Tag Archives: Property Management

07Nov 2011

Property Landlord advice: Landlords visiting property can cause problems.

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By Steve Roulstone

Once again I have a subject that is very relevant to our own office, as it is based upon something that has caused some consternation this week. It seems that the only way it could have been avoided was to keep a Landlord away from his own property even though the reason for his visit was perfectly reasonable!

Managed should mean Managed.

Of course, when we are appointed by Landlords as their Managing Agent, it is not with the thought that the Landlord is then going to be visiting the property with Tenant ensconced on a regular basis. Far from it, I am a firm believer in encouraging Landlords to stay away from the property, even when they live next door, which happens more often than you would envisage! If we are appointed to be the Landlords representative, then we need to be allowed to do our job and because we have systems which ensure all actions carried out are done so correctly and that all conversations, comments and requests are noted, when this happens outside of our control it can leave us with problems, either then or later.

Coming back to bite you.

The instance that happened this week was of a Landlord unable to recall exactly what was said during a visit made (with permission of course!) to carry our maintenance (another blog all in its own right!) but it was the subject of the conversation which was the problem, because the Tenant having left the property, is being asked to decorate a bedroom back from purple walls to magnolia and yet they are stating they sought and gained the Landlords approval when they spoke.

Correct procedures at all times.

The main point here is that every member of our staff knows that as soon as any Tenant asks about decoration, we have a set procedure which includes confirmation in writing of both the request and response as well as submitting sample colours for approval. The same applies to any conversation which may have implications, we record the content, but what it is difficult to do is point out to the Landlord that they have gone about matters the wrong way by not informing us of the request when the initial approach was first made.   

Implications.

In this case, it is going to be difficult to prove the Tenant wrong, especially as we have nothing in writing to back up our case should the matter go to arbitration through the TDS scheme, which it probably will, so we may see the Landlord having to both paint the bedroom himself and pay for the privilege as a result of what started out as an innocent property visit carried out by the Landlord.

Recommendations.

So it is for cases such as this that we try wherever possible to encourage Landlords to stay away from their own property, or at the very least, to always ask the Tenants to contact us about any issue they raise, no matter how small, rather than get involved themselves, no matter how innocent the subject appears. Only then can we ensure that we remain in control of the situation and able to ‘Manage’ the position on behalf of the Landlord, after all I am yet to find any Landlord who approved purple paint for any room in their house!

01Nov 2011

Tenant advice: Correct procedure for end of Tenancy.

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By Steve Roulstone

One area that can constantly present problems to both Agent and Tenant (and subsequently Landlord) alike, concerns works needed after a Tenancy has ended, when the Tenant looks to re-visit the property to carry out garden maintenance, cleaning or removal of rubbish left. This is of course further complicated by the regulations surrounding the Tenants Deposit Scheme but for the purposes of this explanation, I will ignore TDS otherwise as a Blog this could become a Novel!

Correct procedure.

Of course what we have to work by is the legal requirements and therefore the legal manner in which Tenancies are considered. To explain, this means that the day of the check-out (for all Tenancies should be marked by an official visit to the property by the Landlord or Agent, otherwise no record can be made of state and condition) when keys are handed over and the last day that rent is actually paid for the property, the Tenancy comes to an end. The problem this presents is when the Tenant looks to re-visit to address issues as described above, because they can only do so with the Landlords permission!

Time to address the issues.

 It is the expectation and stance of many Tenants that can cause trouble here because if works are left to be done, such as cleaning or removal of rubbish, then it is perfectly reasonable for the Landlord or Agent to want to charge for the work to be completed, because the Tenant no longer has a legal right to access the property and of course the Landlord or Agent may be moving a new Tenant in as soon as the following day.

Not by right.

The main cause of any upset in my experience is the reaction from the outgoing Tenant to having access denied and the fear of charges that will arise from the work not being carried out in time. As I have stated, I am not going to bring TDS in too this scenario, so what we are talking about here are principals and the word of law. Therefore, any upset is because Landlords and Agents use the law as the basis of decisions made and subsequently it is the Law that the Tenant is questioning. Of course, the Law in such instances when applied correctly cannot be questioned and because Landlords and Agents know they are on sound footing very rarely does the Tenant receive any lee way, but even when it is granted, there can still be bad feeling, even though such access is purely at the Landlords grace.    

How to avoid problems.

Well of course there is no guarantee, because with people being people, there will always be some Tenants who do not wish to comply with the requirements of the agreement, but my advice to any Tenant is to understand what you are required to do at an early stage, then (and this is the important bit) when your Landlord or Agent confirms the end of Tenancy procedure and implications of the check out date (done properly this can avoid problems) it will not come as such a surprise. But rest assured, should you ignore the detail and expect to walk away with works remaining,  Agents will on behalf of their Landlords, pursue the Tenant for recompense, through and within the TDS legislation.

14Oct 2011

Current Property News: Rental services being stretched during difficult times.

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By Steve Roulstone

At our office in Stafford, we are seeing many Landlords reviewing what they pay for our rental services, this is to be expected when everybody has to look at their expenditure very closely and where possible make savings. We have seen whole families change from a Fully Managed service to Tenant Find only and we hope that what they have witnessed over the last seven years whilst we have managed property on their behalf, will stand them in good stead, and of course should they need professional help then we will be available to assist wherever possible.

Review prices.

What we have done to assure our Landlords that they are getting good value for money is to look at what we charge for all of our services, by breaking down the different facets of what makes a Fully Managed service and price them individually.

Comprehensive cover.

 This of course makes quite a list, from Initially finding a Tenant through checking them in to the property, dealing with maintenance issues, visiting the property on a regular basis, collecting rent and paying via statement and of course chasing and pursuing arrears, as well as finally checking Tenants out of the property, which leads to where we normally started, with a review of the home and advice pre renting again.

Value for money.

Of course when you look at the charges broken down in this manner, then the overall average charge to a Landlord under Full Management no longer looks out of place, and at times we need to be aware of what saving a Landlord would make set against paying individually. Not that I believe Landlords are wrong to review what they pay, far from it, this is what  they should do as would I for regular occurring expenses, especially under the current financial restraints that everybody is feeling.

Review services.

What we should be able to do as Agents is be aware of the possible financial restraints our customers are going through and be ready to assist the process, which means we need to review every section of our service and ensure we can offer each separate part in a professional and cost effective manner. Because even though Landlords may wish to make savings, there are still bound to be parts of what we do that would make better sense and that Landlords would still prefer to be dealt with by others, just look at Property Visits, or of course Rent collection and arrears chasing. There is no doubt in my mind that just like any other organization in these difficult times, we need to be ahead of the game on our Landlord’s behalf, as the financial situation is not going to change (as my Father would say) ‘just yet a while!’

10Oct 2011

The Benefits of Regulated Letting Agents to Landlords and Tenants

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By Craig Smith

Wow, it seems like only  minutes ago that our blog was last updated but it is nearly 2 months already! Anyway, not too long ago I published a post raising some concerns that some people have with unregulated letting agents not being properly trained. Well, I can confirm that I have now passed all four of the ARLA Technical Award examinations which means that I will soon be able to become a member of ARLA!

Because of this, myself and one of our directors attended a regional ARLA meeting just last week. This is where members from the surrounding regions (in our case, Staffordshire and Shropshire) get together and discuss the latest legislation changes and ideas to promote our businesses and ensure that we always give the best and up to date advice.

Unregulated Agents Under-Cutting

One topic that was discussed was an unregulated agent who was seeing properties with a to let board and contacting the owner with false promises of having a tenant who is very interested. Of course, once a Landlord has moved to the agent the tenant has magically already found somewhere else but the agent has then gained (or in some peoples opinions stolen) the business from a professional organisation.

Sometimes a logo doesn’t mean much but a little homework can go a long way. For example, as you are reading this now, do you really know what ARLA means and how they look after both Tenants and Landlords? By being a member, an agent has to follow the codes of practice as set out by them which gives a more professional letting service and better management of a rental property.

Proper Training for Professionals

Another good service provided by ARLA is the training that they can provide. Not only the exams as we spoke about earlier, but training sessions throughout the country for different areas of property management. You might think that an agent should already know everything about everything but there is always something new on the horizon! Updates in law can determine whether a process needs to be changed or different advice needs to be given to a Landlord.

Of course, not every unregulated agent should be treated as cowboys, it always takes time to become established and better known in an area and also time to gain the experience needed. Unfortunately, like with most walks of life, it only takes a handful of the bad guys to give others a bad name.

Important Updates for Landlords

As mentioned earlier, it is important for Landlords and Agents alike to stay in the know of changes to legislation that may affect their rental properties. This is another benefit of being a member of a professional body as we found out last week with the changes to the payment of water rates for a rental property, more about this to come soon! 

23Sep 2011

Blog Review: Advertising Property on the Web – slowly slowly!!

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By Steve Roulstone

For my second Blog review, I have chosen one that I posted last July under the Property Landlord advise banner ‘Advertise on the Web or in the Press’ Not difficult to work out what is was about and my conclusion at that time was that if we wanted to continue to be visible to our Landlords, we needed to continue to advertise in the press, even though Tenants would almost exclusively use the Web.

Location Location.

One factor that I did not mention in the original Blog, is that for the majority of Tenants, the local press is not an option, as they find themselves moving to an area that they are unfamiliar with and of course local papers, which are the media for Property advertising are only available locally! Therefore when you are re-locating, the web is the only answer.

Few changes.

In fact, what has happened in the last year has hardly affected our decisions in this area at all. It is still the case that we need to advertise in the press so that Landlords can see that we are active and of course, the larger the advert (number of properties) the larger the image of the Company! This is especially important where we are in Stafford, because we have a large Farming Community and the importance of the local paper is not difficult to envisage. Interestingly, in Stafford, this has now developed such that it is the free papers that carry the Property sections. Therefore when we check with Landlords, it is the free papers that are being read and through which we are located.

Close second

Just behind that is of course what every Agent would wish for, recommendations, which still play a massive part in supplying new Business, but being located on the Web and I am happy to confirm, because of our postings through these pages, is growing year on year, but this has bought about a different scenario which cannot be ignored, when we decide where we are going to spend our hard earned advertising budget!

Where did they go?

In these austere times, the image of all Companies has to be considered. Any change has to be trumpeted and well planned as it is far too easy for potential customers to come to the wrong conclusion. I well remember when I started, the Agent who boasted of being the ‘biggest in town’ started to run in too problems. How did I know, well instead of taking a full page advert every week, they reduced in size, until eventually taking a quarter page. Good saving you may say, but what they did was reduce the size of the print, so that the advert read exactly the same but on a quarter scale!

Conclusions drawn.

The conclusion was clear for all to see and that is why I asked if they were for sale and indeed they were. After many gallons under the bridge and a decision not to purchase, the Company no longer exists and all local agents took a share of there portfolio when they closed (the cheaper option!) but the message was clear, manage all changes and be aware of your image. So to stop advertising in the press at all and those potential customers I mentioned, may come to the wrong conclusion and what we do not need is for that conclusion to throw doubt on either our remaining existence, or indeed our financial capabilities. Consider this, Landlords do not want us to earn an excessive return (Never a realistic proposition) but will also go elsewhere if they think you are in financial difficulties. Not a rumour I would like to be involved with, so the advertising in the press continues, but without doubt, its days are finally numbered.

15Sep 2011

Blog Review: Renting a property proves the ‘Truth behind the Myth’ as trend continues.

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By Steve Roulstone

In June last year, I posted a blog entitled ‘The truth behind the Rental Myth’ and as part of a new section in the Castle Estates blog and because we have now been posting for well over a year, I have chosen this as the first in a new section where I will review what was originally written and comment on where matters have developed since the initial posting.

Initial intent.

I wrote this because despite ten years in the industry, I had recently been asked about the old chestnut of how did I cope with Tenants trashing property, when in fact it hardly ever happened and was in any case on the decline, so I wanted to say exactly what it said on the tin! Interestingly, whilst that is still the case and with regular property visits we have a method designed to give us an early warning system anyway, it was the rest of my comments that have been the reason for me choosing this Blog as a target for an update.

Renting on the increase.

My prediction that renting would become more popular and that what Tenants were doing was following a trend because of how our market suited a lifestyle was, as we can now see, exactly what has happened and only recently, I have commented again on how this lifestyle choice is what commentators are failing to observe when looking at market trends and commenting on them.

Legal options on the decrease.

What I did not foresee at that time, was that the Government, which of course had just changed, would decide to drop the recommendations of the Rugg review and fail to bring in the long trumpeted and as readers of this blog will already know, what I believe is needed for our industry, legislation  to introduce Agent and Landlord registration. This remains an issue for me and at a time when our market is growing at a pace never seen before, it does not marry that any new start Letting Agent will be struggling to get in front of the Landlords needed to grow the fledgling business.

Every Agent in town.

This is simply because the Estate Agents of this country turned to what it has perceived as its poorer sibling for so many years, to rescue its own business when the house sales market collapsed. Please do not misread what I say here, because there are plenty of very good Estate Agents that have turned to the Lettings market to survive, but I am equally sure that we will see and hear about (my bet is they will not differentiate between Estate Agents and letting Agents when reported!) stories of bad management as time progresses and problems do appear.

Here is an irony!           

The irony may well be that what is reported is property that has been trashed and my initial point will have travelled full circle! Because there is no doubt that bad management is one reason why houses do end up getting damaged. The why is a different story and not for this short article, but what I would hate to see, is our industry suffer (by way of reputation) because of Estate Agents who have jumping the fence purely out of necessity, ending up being the root cause of bad press for the Lettings industry and by association, Letting Agents as a group!

02Sep 2011

Current Property News: Home ownership figures give BBC cause for concern.

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By Steve Roulstone

Well they are at it again, and having listened to the latest report from the BBC on housing in my eyes they have confirmed once again just how they seem to relish putting a negative spin on anything relating to the housing market. Especially as they seem to be the only news agency that have put such a negative spin on the figures behind home ownership! In doing so they have completely ignored two very important  factors, firstly, the right for people to choose how they wish to live and the trends which have been evident for several years and the assumption that the home ownership which has been the UK way for so long is not the natural goal for every family any longer.

The Facts.

Firstly, what I can agree with is the numbers behind the report.  Private Rental Figures have been increasing by three times the normal rate now for at least the last two years and for the first time last year overtook the Public rental sector in the UK The BBC report stated that 64% of housing in the UK is owner occupied. This confirms the trend as currently believed with Public rental at 16.5% – 17% and the Private rental sector at 19% – 19.5%. So the figures are correct, it is the assumption that this is a major cause for concern that is wrong.

Freedom of choice.

For some years now, the average age of a first time buyer has been growing and I do not deny that some of the reason is the inability to be able to afford property at a younger age, but it is also clearly evident that we have a far more mobile work force who are prepared to and expect to move several times as they change jobs or move with jobs as careers develop. This will be confirmed by any Letting agency, as we are the people who see this trend and know for the reasons given by Tenants when initially renting and giving notice to move on again. The BBC chose to ignore this because they will have no knowledge of this trend and do not take time to find out by speaking to our Industry.

Change in pattern.

The other obvious point raised by the two reasons given above, is that firstly, as hard as the fact may be to accept, the housing market in finding its current level as the market dictates is confirming that cost of houses are settling above the affordability of younger couples and is being replaced by the rental market as an affordable choice. Secondly, this choice also suits the fluid lifestyle now being lived and mirrors what is happening across Europe where renting is an accepted way of life and it should not be too much of a mind jump to see that as we develop a cross border larger picture European style of living these changes are moving in line with our European neighbours.

The bigger picture.

But the BBC in reporting this news in the style chosen last night, ignored choice and took as its basis, that home ownership is still what we all strive for. What the BBC need to do, in my opinion is ask itself two very large questions. Why when reporting news from the Housing sector do they always give it a negative spin? and why do they report such news without consideration to the professionals within the market who could confirm what is actually happening in housing in the UK and why, rather than jumping to age old assumptions? My own ‘assumption’ is that what used to be the organisation that gave the world the news, has sunk to a world of sound bites and magazine style articles rather than in depth pure reporting that they used to be known for. That’s a trend that they do know about, but again one that I fear they will also ignore!

22Aug 2011

Property Landlord advice: Tenancy problems that should be avoided.

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By Steve Roulstone

 

One issue that continues to raise its head from time to time is the condition of property when the Tenant moves in. Not when it has been left in any poor state by the outgoing Tenant, because any agent knows how to deal with that problem. After all it is in the agents power to do what is needed to deal with the state and condition of a property when it is the outgoing Tenant that has caused the problem and of course the Agent will also be aware when the work is going to be carried out and when the next Tenant is due to move in. No the problem I am referring to is when the property is new to the market, or new to the Agent and it is the Landlord who is not carrying out the work they have promised and the work is therefore NOT in the control of the Agent.

First impression.

 

It is not common for Agents to criticise Landlords, but when this happens it is the Agent that bears the brunt of the complaints from the new Tenant and let’s be honest, why shouldn’t they complain, if the first thing they have to do is clean the property from top to bottom because work they have been promised has not been carried out! I know how I would feel under such circumstances and even if it is just one room, because of say decoration, it matters not, because most Ladies will then feel the whole house has been left in a poor state. Now most of the time, one persons ‘clean’ is a matter of conjecture rather than a definitive condition, but the problems caused by allowing this situation to arise for the rest of the Tenancy can be very damaging.

No choice!

 

Of course the big problem for any incoming Tenant is the lack of options most would have when faced with a dirty house. In the majority of cases everything depends on the move and having either left another rented or property that has been sold, no other options exist and this is when bad feelings really set in because nobody likes to be left with a ‘fait accompli’ that they have no say in or no other choice. Left to fester, the Landlord immediately has a problem on his hands and I would venture to suggest that if the property is being self managed (Tenant find for the Agent) then it is highly possible that the whole Tenancy will fair badly from that moment onwards.   

 

Check it out!

 

There is no doubt when the Tenants do leave it is going to be very difficult for the Agent or Landlord to prove any damage or cleanliness issues caused by the Tenant and even if let’s say the garden is not looked after with an uncut lawn, heels will be dug in if it mentioned because of the state of the house when they moved in. The other area commonly causing problems is the furniture not wanted by the Tenant being left at the property. Put simply, just because the Landlord does not want it, why should the Tenant have to put up with it?

Start well – end well.

 

Compare that situation to a house presented in excellent order, clean and ready to be occupied. Then the Tenant starts the Tenancy well and knows that they are not the only ones who want or need to look after the property. Over the years we have had many situations like this, where the solution is not in our hands (We cannot employ cleaners or move furniture without permission) and the disappointment is that it continues to happen. Best advice is not always listened to, but the follow up from the Tenants is always heard, because we are the Agent of the Landlord and are duty bound to look after his interests it is our job to do so: But it does not mean we enjoy it!

10Aug 2011

Landlord Property Advice: Always Allow for Wear & Tear

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By Craig Smith

When a tenant leaves a property, some Landlords think that they are automatically entitled to have items such as carpets replaced or walls repainted at the tenants’ expense. But this isn’t always the case as Landlords must take into account fair wear and tear.

What is Classed as Wear & Tear?

As a general rule, wear & tear is usually worn carpets or  a reasonable amount of scuffing to walls in high traffic rooms such as a hallway or stairway. Over time a cooker or hob may start to look a little shabby purely because of the amount of use it has had. Landlords should expect this during a tenancy and need to make reasonable allowances when a tenant vacates.

Certainly staining or deliberate marks are not just wear & tear but can be classed as damage. Yes, everybody has accidents from time to time and the odd drink will be spilt or food dropped at a meal time and replacing a large carpet could be expensive, but don’t forget that tenants can take out insurance for such incidents. (Refer to our previous blog regarding insurance.)

Longer Tenancies Means More Wear

Something that you learn very quickly in this business is that everybody has different standards, one persons ‘filthy dirty’ is another persons luxurious palace. It is very difficult to police how somebody lives in their home which is something that some Landlords forget. Generally speaking, the longer someone lives in a house the more wear is to be expected. For example, a property that has been tenanted for 5 or 6 years should expect more wear than one that has been let for just 6 months. Obviously there are some exceptions where there may be an exceptionally good or bad tenant.

The More Tenants, the Higher the Wear?

Another factor to take into account is the number of tenants who will be occupying a property. Imagine a typical 3 bedroom house, with a tenancy that has run for 3 years. If the tenant was a single person living on their own, you would expect less wear than a family with 2 adults and 3 children.

The same can be said for pets. Most pet owners are responsible people who look after their pets and the property they live in. However, if a Landlord chooses to accept a pet in the home then the Landlord should also expect some additional work at the end. Yes, it is the tenants responsibility to leave the property in the same condition as when they took it on (not forgetting some reasonable wear & tear!) but the Landlord should make some allowances when discussing any costs.

Excuses, Excuses

So we should avoid any tenants with pets? Wrong! If all Landlords avoided these sorts of tenants, there would be an awful lot of homeless people! Don’t forget that obtaining good references before a tenancy commences will help to determine how good the tenant is and, although circumstances can change, will give a Landlord good indications of whether to proceed. The same can be said for gardening, if a tenancy started with a neatly cut and well presented garden but left overgrown and weedy, the tenant cant say that this is because they aren’t gardeners. The property should be left in the same condition and this shouldn’t be used as an excuse! 

09Aug 2011

Property Landlord advice: Landlord Insurance – when fire comes to call.

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By Steve Roulstone

The press is once again full of adverts for Landlord Insurance at the moment and apart from the fact that they mean Building Insurance for Landlords (as opposed to Landlord Insurance for Rent and Legal expenses) when this week a property we manage was involved in a fire for a second time in our Company’s History several important points were raised and although on this second occasion ours was the property next door to the one which caught fire, our systems and practises were put to the test. The fire started in a shed, but spread via the garden fence to the house and subsequently next door.

When Fire strikes.

The important point about any Building Insurance for any Landlord in a Management scenario is that the Managing Agent is aware of all the details and has copies of the policy to hand. This week we were made aware in the middle of Wednesday afternoon that a fire had broken out and quickly established that it was the neighbouring property that was being attended by the Fire Brigade. We visited site straight away, established that our Tenants were OK and started to deal with the problem without delay, because the Fire Brigade had advised us that they were unsure at that moment that they were going to be able to allow the Tenants to return that night for safety reasons. This of course presented several problems and both the Landlord and Tenants were relying on a quick reaction to sort the problem out.

Proper procedure.

This meant that we had to contact the Insurance Company and loss adjusters, confirm the policy, confirm we were able to act on the Landlords behalf, for which with a signed Landlord contract to hand, we were able to do in moments and confirm within under an hour, that should the Tenants need overnight accommodation, they were covered by the policy and made it known that the damage to our Landlords house was added to the inspection and subsequent damage costing by the loss adjuster on day one. Details of who to contact and how were sent in writing and by the end of the day (for which our staff once again have my thanks for staying until all had been dealt with and everybody advised) everybody knew where they stood and how the problem would be dealt with.

Timely reminder.

One of the big issues raised here, is the point emphasised in the current adverts that I mentioned above, because should this not have been a Landlords policy, then the insurers would not have provided accommodation for the Tenants and probably refused to cover the damage because the house was rented without their knowledge. As a Managing Agent, it is therefore important to both advise and ensure that all Landlords are aware of what they should advice their property Insurers and take out the correct policy for a rented property.

First time.

The first time we experienced was the actual property e managed and was caused by a chip pan, left unattended because of a phone call. Again thankfully nobody was injured and the correct cover and thankfully fire protection was in place and the Landlords even provided alternative accommodation for the Tenant until the property was re-built, which considering the reason for the fire in the first place, was a very responsible response. I know that the Tenant, who returned to the original home after the work was completed, has never cooked a chip at home, ever again!

Summary.

I trust we have now had our share of fire related incidents for another ten years, because the initial thought of possible injuries or casualties is something nobody wants to have to go through but without a doubt, our systems and practises came to the fore for all concerned in both instances and confirm that there is more to Residential Letting Agents than just finding a Tenant and moving people in and out of houses. Good practise and attention to detail may never be needed for individual properties, but when it is I know which side of the fence I would rather be on!