Warning To Members - Fife Digs
In an earlier article, we quoted the example of Fife Digs and rooms contracted for 6 months being vacated after less than 3 months. Unfortunately this was not a 'one-off' and we have had a number of members and at least one letting agent who have let us know of their bad experience with this agency.
Obviously we are not in a position to say anything bad about this agency, but we are duty bound to warn our members of the bad experience of others and to advise a great deal of care should this agency approach you.
Here is what we know...
As mentioned in the previous article, Chris Sheen of Imuvelettings let a block of houses belonging to 10 of his landlords on a 6 month contract, took 3 months money at the outset and then received no further monies after that and the contractors left the houses and moved back to Scotland.
Another landlord contacted us and complained that Fife Digs abandoned a tenancy during the fixed term and asked him to sign a release form in order to enable him to keep a deposit and some unwanted and no doubt low value electrical goods abandoned in the property. His agent, Christies, has quite properly advised him not to sign any such release form.
Looking at the publicly accessible information at Companies House, Fife Digs is less than 3 years old and on last listing has net assets of £3700 or so, so half what they owe just this one landlord.
2 of the 4 directors have histories of multiple dissolved companies whilst Mr Pitman is a director of 3 companies, none dissolved and oddly appears to reside in Wales (odd for a director if a Scottish Company).
One of our advisors said, "I therefore consider it to be a moderate risk of folding to escape multiple debts, but having said that they have a tidy looking website with a landline and do show evidence of trading. That they have a contract to house workers on a publicly funded contract may suggest that they would try to keep the show on the road to avoid repetitional damage. On balance, as a landlord myself, I would consider a robust opening move such as a letter before action setting out a formal demand. We have links with Larcomes and Saulet both of whom have been strong supporters of PDPLA You can also approach 12 College Place barristers chambers in Southampton to direct instruct a barrister but I think a solictors letter is your best opening bat" He went on to state, "Given that this is being done in the name of a public contract, one further approach might be to notify your MP and ask them to forward it to the Public Accounts Committee as evidence of sharp practice in defence procurement".
If Fife Digs were a local agent, we would be questioning whether they were members of a redress scheme (which in England, is a legal requirement) and we would be advising members to take up their issues with the scheme in question - but as an agency based in Scotland, operating here in Portsmouth with a director based in Wales the situation is at best, confusing as each country has quite distinct housing and letting legislation and enforcement practices, so in conclusion, all we can recommend is due diligence, extreme care, cast iron contracts, guarantors or sureties and where possible, deal with local companies or known ones. (Please note - as far as we now, Fife Digs is completely separate from Fife Lettings and the latter appears to be a bona fide agency operating only in Scotland).
About the author
Martin began his landlord journey 30 years ago, while working in an international role for a global telecommunications company. Since retiring he has extended his portfolio, which he manages with his wife, but has always focussed on the ‘small student HMO’ sector preferring to offer homes in the community for small groups to the more common ‘pack them in and take the money’ mentality. He has chaired the PDPLA for the past 12 years and has overseen the Associations transition from small local self-help group to a much larger and more professional institution which is recognised and listened to nationally. Alongside his PDPLA role, he also has leadership roles in a number of other local organisations – bringing his unique perspective, driving for change and increased use of technology while respecting the history that brought us here.