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Rent guarantee agency kicked out of TPO over £6,374 unpaid award

Case highlights the problems for landlords, agents and tenants when rent guarantee contracts go wrong.

Nigel Lewis

the london landlord rent guarantee

Rent guarantee specialist The London Landlord has been expelled from TPO after refusing to pay an outstanding award of £6,374 and also failing to pay its membership renewal fees.

The award came after TPO received a complaint from a landlord who let his property under a guaranteed rent contract to the agency, which then sub-let the property to a tenant.

Following an issue with damp in the property, an argument arose between landlord and agent over where the damp camp from – tenant’s actions or a roof leak – and the issue went unresolved.

Suspended payments

The agency suspended payments of guaranteed rent on the basis that the landlord was in breach of his repairing agreements.

But TPO concluded that rent repayments should not have been stopped because the freeholder, not the landlord, was responsible for the roof and that any damp caused by the tenant was the agent’s responsibility.

An award was made of £5,874 for unpaid guaranteed rent and £500 for aggravation, distress and inconvenience, totalling £6,374.

The London Landlord failed to pay the award or its TPO renewal fees and has now been ejected.

Its website is live but doesn’t feature any properties but the firm is still active according to Companies House, and TPO has not been able to confirm it has redress elsewhere, so it may be trading illegally. The firm has been referred to Trading Standards.

Three agents have been expelled from TPO for non-payment of much lesser awards ranging from £140 to £700 for both sales and lettings service failures. These are Foremost Lettings in St Leonards-on-Sea, Hawksley Pearce in Chelmsford and Leftmove Estate Agents in Blackpool.

Read more about rent guarantee contracts.

August 26, 2020

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