Tag Archives: Landlord Advice

11Jul 2013

Property Landlord advice: Landlords and Legionella; The Facts!

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By Steve Roulstone

Legionella

Last year, the Health and Safety Executive (HSE) changed the regulations on the size of water tank for regular inspection for Legionella disease, which had the implication that all rental property is now included within the Health and Safety at Work Act 1974 legislation. I wrote at the time that what the industry needed (Rental Industry) was a clear and defined method of dealing with the implications of this change, well the results are in and Landlords are once again facing the bill.

We all know that the risk of a Tenant catching Legionella within a residential property is slim, I doubt anybody would sensibly deny that, but what cannot be denied, is that the HSE are quite clear in their advice on the subject, that it is clearly the responsibility of Landlords to ensure that all precautions are taken to avoid any risk at all. This means all houses must be considered for Health and Safety checks and as Agents we have no option, in fulfilling our obligations to our Landlords, but to advise that check be carried out.

There is a difference here in that the decision as stated in the legislation, lies clearly with the Landlord and therefore whilst we have to recommend the inspection, every Landlord has the right to say no and as long as we can confirm the instruction, then our position is clear. The point being, it is not our decision, but we always have to give best advice and can never confirm that a property does not need investigating.

The Code of Practise change states that to comply with the law in this area, it is required that all rental properties must have had a Legionella risk assessment, so only if the disease occurs would failure to comply become an issue. What the decision by the HSE confirms, is that no risk is to small to escape their attention.

What is not considered is where do you stop? Just how many checks and precautions do you carry out before you accept that life carries risks and no matter how you live your life, you run the risk of being caught out at one time or another, by something outside of our control? Just imagine for a moment that it was found that by cleaning every carpet every year, that asthma was cut by half. Does that also become the responsibility of the Landlord as well? Or does the Tenant accept the risk, or, have the carpets cleaned themselves.

This for me is where this legislation falls down, by all means make everybody aware of the risks in private houses, but let’s have a situation where the Tenant decides if the check should be carried out and if they feel it should, let’s have the price shared by both parties if the Tenant wishes to have the risk assessed?

I once again turn to the sales industry, has anybody suggested that private houses should have this investigation before they are sold? The answer of course is no, but I fail to see what the differences are and why once again, the rental industry has been signalled out for action. So this additional burden has been placed upon all Landlords, but I repeat, no matter what I believe, in our position as a professional management agency, we cannot ignore compliance issues, particularly in relation to the health of Tenants and in the interest of safety.

09Jul 2013

PROPERTY LANDLORD ADVICE: THE ARGUMENT FOR INSURANCE.

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By Steve Roulstone MARLA

R&L Insurance

Landlords Legal Expenses and Rent Guarantee (LERG) Insurance is a vehicle that has been available for many years to protect Landlords from loss of rent and the cost of taking action against Tenants not fulfilling their obligations. The knowledge their income is protected has to be a serious consideration for all Landlords.

Only one way do it – the right way.

As both a Landlord and a professional Letting Agent holding LERG cover is a position I always recommend. Almost all LERG policies as a prime benefit of full management carry professional referencing as a prerequisite to being able to take the insurance so further credence is given to the Tenant wishing to rent your property when a pass is achieved. In fact, it could be said Landlords without LERG are taking unnecessary risks if, when presented with the option, the Insurance is not taken out.

Security in the System.

Yet amazingly, I have been advised of situations where agents acting on behalf of a Landlord, instead of offering referencing services to their client, simply requested ‘Referees’ from the prospective Tenant and then asked for a Guarantor, presumably because they did not like the look of the Tenant!

Renting your House or Home

I wish here to give as much credence to the ‘Agent’ as possible, but as a Landlord, I would not be happy committing the security of my property to somebody who decided themselves if the person in front of them was a good Tenant or not. We all think we can take such decisions because we have the necessary experience and after the years I have spent in this industry I would consider myself to be a good judge, but I would never put myself in the position of taking a risk with somebody else’s investment! This is simply not a good idea where referencing is concerned.

Follow the professional recomendation.

 

 

If industry bodies such as ARLA recommend referencing and or simple credit checks to ensure security through agents, then surely all agents should make such arrangements to protect their clients. But let’s look from an even simpler prospective, if you are supposed to provide professional services as an industry representative, no matter what the industry, surely, you should always offer the best service possible? If instead you cut corners, how can you call yourself a professional?

20Jun 2013

Property Landlord advice: The perfect Tenant takes more than referencing.

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By Steve Roulstone

Perfect Tenant

I have just finished reading an article in a magazine called the Negotiator, designed for the industry, most articles are centred on some professional within the trade, being given the opportunity to sell their wares. In this article the case was being made for referencing potential Tenants and how this particular referencing agency boss was convinced that the better the level of referencing carried out, the better the Tenant that would be produced.

There is of course an easy case to be put forward to support this argument, but in reality I do not feel this is even half the case that needs to be considered. To me, referencing is an absolute must, but in the interest of the Landlord, this is so that the Tenant concerned can be insured through a rent and legal expenses insurance. It really is that simple. By referencing, past performance is assessed, affordability is confirmed and future actions can be insured. Not a difficult decision.

But is this enough to find the perfect Tenant? That was the gist of the article and where I would have to disagree.

We have a very simple policy with Tenants. Look after them well and they will look after our Landlords property. I speak from the position of being a Landlord and at present a Tenant as well, so it is with personal experience that I know our policy stands up to the actual reality of living in rented property.

That reality is that although as industry professionals we know that what the Tenant is paying for is the right to live at the property concerned, all Tenants need to feel that they are also paying for a level of service which, whether through an agency or renting direct from a Landlord, if they are left feeling that this relationship is one sided, they will be left feeling it has not been delivered and that nobody cares.

I cannot recall how many Landlords have informed me about how disappointed they were at the state of a property when a Tenant left, but too many times when I ask if they have visited that same property during the Tenancy, or been in touch with the Tenant, the answer has been no. If the Tenant does not have an outlet for their findings when living at a property, the feeling of being abandoned slowly turns to a feeling of anger. The rest is human nature. If nobody else cares, in their opinion, why should they? 

That is why we ensure Tenants have a voice. This principal does not mean that we should comply with all Tenant wishes, not at all, but that those wishes should be given time and a platform. By working with your Tenants, they will respect your role and in my experience the property as well. The objective of this principal for us is simple; happy tenants look after the property and pay the rent. That, we know, is exactly what our Landlords require. That, I believe, is much closer to a perfect Tenant.

03Jun 2013

Landlord advice: Inventory Company promotes a lack of professionalism in Agents.

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By Steve Roulstone

Inventory

I have just read an article in one of the Industry magazines as part of my Monday ‘what is happening’ hour and frankly could not believe my eyes. It is in a section called Outsourcing in Mays issue of The Negotiator, so falls half way between an advert and an article, but is based upon the words of two gentlemen from the industry, one being an Agent and one being a facility provider for the industry and it is clear that one has an invested interest in selling his services, but I just find it hard to believe that an Agent would place in writing what has been repeated in the article!

 Matter of opinion.

 Let me say from the off here, that what I am stating is my opinion or ‘take’ on the subject, so some of what I comment on I do so agreeing that it is a matter of opinion, but I would never admit in writing that as a Company we could not offer our Landlords such an important part of the service needed in Managing property on their behalf. Because the representative of the Agents involved is openly stating that they are unable to provide professional quality inventories for the Landlords they serve!

 Inventories are us!

 Firstly, the skill set needed to be able to supply top class inventories can be learnt by one man as well as the next, so I cannot agree that Letting Agents cannot carry out the task on their Landlords behalf. All they need to do is learn how! But secondly and again in my opinion more importantly, how can any agent pass on such a vastly important part of the job to somebody else?

 Legal responsibility.

  Far more importantly for me is the legal responsibility we have with our Landlords under the contract all Agents should supply their Landlords. Good inventories are such an important part of the service now that to charge for a job and only do half of it in my opinion cannot be called ‘Full Management’ services.

 Argument against.

The reasons given for encouraging outsourcing inventories, is that Agents are too close to the position and risk Tenants stating the inventory is one sided. Well if what we claim for is correct, then where is the problem? Done correctly, Tenants have as much input as we do in the document and as we are contractually bound to work for the Landlord then that is what we do. They go on to say that there is then an inherent risk that the Agents inventory could fail in any claim because it was raised by the Landlords Agent. Well in our experience, that is just wrong!

 Facts speak louder than words.

The facts are that after three years with our current system, where disputes are dealt with by independent arbitrators, as a Company after ensuring we have Landlord agreement we have won every case that has gone through arbitration. So our experience would suggest exactly the opposite than what is claimed in this article. So the facts support that Agents should know what to do and how. I would also suggest, that a third party inventory, has far more chance of having their claim challenged by a Tenant who can easily prove that they were not involved during the Tenancy and are therefore not aware of matters which could have a far greater bearing on the outcome of any claim.

 Summary.

 Sub contracting major parts of the role of Property Management is not and never should be the way forward and our industry is not alone in being able to challenge the principal. The inventory is such an integral part of being able to offer the services of Property Management to Landlords that I would challenge any Companies ability to call themselves’ Letting Agents if they openly state they are unable to fulfil the role themselves. What else? Rent Collection? Property Visits? The agreement?  Better to be able to say yes, we do that!

21May 2013

Current Property News: Queen’s speech skims the surface, but reactions dig deep!

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By Steve Roulstone

r_seaman@hotmail.com

 

Many have commented on the Queens speech and it will come as no surprise that it is the element included in the forthcoming immigration bill that I now make the subject of my latest Blog.

Content.

Much has been said about the lack of detail contained within the speech and most will see this as a hastily included promise, aimed mainly at the ears of those who chose to support UKIP at the recent local elections. I believe they would probably be correct to do so! I do not wish to comment on the political rights or wrongs of this situation, but there is no doubt the clamour to make political gain from the lack of detail have themselves repeated the same lack of detail in what they have written.

A R L A

Rather, what detail is known, confirms that anybody writing without including how the current checking systems work in our Industry are showing themselves to be short on knowledge and it would appear, purely intent on causing embarrassment to the Government or making some kind of gain themselves. The best report and summary of where we actually are with what has been suggested against how the Industry deals with references now, comes from A R L A who have summarised very simply the reality of what is being suggested.

In the know!

What happens within the vast majority of Agencies in the UK is that professional referencing is carried out by professional referencing agencies, which include taking the potential Tenants National Security Number which assists in confirming identity and employment records. In effect, we are already able to confirm very easily the status of all applicants, meaning the check is already being carried out and is therefore available for any Landlord who wishes to avail themselves of the services most Letting Agents offer.

In the know but not known!

It is the Landlords who take advantage of the system to accept Tenants without ensuring such checks are carried out that are being addressed by this potential legislation. This point is missed by nearly all reports as the writers pursue their own cause through print. It is therefore hardly a blind leap, to see just how easy it would be too introduce the same tests carried out for others, to the few who have created the apparent need for action to be taken.

Sensible reaction.

Mine is a small point but relevant none the less and I just hope that the promise not to introduce yet another hurdle for the vast majority of honest good Landlords to jump, is upheld, especially when all Landlords who utilise our system for example are in effect already complying. Now for those who read my ramblings regularly, I am reaching for the cupboard and reaching for the drum!

Professional.

What I do not agree with, is yet again it seems the clear and once and for all legislation required to turn the industry into a professional service is being sidestepped. Whether it is via licensed Agents or registered Landlords, the solution lies with the Government that has the strength to research and legislate in an organised and industry sponsored manner. Every professional body would work alongside a Government to produce what would deal with all of these side issues in one step and give the public the comfort and trust all professional Agents and Landlords justifiably feel they already deserve.

 

12Apr 2013

Rental Property Info: Evicting Tenants Not as Easy as it Sounds

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By Craig Smith

There are so many scare stories around about Landlords who have lost out due to tenants not fulfilling their obligations. Some of the biggest problems can be rent arrears or not looking after the property as they should do. Trying to evict a problem tenant can be a long and expensive process for a Landlord and even though a notice might have been issued to a tenant it doesn’t necessarily mean that they will leave when they are supposed to!

First Step

The first part of telling a tenant to leave is to issue the correct notice to them. The type of tenancy agreement that is in place dictates the specific type of notice that needs to be given. If the wrong notice is used and the matter goes to court, it will be thrown out and the whole process needs to start again.

The type of notice can also vary depending on why the Landlord wants possession back. Some are known as mandatory possession notices where the Landlord doesn’t need to give any particular reason why they need to take back their property and probably make up the majority of notices issued. Others can be non-mandatory and, if taken to court, a judge will make the final decision as to whether or not possession will be granted to the Landlord. (The judge will also decide on when and not just if!)

Just as importantly, the notice needs to give the right length of time for the tenant to vacate. For example, one of the most commonly used notices is a Section 21 which needs to give no less than 2 months. It can be given for a longer period but any shorter and the notice wouldn’t be valid. In the past, some Landlords have been upset about the length of notice that has to be issued as they might need their home back quickly. It is our job to advise them what has to be done and the consequences of not doing it right!

Council Advice

In most instances a tenant will understand that they need to leave and will do so within the set timescale. Arrangements will be made with the Landlord or agent to hand the keys back and the Landlord gets their property back as they are supposed to.  It is when other parties get involved that the situation can become very complicated and more drawn out.

From experience, if a tenant is moving into a council property then the council will tell the tenant to stay in the property until the very last possible minute. This basically means that it could go through court and organising a date for bailiffs to visit before the council will move a tenant into another home. This is good for the council as it means they don’t have to shell out as much money putting someone into a new home but it can end up costing the Landlord more time & money.

Landlord Selling

We have had a few instances in the past where a Landlord has advertised their rental property for sale once the tenant has been given notice. This, in itself, isn’t a big issue but things can go wrong if a Landlord lets a tenant stay on until the property is sold. Continuing the tenancy on an ad hoc basis may give the tenant longer to find somewhere to live and the Landlord continues to receive the rent whilst the tenant is still there. The issue here is if a buyer is found, the sale completes quickly and the tenant still hasn’t found anywhere to move to. The Landlord could lose out on their sale and have to re-advertise and start the whole process again!

Luckily, we’ve never had such a scenario go wrong but it is always our job to advise our Landlords when such situations arise, even if it isn’t what the Landlord wants to hear. It may seem silly to recommend having the property empty for a short while but it is the most sensible option.

Best Options

All of this might seem quite scary if you’ve never done anything like this before but it really isn’t that bad. Part of letting a property is knowing what to do or if your not sure, always get the best advice from someone who does!

14Mar 2013

Regulation of Letting Agents Discussed in House of Lords

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By Craig Smith

The lettings industry has continued to grow particularly over the last 5 or 6 years where so many people have struggled to sell. Certainly in our office we have noticed the increase in the amount of properties coming in to the rental sector and likewise, the demand from tenants who need somewhere to live! This just goes to show the importance of the need to protect anyone in lettings as there is a lot of money involved around the industry. (Rent payment and deposits perhaps the most commonly known.)

In the House of Lords earlier this month the majority voted to regulate the industry as a whole which could mean all agents and Landlords have to sign up to one scheme. They could also be included in the rules of the OFT (Office of Fair Trading) which could ban rogue agents from trading.

Joining Regulatory Bodies

As we have said before, signing up to a scheme is more than just about being able to display a logo in the window, it means so much more than that. A lot of Landlords do feel safer in the knowledge that their agent is already regulated and that what they are doing is right. Not only is our office registered as a member of ARLA, the majority of staff in our lettings office are also ARLA trained. There are various levels of qualifications available with our individual members having to pass a number of examinations before being able to gain membership. I have been there and done that, so can tell you it takes a lot of hard work to pass the exams and to prove that you have what it takes!

Castle Estates have been trading here at our offices in Stafford for 13 years and have been a member of ARLA (Association of Residential Letting Agents) since almost day one. Being a member of a regulatory body has never been compulsory for letting agents in this country and our decision to join was through choice and not necessity.

Of course, there are other bodies that can be joined which cover different aspects of the business. For example, the SafeAgent scheme is only for agents or Landlords who protect their clients through money protection schemes. Again, we are proud to say that we are part of this scheme so that if ever anything should happen to us, our clients’ money is protected.

The other main body that we are a part of is The Property Ombudsman which means that we have to adhere to their codes of practice. Yet another logo in the window that means our clients are reassured that their money is safe.

Deposit Systems Already Changed

Since 6th April 2007, any deposit taken for an Assured Shorthold Tenancy needs to be registered with one of the three approved schemes. We’ve talked about these until we’re blue in the face in the past so won’t bore you with all the details again now! But this is just another area of the industry that has been tightened up over the last few years with penalties to those who don’t comply.

The idea of the ensuring the deposit is protected is to stop rogue Landlords keeping a tenants’ deposit without a valid reason. Before deposits were registered, it could be costly for a tenant to go through the courts to try and get their money back but each of the schemes operates an easier and fair method of mediating between the parties.

One Scheme For All?

Nobody yet knows for certain how the government backed scheme would work to cover all Landlords or when it would come in to force. We believe this could work well and rogue Landlords could soon be a thing of the past, so we welcome this news with open arms!

11Feb 2013

Councils to take Action Against Letting Agents’ Fees

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By Craig Smith

In Scotland it is illegal for a letting agent to charge a prospective tenant any fees during the move-in process. Whether it is for credit checks or an administrative fee, it isn’t allowed.

Reasonable Charges

Since the law changed inScotlandwe have always been wondering when it would have a knock-on effect here inEngland. Well, it looks as though the time is now as some local governments are starting to tackle rogue Landlords and agents that charge higher fees.

Before we go any further into this, I would just like to point out that from what we hear from some of our tenants, we are not the cheapest agent in our town for tenants’ fees but nor are we the most expensive. The fee charged to a tenant looking to move into one of our properties covers the costs of the referencing/credit checks, the time to prepare the legal documents and also the check in appointment. If we charged much less, we wouldn’t be able to do half of that list and the tenancy would more than likely go pear-shaped further down the line because we weren’t able to do our job properly! And don’t forget, we’re not running a charity here.

We have heard from tenants who come into our office stories of other agents in the area who seem to charge for anything and everything. Personally, I have never looked any further into this so cant comment one way or another. The one thing I will say is that both tenants and Landlords need to be careful as some ‘rogue’ agents will charge a lot of hidden fees.

Law Surrounding Fees

It is generally well known that if you are going to charge for any service that you offer, you need to make your customer aware before providing the service. You wouldn’t want to eat in a restaurant where the prices weren’t included on the menu, would you?

We have a good legal team here at Castle Estates who always advise us on the latest changes in law so that we know what we are doing is the right thing. Whether you are a Landlord or tenant of ours, you will probably remember seeing a list of our charges in the paperwork you signed before agreeing to do business with us. (If not, double check as they will be in there!)

Tackling the Bad Guys

The government is getting worried as there are a lot more people in the private rental sector than ever before, more than 3½ million in fact. It is no wonder then that there are more and more stories of rogue Landlords trying to rip off their tenants and these are the people the government is looking to tackle.

There is still call to have a register of all Landlords and/or agents who are able to let property. Whether or not this will eventually come about is yet to be decided in parliament and it would be interesting to know if this would be on a national or a local scale.

I believe that it should somehow be linked nationally to prevent any Landlords ‘getting away’ without facing up to their responsibilities. Where we are based, we are only 25 minutes from theShropshireborder so what would stop a Landlord who has properties in both counties being labelled a rogue in one and not the other?

This does look to be moving forward now as this is due to be raised in parliament later this month. So sit tight and lets see where this goes!

25Jan 2013

Prescribed Information Still Important When It Comes To Deposits!

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By Craig Smith

In another recent case a Landlord has been found to have not complied with legislation when protecting their tenant’s deposit. It can be a bit of a minefield if you are new to the industry but the rules are becoming clearer and clearer.

Not Just Deposit Protection

Where a deposit is covered by the legislation it isn’t enough to just protect the deposit. The Prescribed Information (PI) must be provided to the tenant at the start of the tenancy, usually within 30 days of the deposit being paid. The PI contains the information the tenant needs to know about where the deposit is going to be held and who has access to it. This recent case also proves that the tenants must be provided with the terms and conditions of the relevant deposit scheme.

What Information to Give?

You may have read my post about the DPS before so you’ll know that it is that scheme that our office uses. We must always give our tenants a set of the DPS terms & conditions which is a lengthy document but is worth its weight in gold should a case arise. The legislation states that it is the responsibility of the Landlord to ensure the information is given to the tenant and it is not up to the tenant to go looking for it. The terms and conditions are an important part of the PI as the case has proven. In this instance, the Landlord had registered the deposit in line with the legislation but hadn’t given the correct PI to the tenants.

There are also a lot more handy documents available through the DPS giving both tenants and Landlords advice on how to use the scheme. Don’t forget that each scheme differs slightly in the way their information is presented and they may not have an official set of terms and conditions, so to speak. 5 minutes checking you have the right stuff is better than 5 years recouping unnecessary costs!

Final Advice

Some of the information that needs to be provided may seem trivial but it is very easy to get hold of. Certainly with the DPS, the documents are free to download and can be found with a few clicks on their website.

The majority of tenants seem to ask what they need to do at the end of the tenancy anyway as the documents seem to get overlooked. You only need to read the details of the case mentioned here to see how really important they are!

07Jan 2013

Coronation Street Raises Gas Safety Awareness

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By Craig Smith

They say there is a first time for everything and here we are commenting on a big issue made aware by a TV soap!

There is a storyline currently running where one of the residents in Coronation Street has suffered from carbon monoxide poisoning thanks to a dodgy boiler repair. This doesn’t just make good viewing but also raises the awareness of having someone competent to do the right job.

Competent Worker

The boiler had been repaired by a friend with some mechanical knowledge as a goodwill gesture. OK, this is soap land but these kinds of things could happen in your street. What starts as a helpful neighbour could turn into something disastrous if not done properly.

By law, anyone working on a gas appliance such as a boiler or gas fire needs to be Gas Safe registered and hold the necessary skills to carry out any works. Carbon monoxide has no odour and in many cases can kill or seriously harm someone without them having any idea there is a leak.

Work in Other Areas

The same principles apply to other times of work such as electrical installations & repairs and day to day maintenance. Electricians must hold the correct certifications in order to install or replace any fittings or appliance and in general day to day repairs, you wouldn’t ask a roofer to put up some shelves, would you?!

The Consequences

The results of a bodged repair can not only affect the people in a property but also the person who was responsible for the work. With regards to gas safety, the person responsible could not only be fined but could also face a jail term as punishment.

Always Check

This is the reason you should always check who is coming to work on your home. This is important not only if you are an owner occupier but more so if you are a Landlord. If you instruct someone who is not suitably qualified to carry out the relevant works, you could be putting the lives of your tenants at risk and could also be held responsible!