Ombudsman expels letting agency after it fails to pay compensation
Key Lettings and Property Management showed a 'systematic disregard for professional standards' according to The Property Ombudsman.
A letting agent has been expelled from The Property Ombudsman (TPO) scheme after ‘systematic’ failings and a refusal to pay the full redress amount.
Kent-based Key Lettings and Property Management was ordered to pay compensation totalling £3,100, but only made a partial payment of £2,000.
The grievances paint a picture of systematic disregard for professional standards.”
The original complaint to the ombudsman came from a landlord, who said the firm had failed to register deposits, collect outstanding rent, and provide relevant documents to a new letting agent.
The ombudsman says “the grievances paint a picture of systematic disregard for professional standards and landlord-tenant obligations”.
Misuse
Key Lettings failed to register two deposits and allowed the misuse of deposit funds for rent, which left both properties without security deposits.
The agent retained the last rental payment for one property due to a failure to deduct their commission fee from rental payments over the six-year management period.
And the Ombudsman’s Adjudicator criticised the agent for not providing regular account statements, and for failing to promptly notify the landlord of any outstanding amounts owed.
Compensation
The agent did not provide any evidence of the fees said to be owed by the landlord, and was directed to pay £1,000 in outstanding rent.
In total, the awarded compensation amounted to £2,000, with an additional £1,100 to the newly instructed letting agent for a security deposit, totalling £3,100.
Refused to pay
Key Lettings and Property Management refused to pay the remaining £1,100 for the security deposit.
The expulsion of this agent from TPO serves as a cautionary message for others.”
Rebecca Marsh, The Property Ombudsman, says: “I’m pleased to note that only one agent has been expelled from the scheme this quarter, reflecting the generally high standards of professionalism upheld by agents.
“However, the expulsion of this agent from TPO serves as a cautionary message for others who neglect their duty of care to consumers and fail to fulfil awards made.”
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