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Case Study E

Case Study E

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‘ It is an Agent’s responsibility to ensure that they work on behalf of their Clients to undertake all checks possible to determine the suitability of a Tenant prior to offering a Tenancy. The use of online referencing services should not be relied upon without other supporting checks to determine viability’.

DAY 1: Landlord approaches ABC for assistance, Letting Agent was retained on a Tenant Find basis only three months into the tenancy no rent has been received other than month 1 rent collected by the Agent on day of move in.

DAY 2: Tenancy transferred to ABC, notice of transfer of tenancy delivered by hand to tenant and arrangements to meet with the Tenant, all paperwork transferred to ABC from initial Agent.

DAY 5: Inspection made, tenant promises to pay rent, house in reasonable condition. Tenant informs on Universal Credit, tenancy has no Guarantor. Questions raised with Agent as to why Tenancy offered without security of Guarantor.

DAY 6: The initial Letting Agent fails provide evidence to support that Landlord informed of risk of agreeing to Tenancy without Guarantor. UC47 and request for TPD submitted to DWP – request refused.

DAY 14: Tenant is served Section 8 Ground 8 10 11 Notice - 14 days notice to commence proceedings for possession. Further UC47 submitted.

DAY 36: ABC prepare and issue the N5. Due to the fact that ABC undertake the majority of Tenancy related legal proceedings the cost implications to Landlords are far reduced. Hearing date set for six weeks.

DAY 80: Possession granted in the County Court but due to Covid 42 days provided to Tenant to vacate the property.

DAY 81: ABC commence investigations as to the background of the Tenant and the pre tenancy investigations undertaken by the Agent. Investigations found that the Tenant had failed all application checks and that the Tenancy should not have been offered to the Tenant. ABC provide advice to the Client that these issues should be raised with the Agent once possession of the property is obtained and the final value of the debt concerned.

DAY 121: Tenant vacates the property one day before the ending of the notice period provided by the Court.

DAY 122: All locks changed, Final Inspection undertaken of the property. Rent outstanding confirmed at £6,800.00 and disrepair to the value of £830.00. Court fees incurred confirmed at £455.00 giving a total balance outstanding of £8,085.00.

DAY 125: Case prepared by ABC on behalf of the Client and submitted to the previous Letting Agent raising a case for negligent processing of tenancy application. It could be seen that the Agent had retained the services of an online referencing service without any inhouse checks being undertaken and a Tenancy offered to a wholly unsuitable Tenant. Initially a without prejudice offer of £250.00 was offered by the Agent, Client refused this offer and an appeal was lodged.

DAY 139: Following the submission of ABC’s appeal the Client received a first and final offer of £6,800.00 from the Agent with an apology for any distress they had caused.