14Nov 2012

Prescribed Information confirmed as having Greater Importance

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By Mike Edwards

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

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

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

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

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

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

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

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

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

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

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

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

08Nov 2012

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

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By Steve Roulstone

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

Old News

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

PI

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

Fine.

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

End of fixed term.

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

Solution.

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

02Nov 2012

Current Property News: Free Carbon Monoxide Detectors!

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By Steve Roulstone

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

Swift progress.

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

Balance in favour of rented property.

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

Good progress.

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

Correct usage.

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

Law of the Land.

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

30Oct 2012

Current Property News: CAB Failing to understand Tenants Deposit Scheme.

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By Steve Roulstone

“The problem is they just do not realise that there are decent honest Landlords and Agents out there!” So said a fellow Letting Agent who just happened to be in my office this morning, when speaking about the Citizens Advice Bureau and the problems she had found in dealing with them. So it seems a regular problem is happening for other Agents, which does nothing to resolve the issue, but does make you realise that CAB are not perhaps the all knowing all seeing force that they convey, when demanding changes in the way we run our Industry.

Regular item.

In fact, it was only last week that I referred to their campaign to remove all Tenants fees, and support for a new five year agreement, but how can they be taken seriously as a champion of the Tenant when (taking our evidence from two conversations with them this morning) it is clear they do not even understand how, for example, the Tenants Deposit Scheme works!

Phone calls.

What happened this morning was an initial call from a Lady at the CAB asking why we were not returning a Tenants deposit (The Tenant having been at the house for many years) What she was not aware of was that the Deposit was not being refunded because of cigarette burns, yellowing paintwork caused by smoking, general untidiness and cleaning requirements. This in a house where the Tenant had been warned about the consequences when we carried out our Property visits of smoking inside.

Not aware.

The problem lay with the Lady not being aware of how the DPS (Our preferred Deposit organisation) works. So we had to advise them of what would happen and how the claim would go to adjudication as both parties could not agree. The Tenant stance was one of ‘but I have always paid my rent’ which of course was not acceptable.

Problem compounded!

Lo and behold, not an hour later, a second person from the CAB phoned and asked for the Tenants DPS reference number. Now for those who do not know, DPS will only give the Tenants reference number to the Tenant, but we would expect CAB to be aware of this at least, as it is such a basic rule of the system. Instead, we had to explain again how the system worked and be spoken to as if we were being obstructive in how we were dealing with the matter. This is unacceptable and speaks volumes about the manner in which CAB view Landlords and Agents.

Who knew!

The fact is, as a professional Agency, we pride ourselves on carrying out our affairs to the letter of the Law. The fact seems to be that our Tenant, who we had of course already the procedure explained to him, could not find anybody with the knowledge at the CAB to advice him well at all. The phone calls of course ended up, providing they were relayed correctly, with the same advice we had already passed on, but while I am of course aware that the CAB do a very good job in advising the public, it seems they need some training on what is now a basic staple of Tenant law, because what should have happened when the Tenant reported his situation in the first place to the CAB was an answer of, ‘Yes, that’s right!’

Review.

As a matter of course, we review every situation where we are in communication with organisations who act for others, whether it is another Agent, Solicitor or organisations such as the CAB. In doing so in this case we were satisfied we did our job correctly. The only question was one of language and translation, but as I have stated, the Tenant was long standing and we had held many conversation with him over the years and we are left in do doubt that the problem was not one of miscomprehension, rather a Tenant who did not get what he wanted, feeling he could get help from others. It is a pity we were spoken to by the CAB in such a poor way when what we did was correct and I just hope that in relaying the conversation our Tenant was advised that we are correct in our dealings on his behalf!

26Oct 2012

Property Landlord advice: Shelter idea not practical, Tenants need their own control.

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By Steve Roulstone

I posted a Blog a couple of weeks ago about what encourages a Tenant to stay longer in property and the answer both backed by the facts about the length of time our Tenants stay and what the Castle Estates group confirm, is the need for them to have confidence in their position. This involves allowing them to have control of their agreement by NOT being tied down to a new agreement every year.

Reasoning.

It is worth repeating quickly what this means. Tenant’s who are asked to sign a new agreement every year, are by doing so actually being asked a simple question – Do I want to be tied down for another year? In effect, they have their flexibility taken away from them. Instead what we believe in is allowing the contract to role on month by month (Periodic) and handing the control (when they wish to give notice) over to the Tenant. The actual reality is that Tenants stay longer when they do not feel pressured.

Shelter proposal.

Shelter feel that the market needs a five year agreement and I agree with William Jordan of Jordans Rentals (in his piece in Property Drum) that Shelter are approaching the issue from the wrong point. I do not know many Tenants who would agree to sign a five year agreement; in fact I would never recommend advertising a property as available on a five year agreement as it would greatly reduce the interest. What Shelter has missed is that it is not security people wish for, it is flexibility!

Moving on.

It is because Tenants want to be able to move when it suits them, not the opposite and as for Landlords giving Tenants notice to sell the house etc, well it is my experience that this happens very infrequently. Rather, it is when a Tenant gives notice in by far the majority of cases that a Landlord may make a decision to remove the property from the market. Also, it cannot be forgotten that we act for Landlords as their agent and this is a legal fact that cannot be ignored. But if a Tenant wanted a five year agreement and the Landlord was happy, this can already be arranged by using agreements available now, so why change?

Fees.

But there is another area which I alluded to in my original post which also needs to be addressed and this is where Shelter has a point. Too many Agents use the new agreement stance as an income stream by charging the Tenant for every new agreement signed. This has three real time implications. Firstly, they are taking advantage of the Tenant and reducing their upfront Landlord fees. OK for Landlords, but, Secondly, this gives credence to the Campaign waged by both Shelter and CAB to remove all Tenant fees (as, may I remind everybody, is already the case in Scotland) and long term will not do Landlords any favours, just to take short term advantage of Tenants.

Landlords pay costs.

Thirdly, by allowing Tenants to stay under a periodic agreement resulting in Tenants staying longer in the house, in reality, if (and when) a Tenant leaves because of being asked to sign a contract extension, it is the Landlord who is put at risk in having an empty property between Tenancies and losing out on rent, even if this is only for two weeks between Tenants!

Conclusion.

These are the reasons I put to why Shelter are approaching the matter from the wrong end, systems develop and patterns emerge because of the way the market takes them – market forces at work. That some see an opportunity to take advantage is, in my humble opinion, what needs to be dealt with here. Agents can be accommodating and property is available already long term and we are of course asked the question at times, but in reality, flexibility is the answer, not longer agreements.

There is more to follow on this subject and I will be adding to and commenting on what is currently a very live debate very soon!

24Oct 2012

Current Property News: Landlords facing gas supply cuts through new regulations.

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By Steve Roulstone

It is very rarely that I print a headline designed to make people stop, but this is one. Following a criminal case into a death arising from Carbon Monoxide poisoning, a new test has been added to the Gas safety Certificate for Tenants concerning the inspection of joints in the flu where they pass through voids with no access. Simply put, it a joint cannot be accessed, it will fail. The consequences are a request to cut off the Gas supply and all the problems of a Landlord failing to provide space and water heating until the problem is corrected.

Immediate action.

This is a situation that needs immediate action, because it soon becomes clear that where problems occur, especially if property is in a block of leasehold flats for example. Therefore, all of our staff, and especially staff who carry out our three monthly visits, will be educated to understand where problems exist and highlight them as soon as possible.

Extent of problem.

What needs to be realised here, is not just which boiler flues may cause concern, but also the length of time that will be needed to correct the problem. As Letting Agents, we are well aware of how problems do occur during a Gas Safety Inspection, but 99 times out of 100 the work is completed on the day, or at the very worst the following day. That inspection hatches may need to be fitted points out just how long the work could take, before a system can be given the green light.

Spotted early.

This is why we are looking now and not waiting for the problem to occur. It is what we need to do as an Agent and where a potential problem exists we will supply the Tenant with a carbon Monoxide detector as soon as we are aware. We are also Block Managing Agents and being aware of where the responsibility lies, we will be advising all of our Leaseholders to review the situation and check for themselves. Finally, we will write to all of our Landlords and make them aware of the changes and implications.

Best advice.                 

There will be much more detail in the fall out over the introduction of these important and wide reaching changes. We are aware of one Landlord who owns a block of flats, who has had to fit inspection hatches in the living room of eight properties to comply. But more than anything else is the importance of ensuring a Tenant does not lose supply and heating for any length of time. One thing for sure is that a Tenant’s permission would need to be sought to allow the gas supply to be turned off, and without permission the Landlord is left in no man’s land with a system which cannot be licensed. Nobody would want this scenario to result in anybody’s death, but it is not a scenario I am going to allow to develop and this is why we are addressing it now.

Leasehold.

The Leasehold property owner faces an even worse scenario, as it may be the shared element of their building that hides the flue and then permission will need to be sought before any works can be carried out! This is another scenario that could take several weeks to be resolved and another reason why we are surveying our blocks for problems now, rather than wait for the problem to occur. We will do everything we can through being pro-active to ensure another tragedy does not occur under our Management.

Conclusion.

As a property owner, I am able to look at the action from both angles and as owners I can only recommend you do the same, or at least ask your property professional what they are doing on your behalf. One thing is sure, if nothing is done and your property comes under those that will fail, a whole new set of problems will occur and at that stage they may not be under your control!

18Oct 2012

Landlords Lose Money to Greedy Utility Companies

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By Craig Smith

A little while ago, Steve from our office blogged about some of the issues he was having with a certain utility company, namelyUtility Warehouse. Well it seems they are still trying to overcharge for energy used in rental properties!

Incorrect MeterReadings

The usual process for our office when a tenant moves in or out of a home is to inform the relevant companies, in writing, of the correct readings and forwarding address. The property in question was no different where after a brief empty period, new tenants moved in and the emails sent off to the utility companies. We would normally expect to get any final bills within a few weeks, arrange for the payment to be made and everything can be forgotten about until next time.

Well, the bill came through with estimated readings! This basically means that the energy supplier hasn’t taken any notice whatsoever of the readings we have taken and made up their own readings. Surprise, surprise! They are usually always over-estimated and this case was no different, which meant that we need to send the correct readings over… again!

Lack of Contact

This all happened in August (2 months ago) and since then we have had no contact fromUtility Warehouseregarding this account. Until today. A letter arrives through our door from a debt collection agency chasing the outstanding amount of just over £20! (Now, you might think that arguing over such a small amount is silly but you should only pay for the energy you have used!)

Needless to say that due to the lack of contact and the usually less than helpful nature of some of the debt chasing staff, we have made contact & told them what we think of the service!

Not the Only One!

It may sound like I am singling out a single supplier here but the truth is that this seems to arise with numerous companies and some are worse than others. Which begs the question, how many people (not people, not just Landlords!) are out there that have been scared by these tactics and ended up paying more than they should have done?

Deemed Rates

Another big money-earner is the type of tariff the account is put onto. When you are living in a property it is easier to research cheaper rates for your energy bills but something that a lot of Landlords forget when a property is empty. This is particularly important if a property is left unoccupied for a longer period of time. We have had instances in the past where no energy has been used at all but standing charges still apply.

The Solution

Unfortunately, there doesn’t seem to be any way of making dealing with some of these companies any easier and sometimes you just have to grit your teeth and get on with it. By always informing any changes in writing, it gives a good backup should accounts not be updated as they should be. For now, we shall carry on…

18Oct 2012

Tenant advice: Access required for a reason.

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By Steve Roulstone

It seems some people just do not trust anybody when it comes to access to their homes and of course we both respect and understand that. Advising Tenants before we enter a property for whatever reason should always be done with permission and we fully endorse this golden rule. But sometimes we need access to enable us to do our job at differing times and when it comes to the end of the Tenancy it seems we run up against a brick wall more times than any other during a Tenancy.

Problems and mistakes.

Like any busy office, with property visits, viewings and maintenance issues to address on a daily basis, mistakes do sometimes occur.  This means a review of why and apologies to the person concerned, especially as it can sometimes be a misunderstanding. Other times, with Tenants who do not speak English well, we have to abort if we feel our requirements have not been fully understood if nobody is present when we call, or sometimes we can be wrong and only after a visit we thought was understood, find out it was not and again apologise. One thing for sure, we never enter a property without belief that we have received permission!

Access denied!

However, what we do find difficult is when Tenants that are approaching the end of their Tenancy deny us access at all times! There can be several reasons, problems during the Tenancy, having been given notice when they did not wish to leave, or of course just plain mistrust. It has to be said, no matter how hard you try, it is impossible to develop good relationships with every Tenant. The whole scenario surrounding the renting of property throws up a myriad of problems, some of which create problems Tenants do not appreciate no matter that we are doing our job. Relationships therefore can be strained.

Job requirements.

Of course at the end of one Tenancy we need to re-let the property for the next, which means viewings. There is also the need to review properties and look at any works required between tenants. Of course it is perfectly acceptable for property to be improved between Tenants which is sensibly the most practical time for improvements to be carried out. To be denied access for both is effectively stopping us from doing our job, and is exactly the reason why specific arrangements are included within the Tenancy agreement to ensure arrangements are clearly set out for all to understand.

Time limit.

Of course we must try to resolve all issues quickly and with agreement. We have been asked to wait two weeks before viewings start and will comply, because at least we have access for the last two weeks instead of none at all, but when we are denied all together, we then have (usually) an irate Landlord who wants to know why we cannot progress his property and along with that, we usually get the question who is going to pay for the two weeks lost rent? A good question which the law does not allow us to answer!

Conclusion.

The conclusion therefore is to try to get along with our Tenants which we do try to do as a matter of course. But not just to gain co-operation, but because all things end better if they start with a smile! (Must try to remember that one!) But it is important that Tenants understand just how important it is for us to do our job once notice has been served, remembering that we will arrange visits and viewings to coincide with when somebody is present at the property and always respect their position by giving a clear 48 hrs notice, so to the vast majority who understand – Thankyou!

 

 

17Oct 2012

Off Topic: Google make profit from Hotmail support scam.

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By Steve Roulstone

Today’s topic is completely away from the Lettings Industry, but never the less, something that I want to warn everybody about and at the same time ensure the message that what Google is doing is both , in my opinion, out of order and something that they should change their complaints procedure to make allowance for.

Hotmail account failure.

Yesterday, for some strange reason, I was unable to open my Hotmail account and access e-mails, which I use as a support service to my business e-mail and therefore use every day. My reaction was to look for a support number to see what the problem was, because this was most unusual and others with Hotmail addresses were also having problems and I did wonder if we had some kind of virus that had been passed on through e-mails to our system.

Google ads.

Now, with this fear in mind, what I wanted to do was find a number that I could call quickly and talk to someone to find out what was happening. The fear of a virus was uppermost in my mind, so when I Googled ‘Hotmail support’ and phoned the first number I found. That was where my real problems started. What I failed to notice was the web address was not Hotmail, it read Hotmail support itechacharya .co.uk/ Now I have not written this as a link on purpose, because the last thing anybody should do is visit their site.

The phone call.

As the one who normally tells everybody in the office to be careful, I should have checked, rather, I phoned the number and was taken in by the manner in which they dealt with me, which included phoning in to the computer to search for the problem. Not an unusual method of operation nowadays and still raising no worries as they advised me that my e-mail account had been hacked and they could in thirty minutes restore the account and clear the problem.

Tech guy!

Now as a Company we all have Tech guys and as I left them to solve the problem on a call, I phoned mine because something did not add up about what was happening with all stations in the office. When I got through, we quickly realised that I had been scammed, this company was not real and as we were speaking they were actually in my Computer. Luckily, it was my laptop rather than desk top and was not connected to the office system!

Objective.

As soon as I and my Tech Guy arrived back at the office, we cut the link and looked at what they had done. There objective through the software they loaded on my Laptop was to have independent access at any time they wanted and having researched them, they look to make small amounts of money by creating problems they ‘charge for fixing’, when in reality they create the problem when hacking in to my computer. Their usual target seems to be around £200.00. Thankfully having caught them early, we were able to change passwords that had been compromised and remove the software they had loaded. (‘Combofix’ is excellent for this purpose!)

Reviewing the situation.

A timely reminder what to do, and what not to do, and thankfully nothing lost, except for two hours invoice from my Technical support, which I will pay with pleasure! But here is the rub! Google, in accepting money for advertising from this organisation (Based in India, which again is not unusual nowadays) actively promote a scamming organisation. Now I do not expect them to know all dodgy companies that actively advertise on their site, but with the amount of information you will readily find when you research this crew, you would think there was an easy way for people who have been targeted like I have been, to report the issue and get them blacklisted!

Microsoft and Google.

In Hotmail and Google we have two of the most powerful internet Companies in the world, one is actively supporting a Company who is ripping off the customers of the other and we as customers are powerless to speak with either organisation to stop it! So, all we can do and the reason why I have taken the time to write a Blog about it, is pass the word on, so consider it passed, remember, never give access unless you know for sure and you have taken the time to confirm you are speaking to authorised people. I will now preach to myself, as much as others in future!  

 

12Oct 2012

Property Landlord Advice: Quick Turnarounds Not Always the Best Way!

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By Craig Smith

With some of us here at Castle Estates being Landlords ourselves, we understand how important it can be to keep any downtime of a rental property to a minimum. When a property becomes untenanted, the mortgage still needs to be paid along with insurance and, more so during the winter months, heating bills increase.

Breaks Between Tenancies

When marketing a property that is still occupied one of the biggest hurdles can be that the incoming tenant wants to move very quickly. We have instances such as this on a regular basis but sometimes have to be firm about the move in dates.

It is not as simple as one person moving out and another moving in the next day as there may be cleaning or decorating work that needs to be completed in between. By booking someone to move in the very next day or even within a few days later can cause the new tenancy to start on the wrong foot which then has a knock-on effect for the rest of the tenancy.

Best Presentation Always Important!

Some tenants are happy for works to be completed after they have moved in, usually small things such as a repair to a leaky tap. The biggest issues can be checking somebody in to a property that is unclean or needs the gardening tidying up as this can be used ‘as ammunition’ when something goes wrong further down the line.

We always recommend to our Landlords that their property is presented cleanly and, if applicable, gardens left tidy. This helps to stop any arguments at the end of the tenancy which can get very messy (no pun intended!) when trying to agree any deposit costs.

Extra Time to Ensure Safety

We had a tenant moving forward with a property a few weeks ago who needed to move quickly. This was fine but the property wasn’t quite ready and the move in ended up being delayed in order for the outstanding issues to be resolved. Luckily it wasn’t anything too major and the delay was only a few days but any more than this and the tenancy may have fallen through before it even began!

There are some examples where tenants don’t understand the reasoning behind delays, particularly when it could be a matter or breaking the law. If a property hasn’t had its annual gas safety check, for example, there is no way we could sign the tenancy agreements as without the pass on the certificate, we would be unable to do so. The reason is that the law states the gas safety certificate must be in place and to ensure the safety of any occupants. Not only would this be against the law, I also think it is morally wrong to place a tenant in potential danger.

Stuck in a Chain

The other common example that crops up regularly is when an outgoing tenant is purchasing a house and they are stuck in a chain. If a new tenant is already lined up to move in there is still nothing we can do to ask the current occupiers to leave as, even if they have given their correct notice, it can still be extended!

Best Advice

Going back to the start of this post, we understand how Landlords need to have the minimum amount of empty periods possible. Sometimes, a little extra time between moving out & in can prevent a lot of hassle later on!