Category Archives: Letting Update

22Dec 2012

Letting News: Tenant Information Packs Becoming Compulsory in Scotland

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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!

30Nov 2012

Tenancy Deposit News: DPS Announces New Insured Deposit Scheme

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By Craig Smith

The Deposit Protection Service has recently announced its new plans to setup a new insured deposit scheme alongside its already well established custodial scheme in 2013.

Custodial Vs Insured

The difference between the custodial scheme and the insured is what happens to the actual deposit money. Custodial is exactly what it says on the tin, the deposit money has to be given to the DPS for them to hold securely whereas with the insured scheme, it is simply registered rather than being paid over.

Why Use Custodial?

Prior to 2010 we used to register tenancy deposits with The Dispute Service (TDS) and had to pay a yearly fee in order to confirm our registration. The renewal prices were hiked up so high that many Landlords and Agents were forced to move elsewhere, hence our move to the DPS. (There are too many abbreviations in tenancy deposit protection, or TDP for short!)

By using the DPS, we found that Tenants know that their money is safe and there is no risk of it being used for anything without their say so. Nor can it just happen to be used ‘by accident’ by a forgetful Landlord! One other agent local to us closed down recently which left a number of Landlords and Tenants reportedly losing out on money as the deposits were held in an insured scheme. No such chance if the money is held elsewhere!

Downfalls with Insured Schemes

Now I don’t know exactly how the insured scheme will work with the DPS but it looks as though a Landlord or Agent will not need to pay a registration fee but will need to pay a fee per deposit registered. This seems fair enough but still begs the question, why bother when there is a free alternative?

There seems to me there is no point in holding a deposit in your own account. The amount of money to be earned from interest is barely pennies with interest rates lower than low and the custodial option even offers a free dispute service to boot! Not to mention the extra hassle of having to pay back the money yourself whereas a repayment with the DPS custodial scheme can be done & dusted with the click of a few buttons.

The Future for Deposits

Back in April 2012 the law changed with regards to the registration of tenancy deposits. Any deposit taken for an Assured Shorthold Tenancy needs to be protected and the future surely looks set for further tightening of the protection process.

I can honestly say that I think deciding to use the DPS is perhaps the best decision any Landlord can make. It is free, easy and everybody knows exactly where their money is!

22Nov 2012

Rental Property Advice: Damp or Condensation?

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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.

21Sep 2012

Property Landlord advice: Insulation now available!

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By Steve Roulstone

A few weeks ago I wrote that Residential Insulation which is currently being promoted through the Governments Carbon Emission Reduction Traget CERT and the possibility of Landlords being able to claim for expenditure against annual costs, was very difficult to explain to current Landlords and Tenants when the Industry itself had no way of communicating its message.

VNR Contracting Services

I am pleased to confirm that I have now found a Company who is not only being proactive in speaking and working with other organisations, but that understood what we are trying to do, but is also happy to put leg work in themselves in achieving a result.

Landlord and Tenant Choices

What we need to know is that as Property Managers, we can rely upon a Company who specialise in the Insulation field to explain clearly the benefits of having Insulation fitted and the grants that are currently available for Landlord and Tenant alike, one through direct costs and one through the tax incentive currently being offered.

Action Plan

This means we will be able to write to our Tenants and Landlords alike with information relevant to them and then allow the Company to follow up with visits to answer questions and quote for the work direct ensuring that our Tenants and Landlords are able to take advantage of the schemes before winter this year, if they choose to get involved.

Service Provided

To us, this is part of what we should be doing as Property Managers on behalf of all of our clients, not for any other reason than from a central point we are in a position to receive information as Companies approach us and distribute the same to a wide audience. It is not for us to dictate what decisions are made or even recommend what options are pursued, rather to place the information in front of those who have the right to take advantage of the grants etc that become available.

Reliable Contractor

What is reassuring now is that having struggled to find a Contractor to work with, we have been approached by one who already works with local Councils and as such carries a pedigree that is re-assuring. I am happy to recommend VNR Contracting Services Ltd and in reality that is only the second recommendations we have made in over two years of writing!

31Aug 2012

Viewers Put Off By Poorly Presented Properties

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By Craig Smith

As one of the largest agents in Staffordshire, we get to see a wide range of properties in different areas around the county. It is always nice to see something different and how different owners have designed their homes to suit their needs and, particularly in smaller homes, how they have made best use of the space they have. But one of the issues we have is marketing a property that is not presented at its best.

General Cleanliness

One property that I showed to a couple earlier this week is a prime example. The current occupiers were still in the process of moving out so there were a few dismantled beds and pieces of furniture still to be taken away. Usually this wouldn’t put any viewers off as people who are about to moves themselves can appreciate the amount of work it entails.

The main issue for this property was the amount of cleaning that was needed. There were bags of rubbish piled in the back garden and the house really just needed a good going over with a damp cloth. If a viewer sees a property in this kind of condition it is hard for them to imagine how it will look when they are ready to move in. It also puts doubt into their minds about whether the Landlord would be proactive with any future issues during the tenancy.

Does the Paintwork Need Touching Up?

Another issue the viewers had with this particular property was the condition of the walls and paintwork throughout the house. Again, most people can look past a wall or two that is yet to be made good but when the majority of the walls need filling in and completely repainting, it can be hard to visualise the end product.

It is easy to tell someone what work is going to be carried out before they move in but it is hard for them to actually believe you without any actual evidence. For example, if one room had been started and the viewers could see tools or paintbrushes etc then they might have believed me a little more!

Keen to Get the Property Let

We understand from a Landlord’s point of view that it is best to get the property let as soon as possible to avoid any prolonged empty periods for their property. But when a property is poorly presented it can sometimes make us agents feel like we are wasting our time. Sometimes it is best to hold off on any marketing and wait until the majority of any work is completed.

Needless to say we have spoken with our Landlord since who has welcomed our advice, even if it is sometimes a little hard to put it across in a polite way!

17Aug 2012

Property News: House Prices Increasing for Both Purchasing & Rental

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By Craig Smith

The BBC has produced an article today showing that house prices continue to rise and that families are being forced out of their homes due to ever increasing costs.

Facts & Figures

Before we all start getting scared and wondering just where will we all live in the next few years, lets look at some of the facts.

Yes, rent amounts have increased in the last few years in particular. But if we look at the amount they have risen in comparison with house prices, which have risen by around 59% in the last 10 years or so, the average rent amount has increased by around 44%. This means that Landlords are getting less return for their property than they would have done 10 years ago.

Current Rents Increasing

With this is mind and the huge amount of rental property that is now available, Landlords are finding it more difficult to increase the rent on a current tenancy. It is better to keep a good tenant in place rather than risk pushing them out with higher rents and having an empty period at the property. Most tenants who find their rent going up will notice that it might only increase by a small amount.

People Still on the Move

In the BBC report is suggests that it is now harder than ever to purchase a property. With lenders being very careful about the amount borrowed, buyers are finding themselves shaving to find bigger and bigger deposits. Although, all things considered, over the last 12 months we have generally seen a rise in the number of our tenants who are leaving their rental accommodation and who have purchased their own home. So the property market is still active, albeit slower than we might be used to.

More Homes Still Required

Many people comment on how many new homes might be appearing in their local area but the facts show that the amount of new homes being built has decreased. The Office of National Statistics shows us that the population ofBritain is ever increasing. Couple this with relationship break ups and more & more people wanting their own home, demand is ever increasing. 

The End Result? 

As buyers struggle to find deposits, the demand for rental property increases. In order to get the property market bump started again, lenders need to lower the deposit rates for mortgages!

01Aug 2012

Property News: Full Council Tax Charges May Apply to Vacant Properties

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By Craig Smith

If you have had a property empty for whatever reason, you may know that a property can be exempt from council tax charges for up to 6 months, provided that it is unoccupied and unfurnished. This is known as a Class C exemption.

Under the Localism Act (which has also changed the way in which tenancy deposits are dealt with recently) the Government is planning to allow local authorities to charge almost whatever they like whilst the property is empty. In theory, the council could still allow an empty property to be exempt from the charges but, on the other hand, they could charge the full amount of council during that period.

Bad News for Landlords

Lets just put one thing into perspective here. Yes, sure, the local authorities could earn a little extra cash with the budgets being tighter than ever, but have they thought how this would actually affect homeowners?

It is not always possible for tenants to move out and in on the same day and it is not usually advisable especially if any work was needed between tenancies. A Landlord could find themselves not only out of pocket but in a financial mess if their property was empty for a month or two. Not only would they have no rent coming in to cover the mortgage, insurance etc but they would also have the expense of paying the council tax for a property they don’t even use!

The Knock-On Effect

If your not a Landlord yourself then you might think I’m being biased here but what about the knock-on effect on regular homeowners? For example, an elderly person moving into a care home might leave their home empty whilst they sell it, another expense to prevent them moving forward with their lives. Or how about someone relocating for work and needs to move away quickly?

And this is a Government that is trying to get the housing market back on an even keel?

Looking at this from the other side, most rental properties would hope to be empty for only a few days between tenancies which would mean that only a small amount of council tax would be due. Now, it is isn’t always easy to contact Landlords, particularly if the Council haven’t got the Landlords home address to address any billing. This would create a whole load of extra work for the Councils to chase outstanding amounts so all that money that could earn from empty properties could all be lost in chasing the debt!

Is This Really a Possibility or Just Scaremongering?

A consultation has already been held and 169 councils voted in favour of the extra charges and only 25 against so it is clearly obvious what the majority want. Unsurprisingly, the majority of Landlords are against the idea and quite rightly too!

I’m sure that this is by no means the last we will hear of this as we trundle towards the inevitability of the ever increasing costs of being a Landlord!

19Jul 2012

Rental Property Advertising: Energy Performance Certificates to be Shown with Particulars

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By Craig Smith

Just over a year ago I wrote about some changes that were planned with regards to including Energy Performance Certificates as part of the details shown to prospective tenants. Well the changes are now in place and, despite quite a lot of confusion, we finally have the answers to some of the questions that have been asked repeatedly over the last couple of weeks!

New Style EPC’s Now Available.

There is now a new style Energy Performance Certificate which still shows the same details as the ‘old’ ones but just in a different format, a bit like a newer model of a car! Some experts have been worried that any older format certificates would need to be replaced by the newer ones each time a property is re-let, even if the certificate has not yet expired. We can now confirm that this is not the case and that older format certificates are still valid, provided they are not out of date.

Should EPC’s be Available when Marketing?

The certificates should be included with printed details if they are being given to a prospective tenant and indeed available at viewings. They should also be provided to a tenant when they move in to a property whether they request one or not. The other change is that the first page of the document should be visible on any electronic advertising such as websites.

However, they do not need to be provided in window displays (imagine the amount of extra windows agents would need just to show them!) or in printed advertisements, for example newspaper adverts.

Should a New EPC be Obtained for Every Letting?

The short answer to this is no! An EPC that has been carried out for the purpose of letting a property is valid for 10 years and the only time it needs to be renewed before this is if any changes have been made to the property that might affect the rating. For example, having new double glazed windows installed or insulation put in.

Further Advice: Saving Energy in the Home

The certificate gives an estimated amount of how much it would cost to run the home over 1 year, based on assumptions of how long the heating will be turned on etc. This won’t be an exact amount that the occupier could expect to pay but does give some idea of how much they would be looking to pay at the property.

Just this Saturday at a viewing, a gentleman asked to look at the EPC as he wanted to compare the energy rating to his current property. He was going to look at the pro’s and con’s of paying extra rent for a new property compared with how the energy bills would stack up. I have to say, I can still count on one hand how many people have actually asked to look at the certificate in the last 5 years!

 

12Jul 2012

Tenancy Issues: Nuisance Neighbours Cause Problems for Tenants

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By Craig Smith

With almost 60 million people living in the UK it is quite fair to assume that not everybody is going to get along and that each person will live their life to their own standards. (Wouldn’t it be a perfect world if this could happen?!) When two different types of people have to live in the same area, this is where problems can arise.

Complaints Concerning Rental Property

The majority of complaints made include noise issues or pets causing a nuisance. A lot of residents don’t realise that it is very difficult for a Landlord or agent to get involved in disputes between neighbours. Yes, there may be a clause in a tenancy agreement which might state that the tenant should not carry out any activities at the property which may cause a disturbance but the Landlord could find it difficult to rely on this to ask a tenant to leave without sufficient evidence.

A lot of disputes can be resolved between the two parties without the need for involving any authorities, a little common sense needs to be used if approaching a difficult neighbour. If a dispute cant be resolved there are other channels that can be explored, including contacting your local council who may be able to give further advice.

Threatening Behaviour

A recent case that has involved our office is where a neighbour has reportedly been abusive and threatening towards a tenant. In instances such as these the local police should be informed so that any abusive behaviour can be logged. Again, a Landlord or agent may still not be able to evict a tenant because of the issue although a sensible Landlord would act quickly in order to keep the property let and in a good standard.

The recent case mentioned above has been ongoing and not just an isolated incident. The Landlords have been doing as much as they possibly can in order to keep a good tenant in place and to resolve the issue but when the Landlord of the problem property is hard to contact, or if they were reluctant to assist with the matter, the tenant could find themselves feeling isolated in the property. The tenant may still be in a fixed term tenancy agreement which would add yet another problem to the dilemma.

The Solution?

Of course, a sympathetic Landlord could let the tenant leave early but this then leaves the Landlord with an empty property which could then be difficult to let knowing the problems with the neighbour! The ideal solution would be for the nuisance neighbour to leave but as this is not something that us or our Landlord can control, we are left with a very awkward situation!

22Jun 2012

Property Letting Advice: Pets Still Causing Issues for Prospective Tenants & Their Landlords

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By Craig Smith

If you are a pet owner looking to move into a rental property you will perhaps already know that finding a Landlord who is willing to accept isn’t as easy as it sounds! Many Landlords prefer not to accept cats and dogs due to the damage caused by them and irresponsible owners.

Of course, Landlords know that the majority of pet owners are responsible and wouldn’t have a pet in the first place if they weren’t going to care for it. The issue here is that it only takes one irresponsible owner or uncaring tenant to cause a huge amount of grief for a Landlord.

Tenant Referencing Prior to Tenancy

Most letting agencies, including us, have a process of referencing a tenant prior to them being agreed for a tenancy. The vetting process (no pun intended!) usually includes credit & employer checks along with a reference from their current Landlord. The credit checks won’t tell a Landlord if they care for their current property but their previous Landlord reference might just do that.

Credit referencing agencies usually ask the referee to complete a questionnaire based on how the tenant has behave or how they have performed their obligations. It is always difficult to give a bad reference as by doing this, a Landlord could find themselves with a tenant who is unable to move as no-one else will accept them! However, if someone refuses to give a reference they usually have a good reason why and this should start to ring alarm bells for the prospective Landlord.

Additional Deposits for Pets

As a general rule through Castle Estates we usually ask for an extra £100 in the deposit per pet, subject to the Landlords approval. (You will probably find that most agencies around the country have a similar system with the additional cost varying.) We find this works quite well as this re-iterates the point to the tenant that the property must be looked after because there is more money in the pot to be lost if they don’t and the Landlord can sleep soundly knowing that there is more deposit money available should it be needed.

Undeclared Pets Cause Upset for Landlords

Some tenants feel that they have to keep their pets a secret which is bad news all round. You will find that most tenancy agreements contain a standard clause that prevents any animals being kept at a property which means that, if the Landlord finds out about the ‘secret pet’, they could have valid reason to ask you to leave the property.

A recent case that came through our office was that of a tenant who had moved into one of our managed properties and, a few months into the tenancy agreement, began looking after a family members dog. To be fair, the tenant had suggested that the dog had no-where else to go but this shouldn’t have prevented them from asking for permission and instead they left it until one of our periodic visits when we found the dog sat looking up at us in the hallway! The Landlord in this instance was reasonable and gave the tenant plenty of notice for which to have the dog removed form the property and after a lot of aggravation (and damage to the property by said tenants) the property was eventually returned to its original state.

Pets That Leave Their Unwanted Guests Behind!

Another problem that we have heard is when a tenant with a dog has left the property and at the final handover, everything appears to be fine. It was only later on, once their deposit had been returned, and a viewing was taking place that little black blobs started to appear on the viewers’ legs. Fleas!

I looked into this and found that fleas can lay eggs and will only hatch when they are vibrated. Whilst they are laid on the back of a cat or dog this is usually only a problem for the animal but once they find their way into the carpets you probably won’t even know they are there! With this particular property being completely empty until the viewing took place, the eggs had lay dormant until the carpets were walked over again.

It is always a recommendation that any carpets or fabrics are thoroughly cleaned at the end of the tenancy and, if done professionally, keep the receipt as proof!