Tag Archives: Property Agents

26Jul 2012

Lettings show Sales how to show a home!

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By Steve Roulstone

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

Lettings Viewing.

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

Not suitable.

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

Sales Viewing.

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

Not suitable.

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

17Jan 2012

Property Landlord advice: Self Management leaves Agents unprotected.

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By Steve Roulstone

We have had an interesting experience this week, where a property which was fully managed, has changed to self Management where we only provide the Tenant. The issue here was that the Landlord, having visited the Tenant, was left with the feeling that we had failed to protect them when under full management and had given poor service to the new Tenants because we were no longer instructed to manage.

Tenants advised the Landlord.

The main issue is relating to what the Landlord had been told by the Tenant, which left the Landlord needing confirmation that we had looked after them, no matter what service we were offering. Without repeating the details in full, suffice to say, that by confirming our normal processes, which included signatures confirming the receipt of information and the ability to prove timings through photographic evidence taken at the check in, the Landlord was left understanding that we had done the right thing and carried out our role professionally. The interesting point for me, is that had there not had been other issues, the Landlord may not have had cause to contact us at all and the only result may have been our dis-instruction, without even knowing why!

The bigger picture.

The reason for us being able to prove our case surrounded what had happened with the previous Tenant, as an extension had been built, without the Landlords knowledge at the next door property. The reason the Landlord phoned and mentioned the suggested lack of service to the new Tenants, was to see how this had happened without their knowledge. The answer was really straight forward, the past Tenants had failed to forward mail that was intended for the owners advising them of the neighbours plans and therefore failed to give the Landlord the opportunity to have their feelings taken in too account.

All points covered.

We were able to prove that our agreement included a clause confirming that the Tenant was supposed to forward all mail intended for the Landlord, especially that of an important nature and this is what they failed to do. We were also able to confirm that the agreement banned Tenants from interfering with the supply of services to the property, which was another issue that had been raised. The result of this event, confirms just how important it is to have an agreement whose basis is centred around the protection of the Landlord (and in our case is based upon 30 years of experience) and that ’of the shelf’ agreements have their rightful place – on the shelf!

Consequences.

The serious side is that because of adhering to processes, we were able to confirm our service had been proper and correct and that the Landlord, who of course had gone to self management because there had been no problems over the previous seven years, had received the services that had been paid for. In doing so we were also able to demonstrate that the agreement we use is there to protect the Landlord and clauses do have a purpose.  The Landlord left with the knowledge that they could pursue the previous Tenant for actions that had left them disadvantaged, but this time, because of self Management, the letter would have to be written by themselves, rather than by us!

25Aug 2011

Current Property News: Agent fined over conservancy area change

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By Mike Edwards

A West London agent has been fined £250 with £250 costs, by the Courts for erecting a For Sale board in a conservation area and the story shows just how careful agents need to be and the lesson has to be, never assume! The agency was charged with the fine after admitting the offence at West London Magistrates Court yesterday [August 16]. The agent claims the fee was the minimum possible due to the court accepting that the crime was a genuine error and not a deliberate disregard for the law.

Following Instructions.

The incident happened in May, when a client asked the agent for a board to be erected in the same place as it had been seven months previously, which the estate agent duly completed. However, during the interim seven months, Hammersmith & Fulham Council had designated the road in question as a conservation area. The agent claims it was omitted from the list of estate agents notified of this change by the planning office and the offence was reported on May 9 and the board removed 24 hours later, after which the agent assumed the matter was closed. However, at the end of July the managing director received a court summons relating to the offence, which consisted of 34 pages of evidence, including the council’s claim for costs incurred for three hours of investigation and over three hours of legal fees.

MD Reaction.

The agent was stunned by the turn of events, and while admitting to having been in the wrong, said they thought the prompt removal of the board had resolved the matter at the time. It was not a fly board making false claims of success nor a board left up for months it was simply placed in a road where until October 2010 boards were permitted and erected at the request of a landlord who was also unaware of the new restrictions. The MD is convinced the council intended to make an example of his firm feeling that a simple fixed penalty system would save valuable time and resources with prosecution in the Courts reserved for repeat offenders and warns fellow agents that ignorance is no defence.

Summary.

Agents need to ensure that they regularly check their Local Authority Planning website and read public notices in local papers. ‘The onus is on the agent to check, not the Local Authority to inform.’ The council had sought a fine of £2,500 plus £500 costs, he said, but after hearing him speak, the court levied a fine of just £250 on the firm plus £250 costs so in the end not as onerous as the agent expected, but the guilty verdict did confirm where responsibility lay.

05Feb 2011

Current Property news: Property reports show opinion not facts!

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By Steve Roulstone

I have stated on several occasions, and will continue to do so, that the reporting of issues relating to housing are constantly being reported as negative views rather than in the true light of what is actually happening. Nobody is denying that the property market is difficult at the moment (except of course for Letting agents as we have continued to show growth year on year as owners look to our market as the solution to their inability to find a buyer) but several reports all taken from one issue of a property magazine (who will remain nameless!) all have a different reflection of what I actually see happening ‘on the ground’ at the moment.

Firstly, A lifetime of renting.

The initial report states that young people do not want to rent for life, well surprise surprise! I doubt you will get many of the same people stating in a survey that they do not want to work either for the same employer or in the same industry all of their lives, but many will! I find this a report about nothing, the point of which misses me completely. The facts are that more and more people are renting and I can clearly state from my experience and in my opinion, that more and more of them are young professionals, who are just starting out in their first job. But that is all it is, my opinion and this report is nothing more than somebody else’s opinion derived from a survey, which in my opinion is worthless!

New home sells stalling, honestly?

One of the many roles carried out by our organisation is Block Management, looking after sites which nearly always nowadays, have a Management Company to address communal areas and facilities. One of these sites is in the Midlands, near Halesowen and as a new build development I can report is selling well. I had a meeting yesterday with a colleague from Milton Keynes. Because of a similar connection to local builders, we were discussing how well new build was selling in Milton Keynes. So the report looks as though it should be re-titled ‘New homes stall in London’ because clearly that is the content of the report and the Editor should remember that there is life outside of London! But some of the blame is placed on Mortgage supply

Mortgage approvals still falling.

Two points here, if the report above is blamed on mortgage approvals falling and the subject is worthy of a report in its own right, why is the BBC reporting that Mortgage restrictions are falling and secondly did anybody notice the weather last month? Again, in my opinion, this is reporting a negative because the press think bad news sells. It probably does; apparently, we are more liable to read something that scares us rather than something that will make us smile, so headlines reflect this fact. But it seems to me the report would have been more factual to have concluded that Mortgage requirements are easing because of a fall in approvals and that the future could be easier because of this, rather than just concentrating on negative views, after all, the only true reflection of these figures can be made once we see what has happened in January as the backlog that developed has worked its way through.

Assumptions.

For anybody, press or otherwise, to quote definitive statements as news, they should be able to back it up with facts and trends that stand up and only when the news that is reported is factual in this way, will we see a true picture of the subject of the report (for housing is not alone in Having facts taken out of context) and as I state in what I write, this is my opinion (that is what Blog writing is all about) and I do not deny that housing sales are still slow, but it is also my opinion that they will stay that way longer if the only way they are reported about is in a negative fashion.

01Oct 2010

Franchise News: The Importance of Block Management.

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By Steve Roulstone

When considering a Franchise in any industry, there may be more than one way to generate income that may be available through the business to hand. The Lettings Industry is one of those industries and it is Block Management that is a natural outlet for any good Letting Agent.

A natural fit

What needs to be recognised at the start is whether the Franchisor is happy for additional industries to be part of the Franchisees business. At Castle Estates we not only allow but actively encourage entrepreneurs to get take advantage of any opportunities that come their way and will actually offer training as part of the Franchise.

Landlords want our help.

And that is the point, it is normally Landlords who ask for our assistance as many traditional Block Management Companies are somewhat distant from the communities they serve and by being the Local Agent who services the area concerned, Letting Agents can offer a better feel and better communications for the leaseholders involved. Now from where I look at this, if a Landlord approaches my Company and asks for help and I can offer that help, then I do not want to be the person who says no!

And we have the knowledge.

But because our main field of operation is the Lettings Industry, it does not mean that we cannot supply something extra, in fact, I would go as far as to say that Letting agents can make better Block Managing Agents, because in a market so heavily populated by Buy to Let properties, our knowledge can offer better solutions to situations simply because we do know what to do in such scenarios.  

Giving better advice.

Only this week, I was present at an Annual General meeting where a question was raised about HMO’s on site. Now this happens to be an area that I have a good depth of knowledge and I was quickly able to confirm the law relating to this situation, ensuring that safety was maintained for everybody living in this block. Now Block Managing Agents may already know the answer and some surely will, but my guess is there are as many as would not recognise this potential problem and would not be able to supply the correct answer.

Resulting in Additional Income.

So look at the possibilities, diversification is good in any business and I believe by encouraging involvement in this sector, allowing our Offices to earn additional income and spreading the earning potential in a field which sits so well with our industry, we are adding another worthy string to our bows.

23Sep 2010

Property Landlord advice: Property Letting Agents

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By Steve Roulstone

 

As against Property Estate Agents, and this is the subject of my blog for today. Why do people still visit Estate Agents to carry out a role covered by a different trade? and we are different, in all the training I have gone through, I have never been taught how to manage a property sale and I can guarantee you that at no stage has any Estate Agent under the guise of training for selling houses, ever been taught how to be a Letting Agent.

So do you just not like us?

But people still knock on the door of Estate Agents to place their property on the Rental market. Of course, one of the reasons is the image that has historically hounded our trade, but I firmly believe that is changing. With the proliferation of Franchised offices throughout the Country over the last ten years, we are finally getting the professional image across and it is with great pride that I count Castle Estates as one of the Companies creating the change, but I believe this goes deeper than image and is tied to tradition.

Habits die hard.                      

I believe that it is habit that causes most people to look to the traditional office to look after our property interests. This is of course where Estate Agents score, because the Letting Industry is still new compared to the traditional route of property ownership, but this situation is changing, as the % of UK rental property continues to rise, currently sitting at 14%.

Property Letting Agents, a developing Industry.

This is where we must now concentrate as an Industry and look to educate the public, that our Industry is not one that can be turned to in a time of need (most Estate Agents started to offer rental services because they could not sell enough houses) but rather to be able to provide the correct Management that ALL of our Landlords need, the agent should be trained and specialise in its own field. After all, you rarely see a Letting agent who sells as well!!

01Sep 2010

Property Landlord Advice: What should your Letting Agent do for you?

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By Steve Roulstone

I was talking to a Landlord this week, who again confirmed that some Letting Agents do not provide the services they should in full Management. I wrote only last week about the problems caused by Landlords who self manage not visiting the property during the Tenancy and whilst it is standard practise for our Letting Agency it appears this is not always the case.

Standard practise.

So what should Letting Agents provide for their Landlords in Full Management, the term ‘Full Management’ is of course what most Letting Agents would call their complete service and it is the price of this that we compete with up and down every High Street in the Country. Sometimes Agents provide a varying list of Full Management services, but it is not a situation I am comfortable with. If you are supposed to do a job, then you should offer a service that enables you to do just that, not a service that suggests there are various levels a Landlord can buy in too, because in my eyes, Full Management is Full Management.

Letting Agents list of services.

Of course, every agent should be associated with an Industry Professional body, so you know they work to a standard that is acceptable to the market in the first place. So, for that list of services:

Initial ‘Rentability’ Valuation, Safety and legal advice, Web Marketing and advertising included, Accompanied Viewings, Tenant Referencing, Complete set of Self branded approved agreements, Specialist Landlord Insurance, Standard Landlord Insurances, Tenant contents Insurance, Full check-in facilities (Always at the property), including Inventory and back-up state and condition support, Utility services, Regular property visits and reporting, Monthly Landlord statements, Full Maintenance provision (with Landlord authority) Complete arrears service, Renewal and Rent increase provision, Full check out facilities (Always at the property) and that all important service covering all of those little unexpected eventualities!

This cannot and should not be comprehensive, but could be considered to be a minimum for a Full Management service and that is the point of this piece. However it should not include any services that should be provided by other specialists, you would not ask a Letting Agent to fit a radiator in the same way you would not ask a plumber to find you a Tenant!

Check the Contract

All Letting Agents should provide you with a Landlord contract that summarises the services they include. They are designed to protect both parties and form the basis of the relationship between Agent and Landlord. Either way, what this list will do, is provide a method of checking if the Letting Agent you are talking to, is aware of what looking after Landlords is all about!

12Aug 2010

Property Landlord advice: Problem getting your rent?

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By Samantha Knight

It is often the case that when a tenant decides not to pay their rent, the creative side of their personality can go into overdrive and what they believe to be a valid unique excuse, is just a story we as agents and landlords have heard oh so many times before.

 And today’s excuse is!

 1)    Banking Error

2)    A death in the family

3)    An illness or accident resulting in hospital treatment

 My advice is not to be afraid to challenge the reason you are given or suggest ways of helping to resolve the situation, there will be occasions where the reason is genuine, but it is only by speaking with your Tenant and through your  experience, that you will be in a position to understand what the real reason for the non-payment is!

 Remember, your tenant has signed a contract which they must honour and excuses do not give them a reason for not making that payment, much the same way as there is no excuse for you as a landlord not to deliver on your repairing obligations.

 But be careful how you proceed.

 But whilst it is the correct procedure to take a tough line on arrears, you have to be careful that you do not cross that fine line between tough arrears action and harassment.  Be sure not to leave yourself open to any such claim, as the courts take a dim view on harassment claims which could be considered as refusing to leave the property when visiting, changing the locks when the tenant is not home, continually visiting or even watching the property and of course abusive communication and physical violence – this list is not exhaustive.

 So can we help you?

 So if you do think your Tenant is not being truthful in what you are being told, how do you proceed? This is of course where Professional Letting Agents can help.

 At what cost?

 I would venture to say that our methods which have been built over years of experience are probably going to produce a scenario which will save you money against having no rent for several months whilst the problem drags on unresolved. So the advice is proceed with strength or turn to that Professional agent, who will probably not only provide a solution but also be the answer for the longer term as well!

03Aug 2010

Property Landlord Advice: The Best Letting Agent in the world.

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By Steve Roulstone

 Property Letting has come of age in the last ten years, certainly when you consider the amount of legislation which has been introduced, from the Commonhold and Leasehold reform act of 2002, through the Housing Act of 2004 and the implications on legislation for Houses of Multiple Occupation, Tenancy Deposit Scheme, Housing Health and Safety ratings system and The Home Information Pack to name a few.

 Landlords first and foremost.

But none of this has changed what we set out to do as Letting Agents. Namely, Rent a property! But not just that, as agent of the Landlord, we look at renting property with our duty of responsibility to the Landlord, correctly, uppermost in our actions.

 Agreement from Castle Estates

Residential Lettings now requires a level of professionalism never before seen in a property agent and at Castle Estates we believe that it is right and proper that the bar has been lifted and we all seek to give increased levels of service to match what Landlords rightly seek in today’s competitive market.

 Our aim is the same.

Whether a stand alone Lettings Agent, or part of a group of National Letting Agencies Landlords expect us to both be aware, and able to advice not only on legislative changes, but also on issues surrounding rulings made as the legislation finds it way in to the courts and ‘Test Cases’ reach completion.

 Make the move together.

So at Castle Estates we promote the notion that when Letting Agency is referred to as an industry, that people see more and more that we are both professional in knowledge and outlook. So I look forward to the day that all Property Agents are striving for the title of the Best Letting Agent in the world.

30Jul 2010

Landlord Rights: The Power of Ground 1 in an Assured Tenancy

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By Mike Edwards

The Problem

There is a serious misunderstanding in some local authority/housing association housing departments when tenants approach them for advice if have been served a section 8 notice not for arrears possession under Ground 1.

This would usually happen on full Assured which are of course less common than Assured Shorthold but which carry the same mandatory possession rights for Landlords. Provided of course the legal paperwork is correct!!

The Misunderstanding

The problem understandably is that the section 21 notice used to terminate an Assured Shorthold on mandatory grounds is far more commonly used and recognised. But a section 8 notice using mandatory Ground 1 (previous or future occupancy by Landlord or spouse) is equally as powerful and also compels a Judge to grant a Possession Order.

This misinformation and confusion is happening a little more frequently as more Landlords quite legitimately use ATs to avoid the rigours of the TDP regime and the uncertain outcome of dispute resolution by scheme adjudicators. If difficulty is encountered take the following steps:-

The Solution

1.         If a section 8 notice is issued to a tenant draw their attention to the two sets of bullet point
             notes. The first in the group foot of page 1 make it clear that if ground 1 is quoted in section 3
            of the notice then it is a mandatory ground and the Judge must grant an order.

2.         The first bullet point then on page 2 immediately under the date in section 5 states how much
            notice is needed – again for ground 1 it is 2 months (as with a section 21 notice)

3.         In reality there is no difference between a s8 ground 1 notice and a s21 notice. Both are
            mandatory and provided the legal paperwork is in order the Judge MUST grant an Order (as
            stated in the notices)

Many local authorities, housing associations and even some solicitors who are not Landlord and Tenant law specialist misunderstand the mandatory power of a Ground 1 section 8 notice. So it is always good advice to use a solicitor who is either recommended or advertises as a specialist in this field. One would hope this would avoid the problem, or of course you could always use Professional Management!