Author Archives: Steve Roulstone Marla

06Jun 2013

Current Property News: Landlords no longer need to be Border Guards.

⋅ Leave a Comment

By Steve Roulstone

Immigration

Government scale down legality checks.

 In another climb down the Government took a massive step backwards last weekend from asking Landlords to ensure all Tenants are legally present in the Country. It is being reported that concerns over the risks surrounding too much red tape being introduced are responsible and that it will only be introduced in areas that can be highlighted as currently causing concern, such as some boroughs of West London.

 Once again I have to point out that the debate about the requirement and what the impact of asking Landlords to be responsible misses out upon, is that professional referencing already supply confirmation through the provision of a National Insurance Number and specific right to work permits. This tells me quite clearly that Landlords that would wish to know before allowing occupation already have the ability to do so.

 It would therefore be correct in my opinion to ensure those who already carry out such checks should not be drawn in too yet another hoop to jump through, because work and income would already be confirmed. Therefore those who do not check rely upon income from other sources, such as benefit payments or the black market.

 Whilst I would agree that such Landlords are taking advantage of ‘street’ circumstances, it strikes me that the authorities need to turn their attention to the very areas (Benefit fraud and the Black economy) where methods of policing and prosecuting miscreants’ already exist. Certainly when set against piling yet more requirements upon the Rental Industry, where no policing exists for either these schemes or indeed for much of the myriad of legislation that has already been introduced over the last few years, such as HMO’s and Tenants Deposit schemes.

 So legislation is discussed, promised, withdrawn (and according to some reports been the cause of the Prime Minister turning “puce” when advised of the withdrawal) without involving the industry or the specialists who administer the professional bodies. It seems that lessons are just never learnt that the people who know best how the industry works are the very ones who administer it from within. All that has to happen is for somebody to ask!

03Jun 2013

Landlord advice: Inventory Company promotes a lack of professionalism in Agents.

⋅ Leave a Comment

By Steve Roulstone

Inventory

I have just read an article in one of the Industry magazines as part of my Monday ‘what is happening’ hour and frankly could not believe my eyes. It is in a section called Outsourcing in Mays issue of The Negotiator, so falls half way between an advert and an article, but is based upon the words of two gentlemen from the industry, one being an Agent and one being a facility provider for the industry and it is clear that one has an invested interest in selling his services, but I just find it hard to believe that an Agent would place in writing what has been repeated in the article!

 Matter of opinion.

 Let me say from the off here, that what I am stating is my opinion or ‘take’ on the subject, so some of what I comment on I do so agreeing that it is a matter of opinion, but I would never admit in writing that as a Company we could not offer our Landlords such an important part of the service needed in Managing property on their behalf. Because the representative of the Agents involved is openly stating that they are unable to provide professional quality inventories for the Landlords they serve!

 Inventories are us!

 Firstly, the skill set needed to be able to supply top class inventories can be learnt by one man as well as the next, so I cannot agree that Letting Agents cannot carry out the task on their Landlords behalf. All they need to do is learn how! But secondly and again in my opinion more importantly, how can any agent pass on such a vastly important part of the job to somebody else?

 Legal responsibility.

  Far more importantly for me is the legal responsibility we have with our Landlords under the contract all Agents should supply their Landlords. Good inventories are such an important part of the service now that to charge for a job and only do half of it in my opinion cannot be called ‘Full Management’ services.

 Argument against.

The reasons given for encouraging outsourcing inventories, is that Agents are too close to the position and risk Tenants stating the inventory is one sided. Well if what we claim for is correct, then where is the problem? Done correctly, Tenants have as much input as we do in the document and as we are contractually bound to work for the Landlord then that is what we do. They go on to say that there is then an inherent risk that the Agents inventory could fail in any claim because it was raised by the Landlords Agent. Well in our experience, that is just wrong!

 Facts speak louder than words.

The facts are that after three years with our current system, where disputes are dealt with by independent arbitrators, as a Company after ensuring we have Landlord agreement we have won every case that has gone through arbitration. So our experience would suggest exactly the opposite than what is claimed in this article. So the facts support that Agents should know what to do and how. I would also suggest, that a third party inventory, has far more chance of having their claim challenged by a Tenant who can easily prove that they were not involved during the Tenancy and are therefore not aware of matters which could have a far greater bearing on the outcome of any claim.

 Summary.

 Sub contracting major parts of the role of Property Management is not and never should be the way forward and our industry is not alone in being able to challenge the principal. The inventory is such an integral part of being able to offer the services of Property Management to Landlords that I would challenge any Companies ability to call themselves’ Letting Agents if they openly state they are unable to fulfil the role themselves. What else? Rent Collection? Property Visits? The agreement?  Better to be able to say yes, we do that!

29May 2013

Current Property news: New Portal risks falling in where others have fallen before!

⋅ Leave a Comment

By Steve Roulstone

New portal

Reports over the weekend confirm a story I heard not two months ago, that a serious contender to Rightmove and in a lesser way Zoopla, is about to be launched on the market. Recent price increases on the amount charged for portals have been discussed at length within the Industry and have mainly been as the result of Rightmoves belief that as the leading market provider, they can increase costs at will. I may be wrong, but see no increased level of services for increasing levels of invoices?

 

Right to reply.

This is a course of action that rightly in my opinion generates responses and in this case we seem to have had a response, which, if successful, will severely dent Rightmoves position as market leader. I will not comment on the scheme in general because we have very little detail as yet and until we do I would prefer to keep my powder dry.

 

However!

What is worthy of comment and the detail that caught my eye when reading a report on the plans on a property press web site was the initial statement that Agents joining the site would be asked to do so by only utilising the services of one other portal. It seems strange that having stated detail would follow, that such a major requirement should be the only rule released? Unless of course it was released to test the water!

 

Expected reaction.

If that is the case, the reaction seems to be as expected, that people like to choose for themselves who they do or do not wish to run with. If not, then hopefully notice will be taken of the reaction received because it flies in the face of one of the very principals the new site would be battling against in clearly setting itself up as a competitor with Rightmove.

 

Visit the reasons.

Please take on board Agents Mutual that you have set yourselves up as an alternative to Rightmove, not only because of prices, but also because of the manner in which they treat their customers. The feeling that we are dictated to by Rightmove, as a customer of theirs, has increased on many levels over the last few years and is in my opinion, a major influence on our perception of them as a Company.

 

Right to choose.

This is why, when given the right to choose a viable alternative, a large sector of the industry may well do just that. But by telling us in effect, who we can and cannot trade with, is acting in a manner no different to Rightmove in the first place. It is very clear as to why the need for such a rule to be in place is felt to be important to its success. But I would ask those involved to re-consider? Surely a better motivation to potential customers can be found than one that tells its customers how to go about their business?

 

Landlords that matter.

It must not be forgotten that we exist to provide a service to our Landlords, in doing so we should give best advice at all times. It cannot be in the Landlords interest for Agents to withdraw services from a provider because of a principal of business which may in the long run serve to improve what we offer, but will change little from our customer’s perception. Better the providers work on offering a better service which we need to follow, the principal remains the same, but Landlords do not suffer along the way!

21May 2013

Current Property News: Queen’s speech skims the surface, but reactions dig deep!

⋅ Leave a Comment

By Steve Roulstone

r_seaman@hotmail.com

 

Many have commented on the Queens speech and it will come as no surprise that it is the element included in the forthcoming immigration bill that I now make the subject of my latest Blog.

Content.

Much has been said about the lack of detail contained within the speech and most will see this as a hastily included promise, aimed mainly at the ears of those who chose to support UKIP at the recent local elections. I believe they would probably be correct to do so! I do not wish to comment on the political rights or wrongs of this situation, but there is no doubt the clamour to make political gain from the lack of detail have themselves repeated the same lack of detail in what they have written.

A R L A

Rather, what detail is known, confirms that anybody writing without including how the current checking systems work in our Industry are showing themselves to be short on knowledge and it would appear, purely intent on causing embarrassment to the Government or making some kind of gain themselves. The best report and summary of where we actually are with what has been suggested against how the Industry deals with references now, comes from A R L A who have summarised very simply the reality of what is being suggested.

In the know!

What happens within the vast majority of Agencies in the UK is that professional referencing is carried out by professional referencing agencies, which include taking the potential Tenants National Security Number which assists in confirming identity and employment records. In effect, we are already able to confirm very easily the status of all applicants, meaning the check is already being carried out and is therefore available for any Landlord who wishes to avail themselves of the services most Letting Agents offer.

In the know but not known!

It is the Landlords who take advantage of the system to accept Tenants without ensuring such checks are carried out that are being addressed by this potential legislation. This point is missed by nearly all reports as the writers pursue their own cause through print. It is therefore hardly a blind leap, to see just how easy it would be too introduce the same tests carried out for others, to the few who have created the apparent need for action to be taken.

Sensible reaction.

Mine is a small point but relevant none the less and I just hope that the promise not to introduce yet another hurdle for the vast majority of honest good Landlords to jump, is upheld, especially when all Landlords who utilise our system for example are in effect already complying. Now for those who read my ramblings regularly, I am reaching for the cupboard and reaching for the drum!

Professional.

What I do not agree with, is yet again it seems the clear and once and for all legislation required to turn the industry into a professional service is being sidestepped. Whether it is via licensed Agents or registered Landlords, the solution lies with the Government that has the strength to research and legislate in an organised and industry sponsored manner. Every professional body would work alongside a Government to produce what would deal with all of these side issues in one step and give the public the comfort and trust all professional Agents and Landlords justifiably feel they already deserve.

 

22Dec 2012

Letting News: Tenant Information Packs Becoming Compulsory in Scotland

⋅ Leave a Comment

By Craig Smith

As our office is based in the Midlands (England) it isn’t very often that we have the need to report on a change in Scottish legislation. The 2 countries may be very similar but they don’t share all of the same laws and regulations when it comes to lettings.

New TIP Packs

Under the Private Rented Housing (Scotland) Act 2011 any Landlord inScotlandwill soon have to provide each new tenant with a Tenant Information Pack (TIP). This may be new toScotlandbut may I just point out that Castle Estates have been producing these packs for almost 10 years! It has changed over the years to cover the ever changing legislation and changed layout once or twice but has remained generally the same.

Why So Long?

The Scottish equivalent could be up to 30 pages long with various information about the property and its necessary legal requirements but our fits neatly enough into 5 pages and covers, we feel, all of the general information a tenant might need. It is our general practice to go through this with every tenant at the check in to ensure that they understand their rights & responsibilities before they sign any tenancy agreement.

Don’t get me wrong, I’m all for making sure that everyone knows exactly what is expected of them but being perfectly honest, I don’t know how many people actually take the time to read it during their tenancy or remember most of what it means. Which only begs the question, what is the point in having a compulsory version that is 6 times as long?!

Waste of Effort?

If the government stopped and thought realistically for a moment, they might share the same viewpoint. Maybe this will just be yet another stack of paper wasted and extra money down the drain for no reason?

The same has happened in relation to deposit protection (uh oh, here we go again with deposits!). We now need to ensure that the terms & conditions for the relevant deposit scheme are provided to each tenant at the start of their tenancy. This is just over 10 pages of information which seems to end up in the bottom of a drawer or at the back of a cabinet.

Good Idea or Bad?

In general, I do think it is a good idea to have certain information for tenants although some of it may just be overkill and could be found with 2 minutes searching on the internet. I guess we’ll have to see if this becomes law in England and Wales too and how well it goes in Scotland!

03Dec 2012

TDS Survey Reveals Landlords Thoughts on Letting

⋅ Leave a Comment

By Craig Smith

We always find it interesting to hear a Landlords feedback, whether it relates solely to their own property or about lettings in general. This week, The Dispute Service have released the results of a survey asking Landlords how they feel about their tenancies.

Worried by Tenants

One of the questions asked in the survey was what concerned Landlords the most when it came to letting, giving a choice of answers. The most commonly chosen answer was the quality of the tenants who were on the agreement which isn’t too surprising given some of the scare stories going round. Certainly having the tenants referenced prior to them moving in can help to determine their credibility but won’t guarantee whether they will continue to be as good as their references suggest.

One instance we have had in the past is the guarantor of a prospective tenant giving a glowing reference, only to come back and tell the horrible truth when the tenants stopped paying the rent!

Rent Arrears

Following on quite nicely from the above, the second biggest concern in this question was rent arrears. The majority of Landlords have mortgages to cover and if not still have to insure the building and have to provide for the upkeep of their properties. Arrears can be distressing even for the biggest of Landlords as it can be a lengthy process to get any non-payers to leave, not to mention the additional costs!

New Regulations

The third most commonly chosen answer to what concerns Landlords the most was complying with regulations. Over the last 5 or 6 years or so the industry has seen a lot of changes in legislation including the registration of certain deposits (there I go talking about deposits again!) and new energy regulations.

There are certain things that a lot of Landlords forget or don’t know about such as ensuring there is a handrail on the stairs or ensuring that a chimney is swept & safe to use. This can highlight the importance of speaking with a local agent who can advise a Landlord of the necessary rules & regulations in order to prevent any damages or injury to tenants and their belongings.

Happy Landlords

The survey included just over 200 Landlords and just over 80% confirmed they were satisfied with the quality of their tenants. Surely this can only be good news?! There are always going to be some bad experiences with the sheer number of lettings properties out there at the moment but this shows that the majority of experiences are good.

This is again good news for those who are referred to as reluctant Landlords i.e. an inherited property. Hopefully this should keep a little confidence in the industry and keep people renting for the future years!

23Nov 2012

Rental Property Advice: Damp or Condensation?

⋅ Leave a Comment

By Craig Smith

One common issue reported by a lot of tenants is that of damp appearing in a property. But it isn’t necessarily damp that is the issue as a lot of ‘damp’ turn out to be nothing more than condensation which can be cured with a few simple pieces of advice.

Condensation Problems

The majority of these issues are, of course, condensation. This can come about if there is a lack of ventilation in a particular part of a property where the moist air can’t escape. Although we are approaching the winter months and the temperature is gradually getting colder (although hopefully not too cold this year!) it is still important to ensure rooms are kept well ventilated, mainly when showering or cooking.

Both of the above generate warm, moist air which can mostly be seen on window panes. What can’t always be seen is the amount of warmer air that cant escape and will eventually appear as black marks or peeling paint on walls or ceilings. We tend to find that most of these reported problems occur in bathroom or upstairs bedrooms, bathrooms due to the obvious showering & warm water and bedrooms as a lot of people prefer a nice warm bed to go home to and leave windows etc closed.

Putting a Dampener on Things

The symptoms for damp and condensation can be very similar; typically a black or mouldy mark and a musty smell where it has occurred. When someone notices a mouldy or wet patch on a wall or ceiling it is easy to mistake this for damp, particularly in older properties such as Victorian terraces. Damp is usually caused when there is a leak of water into the property such as a leaking roof or gutter or water coming up from the ground through the walls.

The repair job might not be as big as it sounds and can sometimes be fixed with a couple of hours work from a local trusted builder. From experience in our office, items such as a slipped roof tile, blocked/broken guttering or a crack in the outside wall are the most common causes of this.

Putting the Damage Right

For condensation the best cure is to keep the affected areas well ventilated (for example, using extractor fans where there is one and opening windows to keep air flowing through) and to wipe down any areas where the mould appears to help prevent it spreading. It will take time for it to eventually die down but with some good ventilation and some old fashioned elbow grease you should soon notice the difference.

As above, damp may need a little more than just cleaning but a good builder can recognise exactly what needs to be done to cure the problem. Once the job has been finished you will probably need a few coats of good paint or stain block once the moisture has dried up to stop the marks from appearing again.

Big Difference

Condensation usually occurs higher up in rooms whereas damp can lurk around outside walls where moisture can come in rather than it trying to get out. Sometimes it is better to do some investigative work yourself before involving any costly call out charges.

14Nov 2012

Prescribed Information confirmed as having Greater Importance

⋅ Leave a Comment

By Mike Edwards

In July 2011 the Court of Appeal ruled in the case of Suurpere v Nice and Nice that inadequate Prescribed Information as required under the Tenancy Deposit Regulations as set out in the Housing Act 2004 and above all in the Housing (Tenancy Deposits)(Prescribed Information) Order 2007 had been issued to the tenant.

In this latest case the Court of Appeal on 6th November 2012 has reached a similar decision and overturned an earlier and incorrect lower court decision. The full details of this decision are awaited but the simple facts are that the tenant had paid a deposit and the Landlord had protected it in one of the approved schemes but he had not given the prescribed information (PI) as required by the Prescribed Information Order 2007. In the Suurpere case there was an agent involved who paid the fine but in this case there was no agent.

The tenant had significant arrears so the Landlord issued proceedings and as is so often the case and where the big danger lies for landlords the tenant counter-claimed that the requirements of the Prescribed Information Order had not been complied with. At the initial hearing the Landlord admitted this ‘offence’ but in defence claimed it didn’t matter as the tenant could easily find the information for themselves. This was exactly the decision in Suurpere – that the tenant should be given the information not have to go searching for it as and when they needed it.

This opinion was strongly emphasised in Suurpere which makes it all the more astonishing that the lower court Judge was persuaded by this argument. That in effect it is the protection of the deposit that matters in TDP cases and that the issuing of the PI is no more than an administrative procedural necessity. So the Landlord claimed the deposit had been protected (which it had) and that the tenant could have gone to the scheme administrator for anything else he wanted to know. The lower Court dismissed the tenant’s claim stating information in the tenancy agreement (scheme details) plus other information the Landlord provided during the Court hearing was enough to comply with the requirements of the Order.

Not surprisingly given such an obvious error at law the tenant appealed and equally unsurprisingly the more learned Court of Appeal disagreed completely with the Landlord and original Judge. It held quite clearly that the giving of the PI amounts to more than just a minor procedural obligation and that the information has  real importance in advising tenants how to get their deposit back and also how they could go to a dispute at no cost to themselves and without the need for litigation on their part.

In effect the Court of Appeal has upheld the decision of the High Court in Suurpere v Nice (see Nearly Legal report here). The lower Court had not reached a proper judicial evaluation. The Landlord clearly was in breach of the Prescribed Information Order and so the penalties in section 214 The Housing Act 2004 applied. Therefore the Landlord was ordered to return the deposit plus, because the original offence had occurred before The Localism Act 2011 provisions came into effect in April 2012 the mandatory penalty of three times the deposit applied

So the tenant won and his appeal was allowed. Significantly the Court of Appeal has now agreed with the High Court decision in Suurpere that the Prescribed Information a Landlord must serve on the tenant is not some administrative afterthought which simply acts as an accompaniment to deposit protection. It is instead a vital component and one of two parts in the deposit protection process both of which must be fully and correctly completed by the Landlord to discharge his obligations in respect of deposit protection.

Simply to protect the deposit, laudable though that is compared to not protecting it, is insufficient to discharge the obligations. But more importantly this latest binding decision from a Court of Record confirms as was held in Suurpere that Landlords must supply that information themselves and not leave tenants to go searching for it themselves. As in Suurpere simply providing the DPS website address is not enough – the Scheme Terms and Conditions must be printed and attached to the Prescribed Information notice being served.

For the other two schemes there is a leaflet which under their rules it is obligatory to issue. Post Localism Act 2011 if not doing so before landlords and agents should definitely obtain a signed copy of a suitably endorsed PI form as proof that the tenant has indeed received all the information.

All this means that if there was any shred of doubt post Suurpere there is now none whatsoever that the need to comply with the Prescribed Information Order is just as important as the need to place the deposit in the DPS Custodial scheme or insure it through The Dispute Service or my|deposits schemes. The two decisions mean tenants can easily defend a landlord’s section 21 action if they can show the deposit has not been protected OR that the Prescribed Information now have clear means of defending possession actions based on s21 Housing Act 1988 actions or in rent arrears cases. If either has not been completely and correctly completed by the Landlord and if he is unable to prove that if challenged then any s21 notice he has served will fail and in any section 8 action the tenant can counterclaim.

Informed opinion was that this appeal would always fail and that the Lower Court was clearly in error by in effect saying the PI didn’t really matter and if the tenant wanted more information he knew where to find it. But the Landlord was foolish to appeal as the July 2011 Appeal Court decision in Suurpere virtually guaranteed this appeal by the tenant would succeed. So now the Landlord hands over the deposit, plus a x3 penalty and presumably has significant costs.

While agents and Landlords may be irritated by this decision it is the only correct one that could be arrived at, as in Suurpere. Given the detail in the Statute and above all the Prescribed Information Order (2007) it is clear that no matter what Landlords may believe the Prescribed Information always had great significance given the detailed way the information that must be served on the tenant is laid out in the PI Order.

08Nov 2012

Current Property News: Tenant must be advised correctly or Landlords will pay.

⋅ 1 Comment

By Steve Roulstone

A Court of Appeal decision has confirmed that Landlords not only need to register Tenants deposit under the Tenants Deposit Protection legislation, but that they must provide Tenants with the Prescribed Information in connection with the scheme the money is protected with, or the courts now have a clear case confirming exactly what will happen should they fail.

Old News

Back in February this year, I confirmed the changes introduced by the Localism Act 2011 which was introduced in April this year. The changes surround not only when protection needed to be registered by, but also what was delivered to the Tenant in how we register deposits.

PI

The Prescribed Information is what was under review in this case, after a Landlord had failed to supply the data to the Tenant even though the deposit was protected. In fact in the original court decision, he thought the courts agreed with his stance, that the purpose of the legislation was to protect the money and that had been achieved. The Tenant on appeal, has won on the basis that protection MUST be accompanied by the information surrounding the Tenants rights and how to act to protect his money.

Fine.

The penalty is both full refund of the initial deposit and a fine to the value of three times this same amount. This is of course significant and places before anybody who felt otherwise, that the need to protect deposits is only half of the intended actions required under the act. But it is not just when the deposit is initially received that action needs to be taken.

End of fixed term.

Under the Localism Act, it also became clear that in clarifying how the legislation should work, new documents need to be given with every new Tenancy. This means, when a Tenancy ends its initial fixed term, new information needs to be given. The fine for failing to do so, is as was awarded in this case, three times the deposit.

Solution.

There is only one! Do things the right way to start with, understand the requirements and put in place a system that ensures all Tenants receive the data at the start of the Tenancy, as well as with any new agreement signed. This alone should be easy, if a Tenant is signing an agreement, hand out the scheme rules surrounding the deposit. If you then add a system that does the same when an agreement becomes periodic (Treated as a new agreement in the Localism Act) and ensures Tenants get the updated information at this time, you will be covered. But always, if in doubt? Ask!

02Nov 2012

Current Property News: Free Carbon Monoxide Detectors!

⋅ Leave a Comment

By Steve Roulstone

Two items of news from the last week have caught our attention at Castle Estates in Stafford and that is news surrounding Carbon Monoxide Detectors. The first was the change is the Landlords Gas Safety Certificate to include inspection of flues running through voids and now it has been made compulsory in Northern Ireland for all new homes.

Swift progress.

Both of these moves are positive forces in the battle against this silent killer and whilst the change to include hidden flues within the Gas Safety Inspection is going to cause many problems before the end of the first year whilst the changes take effect (Many, in blocks of flats, will require access through areas which do not belong to the premises in question) the change in Northern Ireland is a move to have them as standard practise in all properties whether rented or owner occupied.

Balance in favour of rented property.

For many years as a Letting Agent I have known just how Tenants are better protected than owner occupiers, who would normally never dream of having a Gas Safety Inspection. Because I did think it a good idea, I found a Gas fire in a house I purchased was not vented at all when fitted, indeed the chimney breast was open and allowed fumes to pass directly in to the main bedroom through fitted drawers. I could have gone to bed and never woken up if we had not found the problem.

Good progress.

But the other point about Carbon Monoxide Detectors is that they are such a good idea! Because of this, as an Agent who likes to ensure we do things the right way, we are going to issue a free Carbon Monoxide detector for every new Landlord and change of Tenant.

Correct usage.

Of course one important matter is to ensure they are fitted and used. We have decided to provide one that is portable and allows the Tenant to have it in the lounge when the fire is on and then taken to the bedroom when they turn in for the night. This way we will be able to ensure that they are working from day one. The only maintenance being the replacement of the battery!

Law of the Land.

What must be remembered is the change in law came about because of a death and any move to reduce the risk has to be a good one. This is why we and our Plumbers believe it will not be long before it becomes Law for all properties. By providing them free of charge, we will remain ahead of the game and ensure this is one more area where are doing the best possible for our Landlords.