Thinking of Letting - Watch Out

Up till now I was aware of huge commissions being charged, huge tenancy fees for tenants and creative miscellaneous charges, what I found out a couple of months ago blew me away literally. An uncle of mine called me for advice, He and my disabled aunt who are nearing retirement had 2 vacant properties, his English is poor but he assumed ‘Foxtons’ with their swanky high street office/coffee bar would be a reputable company to find tenants and mange the tenancies. Although a little high he agreed to 11% introduction commission and £78 + vat monthly management fee, both properties were promptly let he was initially happy with this (despite £350 cleaning charge for an already clean property). Into the 3^rd month of the tenancy he was concerned that no payment has been received into his account, when he queried this he was advised his commission account was not cleared and further more one of the tenants had not paid and they suggested he follow this up !.

Having investigated this matter myself (after visiting Foxtons office & requesting copies of documents which they claimed to have previously supplied) I have discovered the following very alarming points and would welcome any solicitor to advise or even take this matter professionally;

1)      When I requested copy of the Tenancy deposit certificate, they advised the deposits had been protected, and the certificates were at the head office and would follow in the post. Some 3 weeks later the certificates did arrive, having read them, one of the deposits was protected 2 months after the tenant had paid and moved in (funny enough dated the same day of my visit) another had been paid by the tenant after commencement of the tenancy.

2)      When I requested to inspect the references for the tenants this was even more alarming ( I must say I have subsequently met both tenants who we could not be more pleased with) we discovered both were housing benefit recipients (one employed another full HB) there were no references for the HB tenant and a guarantor form, when I requested references for the guarantor I was told this was not necessary (none were taken)

3)      MOST ALARMING the negotiator had agreed 11% for each property and the management fee (expensive, but ok it was agreed), what we have now discovered one property has been let on a 3 year AST and another on a 5 Year AST with built in rent increments (which can not be guaranteed to be sustainable given they would be reliant on Housing Benefits). There is no power to end the tenancy by either tenant or landlord before the term (3-5 years), this is very dangerous, they should not commit their landlord to such an agreement with a tenant who is in effect unknown – NOW READ THIS – he has been invoiced for approximately £15000.00 + VAT 5 years introduction + 3 years introduction commission (YES £15000.00 + VAT), REMEMBER THIS IS FOR LETTING THE PROPERTIES TO HOUSING BENEFIT TENANTS ( contact any council and they will send you a dozen applicants free of charge)

4)      The agreements were not explained to either Landlord or the tenants, at no time was it made clear that such fee’s (several years in advance instead of the industry standard 1 year) were payable by the landlord or the affordability of rent increments to the tenants

Now I understand how such luxurious offices and flash cars are affordable – at the expense of decent hard working honest people

Why did your uncle sign for five years.  Is he an simpleton?

they couched me into signing a 2 year contract , i got pregnant , the flat becomes unsuitable to live in. i gave them thre months notice and still say to me that i 'm liable after witholding 1000 pounds deposit

for anyone to not read paperwork and just sign it is purely retarded. They could charge you what they like and if you sign for it...well that is just unlucky! People like you and your uncle are the reason we have such a messed up economy...a bunch of clowns signing anything without reading - let this be a lesson to you!!! You both just signed anything you could when you heard 'offer'. Typical money grabbing fools you both are!

you can't have 5 year tenancies. Any contract term of 4 years and over, whether an AST or contractual let, has to be drawn up as a "deed", which is a hell of a lot more complicated, and not a tenancy agreement. So on the 5 year one, the contract is actually null and void if you're uncle wants out.

secondly, you can terminate the management, but they will require you to serve notice to terminate it, probably 3 months or something.

lastly, it isn'y industry standard to only take 1 years commission at a time, its industry standard to invoice for the mimimum period at a time e.g. if you have a 2 year contract with a 12 month break clause you'll get invoiced for 12 months then another 12 months after that period, but if you have a 2 year contract with no break clause you'll get invoiced for 2 years.

Unlucky! My mate works for Foxtons and you've just paid for his company summer holiday to Ibiza, his new BMW 120 company car and a fat pay check at the end of the month! 

I'll say thanks on his behalf.

I suggest you read the T&C's next time.

You only have yourselves to blame!