Landlords and tenants have been warned that there is likely to be an increase in theft by letting agents once the fees ban comes in.
Writing on the Romans’ site, lettings director Richard O’Neill says there has been a growing trend for “cash-strapped agents using tenants’ deposits as a pay day loan to tide them over – although many do not repay the illegally borrowed funds”.
He says misappropriation of funds is likely to rise.
He says: “With the looming tenant fees ban, agents stand to lose a sizeable chunk of their income and so the pressure on smaller, independent agents will grow and, if the recent behaviour of misusing client money is anything to go by, the amount stolen will increase further, putting more and more landlords at risk.
“It is by no means all doom and gloom for the lettings industry – there are many compliant, honest agents who will go above and beyond to do the right thing by the customer.
“Some agents have employed a dedicated compliance team to manage the ongoing changes to legislation and ensure client funds are protected.”
The blog – which predictably invites worried landlords to go and talk to Romans – can be read here:
http://www.romans.co.uk/news-article/letting-agents-breaking-bad/716
Comments (13)
I don’t think Romans will be posting for a while…Lol
These are the firm’s which will feel the pinch once the letting fees ban comes in. They were going out and buying management books for this very reason like the Thamesview Group.
Similar to Freehold Ground Rent buyers.
Agree with all the above posts, these companies purporting to be all “holy” are the ones who have created the bad reputation which this industry has been unfairly tarnished with.
Non justifiable amounts of tenant fees sometimes in excess of £1000 and compliance which I have the feeling you could drive the proverbial truck through, I think Romans need to look closer to home, then point the finger at others.
All these banter is doing my head in. It’s FRIDAY. Let’s all have a little CHILL PILL. A bit of cheer. A little down time.
A little consumption of literary fiction. A little fun with this sizzling ROMANCE novel written by an estate agent.
Check it out here. http://amzn.eu/dOKHVv5
If ever there was a Post/Comment/Blog that had the opposite effect of what the aim was then this would be one of them! I have never had dealings with either, but, this has made me research. To be honest it doesn’t make for good reading. Think before you speak Romans!
Coming from a company that hikes 15% on all invoices, doesn’t tell landlords there tenants have given notice if they know the landlord is leaving them…
Sort your own house out!
My local Leaders office & another Firm which has offices country wide (!) , as well as a small independent agent all add a secret commission to contractors invoices of 15% + VAT. Contractor has to agree to this to be guaranteed payment every week otherwise invoices will be paid when they feel like it.
Contractor job that used to be £60 is now invoiced at £100 (to allow £18 to be kept by the Agents) who then pay contractor £82. The extra charge is to compensate contractor for tallying up a £100 invoice with an £82 receipt.
The only loser is the landlord who is oblivious as all he sees is a contractors invoice for £100.
Robbing b@st@rds !
Leaders are minimum 18% on contractor invoices but in most cases 20%. That will be the next thing that legislation comes out on ….
Romans and Leaders are scumbags of the letting industry, if they did not charge nearly £1000 for tenants fees it would not be banned.
I have crossed paths with them before and they are sharks out for blood.
Well done Romans and leaders for screwing the industry up for all us good agents out there that charge a reasonable agents fee and soon will not be able to charge anything.
This made me choke on my cornflakes this morning! …..It’s the exploitation of Tenants by companies such as Romans, who have charged ridiculously high Tenant fees for many years, that has led to this impending legislation in the first place.
Could not agree more with you !!! Both Leaders and Romans are major culprits
I’d be tempted to add Dixons Countrywide to that list, currently in my area they charge three times more than me!
Morning! With a response like that are you sure it wasn’t Weetabix you had this morning!
The irony! My sister told me yesterday that Romans want to charge her £499 as a single tenant (it’d be another £200 if there were a second tenant) on a flat costing £800pcm.
There are many letting agents no longer charging Tenant fees, preparing themselves ahead of time for coming legislative change. Those that aren’t exist in a state of panic, attempting to fleece Tenant’s to the last knockings. It’s despicable behaviour and Romans would do well to take a long, hard look at their own questionable charges on this score before suggesting their industry is awash with colleagues stealing clients’ money.