Is my letting agent breaching contract by partial rent payments?

Is my letting agent breaching contract by partial rent payments?

9:20 AM, 4th March 2024, About 8 months ago 16

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Hi, I would like to know if my letting agent is in breach of contract.  This is the third time my letting agent has only paid half the amount of rent to me and then transfers the other half at a later date.

This is not only frustrating but also disruptive to my financial planning as the funds aren’t always in place to cover mortgage payments.

Does anyone have any advice on what the best course of action is?

Thanks,

Ailsa


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GlanACC

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10:10 AM, 4th March 2024, About 8 months ago

I would say its highly suspicious, its not uncommon for an agent to delay the whole payment for a month, but paying in 2 payments ?. If they are a LTD company check their latest accounts on companies house (its free) and see if they are sailing close to the wind.

Sheralyne Stamp

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10:20 AM, 4th March 2024, About 8 months ago

Have you requested an explanation for this ? Have they offered one upon statements being provided? Often a tenant may request to pay in 2 seperate halfs due to pay days and often the agent will agree as there would be no point in trying to get the full amount if they dont have it on rent due date, however the agent should inform you straight away and ask if you are happy with 2 payments or if you would rather wait until the full amount has been paid. If they are good tenants and maybe struggling once in a while then to keep them I would agree to this however insist that the agent inform me to enable me to budget for that month. Never rely on rent as an income.

Graham Bowcock

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10:37 AM, 4th March 2024, About 8 months ago

Have you spoken with the agent?

It could be that the tenant is late paying (we have some who occasionally make random payments).

As the money should be in a dedicated clients' account there should be no reason to withhold any money that the tenant has paid.

Check that the agent is not holding money back for a float to cover repairs.

Until the agent has explained the situation you will be (rightly) worried) and also guessing.

If the agent cannot explain themselves I think you ought to disinstruct them immediately.

RoseD

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12:12 PM, 4th March 2024, About 8 months ago

Even if the agent is holding back a float for any possible repairs this should be something you agreed to and be made aware of. Any repair work should be agreed and notified to you. This is normally taken from the rental income but doesn't have to be if you prefer to find your own trades person or pay for any repairs directly. Check your agreement with the agent and do what others have suggested, ask for a reason because it really shouldn't be happening.

GlanACC

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12:17 PM, 4th March 2024, About 8 months ago

Reply to the comment left by RoseD at 04/03/2024 - 12:12
I have a guy who does my repairs (I have never used a letting agent) and he tells me that the work he does for an agent, they charge the landlord 10 to 20% on top of the repair costs. Use your own guys if you can.

SteveFowkes

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12:28 PM, 4th March 2024, About 8 months ago

Bin the agent for breach of contract

SimonR

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12:36 PM, 4th March 2024, About 8 months ago

Its most probably because your tenant is paying the rent in 2 separate amounts and your agent is paying the rent as they receive it instead of waiting till they have the full amount

Graham Bowcock

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12:56 PM, 4th March 2024, About 8 months ago

Reply to the comment left by GlanACC at 04/03/2024 - 12:17
If an agent charges a hidden commission, that's illegal.

In our agency we include organisiing "running repairs" in our management fee. That would cover loss of electric, plumbing etc., but not larger repairs suhc as boiler replacement. Our terms allow for a fee to be charged and the landlord is aware of it.

Not all agencies are the same as ours!

Graham Bowcock

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13:14 PM, 4th March 2024, About 8 months ago

Reply to the comment left by SteveFowkes at 04/03/2024 - 12:28
Or find out the reason they are paying late. If they haven't actually received the rent then they can't pay it over.

JB

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13:17 PM, 4th March 2024, About 8 months ago

If there's no good reason for this, it sounds to me like the agent has a cash flow problem and will soon be going under

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