Category Archives: Lettings

16Aug 2012

Current Property news: Rents catching up with property prices.

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By Steve Roulstone

A report by the RICS in to rents paid dated July 2012 show an increase of 4.3% for the past year in rent levels across the Country. This confirms that the Industry is still healthy and demand continues to be strong. At the same time, house prices are predicted to start to rise again as the Country comes out of recession. This is probably not too much of a surprise given the drop in prices seen over the last few years, but does point to the current trends being a good time to buy property and develop portfolios as with continuing demand and climbing rents the investment, currently forecast at producing over a 5% return, should continue to rise.

Last Ten Years.

However, before there is too much clamour about greedy Landlords and long suffering Tenants some facts behind the figures should be given, for what happens year on year should, I feel, be balanced over a longer period of time, so that a more realistic figure can be arrived at. If we look at data for the last ten years the picture between Rents and House prices show quite different results.

Playing catch up.

In 2000 at a time when the rental market was less than 10% of UK housing stock, rent for an average 3 bed property in Stafford was £400.00 This is now £575.00 An average house in the UK cost £101500 and at present that price is £161777. Compare the two sets of figures and a quite different picture appears.

Renting still good value.

Because house prices rose so heavily (Ironically largely on the back of a rush for Buy to Let mortgages!) that average rent in 2000 was just under 4% of the house value. Now it is just over 3.5% The gap is still some £60.00 per month less than is currently being achieved and just shows how far behind house prices when considered as a percentage return, rental prices had fallen.

Predictions correct.

What this also confirms is that it is in line with the market levelling out for rents to continue to increase, and they are predicted to do so at 2% higher than house prices will rise. It is also of note that the period before 2000 was very stable and rents were indeed calculated against the value of the property. This obviously reflected the local market rather than national averages, but the comparison still stands up and I am more than aware that the rent locally is far behind that achievable in other Towns and Cities.                                                                                                                             

Statistics and Statistics!                                                                                                                                                        

Once again what appears on the face to be unreasonable increases can be explained when looked at over a wider period of time or against something which gives a broader context. I am also fully aware that others may be able to give a differing picture using their own parameters. So I will just go back to the more reliable method mentioned above, common when I started Castle Estates.

£400 rent against a house valued at £100000 gave £4800 per year, a return of 4.8%

£570 rent now against the same house valued at £159500 gives £6840 per year, a return of 4.2%

Therefore rents still have some way to go to seek parity with prices in 2000.

14Aug 2012

Current Property News: Localism Act changes continue.

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By Steve Roulstone

It would seem that a further little known section (or at least commented upon section) in the Localism Act has come to light covering the requirement of Local Councils to change the manner in which they deal with people who are becoming homeless under a standard notice to quit (Section 21) if they are unable to source alternative accommodation.

Normal circumstances.

This normally applies to Tenants with problems during a Tenancy anyway and would normally mean notice had been served because of rent arrears, hence the difficulty in finding alternative accommodation. But this is the very situation that the Council is supposed to step in and protect those unable to move and the very area where current advice can lead to an eviction order being served by the Courts.

Illegal Act.

The problem is caused by the advice currently given by Social Housing teams to stay put until such time as the eviction notice has been served. As if by doing so the courts are confirming the Notice is correct. At this stage most Council’s will provide accommodation. At first glance the change appears to make the Tenant ‘labelled as homeless’ with 21 days of the section 21 notice still to serve. Removing the need to rely upon the courts at all and ensuring the Tenant does not perform an illegal act by staying after the end of notice date and having to be evicted and all of the stress and discomfort this procedure produces.

Not so!

On taking advice and checking the legislation thoroughly, it now appears this is not the case and that this rule only applied in certain cases, where the Council placed the Tenant in the Private Rented section in the first place. But as someone who has always questioned the need to subject Tenants to such an uncomfortable and stressful course of action I cannot help but ask the question why not?

Simple.

It strikes me that a process whereby the Council can investigate and ratify a Notice three weeks before the end of the notice period, would in the long run save time and money for all concerned. Surely it is better not to place the Tenant in a position where they are in effect breaking the law and offer a solution which is based upon freedom of information and open for all parties to be present in a simple meeting. To me this is a no brainer and having spoken to our local Housing department about this very subject they do wish to involve and engage with Tenants at an earlier date, resulting they hope, in being able to provide accommodation at an earlier date.

Positive steps.

This is an action we will adopt as an agency as I only see better resolution of problems and a cheaper less stressful situation for all concerned. It is good to speak to a Housing department more concerned with solutions than problems. The only area I still felt uncomfortable about is that they still advice Tenants to stay until eviction notice is served, which I believe is tantamount to inviting them to break the law.

Keep talking.

But by ensuring Councils are aware of problem scenarios at an earlier date, hopefully this will happen less and we will do everything we can, with the knowledge that we must always have our Landlords interests first and foremost at the head of what we do. Even so, this stance can only help and hopefully sometime soon, somebody will see exactly what Tenants are being asked to be put through at a time when they are already suffering.

10Aug 2012

Tenant advice: Trust in your Agent.

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By Steve Roulstone

The question of Tenants being able to trust their Agent, or knowing that the Agent they are about to do business through is one that can be trusted has shown itself in differing ways this week. There is a great difference between the two and again, as happens so often in our relationships with Tenants, it is the need for Tenants to understand why decisions are made that matters.

Firstly, from a professional viewpoint, in a Blog that I penned earlier this week, it is clear that as an industry we need to keep banging the drum about the standards that we as professional Agents sign up to. By being a member of a professional body, in our case ARLA we are showing the standards that we operate to and confirming that monies are protected both in the manner in which we run our business and the audit checks we are subject to, in order to retain our membership. SafeAgent, the kite mark adopted and marketed to further give proof of client money protection and standards should go hand in hand.

In short, if an Agent does not belong to either (Other professional bodies such as NALS and of course RICS are of course acceptable) especially SafeAgent, then as a Tenant or Landlord I would ask why not?

Then there is the day to day life of being an Agent where we are subject to the wrath of the Tenants and prospective Tenants if matters do not develop how they wish.  These so often include either being turned down for property because of being in receipt of Housing Benefit payments and the most common one, having a pet. Not forgetting of course, retention of deposits!

The detail behind the reasons when housing Benefit payments are involved are of course individual in every case, but what is always common, is that payments are made in arrears and in 13 four weekly instalments. Set this against normal monthly payments in advance and then add the difficulty created by the Council stopping payments without any consultation with us as Agents and knowing just how long it can take for payments to start again and it is not difficult to see why we do not need to recommend this situation to our Landlords.

Again in short, legally, we have to give best advice to our Landlords at all times!

Pets in houses are another long topic. Again, each situation is different, but the standards set by some pet owners damage the hopes of so many others that we cannot ignore them. Even without bad management, pets can leave an unwanted legacy, we have had too many instances of fleas up to a year after cats have vacated a property not to ignore the possibility! It is difficult to get an x Tenant to pay for carpet cleaning after they have left, so carpet cleaning becomes a must if any pet is involved.

The point I wish to make is what I have written is not unusual, and any potential Tenant affected by either scenario will have heard this and more. But those with qualifications and affiliations with professional bodies probably, by nature of how they prepare their staff, will have a better understanding of how to manage the situation and can therefore be better relied upon to look after Tenants interests and give them the ‘Duty of Care’ they deserve!

Deposits are an altogether more complicated process now, but in dealing with issues left by Tenants and confirming the payments required to correct those issues, the excuses given at times scream that the Tenants involved have no faith whatsoever in how we go about our business when, if affiliated, as discussed above, we have been trained, have years of experience and know exactly what we can and cannot claim for.

In all cases, if we are wrong, the decision is made through arbitration. We prove our case and judgement is made. If an Agent loses a case through arbitration (and here I can only speak for the Castle Estates offices) it is usually because the case was badly prepared and paperwork let them down, rather than because they were making a false claim. Membership of organisations such as ARLA and schemes such as SafeAgent should enforce this view with Tenants.

The fact they do not means more needs to be done to gain trust as an industry, more needs to be done to further the name of professional bodies (Here comes the drum) and the Government needs to get involved and introduce the legislation confirming the fact and introducing the correct level of penalty for those who operate outside of legislation. In the meantime, look for the symbols of professional membership they all have back up, but more importantly, what they stand for is professional intent!

08Aug 2012

Property Landlord advice: Treating harassment seriously.

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By Steve Roulstone

One of the most difficult jobs that we have to do as Letting Agents is to convince a Landlord that no matter how badly treated he may feel by the Tenant neither we nor he can just turn up at the property and demand recompense!  Harassment and all the actions that surround it are a serious matter and a case has recently come to my attention which highlights exactly why we give the warnings that we do.

Extreme case.

The case I am talking about surrounds a Landlords efforts to remove a Tenant because they wanted to sell the property concerned and went about it in a way that was far from normal by any standards which does mean that the efforts the Landlord went to are extreme, but the penalties  are also high and what should be considered is that the Landlord was wrong in every way, before we even get to the legal steps to avoid action, but that does not change that he was found guilty in virtually every step he took.

Notice served.

Even though the notice was served and indeed not questioned by the courts, the very fact that the Landlord applied pressure on the day the notice came to its due date is significant. The courts only have one view and that is that the law must be seen to take its view. Even if the Tenant does not leave on the due date, the courts are the only vehicle through which a Tenant can be evicted.

Landlords rights.

The law sees itself protecting both the rights of the Landlord and the Tenant, but just because a Tenant does not leave does not mean that anybody can take matters in too their own hands. This is why even calling without notice can be considered as harassment! There is one simple rule here, do nothing without notice, even a visit to discuss matters should be done by appointment.  Let the courts do their work, under no circumstances should a Landlord take any form of direct action themselves.

Extreme scenario.

Yes the detail of this case is extreme, but the consequences do show just how this can get out of hand. The damages which could amount to £30000 (along with not unsubstantial costs) are the proof of just how costly getting this wrong could be.

Private Landlord.

It is also worthy of note that the Agent concerned, having served notice, was contacted by the Tenants solicitors, but from that moment on, the action was all against the Landlord and the Agent, obviously unable to fulfil its role, arrears (correctly) to have disassociated themselves. They have no choice when matters are taken out of their hands. But if it was an Agent that was being blamed for this action no doubt ‘rogue agents’ would have appeared in the report! But as it was a Landlord taking his own actions, it would be nice to know that he was banned from being a Landlord again!

Registration.

If all Landlords were registered as was recommended in the Rugg review of 2008 then there would be no doubt and action would have been taken. But that is not the case and as far as I am aware, without a specific case resulting in a Court ban, Landlords cannot be stopped renting property again! Who knows, that may still happen, but what is sure is that there is no legislation in place at present to rely upon.

06Aug 2012

Current Property News: Ban and fine for bad Agent not enough.

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By Steve Roulstone

An Agent who went bankrupt with liabilities of over £400,000 has been found guilty by an NAEA hearing and fined £2500.00. At the same time it has been confirmed following an investigation by The Insolvency Services that he has been banned from being a Company Director for fight years.

Figures confirmed.

The report confirms a figure close to £40000 as being the amount they say Landlords and Tenants lost as a result of his failure to comply with the 2004 legislation regarding Tenants deposits in the correct manner. What appears to be missing from the research I have carried out is any conviction, as it was the Landlords who were then made liable for the subsequent fines of up to three times the deposit that followed from the failure of GDH to register them correctly.

Total?

It is obvious therefore that the total cost to Landlords and Tenants will never be known, but a conservative estimate of around £75000 would seem to be reasonable; depending upon how many Landlords were levied with the appropriate fine (Three times the original deposit)

Fair?

Now is it me? As an Agent who has constantly banged the drum for registration of Letting Agents for the last ten years, being banned from being a Director and slapped with a £2500 fine, does not seem to be fair when all of the individual cases (and there will be many to make up this kind of figure) are taken in to account? In my opinion, what would seem fairer as far as the Industry is concerned would be that he was never allowed to work as a Letting Agent ever again. This kind of punishment can only come as the result of an Industry protected under legislation and proves to me once again that the Government should be able to see that intervention is needed.

Total ban.

I say total bane, because we all know how simple it is to start again with a relative as a Director and it is only a total ban (as in lost the right to be associated) that would be fair in my opinion to all those who lost money.  It is only through Government legislation that such a rule could be enforced. Only then, would Landlords and Tenants know that they and their money was protected.

Systems exist.

And let’s not forget, that such systems to protect our customers already exist! To register with most professional bodies means monies need to be accounted for within the auditing requirements of remaining a member.  It would also be a simple step to have all deposits registered with people other than Agents own Clients account, such as DPS even though this is something I have spoken out against in the past (How would a Solicitor react to being told he could not keep clients funds?) it would be a small sacrifice as opposed to having workable legislation! And then Safe Agent, the latest initiative from professional bodies within the Industry, which already provides all the protection needed for any Landlord or Tenant!

Not far now.

I believe that it is inevitable that the Government will legislate and cases such as this show the need, all we now require is for the systems professional Agents have put in place and promoted, to be endorsed by a Government and hopefully a more suitable and long standing deterrent will be available!

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!

26Jul 2012

Lettings show Sales how to show a home!

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By Steve Roulstone

My second Blog this week is not my usual subject, but I just cannot miss commenting on two properties that I have visited on the last three weeks, both on behalf of differing Landlords and for differing reasons, but it is the difference between them and the manner in which the Lettings Industry views property as opposed to the Sales Industry as to what is acceptable and what is not that I wish to comment about.

Lettings Viewing.

The first property I have mentioned before in this Blog, it is a house that we have let before, but not before we had gone into long conversations with the Landlord about the standard of the house and what work needed to be done. On being asked to re-visit, I found that the property was worse again, as the outgoing Tenant had removed the stair carpet and left protruding nails and an exposed carpet edge right at the top of the stairs, which was a clear trip hazard for anybody visiting the house, never mind potential Tenants. The outgoing Tenant had also left furniture in rooms, some in a state of disrepair and some just left, but it was not the Landlords property and would not form part of any let and needed to be moved. Finally, the garden which was packed with plants and bushes anyway, seemed to have been untouched throughout the summer months, meaning it now took on the appearance of a jungle, in fact I could only get pictures when taken from an upstairs bedroom window that gave any impression of its appearance.

Not suitable.

The only decision I could come to was to advise the Landlord that the property needed attention before it could be considered suitable for viewings. This was not a Managed property, so we were unable to do anymore until the Landlord had dealt with the stairs carpet, organised the removal of furniture with the outgoing Tenant and done something about the Garden, presumably also with the last Tenant. No matter what was promised, because we were not managing, we would not accept responsibility without knowledge that the work had been completed. We would also not accept a position where the outgoing Tenant could accuse us of damaging furniture they had left. In short, there has to be some semblance of order between the end of one Tenancy and what is done to start the second.

Sales Viewing.

I cannot begin to think of words to describe the second property and what we found. The Landlord wanted our opinion of the property as an investment, a service we will carry out when appointed, to give our experience on what to look for and more likely, look out for. The property was for sale as on behalf of a clearance organisation, following a failed mortgage. Nothing what so ever, had been done to change the house from how it was left by the previous owners, other than to place paper tape on toilets, which did little to hide the worst kind of mess one can imagine in toilets (there were two in the same condition) which was smeared over floors, doors and walls. The furniture in some rooms were caked in I have no idea what, and carpets in two rooms had not been cleaned despite the dried remains of what had clearly been somebody being ill. Despite this, somebody had gone to the trouble of bagging the empty drink cans in plastic bags. I did not count them but there must have been two dozen bags – full!

Not suitable.

I washed my hands when I got back to my office and wished I could wash my shoes and change my clothes. The smell was impossible to describe, but the house was possibly the worst I have ever been asked to view. Despite this, the Sales Agent showed no surprise in our comments of disgust and offered no apology or explanation as to why it had been left in this condition, or worse being offered for sale? Now I know that the buyer will not be expected to live in the house as it is currently being shown, but never the less, it is a health hazard and offers more danger to people looking, in my opinion, than any house I have looked at being offered to the rental market. I was just amazed and have had to comment about the difference. I know the Sales Agents are struggling for business still, but I would have thought that as a general statement, they would at least take some pride in what they are selling. I mean, a Car can be refurbished, but you would never expect a garage to sell one in the state of the house I was shown this week!

23Jul 2012

Current Property News: English Housing Survey points of interest.

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By Steve Roulstone

The figures relating to the latest English Housing Survey have been released for 2010 / 2011. There are several results which are worthy for note and for what they are worth I include my thoughts on these highlight points for the Rental Industry. Each of these are included within the report and you can see for yourself they have been reported on in great depth, but what is not mentioned is the fact that these figures when isolated for our Industry, prove that the rental sector shows no sign what so ever in abating, indeed the pattern is shown as one of upwards growth.

Ten Year high.

And growing! I have stated before that I believe the industry represents a figure approaching 20% of the UK housing stock and these figures confirm the growth shown from the last report as being constant. This 17% figure represents an annual growth of 1.7% which with the same pattern for the last eighteen months would produce a current percentage of 19.55% across England. This does confirm more privately rented properties than the social rented sector as that figure continues to fall. But the most significant figure is the actual number of properties this now represents, as 20% would equal 2.89 million houses, up by 1.45 million in ten years. With 5% growth in the last three years, over 20,000 properties per month have been added to our sector during this same period.

Only lively sector.

That the rental sector is the only area where activity is significant is confirmed by the number of people moving during the period this survey was taken. Out of the whole, private rental sector was responsible for 63% (1.26 million) Confirming just how people are relying upon the Private Rented sector at present, as the means to finding accommodation throughout England.

Unusable stock.

One figure that shouts out at present is the number of houses that remained empty at the time of the survey, 940,000 (nearly 1 million!).  83%, some 780,200 properties were in the private sector.  On the basis of these last two figures, the best way of utilising these properties and using them again for habitation, knowing that a percentage would not be fit for habitation, would be to introduce them to the rental market and an Industry that was better regulated through professional legislation would no doubt attract more interest!

Rented property better than estimated.

The Standard Assessment Procedure (SAP) has been updated during 2009 and the new rating shows Private Rented sector property to be far better than we have been led to believe. There have been several comments in the last twelve months by the Government supporting initiatives to improve the Energy Efficiency of the Private Rental sector, including one that stated Private Rental property was the worst performing sector in the UK.  If this is the case, then these figures show there has been one hell of an increase in quality, as by now it will outperforming Privately owned property!

Shift of emphasis.

Perhaps now the Government will stop introducing so many onerous performance requirements solely for rental properties within the 2018 Green Deal energy performance plans and include moves to encourage ALL privately owned properties, whether they be rented OR owned! There now seems no excuse to target just one sector, and if changes are made, I just wonder if they will be watered down, with the knowledge that the privately owned sector is much harder to corner. I have always felt that the rental sector was targeted because it could be rather than because of any urgent need, as an excellent way of achieving Energy performance figures for to meet Government promised figures!

Healthy statistics.

Yes I know there are statistics more statistics and damn right lies! But these figures do show a continued shift towards renting as a lifestyle choice, as well as the affordable alternative to buying. Otherwise those moving would not be so high in the rental sector, but as an industry, these figures I hope will be used as further ammunition to prove to the current Government, that professional legislation is what is required as the best way forward to breed confidence and higher standards. I equally hope that our professional bodies are ensuring that they are not only requesting legislation, but confirming just how this can be achieved through self Policing within the Industry. I for one live in hope!

20Jul 2012

Current Property News: Lettings Market strong but fluid.

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By Steve Roulstone

Over the last three years the market has been very strong and during the spring there were signs that it was slowing down amongst fears about the Economy and a double dip recession. I commented at the time that the weather was having a huge effect as people stayed put and the last six weeks I believe has confirmed this as the pent up delay has been released, at least as our office is concerned.

Record Numbers.

At most times of the year we are aware of the number of properties being let and actually proceeding at any time, but it has been hard work keeping up with the speed of events that the seeming release of pressure has caused. It would also seem that schools and catchment areas have had a lot to do with the decisions Tenants have been making as they prepare for the next academic year, which has subsequently led to an increase of 33% in the number of houses we would normally expect to let.

Unusual.

This Performance whilst excellent does not yet signify a long term trend even though we are hoping that it does and there is no sign of things slowing just yet, but supply of properties then becomes the next problem as we seek to replace stocks. There is of course a natural trend to this as existing Tenants give notice and the market is thankfully still very active in both areas.

National Trends.

The national housing figures for last year have now been released and these figures will be the subject of one of my blogs next week when I have had the opportunity to digest and understand them, but those that have already commented Nationally are confirming the continued rise as Private Lettings in the UK overtake the Public (Council) Housing stock and approaches 20% of the overall housing market throughout the UK.

Landlord advice.

There has also been a marked increase in the number of Landlords we have discussed the market with as we continue to advice on a whole gambit of property scenarios from flats through family homes up to houses of Multiple Occupation. All of which points to the continued growth in confidence in both the aforementioned economy and the rental market.

Continued learning.

All of this means that we have to keep up to date with the changes in legislation and ensure we refresh ourselves on this intricate market of ours. We do this by openly sharing all manner of daily situations to share knowledge and double check what we advice, bearing in mind our legal responsibility lies first and foremost with our service to our Landlords at all times, whilst ensuring we give the correct duty of care to our Tenants.

Change of tack.

 I do not normally change tack halfway through a topic, but I must take time to mention the open meeting held with the staff of our local paper the Staffordshire Newsletter this week, who went to great lengths to get as many Agents together that could attend to a business development meeting. Firstly it is good to know that the long standing major paper for Stafford is taking their part in the property market so seriously as to not only arrange the get together, but also to provide so many staff so we were able to understand  all aspects of what they provide, but also because of the innovations they are bringing to the advertising market. It just goes to prove that ours is not the only market where people need to be looking ahead at all times!

18Jul 2012

Tenant Advice: Letting Agents not always responsible.

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By Steve Roulstone

Over the last couple of weeks, two incidents have occurred where we as Letting Agents have been held responsible for the effects of us doing our job. The situations were different and in both that occurred, having reviewed what we did as a Company we would have to do the same again should similar circumstances occur. But in both cases the responses we received from Tenants whilst being understandable, we felt were unreasonable when you consider we were doing as we were instructed, or in other words, just doing our job.

 Landlord instruction.

The first concerned a Landlord, who we had in the past dealt with on a Tenant find basis, and after moving a Tenant in to the property, had heard nothing more until we received a phone call asking us if we would find a replacement Tenant as the previous Tenant had now left the house. We knew we needed to inspect the house as we were aware that several improvements were planned even after the last tenant, who was fully aware of the situation, had moved in. Having gained permission to enter we found the house in poor condition, with a garden that had not been touched since the winter and a staircase in a dangerous condition because the carpet had been removed leaving many exposed nails.

Tenant reaction.

We sent a communication to the Landlord, stating we were unable to deal with his property as it was unfit (from the point of view of holding viewings) for purpose. He subsequently sent the same e-mail to his Tenant saying this is what we had said about how she had left the property. This was not the case as we had no instruction to comment as we were not managing the house and knowing what had happened before, had actually advised we fully managed the property to enable us to organise the work for him as he lived many miles away but this did not stop the Tenant calling and complaining about our comments, which resulted in a complicated explanation as to what we were commenting on and that any issues from her tenancy were between her and the Landlord, not us.

Reaction.

The Tenant was angry because what we said had been taken out of context and I do not blame her, but asked to report on a property being ready for letting, we would have to say the same again and it was the Landlord who used our e-mail incorrectly, despite having a disclaimer instructing that the content was for the recipient only. Of course this is too small a case to take action against the Landlord, but it has resulted in a breakdown of trust and a Landlord being dis-instructed.

 Insurance issues.

The second problem was bought about because of the need for a house owner to be temporarily re-housed because of recent flooding, again, a situation that is fraught with difficulties and we, knowing the position the Tenants were in, moved heaven and earth to get them re-housed as quickly as possible. But this did not stop the Insurance Company telling the Tenants that both our charges and Deposit requirements were unreasonable. 

Different Trades.

Now far be it for me to comment on current Insurances rates! But I find it a little disingenuous of them NOT to consider what we were doing for their Tenant (i.e. following their wishes) and to place doubt in the Tenants mind, who, up until this time, had no knowledge of what a Letting agent does, why and how. All this did was produce a feeling from people who had already suffered badly enough because of the poor summer weather that they were being taken advantage of when nothing could be further from the truth!

Charges.

To comment fully on Tenant charges is another Blog all together, but we know that what we charge is far from expensive and we are on the lower side of what is charged in our local market place. But frankly, that is not really what was at question. If the Tenant wanted the property we had available and with the knowledge that Insurance Companies have that charges exist when renting through an agent I am somewhat surprised that they do not make allowance and make people aware as part of the service, and of course accept their customers wishes which means they have to accept our terms and conditions, instead to use the words used by the Insurance Company, they considered that ”both the charges AND the deposit (£100 over a full month’s rent) were unreasonable”.

Unavoidable.

Of course none of this will change no matter how many times this happens and of course we have gone through this many times before and will do so again when people need to be re-housed where Insurance is being triggered, but surely Insurance Companies should be the ones to supply a ‘Rental’ fact sheet not the Letting Agent? Of course when Landlords create problems we do have the choice to take the action we did, but the point of this blog is to show that sometimes, no matter what we do as Letting Agents, we will always appear to Tenants to be acting unreasonably!