Hi, we have a number of properties which are fully managed by a Letting Agency(LA). One of the properties has a long standing tenant who is in receipt of housing benefit which is paid to him and he sends to the LA. Last year the rent was increased on all our properties. We knew this tenant would need help and it would take time so we delayed his increase until September. However he was unable to make full payments until March this year so I expected him to be in arrears and questioned the LA. They informed me that they were unsure why he was not showing arrears and then after I pursued the issue they informed me that they looked at the ledgers and realised he had made 13 payments a year over a number of years ( not all ). I was always of the opinion that the rent was paid 4 weekly as is his HB, 52/4=13 and left the rest to the LA. However the contract reads that the tenant should pay PCM. The LA has not alerted us about these overpayments until this ( they go back several years). I am really confused about how this could happen and it has left us in a very vulnerable situation as no doubt we will have to repay the overpayments ( when they are calculated ) and it will be a large sum. The LA are not being overly helpful and said they changed their system in 2020 so can’t go back any further.I can’t look at statements pre 2018 as we changed our bank account then and our old bank will not go back beyond 5 years. I am also aware there were arrears on this property in the past as I have found an email from 2021 about this. It would seem that their system simply collects rent, sends it out and alerts if there are arrears, no end of year statement or reconciliation. Is there a limit to the number of years to reclaim ? Also is there any responsibility on the LA as I believe that they have not done what they said they would do, fully manage the property and rent collections, their lack of action and attention has left us financially vulnerable ? I’m also a little worried that this is HB money and my LA says we have to refund the tenant as it was not a direct payment, do I need to contact HB about this also ? This is causing me sleepless nights and any help or advice would be very well received.
Id firstly check that the 4 weekly payments really are for the full monthly rent and havent just been recorded incorrectly by the agent.
If so, then Id suggest they calculate the overpayment, deduct the more recent underpayments and refund the difference and keep your fingers crossed.
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