Easy-IT

It really beggars belief what they have done this time.

I wanted to ensure that I had the same facts that Reeds Rains Property Management would have whilst investigating my complaint.
To this end, I contacted the local branch and asked them to provide the dates that my tenants paid the rent and the dates that the funds were released to me. Remember, all I know is the tenants pay the rent in advance and the dates the money end up in my bank account.

I had a prompt reply from a person at Reeds Rains providing the dates, clearly showing the tenants had paid all the rent at least 10 days in advance at each renewal. It also showed the dates that payments had been made out to me.

The next day, today, I got an email from the usual representative at Reeds Rains, who stated that at the recent renewal the tenants had paid the first two month’s rent as single payments each month, and then 4 months in advance in the third month.

Both emails agreed on the dates that the money was passed to me.

I am now going to have to contact the local office, who would have taken the rent payment, to see who is telling the truth.
Hopefully, I will not have to resort to asking my tenants.

I am beginning to look forward to the response to my complaint, and if it will include an explanation to the inconsistency in the replies to my request.

On a positive note, Reeds Rains Property Management have now agreed that they had taken for 2 months management fees in error, and have released that money to my bank account.

Read Part 1
Read Part 2

Tags: Rant

Having written my last post about Reeds Rains Property Management, I re-read it a few times and received a few comments, making me decide to go ahead and register a complaint.
My complaint was acknowledged within the stipulated 3 days, and I was informed that the matter would be investigated and that I would have the results of that investigation within 15 working days, again in line with their procedures.

Well it certainly got the ball rolling, and the representative suddenly became far more conscientious about replying to my emails.
Unfortunately, this highlighted a further issue in that they had retained £295.20 for contractor work that had nothing to do with my property.
The representative also stated that my tenants had only paid 4 months rent, and so the management charges to be collected in February and March, as stated on their statement, were correct because there were 4 payments including the notice period.
The only problem is that the tenants had paid 6 months in advance, and Reeds Rains Property Management have paid 6 months rent into my bank account, less the management fees and the retention.
So it also reinforced the point that Reeds Rains Property Management really do not seem to know the basic details of their client’s account.
More worryingly, the representative’s incorrect conclusions were based on their investigations undertaken whilst there was a compliant in progress about the issues with Reeds Rains Property Management!!

They did agree to release the retention as soon as they saw the error. I have now written to them to convince them that they are again wrong, and to release the extra 2 month management fees that they have incorrectly taken.

I thought that to finish this post off, I would include the email that I sent to them:

Xxxx,

Thank you for releasing the retention that was incorrectly placed on my account.

I am surprised you are not aware that the current rental period was renewed from 25/10/2011, this was the period that the last tenancy period expired.
You should also have been aware that the current tenants renewed at that time, paying 6 months rent in advance, as usual, and not the 4 months that you claim.
It would seem that we are both missing “Statement Number: 6″ and/or “Statement Number: 7″, though I can confirm that two payments were made into my bank account when I chased for the rent.

Unfortunately, this means that your calculations are wrong.
Deductions have been made for management fees for February and March, as “Statement Number: 8″ details, as I pointed out in my previous email.

I have attached an Excel spreadsheet that combines the statements that I have from Reeds Rains and the payments hitting my bank account.
You should be able to see from it that Reeds Rains Management are currently holding £432, that should have been released to me back in October when the tenancy was renewed.
The £432 consists of the retention of £295.20 and 2 x management fees £86.40 x 2 = £172.80

I am sorry, but this again reflects on the inadequacies of Reeds Rains Property Management, especially in the light of that fact that I have had to undertake my own investigations to prove the conclusion of your investigations incorrect.
You should be more than aware of the income that has come from the property, the charges applied, and the resultant payments to my bank account.
On the positive side, it has provided me with the material for an update to my blog, which I hope to have written by the time that you read this.

Regards

Sean

Once we reach the conclusion of the complaint, and my business, with Reeds Rains Property Management, I will write a final post.

Read Part 1

Tags: Rant

Contracting Reeds Rains Property Management to manage my rental property was a mistake. Not only did I end up dealing with my own tenants, but I also had to chase Reeds Rains Property Management for the rent that the tenants had paid them.

A few years back I inherited a house, with my brother. I was fortunate enough to be able to get a second mortgage to buy him out.
I then spent a year and a bit bringing the house into the 21st century. The next thing to do was to find some tenants.
I had never intending making a mass of money out of the let, as a big chunk of it would just go in taxes. The plan was to make enough money to pay the mortgage, make repairs/improvements and a little bit of pocket money.

I decided to use Reeds Rains to undertake the letting, as I have always had a very close relationship with my local branch.
I would like to make it clear that the local branch has always been really helpful, knowledgeable and prepared to do what is required to get a solution that everyone wants.

The big mistake was to decide to go for Reeds Rains’ “Full Property Management Service” who, on their website, declare “This is the hassle free option if you wish us to take complete control of letting your residential property from beginning to end.”

I am very fortunate, my tenants sign 6 monthly contracts and pay the full six months in advance.
Out of that come Reads Rains’s 8% management fee, around £85. Yes it is a lot of money, but my rental is going to be “hassle free” and I can offset a chunk of it against my income tax liability, for the rent.

This starts the first part of my rant………
You would think that if your tenant pays all the rent in advance that that would be your money?
In the worst case you would think that Reeds Rains Property Management would pay you the collected rent, but retain 6 months worth of management fees.
I must confess that I find it a bit cheeky to take all the management fees up front, it is me that is paying the management fees, and not the tenant. The rent money is between me and the tenants; the management fee is between me and Reeds Rains.
However, I was happy to let that slide because it was the “easy option”, you could say it was the “hassle free” option.

So, the first chunk of rent was paid in advance by the tenants.
It would not be long and the money would be in my account………..
Some weeks later there was still no money.
I called Reeds Rains Property Management, asking where the rent was. I was informed that none had been paid by the tenants yet.
This prompts two questions:
1. If no rent has been paid, why did they let the house to new tenants?
2. I know the rent had been paid, so where was it?
I then spoke to the branch, who spoke to Reeds Rains Property Management.
I then called Reeds Rains Property Management and they confirmed they had the money and that it would be in my account in a couple of days.
Nearly two weeks later ONE month of rent, less one month management fees, was paid into my account.
Some of you maybe thinking, “but hang on, by now surely the second month’s rent is due?”. Yes, you are correct.
This becomes a recurring theme, in that on all three instances where there have been 6 month renewals, I have received the rent late. Somewhat ironic when you consider Reeds Rains Property Management is managing the property and collecting the rent, yet they could not even pay me the rent on time, that they had already collected!!

Anyways, to cut a long story short I decided to cancel my contract with them. The contract stated that I had to give three complete months notice, a quarter of a year, half the length of one of the tenancies. In anyone’s books that is an unnecessary length of time.
I guess I should have read the contract more closely.

I did get a reply from a representative of Reeds rains stating “Would you be happy to try for 1 further month if I personally will be yours and your tenants direct point of contact at the Management Centre.”
Let me get this right. I give 3 months notice and their response is to ask for an extra month to be mine and my tenants personal point of contact. What is going to happen for the next three months?
They also wrote “…..if your tenants are late with the rent we have a credit control department whom will deal with this efficiently….” Are they not aware that my tenants pay in advance at each renewal? Is it not in the notes that I have to chase the rent, from Reeds Rains Property Management, every renewal? Have I not constantly complained about the fact during my cancellation? Did they even listen?
Maybe I could get them to chase themselves to get me the rent on time
It does not do a lot to en-still an urge to stay with Reeds Rains Property Management.

I duly replied, and have still not had a reply from them.
I then chased, asking for an official notification that they had received my cancellation, and the end date for it.
I still have had no reply.

My tenants did renew, again paying six months rent in advance.
As usual, after chasing, I got paid one months rent, less management fees, 2 weeks after it the rent was due.
Yet again I chased, and was assured that it would be paid. I did remind them that I was in a notice period so only take three months management fees.

Yep, you guessed it. They did finally pay me all the rent owing, and they did take management fees for the entire rental period, including 2 months that they would not be managing the property.
I have emailed asking for an explanation, and again my email seems to have been ignored.
It is also somewhat ironic that the person that offered to be my single point of contact, and make everything better, is the very same person who I am awaiting to reply to my emails.

There are many other instances of their ineptitude, but some are quite minor and would only make me look like I am being petty.
However, when you add them all up they just add to the bigger picture.

To say I am annoyed is an understatement.
Again, I state that the local office has always been helpful and tried to do what they can, but unfortunately Reeds Rains Property Management hold the purse strings and are responsible for the rent payments.
There also seems to be no coherence in their management of the contract, with both my tenants and myself complaining about them, and their seemingly endless catalogue of errors.

Timeline:
20/11/2011 – Gave three months notice
23/11/2011 – Initial response with offer of management fee reduced by 1%
23/11/2011 – Replied with reason to terminate the contract.
24/11/2011 – “1 further month” offer.
28/11/2011 – Replied, and rejected offer to “1 further month” offer.
14/12/2011 – Requested confirmation of termination and a response to my last email, and refund of management fees taken in error.
21/12/2011 – Requested complaints procedure from local office, and started to write this blog.

Tags: Rant