What to Do if Your Letting Agency Lets You Down

Author: Sarah Clark

The whole point of taking on a letting agent to manage the rental of your property is that you expect them to take the hassle out of being a full-time landlord. You might be in a full time job and not have the time to deal with all the ins and outs of an everyday tenancy, or finding a new tenant when the current one moves on.

But there can be problems when the letting agency doesn’t do their job properly. Many things can go wrong – for example you might reasonably expect that a letting agent will have the right information and expertise to know who is a good risk, and to carry out all of the correct checks on a prospective tenant.

You wouldn’t expect you to forget to complete paperwork (for example, if you had asked for a guarantor for a self-employed tenant or a young tenant)

The Law as it Applies to Letting Agencies

Legally, the letting agent is bound by the same laws as any business who agrees to undertake a job for you – they must carry out any work for you with reasonable skill and care. If they don’t, you are entitled to claim reasonable compensation. In the case of not getting a guarantor for a tenant, if that tenant then defaulted on their rent you would be legally entitled to claim any loss of income that was directly caused through the letting agent’s lack of attention to detail. So, effectively you would e entitled to the months of lost rent, plus any associated legal fees for eviction or legal action you’ve had to take.

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Letting Agents and Trade Associations

If you’ve chosen wisely, your letting agent will hopefully be part of a trade association for landlords and letting agents, so hopefully you can use their services to try and resolve any situations that might occur before court action needs to be threatened.

If there’s been more than just a lapse in paperwork, or a letting agent has breached an industry code of conduct, you may be able to take action against them through grievance procedures set out by their trade association. In cases that involve misuse of a deposit, you can contact the relevant tenancy deposit scheme and ask them to get involved. It’s actually illegal, for example, to use a tenant’s initial deposit to cover rent arrears, and they are legally bound to protect any deposit. Any reputable letting agent will be able to tell you who their deposits are held by.

It’s also worth contacting the Estate Agents Ombudsman Scheme if the letting agent is a member of the scheme, and getting advice from them about how to proceed. If the letting agent is a member of the ombudsman scheme, again they will have signed up to a code of conduct.

Your situation may be slightly different. ask a question below ↓ and our editorial team will reply with our advice.

What to Do When the Relationship Breaks Down

If the letting agent has been negligent in such a way that they are in breach of their contract, you are legally entitled to cancel the contract with them, and should not incur any charges for doing so. This doesn’t affect your right to pursue them through the courts if necessary for any damages (financially) that were incurred through their breach of contract.

Unfair Renewal Fees – a Court Decision

The National Landlords Association has recently been in the press supporting a decision that branded extra fees from letting agents as unfair. The Office of Fair Trading pursued the case which involved the practice of charging landlords a renewal fee if a tenant renewed their tenancy automatically – even if the agent had been underperforming and was technically in breach of their contract. In effect this was charging the landlord when the letting agent had done nothing.

The judgement that the OFT obtained in early 2010 made it clear that landlords “should not be presented with a surprise bill for services they have not consciously agreed to.”

The Next Step

Now that you have read through the advice above, you might want to put it into practice. Our Landlord Obligations Checker lets you tell us about your rental property and find out which UK landlord obligations you must meet right now. Try it now →

Showing 20 of 130 questions

Ask The Property Landlord a Question

Raj 14/03/2021 at 12:11 am

Hi,
I am terminating my lettings agent since they failed to repairment but they invoiced me one month letting fee with vat nearly 900£ is it legal?

Sarah 12/02/2021 at 10:23 am

Please could someone call me with some advise I have very ill health and have rang emailed and messagrd letting agent tuesday and everyday since, I have urgent issues at my property and have no other way to contact them I don know what else to do

Madness 25/01/2021 at 8:18 pm

I feel that my agent are not doing there job my tenant pays me directly and I have to ring the agent to pay fees this is due to the banks and agents not being open for tenant to pay to them. I have asked agent about cancelling the agreement with them as they have not managed my property in the last year due to covid 19 they say I have to give 3months notice and pay them 2 months rent is thus right. They have done nothing at all.

Aleks 24/12/2020 at 2:40 am

Letting agent don't return deposit over one month and not answering the reason. TDS claim already made. Can I claim any compensation?

Ray 13/11/2020 at 9:35 pm

I set up a tenancy agreement on a rental flat via an estate agent. The landlord decided that they did not wish to rent the property to me and therefore my holding fee was returned. I had not realised that I had set up a monthly direct debit for the property and had not cancelled this. Therefore 2 weeks later I paid the letting agent a months rent. I contacted the agent to request my funds return. They have informed me that they had already made payment to the landlord who refused to give me a tenancy. They said they would request the return of funds from the landlord in order to return the funds to me.

3 weeks later they are telling me they are still waiting for the £950 to be returned by the landlord. I have asked for the landlords details so that I can contact them directly. The agent say they can not provide this due to data protection.

I asked why the landlord was given the payment as they should have identified that this tenancy was declined. They say they rented the place to someone else and the landlord has been sent both my funds (by mistake) and the new tenants payment.

I dont understand if they are working with the landlord to rent the property and they made the mistake in paying my funds to the landlord why they will not return my funds as they are still managing the property and it's current tenant.

This situation has made me homeless as I did not have the funds to pay the deposit on a tenancy that I did have agreed.

Is there anything I can do to get my £950 from the estate agent? Please help?

DP 09/11/2020 at 7:47 pm

We recently found out that our tenant has been sectioned under the mental Heath act and has been in prison for attempted arson.

The letting agent denies any responsibility for recommending the tenant, stating that these things are not checked when referencing.

We issued a section 21 and then 3 weeks later there was a fire in the kitchen rendering the flat uninhabitable until repaired. Insurance will not cover the damage as they were not notified that a S21 had been served.

Is the agent liable? Should we contact the ombudsman?

Any advice would be greatly appreciated.

Dp

MARK 26/10/2020 at 1:43 pm

Hi. My letting agent, without informing me, told my tenant that they could give a month's notice half way through a 12 month fixed term Company Let Agreement. The tenant is a commercial entity that sub-lets serviced furnished apartments. The fixed term was at the tenant's insistence. The tenant is actively trading and marketing their services. Hence I was simply informed by my agent that the tenant had given a month's notice to quit, with 6 months left of the lease to run. The lease does not allow for this and has no exit clauses. Where do I stand? The tenant can claim the agent agreed to the early exit, and therefore they are not liable for lost income for the remainder of the term of the lease. Is the letting agent liable given I was not consulted and given the lease (drawn up by the letting agent) makes n provision for early termination?

melo 15/10/2020 at 8:54 pm

ask my agent to ring my brother To ring him when they do inspections they don't.
Tenants have left and the tenant have not cleaned the bungalow garden or inside.
I want the tenant to pay for this and the agent said I will ask them??? if they will pay for the cleaning we've have had to have done they have been in 14 months. ??

sam 13/09/2020 at 6:38 pm

Letting agents didn't do proper checks on my tenants. The tenants paid only first month rent with deposit in the beginning later they were just dragging. The case is in court against the tenants but they left the property by subletting illegally without any rent. Property is completely destroyed by children and pets,which wasn't In the agreement. Now I'm told it's the tenant I should pursue and not them for the damage. Please can someone guide me on this? I definitely want to take the agency to the court as they were failed to complete background checks on tenants.

Col. 04/09/2020 at 1:39 am

I own a house that is rented out through a letting agent, but the agent said they can't give me a copy of the tenancy agreement because of the data protection act. I've been renting out for years and always had a copy, but they say things have changed, is this true. Surely as the landlord I have the right to see the agreement.

osnkosi 25/08/2020 at 3:01 pm

Help or advice.
My mom has rented for 10 years, the relationship started with an estate agent she paid first months rent and a deposit, and has paid rent in advance since.
7 years in relations between the letting agent and the landlord broke down and they parted ways.
It was agreed by the landlord and my mom the arrangement would remain the same.
I bought the house on 20 Dec 2020 paying last rentals on the 29/11/2020 to cover Dec.
6 months later the landlord has tried to claim the deposit my mom is owed to cover the rent for December.
Because he state we were paying at the end of each month, and the estate agent should have returned first month rentals to my mom which they never did.
The letting agent no longer exists. Who was responsible for the first month rent when ties where cut with the letting agent, the landlord or my mom? The landlord cut ties and sorted putting the deposit in a secure hold, nothing was discuss about the first months rent at the time.

Selina 18/08/2020 at 2:53 pm

I would like to know what was the advice regarding the leak in the house that the tenants had reported and the landlord themselves have been over and notified the letting agent to sort it out with highest urgency incase of having to foot a bigger bill if it continues to be neglected.
Come 5 weeks later, the estate agent have not done anything about it and now the floorboards have completely gone. Should the letting agency pay part of the repair bill or reduce the management fee?

Sam b 24/07/2020 at 11:00 pm

Been with letting agent 4 years. Managed by them. Gold package- guaranteed rent and they maintain the property. Had 25k Bill as there seems to be a leak not reported for years that has ruined numerous walls, flooring, decoration and so much more. They’re saying I’m at fault but we knew nothing and have not been allowed to access property as managed. What do I do!!!

Rigsby 08/07/2020 at 10:10 am

Letting agents didn't do proper checks on my tenant, boyfriend not in hospital but in prison. House completely destroyed by her children and pets,which wasn't In the agreement. Now I'm told it's the tenant I should pursue and not them for the damage.

Mr B 11/06/2020 at 10:13 am

What can you do if your my letting agent didn't take a deposit and never informed me? My tenant seemed to have abandoned owning me 3 months rent.

Pat 08/06/2020 at 9:49 am

Just found out my letting agent has not inspected my property for over two yrs. This is part of the service I pay for. What can I do?

B 03/06/2020 at 9:28 am

I have had full management by the letting agent , who has charged me for work ,and
Estimate for more work needed, it was over £1,500 so I have taken the full management of so we do our own repairs, and checks ,
After going the the house I found a water leak and damp problem was reported over 6 months ago , the maintenance was not done and the house has lots of water damage now because of the incompetence of the letting agent and property maintenance, they are asking me to pay there bills ,
Can I clamp against the letting agent for not keeping my house in a good state of repair
Please advise many thanks Bob

Boycie 27/05/2020 at 2:52 pm

My letting agent wrongly advertised a garage as part of a let property. Having waited two months to get in, the Tenants discovered the garage was not part of the let on move in day and our now not going ahead. Am I entitled to a month's rent and council tax from the letting agent whilst they find a new Tenant?

Saxon 19/05/2020 at 1:37 am

I’ve been with letting agent 7 months , bk and fourth possible new tenants then not because of referencing problems, trying to get us to accept them with no garentor and no rent guarantee. Happend 3 times now. They find ppl that I’ve stated on their list that I don’t want and still ring me up and ask. Sick of them now . With house never had a tenant in . Can I just end with them and find another agent. Or will their be a charge to leave. ???

Colin Wall 31/03/2020 at 3:32 pm

I was a guarantor for my son and his girlfriend, they never paid any rent from the time they moved in (April 2018) to the time they were evicted (December 2018) the letting agent never told me that they had not paid and now I have a bill for £6,000 should the letting agent have told me once they didn't receive a payment for rent. Any help would be appriciated.

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