A sad story

I met a lovely couple last week that have 2 flats they rent out, they need the income to pay the mortgage. They had been using an agent that was not a memeber of any regulated body such as the government backed scheme NALS (National Approved Letting Scheme). The agent started to face financial difficulty and failed to pass on 2 months rent to the landlords. Alarm bells were ringing, as was the agent's phone, but no one answered. On visiting the agent's office they found the company had gone into administration, the owner disappeared and the deposits spent! The agent did not have Client Money Protection Insurance in place.
This couple now have to cough up their own money to pay the deposits back to the tenant when they move out, plus the loss of 2 month's rent on 2 flats! £4000 loss!!
So what's the story and learning points.
1 Always use an agent that has Client Money Protection Insurance in place
2 Make sure they are members of a regulated body - the best one is NALS but ARLA are good too.
3 If an agent uses the tenant deposit scheme and actually sends the money away you are in even safer hands
4 Franchise agents have to stick to rigorous standards to keep their franchise licence and are independently audited twice a year
5 Only use agents that are members of The Property Ombudsman as this gives extra security and the avenue of complaint if dissatisfied with any part of the service
6 Beware agents that aren't VAT registered,a small saving, as it implies they are a 1 man band and perhaps not a serious long term business
7 If the rent is late, ask for evidence from the tenant (bank statements) to get to the truth quicker.

Hope this is of some help, call me if you need any further reassurance or have an ongoing issue at the moment. Belvoir Lettings Guildford 01483 537200