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Does propery management company has obligation to collect rent for the landlord?

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mxu5077 | 16:29 Wed 30th May 2012 | Law
6 Answers
I have let a property through a Property Management company and paid for them to manage the property, but the tenant has failed to pay the rent due and has left, which I was not notified of at the time.

I have no contract with the tenant as my only contract is with the Property Management company.

In this case, do I automatically have the legal right to demand the unpaid rent from the Property Management company, or is it possible that it may depend on the terms of the contract? And do I have the right to also claim from the Property Management company the lost rent due to not being informed that the property no longer had a tenant?


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What does your agreement with them say they will do?
A friend of ours had the same thing but they stayed and never paid the rent. He only got the rent paid because he took a full insurance premium with the agency.
Always read the small print - you've probably signed your rights away.
Question Author
Thanks for the answers.
You are right. I just read the small print, and it said that we will not be able to claim from the agent for any rent arreas by the sub-tenant. However, I was told otherwise before I signed the contract. the Porperty managment company is Choice, and if you check their website, it advertises that their managment service is a guarantee which protects you against unpaid rent and legal fees, which means you get total peace of mind.
Anybody know what is the best thing to do in a case like that?
You say you have no contract with the tenant; later you refer to the sub-tenant. Can you explain exactly what occurred?

The normal arrangement is that there is an assured shorthold tenancy entered into between the landlord (i.e. you, as you are the owner) and the tenant. If that was done, then you would have a contract with the tenant, there would be no sub-tenant & your recourse for unpaid rent would be a claim against the tenant.

The only alternative seems to me to be that Choice was actually your tenant, & they sub-let. If that is the case, what form of tenancy did they have?
It is easy to claim from your property management company, But you need to have awareness about how to choose property management company in order to maintain your properties. It is preferable to choose the best property management company based on the experience in this particular field.

Resource -

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