Tenants and landlords of two failed letting agencies are furious at the alleged loss of deposits and rents – and the reluctance so far of authorities to take action.
One victim said: “It appears that anyone can set up as a letting agent and take tenants’ and landlords’ money, and the authorities will turn a blind eye to it all.”
One of the agents was in Swansea, Wales, and the other in Glasgow.
In Swansea, ADS Lettings went into liquidation last December 17. It was run by Steve Lewis, who was until eight months earlier a Martin & Co franchisee.
Sue Hopson, brand director of Martin & Co, said: “Martin & Co (UK) Ltd were experiencing commercial differences with Steve Lewis and after much discussion it was agreed to release him from the brand.
“He was going to continue to trade however under his new company name of ADS Lettings and continued to operate as an independent agent from the same premises.
“He changed his marketing to reflect his new company, set up a new website and continued to trade under his new company. The release occurred on April 16, 2010.
“Steve provided us with a list of the current landlords and tenants for whom he acted as a managing agent and therefore we wrote to them accordingly to confirm that he was no longer part of the brand and reconfirmed his contact details.
“We have had no further contact with him since he became an independent agent.”
An angry tenant who dealt with Steve Lewis when he was running his Martin & Co business is attempting to get his deposit back after his tenancy ended – with no disagreement between him and his landlord. He knew that his deposit had been protected by the TDS.
However, on contacting the TDS after his tenancy ended, he was told that the scheme had written to him last November staying that the deposit would only be covered for a further three months.
The tenant says he never got the letter, and was unaware that his deposit had disappeared. He said: “I am still trying to find out what has happened and where in fact my money is.”
The TDS has suggested he takes legal advice.
In Glasgow, a firm called Access Properties (Scotland) ceased trading about mid-May this year. It was run by Niki Ihle, who is now acting as a consultant for another letting firm, At Home Property Letting.
Angry customers claim that they have been told by Glasgow Trading Standards that she has no assets to pay out.
One said: “It seems that the authorities won’t help. Whether Niki Ihle’s story is credible remains to be seen. The police won’t help, as to them it is a civil matter. Trading Standards are ready to give up.”
He called for regulation of letting agents, a mediation service for complaints, a requirement to hold tenants’ deposits in separate protected accounts, and a requirement for letting agents to hold insurance.
We contacted Niki Ihle who said: “I am not interested in talking to you.”
Comments
Why do landlords continue to use non Regulated Letting Agents I do not know?
I know it's not fail safe but it gives landlords and tenants a better then even chance of recovery of some spondoolicks if the agent goes belly-up.
It also shows a willingness on behalf of the agent to stand up and be counted.
People usually only use ABTA agents for a package holiday or ATOL agents when booking a flight for protection so why should letting a property be any different?