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Tuesday, 17 March 2015

Landlords beware of some rent to rent companies

The Times has published a story entitled “Rental dream that turned into a nightmare” which should serve as a warning to landlords not to trust so-called “rent-to-rent” companies. The full story is behind The Times’ paywall but the gist is a pair of amateur landlords were taken in by the promises of a guaranteed rent company called Rent Sparrow – and it’s cost them dear. 

They were contacted by a man called Jerome Baker who emailed them a three-year AST to sign – and they did. However, alarm bells started ringing when the couple later started to research Rent Sparrow online. Despite Baker’s claim it had been operating for years, they discovered the firm was only set up in December 2014. They also discovered a website called Fixed Rent with virtually identical text. They tried to call the number on the website but couldn’t get through. 

At this point they hadn’t received any money – deposit or rent – from Baker nor handed over the keys. They told him they wanted to pull out of the deal. In response Baker broke into the property at 3am one night, changed the locks and moved in tenants. They called the police who insisted it was a civil matter. Baker maintained that as they had signed an AST, he had a right to the property.

The couple have now employed Landlord Action to have Baker evicted from the property on the grounds he misled them about his credentials.

The Times also quoted another landlord who’d allegedly been victim of a man called Jerome Baker, matching the description of the man in the story, illegally subletting her property. Baker owes her £9,000.

http://www.landlordtoday.co.uk/news_features/Rent-Sparrow-warning

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