Plymouth Based Letting Agent Closes after 12 months

Residents in the Stoke Village area of Plymouth have been left wondering what has happened to a letting agent that has suddenly and without warning, closed down. Hot Homes UK started trading in August 2010, but now the premises have been closed, leaving nothing behind but rubbish and unopened mail.

Needless to say, lots of local residents, tenants and landlords are now wondering where their money is and what position they are in. According to reports, the directors of Hot Homes UK are a mother and daughter, Jacqueline Burridge and daughter Kayleigh.

Two arrests have since been made, and a spokesperson for Devon and Cornwall Police made the following statement: “Police and Trading Standards are carrying out a joint investigation.” They went on to say that “Two women aged 39 years and 18 years, who were arrested on July 13^th, were released on bail until October 5^th, pending further investigations.”

Landlords and tenants both left out of pocket by rogue letting agent

Various reports have been coming in concerning tenants and landlords who are owed money by Hot Homes UK. People are said to be out of pocket for anything from a few hundred pounds to a few thousand pounds.

The Westcountry Landlords’ Association has been fielding calls from worried landlords. Anyone who is owed money by the letting agent is encouraged to call the WLA on 01752 242980. It is understood that Trading Standards became involved in looking into the company initially, but upon further investigation the police became involved as well.

The spokesperson for the Devon and Cornwall Police also added: “Police are investigating potential fraud and theft offences in respect of the company, which has ceased trading.”

What should landlords do when approaching a lettings agency for the first time?

Many landlords hire a letting agency to take care of finding tenants and managing their properties. Most landlords will find it to be a cost effective and practical way to handle properties. But the news in Plymouth shows just how important it is to make sure you do your homework before hiring a letting agent.

7 questions to ask a potential letting agent

When looking for a letting agent, here are 7 questions to ask to help make sure you don’t end up with an agent like ‘Bodgett & Scarper’:

How long has the business been established?

Typically, the longer established firms will have the experience required to run a business and a reputation which you can use to help you make a decision.

Can the agent provide references from other landlords?

All letting agents should be able to provide you with references, customer quotes, case studies and the opportunity to speak with existing landlords – and some tenants too.

How many properties are being actively managed?

You might be comfortable with an individual managing just a handful of properties but it’s likely that firms managing hundreds or thousands of properties have more robust systems and procedures in place.

Is the agent a member of ARLA, NALS and the Ombudsman?

If the agent is not a member of the Association of Letting Agents (ARLA) or the National Approved Letting Scheme (NALS), then don’t entertain them. It’s not compulsory (yet) for letting agents to belong to a professional body and there are currently no plans to introduce mandatory regulation of the industry. Until such time as regulations are introduced, make sure you choose an agent who belongs to ARLA and NALS (both is best). Good letting agents will also belong to the Property Ombudsman for Letting.

Is rent money held in a bonded account?

Rent money ALWAYS belongs to a landlord or a tenant, and never to a letting agent. The letting agent should have a bonded client account which cannot be seized as a business asset if the agency closes down. ‘Bonded’ means there is underlying insurance to protect landlords and tenants.

Is the agent a member of the SAFEagent scheme?

Look for the SAFEagent logo or look for the agent on the SAFEagent website.

How does the agent accept payment of rent from tenants?

Avoid agents who either collect rent in cash or who accept cash payments from tenants. Cash can be lost or stolen. Rent should always be paid straight into a bonded client account by Direct Debit or Standing Order.