negligent and that you are entitled to continue receiving rent from them while they pursue the missing payments. You should firmly request this in writing and consider legal action if they refuse. Consult a solicitor or CAB.
    Disclaimer: What I say is either right or wrong. It may be advisable to check what I say with a solicitor. If he says I am right then I am right, unless he is wrong in which case I am wrong; but if he says I am wrong then I am wrong, unless he is wrong in which case I am right

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      #3
      CABs are not usually equipped to address this type of problem.

      Unfortuantely the agent should have notified the landlord as soon as payments had ceased but it appears they do not monitor it too closely.

      The problem the agent has is they appear to have been making payments to the landlord when they had not received the money from the tenant which in itself is potentially more damaging. If they are regulated they are not allowed to pay out rent to a landlord if they haven't received it, so would be in breach of their rules of conduct. It would be no excuse to say they hadn't noticed.

      They should transfer the unpaid amount from their office account to the clients account now, and then recover the rest when it is paid by the tenant. In the meantime the landlord should be approached and asked for the return of the overpaid amount, although I can see this is likely to be refused for obvious reasons, but they should nevertheless still ask.
      The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.

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        #4
        Originally posted by Paul_f View Post
        If they are regulated they are not allowed to pay out rent to a landlord if they haven't received it, so would be in breach of their rules of conduct
        So much for regulation. It just goes to show, you can't trust an agent further than you can throw one, and a regulated agent could be even worse.
        Disclaimer: What I say is either right or wrong. It may be advisable to check what I say with a solicitor. If he says I am right then I am right, unless he is wrong in which case I am wrong; but if he says I am wrong then I am wrong, unless he is wrong in which case I am right

        Comment

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