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  • Landlords in Distress

    Emerging Property - rental guarantee problems

    Hi Everyone,

    I hope I came across your forum earlier before I bought 3 purpose built student pods from Emerging Property Ltd and promised 10% net return for 10 years, totally hand free. 

    After receiving rent for 1 year, the management company (a subsidiary of the developer) informed guarantee rental income will no longer be sustainable.  They start to deduct high service fee,  ground rent plus management fee from rent received, leaving little for the individual landlords.

    I had thought of legal action.  But the legal fees could be prohibitively high and I don't know of other landlords to share the costs.  These 3 places are so far away from where I live.  Is it possible to challenge their high service fee?  What options do I have?  Do anyone have any idea?

    Kitty

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    You need to refer to the contracts with the company. If they are in breach of their contractual obligations you have somewhere to start. I would act sooner rather than later and speak to a solicitor who is involved in properties issues of this kind if necessary. I am not saying this is a scam as I don't know any of the details but a solicitor who deals with such issues would be best to approach for an initial (usually free) discussion. 

    In the long run, if this does develop into a real issue, you will struggle if the company does not have much in the way of assets.

    Keep an eye on the company incase it is ever wound up or struck off. This process can be blocked. You can watch it on Companies House and set up alerts via sites such as companycheck.


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    Rural Practice Chartered Surveyor. Experienced in estate management, residential investments, planning and development and rights for utility apparatus. All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.


    Hi Kitty and welcome.

    I am sorry (but sadly not surprised) to hear of your plight.

    As we have constantly warned on Property Tribes, these rental guarantees often turn out to be pretty worthless. They make nice "bait" to attract people into deals, but then it is surprising how many of the companies go bust or start messing investors around.

    I would recommend that you have a solicitor look over your contract.  That is the place to start.  Clifford Tibber at our partner solicitor, Anthony Gold in London is a specialist in property disputes and would be the ideal person to assist you.  He may be willing to look over your contract free of charge to let you know if he thinks he can help you.

    Drop him a line at clifford.tibber (at) anthonygold.co.uk and ask him if he would be able to review your contract.

    You might also want to post your experiences and/or contact other investors on this thread about Emerging Property.

    Hope that helps and good luck.

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    Hi Kitty, I have an issue with a management company over service charges (not new build rent guarantee type thing though), my solution was to write them a email and cc’d all the other leasees, the local ombudsman and MP on it. It helped a bit.

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    I am a EP/ALPHA customer in Asia,I knew people in Asia with the same situation.I think maybe it's time to report to the "Action Fraud agency" 03001232040 .I truly believe they know how to deal with these guys. I think It is a very serious issue,because many students now lived in our units or prepare to move in in the future.As far as I knew, the latest student accommodation of EP/Alpha is named as QSTUDIOS with over 300 rooms in stoke on trent. We have the obligation to protect both we and them from Alpha which is out of contact now...I really hope alpha can explain to us before situation getting worse and worse.

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    Hi Police,

    EP/ Alpha have sold thousands of student units over the years to investors around the world.  If we can connect with more victims to share idea and experience, it would greatly increase our position in getting a fair deal.  I trust you are investor in Q Studio.  Have you reported your case to Action Fraud and how is the result?

    I am going to file a claim through the County Court Money Claims Centre for the outstanding rent.  It takes time and a few hundred pounds as court fee.  In the end I may still not getting anything back, but it is cheaper than involving a solicitor.

    Thanks for your reply.

    Kitty

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    Hi Kitty, I too am an investor in EP/Alpha in the same situation. I found other people like us on a different forum  'Property Forum dot com' I think the idea is to get together and act in unison.

    Julia

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    Hi Julia,

    Please join the Facebook Closed Group : Alpha Student Management / Emerging Property LANDLORDS.  You will find a lot more others affacted.  Hope to see you soon in Facebook.

    Cheers,

    Kitty


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    I just sent a join request. Thanks Kitty. Are they planning a meeting?

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    Yes Julia, Definitely.  Let's talk more in the group. Thanks,

    Kitty

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    this is the alpha email before ..my whatsapp id is +886958658557, welcome to add! 

    I was appointed as Managing Director for Alpha Student Management Ltd (ASM) in February 2017 and Operations Director for A1 Alpha Properties (Leicester) Ltd (A1 Alpha) and Alpha Homes (Leicester) in January 2018, this was on a non-shareholding consultancy basis. 
    My strategic appointment was for a number of reasons:

    Firstly, the previous managing agent controlling a large portion of the A1 Alpha portfolio was becoming less efficient, less proactive and therefore more costly than necessary as a result, causing some serious concerns for the incumbent directors. I was appointed at Director level to bring some gravitas to the appointment and present the managing agent with the opportunity to improve.

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