Lots of landlords pay letting agents to manage their properties. If you don’t have the time or inclination to do the job yourself, it can be a lifesaver. The problem is that a lot of letting agents charge ridiculous sums to carry out routine maintenance tasks. Some landlords might not scrutinise their bills all that closely, but one landlord did and now the agent is facing a mammoth legal bill.
Foxtons Under Pressure
Foxtons is a huge up-market estate and letting agent, with a lot of business in the London area. The landlord in question engaged their services to manage his London property and all was well until he complained about a sub-standard repair on a light fitting and demanded a refund. The agent told the landlord to contact the maintenance company directly, who then informed him of the cost of repair – which was considerably less than his bill from the agent.
It transpired that by the time the agent had added on ‘management fees’, commission, and had been paid commission for passing on the work, the invoice from Foxtons was marked up by 49%.
Solicitors on the Case
The aggrieved landlord has now instructed solicitors to handle his case on the basis that the ‘hidden commission’ was not highlighted in the contract and there is a conflict of interest. As a result of the claim, thousands of other landlords could also be entitled to sue for compensation in claims that could end up costing the company as much as £42 million.
