Tag Archives: Letting Agents

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!

05Jul 2012

TPO Explained

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By Mike Edwards

What is TPO?

 The Property Ombudsman scheme has been offering a free, independent and impartial dispute resolution service to consumers who are dissatisfied with the service provided by registered firms for more than 20 years. If a dispute is resolved in the consumer’s favour, the Ombudsman can provide redress to place the consumer back in the position they occupied before the complaint arose. Resolutions are designed to achieve a full and final settlement of the dispute and all claims made by either party. Where appropriate, the Ombudsman can make compensatory awards in individual cases up to a maximum of £25,000 for actual and quantifiable loss and / or for aggravation, distress and inconvenience caused by the actions of a registered firm.

 Independence

 Whilst TPO charges registered firms an annual subscription, the Ombudsman reports to the TPO Council, the majority of which is made up of non-industry members. It is the Council who appoints the Ombudsman and sets his Terms of Reference (i.e. how the complaint process operates). The Ombudsman is required to report to the Council on a regular basis.

 The Ombudsman is not a regulator and does not have the authority to take regulatory or legal action against a registered firm. However, registered firms can be referred to the TPO Disciplinary and Standards Committee, appointed by the Council, which has the power to expel firms from the scheme and / or report them to the Office of Fair Trading, which has the power to ban firms from carrying out estate agency business.

 TPO is a member of the British and Irish Ombudsman Association (BIOA).

 Membership

 At June 1, 2012, more than 21,770 offices were registered with TPO. This figure includes 11,749 sales offices and 9,301 lettings offices. TPO estimates that these figures represented 93% of sales agents and 64% of lettings agents operating within the UK.

 Further information

The Ombudsman’s Terms of Reference, the Codes of Practice, Consumer Guides and other documents about the operation of the scheme are available at www.tpos.co.uk, together with previous annual and interim reports, further explanation of governance arrangements and a full list of registered firms.

 

14Jun 2012

Current Property News: Rental sector attacked for no reason – again!

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By Steve Roulstone

Once again I find myself reading a report condemning the rental sector, this time  as the background to the thrust of the actual article, which is about increasing trends in the rental sector. The reason given is financial insecurity which should come as no surprise to anybody, but the article takes the unreasonable opportunity to condemn the rental sector without providing any evidence for the statements made.

Hidden reasons.

Of course the reason why is to suggest that the Government (this is after all a left wing paper)  are forcing families down a road to unsettled and poor condition housing, when in reality, and I can only comment from what I know about, the truth is nothing like the picture painted and indication given within the report.

Bad Housing, Bad Landlords and High rents.

As a professional letting Agency, we will only take on property that is to standard and when allowed upgrade property as required. I say when allowed because only this morning I have been discussing a Tenant who will not allow access to make alterations which will vastly improve a bathroom. Equally, we always and ONLY advise Landlords of the correct path and procedures surrounding the property and their Tenants. Also, rents in Staffordshire are not rising and Tenants are benefitting from the number of properties on the market by making offers.

Source of information.

Because of this and with the knowledge that not every property or Landlord is perfect and therefore accepting that problems do exist, I would suggest that like most of what facts are listed in the article, it is the London market that is the source of the information. But it would be so much better if either the article were split into two, sticking to the point made as the reason for the increase and giving the chance for the detail behind these damning statements about the rental market instead of providing no evidence what so ever!   

Professionalism.

I would agree however, as I have stated on oh so many occasions before, that the intended route the previous Government was intending to take, to ensure all agents were approved, is still the best possible route for the Industry. For if this is still a major problem, and as I have sated I can only comment on my local market, then the Industry itself, having launched ‘Safe Agent’ cannot be blamed for doing nothing to improve standards. The problem still seems to be in the Self Managed Landlord or the Agent who ignores all professional bodies and here all Tenants have a clear choice! Ask which bodies the agent belongs to that will protect them!

Legislation.

One of the first issues that I cannot agree with is that of legislation, because if ever an industry has been targeted it is the rental industry, with every facet of what we do coming under the legislative microscope for the last few years. The comment about deposits for example is a ‘throw away comment’ which cannot be supported, because any Tenant who suffers at the hand of an Agent or Landlord who does not use the Deposit legislation can be heavily fined and the Tenant has a clear route to take.

Tenant problems.

Of course what this could refer to is the number of Tenants who have found themselves loosing when being processed through the Deposit legislation, because although most do win because of badly prepared defences by the Landlord or Agent, I know as a fact, that if the Tenant looses when going through arbitration, they still blame the Agent and talk about the cost as if they have been treated unfairly. This of course is not the case, but as the article gives no background to the statements made we will never know!

Figures.

But one bit of background I can supply is that the percentage of people renting privately has been increasing for years and particularly so over the last two years. I asked the Department of the Communities only last week if the overall privately rented % for 2011 was yet available and it is not, but I expect it to reach 20%, a rise of nearly 5% in the last two years. Therefore to state it may be 36% by 2025 (which let’s not forget is still over 12 years away) when twelve years ago it was at 9% would reflect a rate of increase through good AND bad times that at current trends will stand at 31% anyway!

Bad Journalism.

So I am afraid that overall I label this article as bad journalism, trying to score a political point without any confirmation of the statements made attacking an industry which is not represented and quoting figures, which, when you are aware of the background, are really not that surprising. But it does touch on one major factor. Unless the availability of mortgages for Buy to Let Landlords is improved, the supply of rented property will quite possibly dry up! But where I will concur, is that by failing to introduce Licensed Agents and Landlords, the standard of the current source of rented stock, namely properties that fail to sell could well continue to suffer. For without legislation, as we all know, when finances are strained, shortcuts are taken!

26Apr 2012

Tenant advice: High expectations and Ball gazing.

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By Steve Roulstone

 

Having been commentating on daily matters for two years now, you would think that I would have covered most things and indeed the subject of today’s post has been touched on before, but two situations that developed yesterday are both worthy of comment and one was a first for me!

 

Normal practise.

 

As Agents, we do everything possible to respond to repairs and breakdowns as soon as we possibly can, (or should I say as soon as our Contractors can) Not that some Tenants feel this is good enough, but we even advise Landlords who want their own contractors to deal with any issues surrounding their house, that unless they have worked for Letting Agents before, the only issue we are liable to have is the response time that our contractors understand we require. In reality though, we can of course only react to what we are told.

 

Phone call number 1 and 2.

 

Yesterday we received a call saying a heating system had stopped working and would we get somebody to sort it out. The answer was yes of course, but as we always do, we pointed out that should the problem be something like a dead battery or drop of pressure, because boiler instructions are always left at every house, it could be that any costs would be put to the Tenant. (Imagine if we did not and then told the Tenant they must pay) Contractor was arranged and before they arrived, we received a call saying the problem was resolved and we of course cancelled the call out.

 

Phone call number 3

 

We then received a call from the same Tenants partner suggesting that we should have allowed the call out to proceed because the heating still does not work and what were we doing cancelling the initial call out. We of course said because we were told too, and this Tenant then asked if we were blaming his partner for failing to repair the boiler!?

 

Star gazing.

 

The difficulty here apart from cancelling the initial call out, is the level of expectation from the Tenant. We would not wish to make any statement about where the fault lay, but the problem for the second Tenant was that we had cancelled the first call and could not arrange another visit on the same day, when his call was made at 4.45pm. It is of course unreasonable to have contractors standing ready to react. Like all Agents we build up relationships with our contractors, so they will react as quickly as they can for our Landlords, but nobody can reasonably expect to firstly carry on with the call when advised we need not and secondly get somebody to call that day with so little of it left!

 

Broken Lock.

 

The second instance was a Tenant who had both a locked door to her flat and a second external locked door to the outside. The door to the outside had a lock that failed, which resulted in a phone call to us about the lack of security. The problem here was that the call came on a Sunday evening and the door could still be locked by sliding the bolt. If a member of our staff had received the call, we would have said talk to the neighbour who shared the door and ensure all is safe until tomorrow, when we will get a contractor out. With a second lockable door that should have been sufficient.

 

Wrong number.

 

The problem arose when the Tenant phoned the emergency number they had been given when they moved in to the property, which we no longer relied upon, using our own staff to cover the phone for the last two years. We wrote to everybody at the time advising them to use the new number. The Tenant could not find the letter! The Contractor reasonably listening to a call from a single young Lady reacted and repaired the lock. The Landlord received an invoice for £65 and the Tenant had a good night’s sleep.

 

Who pays?

 

Technically we could have charged the Tenant, or refused the invoice from the contractor for reacting prior to instruction, but that would have upset somebody who reacted in good faith and is one of the people we do rely upon when true emergencies do occur. A no win situation for us, because from the Tenants point of view, she believed she was also asking the work to be completed and allowed the contractor to carry out the work in good faith! Luckily, the Landlord understood and accepted the charge.

 

Conclusion.

 

My conclusion is that no matter how hard we try, these things are going to continue to happen and Tenants will still feel they should receive a response when they wish and without delay. There are of course times when these matters are truly out of our hands such as unavailable parts. But we must keep plying our message taking every opportunity to explain the reality. That does not change my request, which would be that Tenants understand that they will receive a response that is quicker than most other scenarios and especially when compared to the average home owner requesting the same services.

 

16Apr 2012

Property Landlord advice: Tenant Deposit should be viewed for what it is.

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By Steve Roulstone

There is no doubt that the deposit paid by Tenant has been viewed differently since the introduction of the TDP Legislation which has of course famously been updated by The Localism Act which has been introduced this month. It is not surprising when you consider the legislation is all about protecting the deposit, that most Tenants now look upon this as an amount of money that should by rights be returned at the end of the Tenancy no matter what the circumstances, rather than a deposit to be used against any damage made at the property during the term of the Tenancy.

Wrong perception.

The worst case I have heard of happened to us only last week, where a Tenant using that time old well worn phrase, ‘my friend told me’ continued to inform us that she did not have to clean the property as that was now considered to be fair wear and tear!  Well that was a first for me, what next, Landlords who should supply cleaners for Tenants?

Immediate implications.

The problem here of course is that because this person has been badly advised, the Deposit will immediately go into dispute if negotiation does not achieve agreement, and when you consider that one of the approved schemes actually charges their Agents dependent upon how many claims are made, it leaves us in a ridiculous situation that would, should we still be with that supplier, cost us money for a totally unnecessary case. Whatever happens, it would leave a bad taste in somebody’s mouth and as the Agent we would probably be the subject of the Tenants wrath. Fortunately, we have managed to explain the correct procedure and the Tenant has agreed to pay for the property to be cleaned.

Bad advice.

Of course once bad advice has been given, when we meet the Tenants at the property, where no cleaning has been done, it is too late to put right, as officially, the Tenant will have no access  after we have taken back the keys, otherwise they remain liable for the rent as well. Frustrating for us, especially as we write beforehand clearly pointing out the work that needs to be done prior to the check out appointment, which includes all cleaning and even state if the Tenant needs further assistance that they should not hesitate to be in touch (Of course we know if there is liable to be a big issue because of our property visits beforehand)

Perception.

For me it is clear that the legislation has meant that the deposit is perceived as something that should be returned if rent has been paid and the Tenant has been reasonable in their conduct whilst at the property. This is simply not the case. The deposit is present should rent not be paid yes, but also to ensure the Landlord has a fund to fall back on should the Tenant damage the property. What we should all realise (and I speak as a Tenant myself ) is that the longer we live at a property the more chance there is that damage will be caused. That is just a fact of life, not damaged on purpose, just a by-product of living in a home!

13Apr 2012

Tenant Advise: Problems finding a house to rent.

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By Steve Roulstone

A letter recently published in my Local Stafford Paper, questioned the ability for some Tenants in difficult situations to be able to rent property in the town. The blame has been placed purely with the local Letting Agents, but takes a very simplistic view of the reasons why they have struggled. There are far more factors that need to be considered before any judgement can be made, and I am going to put the case for the agent through these pages.

 Law of Agency.

 Here it is again! But so many Tenants do not understand that we are bound by our (legal) agreement with the Landlord to give best advise under all circumstances. I offer a quote from a recent article by David Smith of Anthony Gold Solicitors, in The Negotiator magazine ‘this means that the Agent must act in his clients interests even where that produces a harsh outcome for the other party, in this case the Tenant’ I quote because I believe his words confirm the reality of our position better than any other description I have ever heard. So if a Landlord does not want pets, we would be breaking our legal agreement if we allowed Tenants with pets to move in to a house with express knowledge that they had. Equally, if a Landlord does not wish for Tenants in receipt of benefits then, we have to obey this instruction in exactly the same manner. We are not here to be judge or to offer succour to those in need, no matter how worthy the cause. We are here to follow our Landlords instruction, to the letter!

 The benefit system.

 There are several areas where the Benefits system fails to deliver for the Landlord, firstly, they pay four weekly in arrears. This means that the Landlord has to find more than a full month’s rent to keep his cash flow in order. Why, when we have sufficient Tenants who are able to pay rent in advance, should we suggest that the Landlord waits for their money and only gets a percentage of it (Yes it catches up eventually but not for a full year!) when they do receive payment. It is also paid direct to the Tenant now, and, as happened in our latest case, only when the rent was two months in arrears would the Council start to communicate with us as the Agent of the Landlord and only when the Tenant agreed, would the Council pay the rent direct to us. Please tell me why, under those circumstances should we encourage acceptance of Tenants in receipt of benefits. It would be good to say this was an isolated incident, and it would also be wrong to say that problems occur with all Benefit claimants. Unfortunately for those who do respect their commitment, most do not.

 Insurance.

 One of the (many!) benefits of using an Agent, is our ability to have the Tenants professionally referenced. All Agents should use a referencing Company whose acceptance of the Tenants automatically places the Landlord in a position to take Landlord Insurance to protect the Rent and pay Legal expenses should they be needed. Now because the system works well and because Agents know how to manage and control debt, the policies are still available in some instances for less than £100 per year (I only quote this figure as an example, because with FSA regulations in mind, I am not able to discuss the benefits of one Company above another!) If this was a policy that was relied upon again and again by Landlords it would cost far more, so it confirms without any doubt, that the referencing system works! Finally, no Agent worth their salt should, in my opinion, operate without the ability to offer Rent and Legal Expenses Insurance. Otherwise, how can it be argued that they are giving best advice to their clients?

 Guarantors.

 If a Tenant does not earn sufficient income, they may need a Guarantor; this is the natural manner in which income short fallings are balanced against the Industry standards used for income calculations. However, all Guarantors MUST be able to afford the rent. Look at the situation from the Tenants point of view, if a Tenant who could not afford the rent was moved in to a property without any check at all, it could be argued very easily that the Agent or Landlord had acted without due care to the Tenant, placing them in a position where they are unable to afford the commitment they have made. No different than being oversold items on Higher Purchase! Now, if they are able to provide a Guarantor, I can see no difference (and neither can the Industry) in what they should also be able to afford! Just because somebody agrees to be a Guarantor does not mean that the Tenant is automatically protected. The legal agreement clearly confirms that the Guarantor is responsible for the Tenants short fallings which includes all financial matters involved with the Tenancy. Now again, if we just accepted people on face value and they suddenly found themselves with a bill they could not pay, have we done our duty as Agents? Under such circumstances the Guarantor could easily claim to have been unfairly treated.

 Financial limits.

 Finally, the rates at which affordability calculations are judged, are not the responsibility of the Lettings Industry. They are developed and run by the financial referencing organisations, from whom Letting Agents are only responsible for using their services, not the manner in which they operate. We are all faced with rules that we have to abide by that we have input into the detail would be very rare. This is one such position. But as I have indicated before, such organisations and Insurance companies are subject to the law in the FSA regulations they must abide by. What we should NOT do is blandly allow people to be referenced for a property they cannot afford.

 Summary.

 So, it is very easy to blame the Industry and Agents in particular, but there are wider issues and pictures that need to be considered. That these people who were the reason for writing this piece have had difficulties because they are on Disability Allowance and Housing Benefit, I say they should look to the social organisations that are supposed to help them, rather than the Industry that on the face of it would have to break several codes of conduct to accommodate them. We are not able to move people in too a property against the Landlords wishes, we cannot ignore referencing and neither can we place our Landlords in a position where they cannot take the benefits of the most basic of Industry Insurance Policies. We cannot ignore the possible implications of accepting Housing Benefit Tenants and neither should we ignore what a Tenant and Guarantor can or cannot afford. Rather than being unfair, when you consider our legal position and to whom we are responsible, that is being Professional!   

 

11Apr 2012

Current Property News: Landlords to address Legionnaires disease as well!

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By Steve Roulstone

There are times a as a Letting Agent that it feels as if the whole world is looking to upset your apple cart. No sooner do we get to grips with the Localism Act when along comes the HSE and offers up another tasty treat for Landlords and Agents to comply with. This time it is Legionnaires disease and the implications of removing the size limit in water tanks that has bought every rented property in the country in line with the new Code of Practise issues by the HSE.

What Next!

I am not suprised that the Industry has read the detail and asked open mouthed what else are we liable to be asked to take on board? There are cases of Legionnaires found in residential homes, but if we start looking at statistics for the reasons why people fall ill in the home, or have accidents, then Legionnaires falls way down the list of matters that need addressing! The problem is that the HSE are the organisation responsible for controlling the disease, so as soon as the 300litre tank size restriction was removed, they have no option but to advise Landlords and Agents accordingly.

It’s a silly world.

It would of course be easy to look at other areas of concern and suggest for example that stairs are banned; all glass is covered by wire protection; cookers are limited to low temperatures; kettles are banned; children are banned from kitchens and treat all areas of danger in the same manner. There are times when we all think that such matters are treated with overkill, I am no different!

Deal with the facts.

 And those facts are that the industry is now evaluating the situation and dealing with the new Code of Practise. On the face of it and the initial reaction from the Industry suggested that there would now need to be further costs generated by regular inspections of all internal water systems. But I believe that those looking at the situation will be able to give us clear guide lines as we look to take the Code of Practise on board in a practical manner.  

Tenant responsibility.

Before and between tenancies, we will ensure systems are in place to deal with the requirements. Where a Tenancy exists, we will probably develop a strategy to deal with instructing the Tenant on how to ensure the problem is dealt with during the Tenancy by following prescribed instruction at regular intervals, such as heating the water system to required temperatures especially in modern property where the system can be easily dealt with. In older properties, it may well be a requirement that any areas of concern are highlighted and dealt with through an inspection.     

Professionals.

At the end of the day, we will deal with this as we have dealt with the numerous changes in legislation introduced in the last ten years, in the right manner. As I have always said if we call ourselves professionals, we deal with matters professionally. Even though it still seems like a sledge hammer to crack a nut! I once had a Health and Safety expert as a Tenant, who questioned the standard of fence between gardens at a newly built property, because his neighbours had a dog that barked at him every time he went in the garden. His take was that it is our responsibility to protect him as our Tenant from all eventualities.

Sensible solution.

 I wondered at the time if that would include building gates at the end of the drive, chopping down the trees across the road and installing conveyer belts for use instead of the stairs. What we do do as a matter of course is address these issues in a sensible and practical way. We ensure fences offer security, dog or no dog, trust people to be able to drive on the road and not crash in too the house, have people take responsibility for tree safety, in this case the local council on an adopted road and ensure that a hand rail is in place to assist everybody using the stairs. No doubt the solution for dealing with Legionnaires disease in the home will also prove to be just as practical!

21Mar 2012

WHY SHOULD A LANDLORD USE AN AGENT – Part 1

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By Mike Edwards

There are lots of them and here are just some the rest follow in Part 2.

OK so times is ’ard and Landlords think letting properties is like shelling peas and they can do just as well. Consider these reasons why if you are a Landlord you should  use an agent. And if you are an agent reading this, then make sure you push these benefits to win yourself some business!!

1.         Depending who you pick they are the professionals

Select the right agent i.e. not just on price, and you have a pro on your team. OK so 40% of agents are not even registered with the Property Ombudsman because it is a voluntary scheme unless your agent belongs to ARLA, RICS, NAEA or NALS in which case membership is compulsory for them. And choosing an agent that is a member of a regulatory body doesn’t guarantee all will be sweetness and light – but you’ll have a better chance that it is.

2.         Using an agent gives you someone to sue!!

May seem a mercenary reason but if you use someone claiming to be a professional, or that it was reasonable for you to consider they were professionals, if it all goes wrong you at least have someone else to blame – and sue. A Court will expect an allegedly professional agent to set and demonstrate higher standards – might be useful if you do end up with the tenant from hell.

3.         They know how best to present a property and the best market for it

Doubtless your property is the best in the street or the block, and doubtless you have high personal standards. But there is nothing like objectivity to really discover just how ready for letting your property is – a professional agent knows what your property is up against locally and the standards your property needs to meet to compete in that market, and will advise you what needs doing to maximise your rental and speed of letting.

4.         They can let your property quicker than you can

Or they almost certainly can and if any good they should do. At times of near insatiable demand such as we have now any property that is presented in a half decent location and condition, and at the right price, should let within at most a month of going on the market and really should be spoken for by a tenant being referenced within 2 weeks or so.

Agents have access to massive marketing power and will use property portals such as Rightmove, and will probably have their own website too. Some agents also advertise via social media such as twitter and facebook. Note to mention their shop front in the high street where people looking for accommodation can browse the professionally taken photographs.

The only way a Landlord lets privately themselves quicker than an agent is usually if they have simply taken the first prospective tenant that came along.

5.         They will make sure you stay on the right side of the Law

Your professional agent will know all the legal requirements and will be able to advise you on everything from the right tenancy agreement that you need to making sure you have a gas safety record before the tenancy starts.

Life is getting more complicated and in April there will be revised rules and regulations relating to Energy Performance Certificates (EPCs) and even more crucially, tenants deposits. If you are not an experienced landlord you will need professional help. 

06Mar 2012

Current Property News: ARLA give solid advice.

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By Steve Roulstone

It is good to see ARLA posting some advice for Landlords and Ian Potter in his latest release has done just that by providing his top ten list of’ what to do as a new Landlord’. It is a good article and reflects what we at Castle Estates have been stating for some time now, namely, take good advice!! Ian concentrates on several areas, most of which are similar to those I commented on as listed in my local paper, and as then, I would like to add a little more meat to the bone through this post, something that is of course difficult for Ian to do as a representative of our Professional body, rather than a ‘Letting Agent’ parse.

More property needed!

The background to the piece is again, the increasing opportunity that exists in the current market for the investment Landlord, with figures quoted of over half of those Agents questioned believing that demand is outstripping supply. I would have hoped the figure were more like three-quarters, but would concede that the market is rising after a quite Winter and that it should continue to do so until well after Easter, the traditional time to see the Market develop momentum for the year.

Research Research Research!

Ian has stated rightly so, that a new investor will need to look at what gives any one property an advantage over another, but I believe we can be more specific here. The investor may not know at present which are the better schools, where catchment areas start and finish and such basic matters as what DOES make a difference to Tenants when looking at property? This is of course where experience of an area comes in to play and not just as a Letting agent, but how long in this market. I do not wish to turn this into an Estate Agent Vrs Letting agent piece, but suffice to say, most Estate Agents have only just started renting property and I would say look to the longer established specialist before deciding who to speak with.

Present well and Know the market.

Ian is correct to point our areas where a property can stand or fall and in some cases is ignored by Landlords, that is the appearance against what else is available for the Tenants to choice from and an understanding when doing the calculations, of what actually happens between Tenants during void periods. Both of these matters reflect on the financial and are well lined together. We always advise all Landlords, especially new to buying property as an investment, to look at the income based on ten months occupancy (but would normally be able to supply eleven as our track record confirms!) and even if the property is good enough to market without delay, work out how long before decoration should be planned! Cost implications of both need to be built in to every financial plan and if you are unsure about condition of decoration, then it probably proves the property would benefit from work being carried out now!

 Insurance and Inventory.

I link these together because everybody knows that Insurance protects, but not everybody gets that an Inventory does as well, because the Inventory has become one of the most important documents when renting a property. Landlords and agents have to be able to prove any dilapidations at the end of the Tenancy and without an Inventory I fail to see how this can be done. One simple challenge from a Tenant for the Landlord to prove what condition the property was in at the start of the Tenancy and without an Inventory, the Landlord cannot comply!

And for the rest?

It is all great! The more the subject is looked at the more you will realise that there is a process, not always the same,  but one that will make sure the first time Landlord does not slip up at the first hurdle. The other point is that there will never be a shortage of people willing to spread their knowledge and all that any new Landlord needs to do is ask! All the Landlord has to do is ask the right person. That is why I believe in professional qualifications and vote for experience every time!

28Feb 2012

Property Landlord advice: Who knows about Buy to Let?

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By Steve Roulstone

 

Buy to Let seems to be making a comeback, certainly as far as the press are concerned anyway, with several articles being published both at National level and at regional level. One such article in the local paper we advertise in,  The Newsletter in Stafford caught my eye this week and whilst in principal it is a good article, i gleaming issue did come to mind!

Ten Top Tips!

The article was giving what the writer called, his ten top tips when considering But to Let and I would have to agree with most of what was written, what I would take issue with is what was NOTR written. On two occasions in the article, it mentioned speaking to people who had experience in the field, such as others that the reader may already know who had invested in the property.

Who Knows Best?

It even stated that you can use Managing agents to look after your property although we would raise a charge for doing so! Excuse the Sinicism here, but I am yet to find an Estate Agent who would do this for free, or a Solicitor that would provide an agreement at no charge! Of course we would charge and in relation to both of the professions I have just highlighted, could assist in ensuring the purchase was done correctly, especially with so many properties being linked to on site Management Companies now and the agreement we would provide would be certainly as good as any solicitor, but nowhere near as expensive! Sounds different put like that doesn’t it!

Blindingly obvious who to speak to!

No what the article never suggested was the blindingly obvious place to get good experienced advise is from your Professional Letting agent. It is disappointing not to be recognised for the service we can provide and the knowledge we can pass on! I know from the people who have come to us and just how many we have assisted in buying property, that we do a good job here. Yes we do turn such contacts in to business and we do charge! But we have never forced anybody to hand over there keys or their money! Rather that as professionals in the field, the advice has been such that our Landlords have CHOSEN to use our services and the many happy Landlords we have are living proof, that the professional Agent should be top of the tree when considering top tips.

Professional.

Now regular readers of my blogs will know that I take every opportunity to blow the trumpet of professionalism. Well there is no difference on this occasion. The whole point here is to ensure it is the right Agent and that the advice is good advice. Whilst we continue to wait for the Government to bring in the legislation to make professionalism in our industry the norm, all you have to do to ensure you are dealing with a Company that conforms, is look for the (or ask for the) evidence of the professional bodies they belong to.

Check it out

At Castle Estates in Stafford, we are members of ARLA, (NFOPP) and belong to the ‘Safe Agent’ scheme, as well as being members of The Property Ombudsman. By checking and reviewing the organisations (and all this can be done before you even speak to anybody, because the logos, will all be clearly shown on an Agents web site) you can be sure you are speaking to a professional Agent  and therefore receiving good advice, now isn’t that what we all want?