Three sales and lettings agents have been expelled from The Property Ombudsman (TPO) scheme after failing to pay awards ordered by it – in one case over £180,000.

One of the three firms apparently continues to trade despite being unable to offer redress, as is legally required. TPO has informed Trading Standards.

Altavon Property Management (APM) in Luton received a ten-year expulsion after it failed to pass on rent received on 31 properties.

The company, which didn’t provide documentation to help TPO with its case review, did not pay awards totalling £181,254 as TPO ordered.

Under the terms of APM’s agency agreement, it agreed to manage 31 properties for a landlord. Unlike a typical full managed service, the two parties entered a two-tier tenancy whereby the complainant let the properties to APM in return for a specified rent for a period of time.

In turn, APM could then sub-let the properties to tenants of their choosing. Therefore, the obligations in relation to the properties were set out in the let agreements rather than terms of business. However, the TPO said this alternative arrangement did not undermine APM’s obligations as a lettings managing agent under its code of practice.

Altavon Luton Ltd, based on George Street in the town, is a separate business to APM.

In the second case, Total Property Management, based in Hounslow, London, was expelled from TPO’s scheme for three years and six months after three separate complaints, predominantly relating to non-payment of rent to landlords whose properties they managed.

Total Property Management, which is not thought to be actively trading, did not co-operate with any of the complaint reviews and did not pay awards totalling £26,341.

The Ombudsman upheld one complaint against Total Property Management for owing a total of £11,675 for not forwarding rent received. The landlord was also awarded £500 for avoidable aggravation, distress and inconvenience.

The second complaint against Total Property Management related to over £3,696 of rental money that was not passed on, while the agent was also criticised for not conducting regular inspections or forwarding confirmations, not attending to a maintenance issue and not responding to complaints made. For the shortcomings in service, as well as the failure to forward rent received, £850 was awarded. The total award was £4,546.

In a further complaint, a landlord said Total Property Management had failed to pass on £3,040 rent received.

In the final case, Seekers Estate Agents in Erdington, Birmingham, failed to pay awards totalling £4,137 following two separate complaints relating to a series of failings in its letting and management service. It has been expelled for a minimum of two years.

Once again, the agent did not respond to any requests from TPO to co-operate. It failed to pay awards made of £2,675 in one case and £1,462 in another.

In the first complaint, a landlord raised several concerns about the letting and management of her property, all of which were upheld by the Ombudsman. These included the agent’s failure to provide a written management agreement, giving prospective tenants access to a property before they had signed an agreement, and giving them permission to redecorate without the complainant’s permission.

The agent also gave wrong and misleading information, did not protect the tenant’s deposit and did not carry out referencing checks. There were also several management issues during the tenancy relating to arranging suitable contractors to carry out work required and investigating possible breaches of tenancy.

The Ombudsman made an overall award of £2,675 to cover financial loss equal to the tenant’s deposit and for anxiety, distress and inconvenience.

In the second case, the complainants said that the agent had not registered the tenant’s deposit of £862 with an approved deposit protection scheme, had not issued prescribed information or passed on tenancy information including the agreement, referencing checks, gas inspection status, or EPC.

The agent was also criticised for the handling of the complaints, failing to respond to several letters including one from the complainants’ solicitor. The Ombudsman awarded the complainant £1,462.

It is seemingly still trading and displaying properties for sale and as a result, TPO said it had informed Trading Standards.