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FrançaisHaving just joined the Forum I have a new slant on an old issue re Not getting Rental Payment from the management company
Like others I have issues with the management company not paying the rent. There is a clause in my contract ( which presumably all leasebacks have) that I can give notice to the mgmt company and if the rent is still not forthcoming then the contract with that leaseback company is ended. My concern is that this is what the builder & anagement company want me to do as it free's them from a 9 year rental payment which was obviously part of the deal.
In my situation it is a villa on its own just outside Carcassonne, which should be very easily rentable.
I have three questions that some of you may have an opinion on.
How easy is it to change leaseback companies? ie are there companies that wiould be willing to enter into a contract If I was to leave the company I am with
If in order to pay the mortgage I have to leave the present contract as they are not paying and rent it out myself - What hapenst to the VAT refund?
All leasehold companies have to take out Proffesional Indemnity Insurance. Does anybody know what this covers?
Thanks in advance for your thoughts
Hi. I'm glad I've stumbled across this forum.
Is it very common for management companies to avoid paying the rent. We
have one property in the French Alps, and the rent was 6 weeks late in the
spring, and they have yet to pay the autumn installment which was due in
October.
Naturally this cause us a problem. Would you regular contributers
recommend getting in touch with the notaire that processed the purchase
for us 3 years ago, or perhaps getting a lawyer?
Any thoughts would be very welcome.
Frank
If you cancel the lease you will be liable to pay back the VAT in a period up to 12 months ahead. Also if you cancel the lease you may be kissing all of your previous rents goodbye. My advice is to get a french notaire and serve them with demands to pay and ultimately evict them or put the company in administration/liquidation. This will take around 12 months.
I currently have a lease sitting in front of me to sign where the company has no offices, no contact details and has 1000 Euros in the bank. In 12 months time they will have to shed out around 420,000 Euros in rent to us all. This I cannot see happening from a standing start with a new management company.
I am now taking legal action against the notaire to underwrite the management company as they cannot give me any references or previous developments this company has managed. I would have thought that this should have been done by them. My fear is that a "bogus" company has been set up just to off load the lease after the first company walked away before the property was completed.
Leaseback is dead. A well thought out scheme has now been abused under the noses of the French government and they seem able or want to do little about it.
I was informed recently that a government department has been asked to investigate different schemes and take criminal action against these people. Will put you on my list to keep you informed.
Paul
Seamus
What market share do these companies have? Can they support the bad press being the scheme is having?
I agree there are a few good companies out there BUT there are more bad ones who are forming on low capital and huge liabilities after 3 or 6 months. That is why none of these companies will or can take out insurance against their liabilities and rent everything from the photocopier to the doormats.
What I do know is that it doesnt take long for a market to catch a cold and for the rest of us to get a flu (something you are seeing at the moment in the global marklets).
Unfortunetly the good will be outdone by the bad on this occasion.
Naive I am not.
Paul