Author Archives: Steve Roulstone Marla

20Aug 2010

Property Landlord advice:Teenage Tenancies

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By Mike Edwards

 

Changes to the Law

If a tenancy has been granted to a minor then to date it has probably been completed in the tenant’s name with a Guarantor’s Agreement in the background. However all this has now changed and that procedure may not be robust enough to withstand a challenge from the tenant against a section 21 notice issued while they are still under 18. This is courtesy of a recent Appeal Court decision known as The Hammersmith Case

An under age tenant had applied to the council for homelessness assistance when she was 16 and pregnant. The council provided her with temporary accommodation on an AST with standard terms and conditions. When it later received complaints from other residents about her conduct, it served notice to quit, brought a possession claim and obtained a possession order. The Court of Appeal however has allowed the tenant’s appeal and struck out the possession order.

And the result is!

This is because she was not 18 when the tenancy was granted. So the local authority was legally cast in the role of Trustee. However be warned the role would be assumed unwittingly by any Landlord unwittingly accepting the role of being the tenant’s Trustee on the tenancy until the tenant reaches 18 at which time the danger automatically falls away. In effect this decision is saying that ANY Landlord in granting an under 18 tenant an AST is in fact granting it in Trust for them as a Trustee and thus cannot serve notice to evict them as to do so beaches that Trustee status.

Therefore a Landlord cannot terminate such a tenancy or seek possession until the tenant reaches 18. A Landlord wishing to avoid such a result – but wanted to accommodate a minor – must therefore do so by providing them with non-exclusive accommodation because exclusive possession is the necessary hallmark of a tenancy. The way to provide non-exclusive accommodation is of course for the under 18 occupier to be an authorised occupier rather than a tenant.

What we should do

So what has to happen is that the proposed Guarantor actually has to take the tenancy in their name. Clearly this cannot be an AST as the property not only will not be their main or principal residence (which it has to be to be an AST) but they are not even going to be living there. So at Castle Estates we would grant a Common Law Non 88 Act tenancy to the person who was to be guarantor but now becomes the tenant and then let them give permission to nominate the minor as an authorised occupier. Such permission to occupy is not a legal interest in land so not covered by the Law of Property Act 1925..

12Aug 2010

Property Landlord advice: Problem getting your rent?

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By Samantha Knight

It is often the case that when a tenant decides not to pay their rent, the creative side of their personality can go into overdrive and what they believe to be a valid unique excuse, is just a story we as agents and landlords have heard oh so many times before.

 And today’s excuse is!

 1)    Banking Error

2)    A death in the family

3)    An illness or accident resulting in hospital treatment

 My advice is not to be afraid to challenge the reason you are given or suggest ways of helping to resolve the situation, there will be occasions where the reason is genuine, but it is only by speaking with your Tenant and through your  experience, that you will be in a position to understand what the real reason for the non-payment is!

 Remember, your tenant has signed a contract which they must honour and excuses do not give them a reason for not making that payment, much the same way as there is no excuse for you as a landlord not to deliver on your repairing obligations.

 But be careful how you proceed.

 But whilst it is the correct procedure to take a tough line on arrears, you have to be careful that you do not cross that fine line between tough arrears action and harassment.  Be sure not to leave yourself open to any such claim, as the courts take a dim view on harassment claims which could be considered as refusing to leave the property when visiting, changing the locks when the tenant is not home, continually visiting or even watching the property and of course abusive communication and physical violence – this list is not exhaustive.

 So can we help you?

 So if you do think your Tenant is not being truthful in what you are being told, how do you proceed? This is of course where Professional Letting Agents can help.

 At what cost?

 I would venture to say that our methods which have been built over years of experience are probably going to produce a scenario which will save you money against having no rent for several months whilst the problem drags on unresolved. So the advice is proceed with strength or turn to that Professional agent, who will probably not only provide a solution but also be the answer for the longer term as well!

09Aug 2010

Franchise News: The role of the Banks in your Business.

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By Steve Roulstone

When looking at any Franchise venture, is it important to speak with more than one Bank, or even any Bank at all if your finances are in good order? I believe the answer is a definite yes! By speaking to the Banks you will get advice from people who look at Franchise opportunities in all available types and formats of Franchising.

They know what they are doing.

Not only are you going to get good advice, but you will also get a good idea if the plan that you have put together makes good sense and follows the path that you would be expected to achieve from the organisation you are planning to join. I would say whether you need finance or not, this is a vital part of your Business strategy. To get the seal of approval from experts, I would suggest, should be part of what you need to achieve as you get closer to making that all important change in your life. 

Because they know what you are doing.

The reason is two-fold. Firstly, the Banks that we at Castle Estates would introduce you to, are the specialist Franchising Banks, where they not only look at business plans for Franchising, but understand the business itself, by investigating our systems, targets and objectives before you even speak to them. So they know us and can therefore tell you if your plan is in line with how the Franchise operates.

Because you know what you are doing!

Secondly, because they are so specialist, by getting that seal of approval from a Franchising department, it means that you will understand the operation you are putting together and therefore have good control of your whole business plan, costs and sales objectives.  The professionals that will discuss your budgets and plans know what to ask and how to judge your work and will not give any approval without confirming both the content and you as an individual.

All assistance gratefully received.

So why miss out on an independent review of your plans! I used this opportunity when I first started, even though I have did not need financial assistance from my Bank, because I recognised that the relationship could be both informative and important in the years ahead, which is exactly how it has developed. When I looked to purchase the Franchise, my Bank gave me the assistance I needed to get through the initial twelve months and I would state that it all started with that initial contact and seal of approval!

06Aug 2010

Property Landlord Advice: The need for an Inventory

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By Mike Edwards

Because of my day to day involvement with Rental issues, there are always reminders about advice that can be given to Landlords and problems on a recent tenant find case has highlighted the need for a detailed inventory attached to a tenancy and emphasised how critical this document is.

The case in hand.

In this case and despite our best efforts in advising the Landlord not to be so short sighted, he instructed one of our offices that an inventory was not required. The tenancy involved four sharers in one property. In such tenancies an inventory is even more critical. There are now extensive problems, the deposit is protected in one of the Tenancy Deposit Protection (TDP) schemes and the question is how to retain the deposit for the damage etc.

The inevitable result.

The answer in the short term is that it cannot be retained and the tenants are highly likely to raise a dispute via the Scheme Administrator. All three schemes have been at pains to constantly emphasise the need for a quality inventory if a dispute comes before them. In fact one has gone as far as to say that without the inventory the landlord has no chance of claiming anything in terms of dilapidations and damage at the end of the tenancy – even if the tenant has stolen all the furniture from a fully furnished property!!

The cost of hindsight.

Money is probably the reason this Landlord did not want an inventory and if so then in my opinion it is folly of the highest order. Many agents include the cost of an in-house inventory in their initial Landlord fee, and those that do not will do so at an extra cost which is normally a reasonable amount.

Best advice.

In simple terms no inventory means a Landlord will struggle to make any claim against a tenant when dilapidation is an issue. Damage or missing items can be impossible to prove without not only a list, but a proper accountable system of inventory that will stand to account when challenged. As Letting Agents, we are charged to give best advice to our Landlords at all times and at all times our best advice is to ensure a robust and well prepared inventory always accompanies your Tenancy paperwork.

03Aug 2010

Property Landlord Advice: The Best Letting Agent in the world.

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By Steve Roulstone

 Property Letting has come of age in the last ten years, certainly when you consider the amount of legislation which has been introduced, from the Commonhold and Leasehold reform act of 2002, through the Housing Act of 2004 and the implications on legislation for Houses of Multiple Occupation, Tenancy Deposit Scheme, Housing Health and Safety ratings system and The Home Information Pack to name a few.

 Landlords first and foremost.

But none of this has changed what we set out to do as Letting Agents. Namely, Rent a property! But not just that, as agent of the Landlord, we look at renting property with our duty of responsibility to the Landlord, correctly, uppermost in our actions.

 Agreement from Castle Estates

Residential Lettings now requires a level of professionalism never before seen in a property agent and at Castle Estates we believe that it is right and proper that the bar has been lifted and we all seek to give increased levels of service to match what Landlords rightly seek in today’s competitive market.

 Our aim is the same.

Whether a stand alone Lettings Agent, or part of a group of National Letting Agencies Landlords expect us to both be aware, and able to advice not only on legislative changes, but also on issues surrounding rulings made as the legislation finds it way in to the courts and ‘Test Cases’ reach completion.

 Make the move together.

So at Castle Estates we promote the notion that when Letting Agency is referred to as an industry, that people see more and more that we are both professional in knowledge and outlook. So I look forward to the day that all Property Agents are striving for the title of the Best Letting Agent in the world.

30Jul 2010

Property Landlord Advice: Off Plan Purchasing – Is now the right time?

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 By Samantha Knight

A bit of a dilemma?

As somebody who now runs a Company offering both Property Management and Consultancy services, I have been heavily involved in discussions with Landlords about the manner and timing for making a purchase and in todAys climate the question of when rather than if is becoming more relevent. Timing is never an easy to decision, but in a market whereby prices are gradually creeping back up, if you select the right area, buying ‘off plan’ right now could well be the best choice you ever made.

Lets keep it simple. 

Choose your property from the site plan with the added benefit in most cases of having input in the finish of tiles, flooring, kitchen units and layouts.  Secure your price now and pay only that fixed price when the property is built and ready for hand over.  Get in early enough on a development and you may well find yourself buying a property that upon completion has £1000’s of equity already in it.  Who could ask for a better deal than that?!

A long term property investment

 The risk will always be will the market rise or wont it?, but inevitably it will whether you make your £1000’s on completion now or in the years to come.  Finding new build sites may be the hard part, but with reports from the construction industry that development is back on the rise – it’s got to be worth a look.

 Seek advise from your letting agent on where best to buy to meet the current demand of the rental market- a national agent will always be able to offer the best unbias advice on the current hot spot locations across the UK.

 

 

30Jul 2010

Landlord Rights: The Power of Ground 1 in an Assured Tenancy

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By Mike Edwards

The Problem

There is a serious misunderstanding in some local authority/housing association housing departments when tenants approach them for advice if have been served a section 8 notice not for arrears possession under Ground 1.

This would usually happen on full Assured which are of course less common than Assured Shorthold but which carry the same mandatory possession rights for Landlords. Provided of course the legal paperwork is correct!!

The Misunderstanding

The problem understandably is that the section 21 notice used to terminate an Assured Shorthold on mandatory grounds is far more commonly used and recognised. But a section 8 notice using mandatory Ground 1 (previous or future occupancy by Landlord or spouse) is equally as powerful and also compels a Judge to grant a Possession Order.

This misinformation and confusion is happening a little more frequently as more Landlords quite legitimately use ATs to avoid the rigours of the TDP regime and the uncertain outcome of dispute resolution by scheme adjudicators. If difficulty is encountered take the following steps:-

The Solution

1.         If a section 8 notice is issued to a tenant draw their attention to the two sets of bullet point
             notes. The first in the group foot of page 1 make it clear that if ground 1 is quoted in section 3
            of the notice then it is a mandatory ground and the Judge must grant an order.

2.         The first bullet point then on page 2 immediately under the date in section 5 states how much
            notice is needed – again for ground 1 it is 2 months (as with a section 21 notice)

3.         In reality there is no difference between a s8 ground 1 notice and a s21 notice. Both are
            mandatory and provided the legal paperwork is in order the Judge MUST grant an Order (as
            stated in the notices)

Many local authorities, housing associations and even some solicitors who are not Landlord and Tenant law specialist misunderstand the mandatory power of a Ground 1 section 8 notice. So it is always good advice to use a solicitor who is either recommended or advertises as a specialist in this field. One would hope this would avoid the problem, or of course you could always use Professional Management!

23Jul 2010

Franchise News: Why choose Franchised services?

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By Steve Roulstone.

The Franchising path.

 Any business that fits as a Franchising model, needs to be one that follows a style of business and have methods of operation which can be easily copied across outlet to outlet. A method that can be taught uniformly and adjusted as required as trends change, well with the amount of government legislation that is involved in the rental market (as exampled by this link) we have a natural fit in my Industry. It is consistent methods that ensure that our Landlords get the correct interpretation of these legislative changes and by the needs and experiences of a group that operates and controls its methods through a central spine, best practise can be assured.

 The passion behind the reason.

 But information alone is not the answer, drive and commitment are also needed and I would argue that anybody whose income depends on their own business is not only going to be more committed in their role, but also show that commitment and indeed passion for the Company they represent far better than any employee and that is where the link with Franchising comes home and delivers, for people whose livelihood rests on the success of their Company are going to perform both more successfully and more diligently.

 Let me give you a lift!

 And having been a Franchisee for ten years, I know from practise, that they are far more supportive of others who are trying to achieve the same goal in life. I have worked in the privately owned sector and been told ‘I am not telling everybody else why we do so well, because I will no longer look as good if everybody did it!’ You never get that in Franchising, exactly the opposite, rather Franchisees are quieting up to pass on good news and good ideas, because they understand what everybody who does what they do are trying to achieve and only too happy to help!

 So who do I use?

 I believe the answer is simple, whatever services you require or want to buy, if it is a Franchise, you are liable to get a better service and probably a better product, because to those who run the Company, your business is simply more important!

19Jul 2010

Property Landlord Advice: Advertise on the Web or in the Press?

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By Steve Roulstone

House or Flat to Rent?

How do you advertise on behalf of your Landlord, hopefully in a manner that keeps them happy and feeling that you are looking after their property, but does that mean we have to continue to advertise in traditional ways?

Houses to Rent or Flats to Rent?

Where do you look if you want to rent a property, my point is that so often it is a different source than where you would want to advertise if you have a property to rent! So Landlords and Tenants want to see their properties listed in different sources, Tenants will utilise the web for their search and Landlords so often want to see us present on such portals as Rightmove, but still want to see the property listed in the local papers and here is the dilemma.

Breaking News: Press turns to the Web!

Because I travel the country speaking to National Letting Agency offices, I have the opportunity to ask what local trends in the Residential Lettings market are and more and more where the income from advertising matters, local press are opening their own web sites, because we are all turning away from Paper advertising. The reason is simple, they are far too expensive even set against Rightmove charges (and I do not say that lightly!)

We only want to Rent the House or Rent the Flat, Honest!

And that is the whole point, we need to convince our Landlords that we only have their interest at heart, because if you are in an area where paper advertising still leads the way, we will still advertise in the papers. In the meantime we need to collect facts and figures to give the story behind the trends, and convince our Landlords that papers listings are no longer needed.

The answer is in your Landlord rights

But in doing the right thing our whole aim is blown apart, for it is my belief that our problem lies with where Landlords look for Agents to see who to contact and it is only in our listings of Flats to Rent and Houses to Rent that they find us, so I have just blown my own recommendation out of the water, because while Landlords still answer the question ‘Where did you find our name’ with the answer, ‘in the local paper’ the press will still get my money!!

15Jul 2010

Franchise news: Why choose Franchising?

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By Steve Roulstone

My recommendation. I think it is time I explained why I became a Franchisee, the following is a Blog I posted as the result of a conversation with the Blog host of the Select Your Franchise site Nick Strong. It was my inspiration to this site and explains my reasons; at a stage where all those who consider Franchising have such questions to answer. So I repeat it here for information.

 Starting point.

 In 1999 I needed to take charge of my own future, Why? Because I was no longer confident that my future was secure with the Company I worked for.   The company had been taken over through acquisition and I no longer felt comfortable.  In fact I was completely outside of my comfort zone.

It was time for change!

So why choose Franchising? I now needed to research and quickly found that Franchise Companies were prepared to send me valuable information, not only on the Company concerned but also about the market they operated in. I now had an overview of markets that I was interested in and an immediate feel for how I could operate my own Company and fulfil my own needs for the future, quickly and efficiently.

The answer to the question I have posed

I chose Franchising because it was a way of working with people who understood what I was trying to achieve. I also liked the security of working with a tried and tested system in the industry of my choice.  I was trained by professionals and worked with other franchisees who had chosen the same route.

Why did I choose a Castle Estates franchise?

The principal always has been that Franchising offers entrepreneurial people specialised assistance, systems and training in a successful proven route.  After investigating many routes to market I found that Castle Estates offered the best way forward for me.

It is a fact that 90% of Franchisees become profitable within two years whereas four out of five people who start on their own, fail within the same period.  I can say with confidence that I am one of the happy 90%.  So much so that I have now bought the company!!!