We are members of the Association of Residential Letting Agent. We subscribe to the highest standard when it comes to handling clients money.
One of this standards is that we cannot accept any liability on the landlord behalf unless we expect funds to cover such liability within the agreed credit term that such liability may have.
With the exception of a few suppliers (including big discount/high street chains who demand payment on receipt), most of our qualified contractors issue an invoice shortly after a job has been completed. This invoice is addressed to the landlord and has a credit term of 30 days. Any unpaid invoice creates a liability in the landlord client account.
Provided that the amount of the next month rent less our management fee covers the value of any expected invoice with a credit facility, then we can instruct the work since we expect the liability to be paid within the agreed term. However in the very unlikely case that we have any grounds to believe that the rent is not going to be received on time, or if there are already other invoices that bring the total due amount above the expected available funds, we would request payment in advance.
We need to bring to the attention of the landlord that should the rent is not paid in the expected time then he/she would have to transfer the funds to pay the outstanding invoice (to cover his/her liability), whilst we pursue the payment of the outstanding rent (to cover the tenant’s liability).