Category Archives: Letting Update

17May 2012

May Update: Current Lettings News

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By Craig Smith

At last, a chance to update you all on the latest goings on in the letting world! This month seems to be going so quickly there is a lot to write about, so lets get on with it!

Increasing Number of Viewers Making Offers

With the slow down in the property market over the last few years a number of people are still struggling to sell their homes. This leads some to consider letting their property instead in order for them to move on with their lives but take care of the ‘unable to sell’ situation at the same time. Whether this is the case or whether an investment Landlord has a property coming empty, everyone is keen to get their property let sooner rather than later!

If you are in the market to purchase a property it is common practice to make an offer on the asking price to get a better deal. Today the situation is much the same in the rental market with many prospective tenants making offers on the asking price. Couple this with the huge supply of rental stock that is available at the moment and many Landlords find themselves without any rent increases.

Too Much Choice for Prospective Tenants!

The huge amount of choice that a prospective tenant has when looking for a property has increased the amount of viewings booked for a property. Instead of being able to find only 2 or 3 potential new homes and making a decision in a few days, tenants now have the possibility of a dozen that may be suitable. This, in turn, does lead to more people offering lower rents and trying to get more for their money (it makes sense!) but also increases the number of viewings that might be needed on a property before it is finally let!

In what seems like a distant memory of times gone by, a Landlord could expect perhaps 4 or 5 viewings on a property before it goes under offer. One property that we have been marketing has had over 20 viewings and has now been taken.

Rent Review Time

Increasing the rent is a tough decision at the moment and should be well thought about by any Landlord. We are currently advising our Landlords of properties that have been let for around 12-18 months if we consider a rent increase to be feasible. Given the choice, I’m sure 99% of Landlords would like an increase but putting the rent up too much could force the existing tenant to look around and see what else is available.

Look back at the first section of this post and if a tenant can make an offer on a property that is in the same price range they could just be tempted to move! By keeping the rent at the same rate a Landlord might lose perhaps £10 a month but this is still a lot better off than having a property sat empty for a month between tenancies!

Change of Deposit Legislation

Regular readers will remember my post from back in March regarding the change in Deposit Protection Rules. We’ve been busy organising the new Prescribed Information forms and have issued them to all of our tenants who need them. (By the way, if you are a tenant of ours who hasn’t got them back to us yet please don’t forget!)

If a Landlord hasn’t ensured that they have their paperwork up to date it could come back to bite them in the future. Any deposit taken for an Assured Shorthold Tenancy Agreement must now be registered with one of the approved deposit schemes. If the deposit has not been protected then the Landlord is unable to serve a Section 21 notice on the tenants to leave the property (and wouldn’t be able to do so until the deposit is registered) and could find themselves ordered by a court to repay up to 3 times the deposit amount to the tenant. This is regardless of any rent arrears or damages that a tenant may already have accrued!

What Next?

There are further changes on the horizon including the way in which Energy Performance Certificates need to be presented on property details. If anyone tells you that employing a managing agent for your property is a waste of money then just tell them to see how busy we are in looking after our Landlords!

19Apr 2012

Property Landlord Advice: Choosing a Tenant – Landlords needs first – by law!

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By Steve Roulstone

One of the areas that crop up again and again when we are going about our job, is the relationship between ourselves as Agents of the Landlord and our prospective and actual Tenants. It is and always has been in our interests to have good relationships with our Tenants and we continue to promote that at all times, but when it comes to our position legally we have to consider the Landlord above the needs of the Tenant and it is this stance which is often mis-understood!

Tenant’s rights.

 We do of course give the Tenants duty of care, but two situations have arisen this morning which yet again could and possibly does leave us looking like ‘bad boys’ if we proceeded and made what we believe to be the best decisions in the interests of the Landlord. The first issue surrounds another Tenant viewing and proceeding with a property before a second prospective Tenant had viewed. There was a statement made about who was due to see the property first which we could not agree with as we do not give preferential rights of viewing as a Company Policy.  

I saw it first!

This is simple enough to understand, if the first person to phone cannot view for a week, do we stop others who can view today? No because it would not be in the interest of the Landlord and our decision is an easy one! In this case what has clouded the issue for the prospective Tenant, is that they felt they had been promised to be shown first but as we never do give such promises, because it is never in the interests of our Landlords, this would simply never be the case. It is more likely that there was a misunderstanding of what was being asked and promised, but it ended with a nasty phone call to myself and my staff which of course is not acceptable for either party.

Best Tenant.

The second problem was one where in asking for information to assist finding a property for a potential Tenant, nothing has been forthcoming since we asked from the Tenant. Now when they ask to view a property again, which we know will be impossible without the information, do we tell them no without delay? We are of course always charged to find the best Tenant at all times for our Landlords and that inevitably means making decisions. We have to otherwise we would not be doing our job.  But it is highly likely this situation will again end up with a disappointed party, but we are not bound to find property for all who contact us, just those we believe will be good Tenants.

Overriding facts.

In every situation we are bound to make the decision that is in the best interests of our clients and that is our Landlords. This means disappointing some who contact us. But until Tenants understand that we have a legal commitment to serve our Landlords and that overrides any duty of care towards Tenants  (unless that neglect of duty includes an illegal act or stance) such issues will continue to occur. What of course we can hope is that not every time someone does not get what they want it does not end up in aggressive phone calls. 

28Mar 2012

Lettings News: Are Tenants Fully Aware of Their Responsibilities?

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By Craig Smith

At the beginning of February we posted about how some Landlords might not be fully aware of their responsibilities when letting a property. The Landlord doesn’t just have responsibilities at the start of the tenancy but throughout as well and, likewise, the tenant must ensure that they keep to their side of the contract too!

Tenant General Repairs

Common sense sometimes needs to be applied with regards to how far a tenants responsibility would reach. For example, a tenant would be responsible for changing a faulty light bulb or mowing a lawn regularly. Believe it or not some tenants will ask a Landlord to do some of the simplest tasks!

Another common area of dispute between a tenant and Landlord is when drains or pipes become blocked. Usually, this cost of having a drain unblocked would fall to the tenant, especially if they have lived at the property for some time. Whilst most tenants do take care of the property they live in like it was there own, occasionally items such as wipes will find their way into the sewer system. Generally, the rule is if a tenant has caused the issue then the tenant would be responsible for the cost of its rectification and this rule extends to most of the fixtures & fittings of a property.

Wear & Tear on a Rental Property

Over time some items will become worn regardless of whether the property is let or lived in by an owner. Electrical appliances such as washing machines or dishwashers will no doubt eventually break down. Of course, if the reason for the breakdown is the fault of the tenant (for example no salt being put into the dishwasher) then the tenant would be responsible as they should treat the appliance as their own, or in a ‘tenant like manner’. If the appliance has been looked after and has broken down due to age then the Landlord should be prepared to bear the cost.

Wear and tear is easily explained on appliances provided at a property but less so on the actual décor. Again, a tenant should make sure that wallpaper, carpets etc are looked after but a reasonable amount of wear & tear should be expected. The number of tenants can also determine the amount of wear expected, a family of 5 might cause heavier wear than a single person for instance.

Who Looks After the Garden?

Most tenancy agreements will state that the tenant should take care of the garden. Occasionally Landlords might include a gardener in the cost of the rental, more often so with large gardens or those with large trees & shrubs. Tenants would be expected to keep any lawns mowed, borders free of weeds and keeping the garden tidy. This will depend on the individual tenancy and, if a tenant is unsure, they should always check before entering into a tenancy.

Best Advice

As an agent, we always make tenants aware of their responsibilities before they sign any agreements with us. This helps to avoid any disputes further down the line and we would urge all Landlords to do the same! 

15Mar 2012

The Localism Act: Changes on the Horizon for Assured Shorthold Tenancies

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By Craig Smith

Oh no! Not another post about deposits! Around 12 months ago we posted the importance of dealing with deposits correctly. In December of last year we wrote about a court ruling regarding a deposit for an Assured Shorthold Tenancy that had not been protected by the Landlord. Since then a number of changes have been announced that change the way in which deposits should be dealt with and these changes come in to force on 6th April 2012.

Prescribed Information for AST’s

Under the ‘old rules’, Landlords would have 14 days in which to serve the Prescribed Information to the tenant. This is the document that gives the tenant certain information about where the deposit is held and what happens to it. With the changes that are due to come in to force in April, Landlords will now have 30 days to protect the deposit and issue the Prescribed Information.

But this doesn’t mean relaxed rules for Landlords as if the deposit has not been protected within those 30 days, the tenant can take the Landlord to court to claim this back. Neither can the Landlord wriggle out of any penalties by protecting the deposit at that time as this will now not be accepted as sufficient protection for the deposit. The fines for non protection of the deposit used to be a mandatory 3x the amount of the deposit, plus the original deposit to be paid back to the tenant. Now it can be any amount between that of the original deposit and a maximum of 3x the deposit amount.

Existing Tenancies to be Protected

The new rules also require deposits for any existing AST’s to be registered within 30 days from 6th April 2012. This is regardless of whether the tenancy began before or after the date that Tenancy Deposit Protection came into force (6th April 2007) but of course any AST’s that started, or renewed, from that date should already be registered!

The reason for this is that the new legislation states that any new tenancy should be registered and the wording in the Housing Act 1988 means that any tenancy that goes to a periodic status is classed as a new tenancy. 

Tenancies Not Under the Housing Act 1988

The legislation is still yet to reach other types of tenancy agreement, such as Company Let or Assured Tenancies. Of course, this may change in the future but we’ll cross that bridge if we come to it! Non-AST tenancy deposits may still be registered if all parties are in agreement but it is always best to check before registering. 

17Feb 2012

Lettings Blog: 1st Anniversary!

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By Craig Smith

How time flies when your blogging! Today is the first anniversary of our lettings blog and whilst we’ll hold off buying a cake or organising a party we did think that this would be a good opportunity to look back on the last 12 months and look towards the future also.

The Past…

When we decided to begin publishing our lettings blog, the aim was simple; to keep tenants and Landlords informed of the big news and upcoming events in the lettings industry. We do feel like we have achieved this although with an office as busy as ours its not always easy to post as much as we would like but we have managed to keep up to date with the bigger issues.

With 12 months of blogging behind us this will be our 21st post. We’ve covered almost everything from changes to EPC rules to deposit disputes and no doubt this has been useful to a good number of readers.

The Present…

Right now we’re keeping a watchful eye on the news, not just in the lettings industry but worldwide events too. Every main news headline at the moment seems to concern the world’s money, or should that be lack of it?! Everything that happens has a knock on effect on others, such as if a factory closes down and 50 jobs are lost, that’s 50 less people who live in the area that are unable to pay their mortgages or rents.

It’s a tough time for almost everybody at the moment and things cant just change overnight. Forecasters can predict what is going to happen next but nobody knows exactly what is around the corner.

The Future!

Our aim for the future is to keep growing and providing the up to date information and continue to be at the forefront of the lettings news. It’s not all bad news so we hope to focus on some more of the positive updates rather than the negatives. 

01Feb 2012

Lettings News: Are Landlords Fully Aware of Their Responsibilities?

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By Craig Smith

There are many reasons why someone may want to let out their home. A lot of home owners at the moment are struggling to sell their property but still need to move on with their lives, perhaps a job offer in a different part of the country or moving abroad. Putting a tenant into the property can keep the mortgage paid and the house looked after whilst the Landlord is away.

Basic Health & Safety

A lot of these Landlords can come into this situation knowing nothing at all about renting a property and it is our job to keep them on the right path. The Landlord would be responsible for ensuring that the property is safe, for example ensuring that any gas appliances are tested annually and that anything that the tenants are left with a safe environment to live in. Don’t forget that Landlords can (and have been) jailed for failing to ensure that their rental property is safe!

Then there are the less well known items that can catch out unsuspecting homeowners, such as ensuring that stairways are safe. One property that we looked after for a Landlord had no banister rail along the stairway and although it did look great, something did need to be done before a tenant moved in to prevent any accidents occurring. A simple banister was fitted in order for the stairs to be deemed safer, the Landlord would much rather have a small expense at the start of the tenancy than a claim for damages from an injured tenant!

General Repairs

Repairs also need to be covered by the Landlord throughout the tenancy, not just to the building itself but also to any items that have been left for use by the tenant. Of course, if a property has been let furnished and a tenants pet has ripped the cover on a sofa then the tenant would be liable for the damage. But it is the Landlord who should cover any wear & tear such as a cooker breaking down or rotten window frames.

Who Can Carry Out the Repairs?

For general repairs such as gardening or decorating a lot of Landlords prefer to do this themselves which will help to reduce any costs but for more specialist items such as electrics, qualified contractors need to be used. Some of the most well known include using a GasSafe registered engineer for works to gas appliances and most electrical works that are carried out must now be certified under Part P building regulations. 

17Jan 2012

Landlord Advice: When Tenants Run Away From a Property

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By Craig Smith

Managing around 300 properties throws up a wide range of different tribulations from time to time but one that keeps appearing every now and then is a tenant that ‘does a runner’ from a tenancy. There are a number of causes as to why they may do this but usually this is due to financial problems on the tenants part.

Scared of the Unknown?

Perhaps one reason that a tenant may run from the responsibilities is that they don’t know how the Landlord will react to overdue or unpaid rent. From experience, a lot of Landlords are willing to work with tenants to reach an outcome that will suit all parties. For example, if the tenant is in rent arrears the Landlord may agree some sort of payment plan so that the tenant can pay the outstanding rent in smaller payments but, eventually, the Landlord still gets his rent.

Of course, not all Landlord are as reasonable as others but communication from the tenant is key. Again, most Landlords will be more willing to resolve any such matters with a tenant is they keep in regular contact and update the Landlord as to when payments may be made.

Extra Costs for Landlords

Another big problem with tenants leaving in a rush is the state in which the property is usually left. A recent case that we had of this included furniture, boxes if items and even childrens’ toys being left in a house! This is without mentioning any cleaning or redecorating that needs to be carried out due to tenant neglect.

If a deposit is held then a Landlord can take steps to use this either for rent arrears or for damages, or, depending on how much is held and how much reinstatement work is needed, perhaps towards both. Using the deposit towards the costs will help but initially, at least, the cost is usually borne by the Landlord.

Property Downtime Increases

Reading this now you might think that things aren’t too bad, get the decorators and the cleaners in and away you go again looking for another tenant. But think of this, how many tenants would be willing to take on a run down property? Fair enough the work may already be in progress but it is hard to see potential in a property that has been neglected. This could result in the property being empty for a longer period than it may usually do.

With an increase in the amount of time that the property is empty, coupled with the initial costs of any works could all add up to a rather large bill for the Landlord!

Can we Prevent the Tenant form Doing This Again?

The simplest answer to this is, unfortunately, no. A tenant will do whatever a tenant wants to do, whether it is right or not. There are ways of chasing tenants for rent arrears or dilapidations through the courts which could result in a tenant having a CCJ or some sort of judgement made against them. This could affect their credit rating and would almost certainly hinder their progress on any future tenant referencing. 

09Jan 2012

Rental Property Advice: What is the Role of a Guarantor?

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By Craig Smith

The majority of letting agents in England, including ourselves, usually insist that a tenant is referenced before proceeding with a tenancy. This usually includes a credit check and background checks on the prospective tenant in order to confirm their identity and credit history.

Who are the Referencing Company?

Different agents use different referencing companies to carry out the checks and some are more in depth than others. This doesn’t necessarily mean that, by having a tenant referenced, you are guaranteed a good tenant. Everybody’s circumstances are different and can change at almost any time, whether that is 10 years down the line or 10 days into the tenancy!

Poor Credit Equals Bad Tenant?

Similarly, it is not always the case that if someone may have poor credit that they won’t be good tenants and look after the home. With the aid of a guarantor, a tenant can proceed with an application for a tenancy with the Landlord knowing they have an additional ‘safeguard’ should the tenancy go wrong.

What Does a Guarantor do?

Provided the tenant pays the rent on time (and in full!) and looks after the property, the answer is nothing! But perhaps the best way of describing the responsibilities of a guarantor is that they have the same responsibilities as the tenant but without being able to actually live at the home. This does not just include and rent arrears but also and damages or costs should the tenant fail to cover them. For example, if a tenant is not contactable at the end of a tenancy but with damages to the property. The guarantor can also be used during the tenancy if a tenant fails to pay the rent on time.

A common misconception if the length of time that a guarantor is in place for. Most Assured Shorthold Tenancy Agreements are for 6 or 12 months or maybe more and guarantors can often believe that they would only be responsible for the initial term of the tenancy. However, unless agreed otherwise with a Landlord, the guarantor could remain in place for the full length of the tenancy, whether it lasted 6 months or 6 years!

If you are about to stand as guarantor for a tenancy you should be absolutely certain that you are in a position to do so. You should also seek advice if you are unsure of any of your responsibilities before signing any agreements! 

10Dec 2011

Tenancy Advice: Prescribed Information & Tenancy Deposit Ruling

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By Craig Smith

If you’ve looked back through some of our recent posts, you might think that all we do is bang on about is deposits, deposits and deposits. Well, maybe not but here’s some more important information that you might find useful.

A recent court ruling has changed the way in which information should be provided to tenants paying a deposit that would be protected under the Housing Act 2004. Since 6th April 2007 any deposit taken for an Assured Shorthold Tenancy must be protected by one of the 3 deposit schemes (see my earlier post on deposit protection) but now additional information needs to be provided to tenants.

Prescribed Information

It is already stated in the legislation that tenants must be provided with certain Prescribed Information for the deposit. This information includes where the deposit will be held and the Landlords & Tenants rights to the deposit at the end of the tenancy. If this information has not been given correctly, or not provided at all, Landlords could be forced to pay 3x the deposit amount, plus the deposit back to the tenants.

This is the same for deposits that have not been registered in the timeline set out by the scheme rules, currently 14 days. Landlords cannot ‘get around’ the legislation by suddenly registering a deposit later in the tenancy if the tenancy turns sour. However, new rules are looking set to be published some time in 2012 which will extend the time to register a deposit to 30 days but we’ll wait and see when this happens!

Recent Court Case

The recent case which looks set to have changed the way in which information is given to tenants is the case of Suurpere V Nice. The full details of the case can be found using that link but the very basics of the case are: a deposit that was taken in January 2009 was not registered until July 2009. So, quite clearly not within the 14 day rule! Despite the fact that the tenant had left the property in rent arrears and goods still at the property that would need to be removed at the Landlrod expense, the Landlord was ordered to pay the deposit back to the tenant in full plus 3x the deposit amount.

Now reading this right now, this might seem unfair on the Landlord and to a certain point, I have to agree. But, the rules of deposit protection are very clear and Landlords cannot use the excuse of having a bad tenant to get out of any fines imposed by a court.

Rogue Landlords

A little bit of advice now to tenants. When you are looking to rent a property how much attention do you pay to the Landlord or Agent? Sometimes stickers on an office window might just get in the way of the property your trying to look at through the glass but do you know what they mean? It’s a tough world out there at the moment so make sure that the deposit you have paid is looked after! 

02Nov 2011

Property Landlord advice: Keeping the House Warm!

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By Steve Roulstone

At our office in Stafford, at this time of year, we like to remind our Tenants on behalf of our Landlords, especially in relation to their Insurance, that during the winter months they have the responsibility of keeping their rented property at the right temperature to combat our winter weather. We do this every year to ensure that property is left unprotected during holidays, be it skiing, a winter break or just over the Christmas period that Tenants are away, the home still needs protecting. Especially after the hard spells we experienced last year, which were a timely reminder ensuring we do not take any year for granted as far as the weather in this country is concerned.

Correct temperature recommended.

Of course one of the most important pieces of advice, in amongst information on emergency procedures and confirmation of responsibility, is the correct temperature that an empty house should be maintained at and it is this one figure that I wanted to highlight today, because should you ask any group of people what temperature they should maintain their own house at whilst away during the winter months, it would be my position that very few would be correct in their estimate!

Plumbers and Insurance agree.

The surprising thing was that the recommendation was agreed by both the Insurance companies (written as part of the policy) and the plumbers we spoke to, namely that the house should be kept between 12c and 15c. (I know that in my own house, and even in the rented property I now occupy, I have never aimed to keep the property at this figure) However, what matters here is that as Agents we advise the Tenants in a manner that they both realize their responsibilities and are advised in a way that the implications are understood.

Co-operation required.

If it is part of a Landlords Insurance policy that a minimum temperature be maintained when a property is empty, then it is important that Tenants are reminded at least once a year and that the reminder is timely, with the beginning of the winter being the best time to renew the instruction. There is no doubt that cold snaps such as we experienced last year may not come every year, but then there is just as much chance that they will and this is something that the Landlord cannot ignore, because should an Insurance Company be able to prove that a property has not been maintained correctly, then they have the ultimate sanction and could refuse to accept any subsequent claim!     

Clear advice and implications.

What we would all seek to avoid in such circumstances, is a situation where the Tenant can be held responsible for damage caused because they did not follow what was required of them so it is important that they are both made aware and advised of the clear implications that could follow from not carrying out there responsibility. What we do know from previous experience, is uncommon to popular belief, the majority of Tenants do understand and are sympathetic to what they need to do in these circumstances and therefore when advised properly and informed on time, they will co-operate and help to keep ‘burst pipes’ to a minimum!