It’s devastating when you put your trust and faith into a letting agency, you pay them a monthly management fee; and all of a sudden they disappear along with the rent and the tenant’s deposit.
Last month saw another Lettings Agency forced into liquidation without any warning to their clients.
Many of their Landlords will not have contact details for their tenants, others may not even know the office is no longer running – they will only find out when the rent fails to show in their bank account.
If you know anybody needing help and advice please ask them to contact me directly; I have been involved in lettings, working for Belvoir Portsmouth, since 2000.
I have seen a number of agents go out of business leaving behind many unhappy landlords.
There are still a large number of landlords who are not familiar with the deposit protection process.
If your agent has failed to register your tenants deposit, it would fall to you as the Landlord to not only reimburse your tenant the full amount of the deposit, but also 3 times the monthly rent! You would also be unable to serve your tenant with notice to vacate your property!
Regarding rent, a tenant could have paid the agent 1, 2 or even 12 months rent in advance. If this is the case, whether or not it has been paid to the landlord, it is paid and therefore lost if the agent goes out of business – Our client account is bonded and ring fenced for security.
Although the lettings industry is not regulated, there are many voluntary regulatory organisations that are pushing for compulsory regulation for all letting agents throughout the UK.
Belvoir Portsmouth are proud to be voluntary members of:
Association of Residential Lettings Agents (ARLA), Safeagent Scheme (Safeagent), Financial Conduct Authority (FCA), Safe Agent and The Property Ombudsman.
When recommending an agent, remember that it is not just the management fee percentage that is important; accreditation and client money protection is paramount.
If you would like any further information or know anybody in need of a professional, regulated letting agent; please contact Samantha Bateman on 07964 140205 or samantha.bateman@belvoirlettings.com
