Letting agent refusing to pass on an offer

[SaltnVinegar]

Hi All

Quick question to all the private landlords.....

We are looking at renting and viewed a house this week that we were very interested in. Its been on the market for several months now with at least one collapsed application (applicants decided they liked something else).

We thought with this in mind, and that the rental being asked for is high for the area and market conditions, we made an offer to the agent. It wasn't outrageously cheeky (15% off what was being asked). The agent stated that they were not prepared to pass on this offer to the landlord.

Now I know that estate agents are legally bound to pass on offers to vendors in the 'for sale' market, but does this also apply to the rental market?

I'd have thought, as a landlord, I'd be well hacked off should an agent not inform me of an offer, no matter how cheeky, especially if the property had been lying empty for many months.

I know its likely I won't be able to do much about this if they are acting unlawfully (except avoid the letting agent in the future), but at least I'll be armed with knowledge should I encounter it again.

Best
SnV

[SXGuy]

Re: Letting agent refusing to pass on an offer

If the landlord said, don't bother telling me of offers below £x per month, then that may be why they said they wouldn't pass it on, as to them it would be a waste of time? just a thought.

[SaltnVinegar]

Re: Letting agent refusing to pass on an offer

If the landlord said, don't bother telling me of offers below £x per month, then that may be why they said they wouldn't pass it on, as to them it would be a waste of time? just a thought.

Thanks SXGuy, That thought did cross my mind so I did ask the letting agent if that were the case but they said they thought it was an offer the landlord was unlikely to accept, rather than the fact the landlord has dictated a lower limit. The agent was also going to manage the property and my impression was that they earned a % cut of the monthly rental (I asked a lot of questions when I'm viewing!) which may have explained their reluctance to pass on a lower offer.

[PlanB]

Re: Letting agent refusing to pass on an offer

Most agents belong to The Property Ombudsman which has a code of practice. Point No 6b says that an agent must pass on all offers "unless the offer is of a type or amount that the client has indicated previously (in writing) is unacceptable".

http://www.tpos.co.uk/code_of_practice_rents.htm

If the property has been empty for months then I would have thought any offer would be acceptable, although some Landlords choose to leave a property empty to minimise their tax liability. However there's a downside to that since council tax rules changed recently and a Landlord is only exempt from council tax for 8 weeks on an empty property - it used to be six months, so it's costing this Landlord to leave it unlet. Also most buildings insurance stipulate you cannot leave the property empty more than 30 days.

There's something curious about your situation though. The agent only makes money if they let a property. They rely on commission only, plus any fees they charge the prospective Tenant for references and admin. So there's no logic to frustrating an offer. In fact most agents will do their best to persuade a Landlord a low offer should be considered if the deal has other merits such as a longterm tenancy, or a financially sound applicant.

The only thing I can think of is that there may be a hidden agenda. Landlords can't discriminate on the grounds of sex, race, religion etc. They will tell a letting agent (never put in writing to avoid detection) that they won't accept "blacks" or "gays" so the rejection is put down to rent issues to get round the prejudice. It's ok to say you won't accept pets or children but it's not ok to be racist.

If you love the place why not find out who the Landlord is (ask a neighbour) and make your offer direct which makes it seem higher to him since the Landlord won't be having commission deducted from it. That'll teach the agent not to pass on your offer

[PlanB]

Re: Letting agent refusing to pass on an offer

The agent was also going to manage the property and my impression was that they earned a % cut of the monthly rental (I asked a lot of questions when I'm viewing!) which may have explained their reluctance to pass on a lower offer.

That would be silly of them. 15% of some money is better than 15% of no money.

If the property is being managed then that suggests the Landlord is either living abroad or has a big portfolio and can afford to hold out for the Tenant of their choice.

This means you can ignore my last post which I made before I read the above

[SaltnVinegar]

Re: Letting agent refusing to pass on an offer

That would be silly of them. 15% of some money is better than 15% of no money.

If the property is being managed then that suggests the Landlord is either living abroad or has a big portfolio and can afford to hold out for the Tenant of their choice.

This means you can ignore my last post which I made before I read the above

Thanks Plan B

I'm not sure what the issue was tbh, I'm neither black or gay. Oh hang on a moment, I am Welsh

[PlanB]

Re: Letting agent refusing to pass on an offer

I'm not sure what the issue was . . . . Oh hang on a moment, I am Welsh

That's definitely the problem

If you really liked the property why don't you ring the manager of the letting agent and tell him you're disappointed that the young man who did the viewing refused to pass on your offer (that'll get him into trouble!) and ask them to reconsider. Maybe even offer a tiny bit more or take the opportunity to 'sell yourself' to the boss as a solid family guy who will look after the property as if it were your own and you intend to stay there for years.

[SaltnVinegar]

Re: Letting agent refusing to pass on an offer

That's definitely the problem

If you really liked the property why don't you ring the manager of the letting agent and tell him you're disappointed that the young man who did the viewing refused to pass on your offer (that'll get him into trouble!) and ask them to reconsider. Maybe even offer a tiny bit more or take the opportunity to 'sell yourself' to the boss as a solid family guy who will look after the property as if it were your own and you intend to stay there for years.

Thanks Plan B

I don't want to get the young lady into trouble, I'm sure she is either being told what to do by those higher up, and I'd prefer to stay sweet with them as we do like the property. I just know its a dog eat dog world when it comes to estate agents so wanted to know what reasons there may be (legit or otherwise) so we can negotiate through those shark ridden waters!

[PlanB]

Re: Letting agent refusing to pass on an offer

I don't want to get the young lady into trouble

Why not? She should have told you why she wouldn't put your offer forward to the Landlord. Did you ask her why? If she had said because it was too low then you could have asked her what was the minimum the Landlord would accept. No point in beating about the bush.

There's no need to be nice to her - the letting agency is a business which rents property not a dating website. There's no need to be nasty either, but I see no harm in asking her senior what would be required to make the deal work since she didn't seem to know or wasn't prepared to reveal.

Believe me the property game isn't about niceties.

[patchouli]

Re: Letting agent refusing to pass on an offer

Cant you find out who owns the property through land reg and write to them yourself?

[SaltnVinegar]

Re: Letting agent refusing to pass on an offer

Why not? She should have told you why she wouldn't put your offer forward to the Landlord. Did you ask her why? If she had said because it was too low then you could have asked her what was the minimum the Landlord would accept. No point in beating about the bush.

There's no need to be nice to her - the letting agency is a business which rents property not a dating website. There's no need to be nasty either, but I see no harm in asking her senior what would be required to make the deal work since she didn't seem to know or wasn't prepared to reveal.

Believe me the property game isn't about niceties.

Thanks PlanB

I didn't want to go in all just yet because if I played 'awkward tenant' at this stage I wouldn't want another applicant to be favored over us.

I was interested to find out if there were legitimate reasons also for an agent to do such a thing as they are managing the property I wouldn't also want to be dealing with an agent who was a little bit amoral (been there done that not something I'd care to repeat).

I've been asking around with the neighbours to find out who the landlord is and it would appear they are overseas which may explain some of the reticence also.