Accidental landlord: I am being scammed by my estate agents...I think? help

[BravePotato]

I have a little flat from before I married, and at the time I could not sell it so I have been letting it out at a mates rate to friends.

They have now moved out, and I have decided to let it out through estate agents. I chose the one that came across best and seemed most on the ball (big high street name).

I am going for a managed let as I live 2 hrs away.

Now here is the scammy bit: They work with a property management company who does repairs, they have gone into the flat (I asked them to quote me) and quoted me for a number of repairs.

The quotes were very high.

So I did some background research on this company.

It turns out the estate agent herself is ALSO the company secretary of the maintenance company, and the main contractor is a relative (shares her surname).

When I asked the Estate Agent about it she said it wasn't true, haha, obviously not! weird error on the yellow pages site, apparently. And that on the contrary, they get good deals because they can negotiate with the contractors, as they are independent estate agents (this is what I was led to believe).

This morning, the yellow pages entry has been changed and her name is off it. But I took a photo yesterday so I have "proof". I also found another site where she is listed as the company secretary.

So she is wearing two hats, estate agents AND maintenance company, no wonder the quotes were so high, nice earner for her as she can quote herself whatever suits her, then I am the one who has to pay.

I guess that every time something goes wrong with the property there will be a hefty bill, from the plumbers/electricians that work for HER company.

Not sure if anyone is following this?

Is there anything I can do? Can I complain to some kind of trading standards? Does anyone have any advice? Is what they do legal?

I did not know this landlord business would be so tricky!

[aturtlenamedmack]

Do you have to use that utility company or can you find your own?

[BravePotato]

oh, and I already signed a contract with them, can I get out? Or are ALL estate agents like this and better to stick with the devil you know?

[BravePotato]

turtle, I don't have to use the company. But it is the one they use.

I could get my own people in.

But in that case what is the point of a managed let?

Do you know if this is normal practice? Shall I just insist they use another company? Maybe that is the way forward?

[CQ]

Wow that sounds dodgy. Not sure that it's actually illegal but definitely immoral.

We had a similar problem on a lesser scale years ago - rented out our house while living abroad, and the rent included garden maintenance as it was a large garden and we didn't want it ruined. On a visit home we called in at the house and the garden was like a jungle. We complained to the letting agent who was viciously defensive of the gardener and said that the tenants had been denying him access. But they had not told us and were still charging us. Turned out the gardener was the agent's husband

I would drop that agency like a hot coal and find another one, quick.

Always ask for at least 2, pref 3, quotes. Make sure that in your management statements you get copies of any bills so you can check the amounts being paid are right. My decorator said he always quotes higher for managed lets because the agents are so slow to pay and it hurts his cash flow.

Good luck - it is a minefield!

[LIZS]

I would see what the reaction is if you say you'd prefer to use x. Does sound like a conflict of interest but doubt it is illegal as such. You run the risk of them saying they can get hold of them in an emergency though so had to use firm y anyway. Are they registered to ARLA or similar ? The whole industry is you scratch my back though , EA referring to particular solicitors firms etc

[CQ]

If you have your own trusted tradesmen then you can definitely insist the management company use them.

What contract have you signed with them? If they haven't found you any tenants yet then I think it would be easy to walk away.

[LIZS]

You could set a spend limit for repairs of say £100 before you'd prefer several quotations.

[BravePotato]

thanks guys, some good advice.

I am probably getting a bit too het up about it.

I don't have my own tradesmen, apart from 1 decorator (who is going to do the painting at about a quarter of the price the EA guys quoted, we are talking painting a one bed flat, that is in good condition (last painted 4 years ago) and they quoted £3,000 for painting it.

[BravePotato]

LIZS, that is a good idea. But still... it rankles, I hate feeling conned, I am much too "proud" for my own good

[PedantMarina]

I don't think its illegal, but definitely dodgy, all the lying they're doing. I'd never trust them again, frankly.

Check your contract, but surely there are 'bad faith' grounds for breaking it?

[PedantMarina]

Aldo, have sent you a PM

[PedantMarina]

Gaah! Also!

[sebsmummy1]

There is an ombudsman that covers Estate Agents. Might be worth seeing if they are part of the scheme and if so I am sure there is a code of conduct they have to adhere to. If they are attached to a governing body ring them and ask for some advice.

[BravePotato]

sleepy, that is a good idea as well.

Argh, I don't really have time for this! That is why I got the bloody estate agents in the first place, they were supposed to work for me, not against me!

[Doje]

Sounds like they're untrustworthy. If you can't change estate agent try and change to a non-managed let. It's not worth the money the charge and you'll get better peace of mind knowing what's going on.

I managed mine when I rented it out (I couldn't afford the managed option at the time) at it was better in the long run. It's not as difficult as you might think. I was 200 miles away, but dealt with any issues over the phone or via email.

[SarcyMare]

this is the sort of practices managing agents are famous for.

[BigcatLittlecat]

£3000 oh my goodness that's outrageous! My DH does painting and decorating when things are quiet and he wouldn't charge a sixth of that!
I think you need to get some more quotes and challenge the EA make them realise that even though you are not there you still want to know everything. i thinks there is an assumption sometimes that people will pay anything.

[wowfudge]

Unfortunately, it's not always straightforward with these things. You do need to keep on your agent to make sure they are actually 'managing' for their money.

I am a LL myself and stopped paying for management when I found out the tenant had reported a problem with a window which the agent didn't tell me about (let alone do anything to fix) for three weeks - it was winter for crying out loud.

So, I now deal with my tenant direct (her request) and there is a local plumbing/gas firm that does the gas safety checks, boiler service, etc. and gives me a discount for combining these jobs into one annual visit.

I lived in the house for a long time myself so I built up a list of good contacts for various jobs and now with the benefit of Facebook I have friends locally I can contact for recommendations for anything I can't sort out (plus old school friends in various trades). I also have emergency cover on the insurance so if a tradesman is needed quickly in an emergency the insurers can get someone out.

In the past I worked in commercial property management and in the cases when we worked with a managing agent (e.g. if the property was residential and 100s of miles away) we always used to request three written quotes specifying exactly what was going to be done, materials, etc. and timescales. That kind of thing takes longer to organise, but it does work.

[specialsubject]

there is a scheme called ARLA for LETTING agents (which is what you actually have). They are fairly toothless but better than nothing.

remember all responsibility comes down to you - check they have lodged the deposit correctly, done the gas safe cert and so on. Also ask what protects the rent money between it leaving the tenant and coming to you.

[GelfBride]

I would check with Companies House who is and isn't involved with the company if you want proof. If you can't be bothered, get another company or even a one man band to look to the maintenance. We let two places but we don't do it through an agent. We joined the 'Residential LL Association' who are flippin brill (you can download all the legals/get help with insurance and gen advice etc) and we do it all ourselves. It's not difficult and we save a fortune this way. Your gut feeling is probably right TBH.

[BravePotato]

Doje, I may have to consider that.

Wowfudge, specialsubject and gelfbride, thanks, I am getting some useful advice on here.

I have mailed agent+ manager of the agent saying there is a conflict of interest, as she works for both the EA AND is on the books as the Company Secretary for the management company.( I found this info online)

They swiftly offered a different management company to come in for a quote. She admitted it us her family's company. I will take it from there and see how it goes.

They removed her name from the website I found her, very quickly, but I have screen shots (and other sites), looks as if they are covering their tracks do they KNOW it is not entirely above board.

Am going to have to call her manager as well. He actively lied yesterday about this. He needs to explain to me what they are going to do to earn my trust back. But I don't feel up to calling right now as I hate hate hate confrontation. Chicken.

[specialsubject]

time to toughen up otherwise you may get more confrontation than you want... :-)

you are the paying customer. Demand service!

the country is full of letting agents; the industry is unregulated (scandalous) so tread carefully. Property letting via agents is often a case of keeping a dog and barking yourself, but it is a business so some hassle is to be expected.

[BravePotato]

I guess I went in naively, I am learning as we go!