Feb

Landlord wins compensation after challenging agency’s ‘unfair’ lettings contract

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A landlord who complained after being told she could not exit a property management contract with a leading lettings agency until the tenant left has won her case.

The Property Ombudsman (TPO) has awarded Karen Markham £408 in compensations after she sought redress over her run-in with the Wokingham, Berkshire branch of Romans.

Her saga began three years ago when she bought a buy-to-let property via the agency, subsequently asking it to find a tenant and manage it as well.

Markham subsequently found out that her contract with Romans stipulated that, if she wanted to serve the agency notice, this could only be done after the incumbent tenant left.

TPO has ruled that the terms of business and communications did not clearly outline the circumstances under which the instruction could be terminated.

The ombudsman said it was “not satisfied that this liability for continuous fees, without the ability to serve notice, was specifically drawn to the Markham’s attention.

Agency criticised

“The fees in the contract are not expressed in clearly labelled sections. I have also not found that the contemporaneous system notes are sufficient to conclude that the indefinite nature of the rent collection service was explained sufficiently.”

The Ombudsman also criticised aspects of Romans’ communication with Markham.

Richard O’Neill, MD of Lettings at Romans, told Wokingham Today that: “We have worked closely with trading standards to review our documentation and have actioned their suggestions to improve clarity and avoid similar issues in the future.

“A review of this kind is strictly confidential between Romans and the complainant. Therefore, we will not be publishing the results publicly, however we have now changed our terms and conditions and we do not enforce old policies.”

Guide: How to choose a letting agency.

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