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View Full Version : Wish to take a property away from letting agent and pay bills direct



tallbob
30-09-2010, 11:23 AM
I use a letting agent for the three properties that I have each property is split into 4 flats and they are all HMOs

I have 7 tenants over two properties which covers my mortgage and a few other things on all three, but I have a major problem with my last property

Under my previous agent this one had a fire in it was burgled used as as squat etc etc and basically it is uninhabitable the insurance company paid out to a company which cannot be traced,my agent defrauded me of a lot of money and went into liquidation

He is now on trial for fraud but my money has gone, my new agent manages all three properties and through them they have been getting in plumbers etc to do the work which was to be paid out of future rents as at the time I was in Spain

To cut an incredibly long story short I am back living in one of my flats and trying to get the other flats done to letting standard the plumber decided to pull his man off the job part way through

the work done ( I have been told ) is not good no earths on the gas boiler pipes nearly all plastic pipe used throughout, not enough fall on the toilet wastes etc

by tomorrow the 1st I will be two months behind with my mortgage with Mortgage express, my agent is using what rents come in to pay the bills and I get nothing with which to pay my mortgage

my idea which I hope is feasible, take the remaining property away from my letting agent with immediate effect as it is empty ( apart from me ) so the two bills plumber 6,500 electrician 1,100 will no longer be paid by my agent and I will get all my rent in full so I can pay my mortgage, then deal direct with sparks and plumber and come to some kind of deal to pay so much per month

Any pitfalls or something that I cannot foresee? I am not going to contact my agent about this until I get a clear idea of what I should do, hope someone can help

not sure if it's relevant but I cannot get any kind of benefits because I lived in Spain for 4 years.
my rental income should be around 1,700 per month and my mortgage is 1,100 per month plus my agent takes 10 per cent of anything collected anyway so things are tight

Springfields
30-09-2010, 12:10 PM
my idea which I hope is feasible, take the remaining property away from my letting agent with immediate effect as it is empty ( apart from me ) so the two bills plumber 6,500 electrician 1,100 will no longer be paid by my agent and I will get all my rent in full so I can pay my mortgage, then deal direct with sparks and plumber and come to some kind of deal to pay so much per month

Any pitfalls or something that I cannot foresee? I am not going to contact my agent about this until I get a clear idea of what I should do, hope someone can help



Hi, Is your agent charging you to manage the third property at the moment even though its vacant?

I can't see your agent preventing you from selling the contractors bills in any way you wish unless they have funded the the work upfront.

tallbob
30-09-2010, 13:30 PM
Hi Springfields

the agent is not charging me for managing the empty property, and they have NOT funded the work upfront

I do know that the agents company and the plumber have a very cosy relationship the plumber even uses a spare office at the agents to do all his paperwork, so why choose someone that close? well all the other plumbers wanted at least some cash upfront he was prepared to hold the invoices back for a few months but something changed his mind

Springfields
30-09-2010, 13:50 PM
Hi Springfields

the agent is not charging me for managing the empty property, and they have NOT funded the work upfront

I do know that the agents company and the plumber have a very cosy relationship the plumber even uses a spare office at the agents to do all his paperwork, so why choose someone that close? well all the other plumbers wanted at least some cash upfront he was prepared to hold the invoices back for a few months but something changed his mind

Theres no reason why you should not proceed as you wish to.

Your agent should overly force their option to retain monies against your account as this could be percieved as a conflict of interest (with the plumber in their pocket). Was there any agreement in writing that he would hold the invoice?

Its also within the agents interest for you to make payments towards the mortgage!

tallbob
01-10-2010, 07:08 AM
Was there any agreement in writing that he would hold the invoice?

There has NEVER been anything in writing.

Thank you for your answers,I am going to tell the agent today

dominic
01-10-2010, 10:13 AM
He's your agent and nothing more.

You can organise your cashflow in any way you want (although have a read of the agency terms and conditions).

Instruct your tenants to start paying you directly.