Tag Archives: Property Management

01Aug 2011

Current Property news: Property news roundup.

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By Steve Roulstone

There are three items of news this morning that are all worthy of note and comment, but not I feel, in their own right so I have added them all together in this Blog. They are about a Private Landlord who overstepped the mark in attempting to save money, a report on what TPO is trying to achieve and finally evidence that TPO are indeed acting where required against Agents who carry their logo, when they are not members and do not have the right to do so.

Property flattened in Twickenham.

This report in the Daily Mail today reports on a property owner who, on a property refurbishment, flattened the house concerned to enable him to rebuild the property, because allegedly, he wanted to avoid paying VAT which is exempt on a newbuild project. Quiet an extreme to go to I am sure you would agree and far be it for me to suggest he was justified in doing so, as the courts have indeed confirmed, but the case for reviewing the VAT charges for refurbishment contracts is overdue. Of course as a Letting Agent, we advise many an investment Landlord buying property for long term investment and whilst it is difficult to suggest that VAT should not be chargeable on either newbuild or refurbishment building works, there has to be a scenario which would better cater for both and this report confirms what people will allegedly do to make best use of current legislation.

TPO move closer to OFT approval.

Property Wire are carrying confirmation of the TPO Agents code having passed stage one of the review and subsequent request for approval by the OFT. This is alongside the new Kitemark, as introduced by The National Approved Lettings Scheme that the Industry is also adopting. As regular readers of this post will be aware, I support any move for professionalism in our industry as long as it has teeth (which is what the final article confirms!) and is in the best interest of the industry. This is where I have to take issue with this news, because whilst I am absolutely in agreement with what the TPO are doing and would support any move to have professionalism rubber stamped the Industry as a whole must be wary of confusing the public in what such organisations are trying to achieve. It will be to the Industries loss should our customers be confused by more than one code of practise or conduct being trumpeted at the same time.

TPO wield its power!

It is with great relish that I read the final article, namely that an organisation in the Midlands have been fined for wrongly displaying the TPO and OFT logo on its web site and thrown out of the voluntary membership of the scheme. In this instance the Company concerned were Estate Agents, but never the less the very fact that standards are being upheld for the right reasons (even if the judgement does seem a little ponderous) shows that the TPO does intend to operate as an association where membership does stand for professionalism within the industry it covers. Good news from where I stand!

29Jul 2011

Property Landlord advice: Professional Letting services cannot be watered down.

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By Steve Roulstone

In a recent release from the NFOPP in the form of an e-mail newsletter, the writer tried to infer that in this difficult market, prices will automatically come under pressure as Agents and Agencies try to compete with an ever increasing number of Letting Agents looking to take a share of what they describe as a ‘diluted market’ As usual when I read these articles (and no doubt just as people see when they read mine) several points jumped to mind, which could both explain the perceived problem and also the manner in which the writer fenced around the reasons why the matter was worthy of a newsletter from the NFOPP when in reality it was an advert for  inventory services!

Industry wide representation.

The main bodies covered under the NFOPP banner are National Association of Estate Agents and the Association of Residential Letting Agents. Therefore, the NFOPP cannot be seen to post a comment which actually states that the majority of new Agents are not from the Lettings Industry, as anybody in Franchising in this market will confirm, rather Estate Agents turning to our market as a way of earning income because of the lack of sales and as I have confirmed before, because the percentage of Private rental Property in the UK is now close to 20% they can no longer ignore what so many Estate Agents have treated as its poorer relation for so many years.

More should not equal less.

 

But no matter who the competition is, the very fact that we are seeing close to three times the normal increase in property coming to the rental market, would not in my book be described as a diluted market! It is my belief and the evidence I see from our National organisation, is that those offices that have a good profile and are readily visible on the High Street, are receiving good prospects and growing business because of this increase in available property. The problems occur because so many new Landlords are a captive audience with the Agent who has failed to secure a sale and stay with the same organisation, or because the Agency who is struggling to compete does not have high street presence.

Smaller can still be good.

 

That does not mean that smaller Agents are poorer Agents, far from it, but I do and would have reason to question any such agent who also pays for services that as a Professional Agent they should be able to undertake themselves, because as the evidence confirms, our potential customers are being very discerning about where they spend their hard earned money! This is why I believe, it is important to have as big a profile as possible and I would suggest that carrying out every aspect of Managing a property through the staff employed by the Agency itself, is important not only to the Agent, but more importantly, to the potential Landlord and cutting prices is not the way to deal with the needs of your Customer.

18Jul 2011

Rental Issues: Checking in advice for Tenants.

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By Steve Roulstone

I always find it very interesting to visit other property blogs available and having done so over the weekend, there was one recurring theme that I kept on coming across, and by thinking through the situation one answer that cries out to protect Tenants from what is obviously a recurring problem. The focus of the questions was the state of property and the promised changes that were not made or belongings not removed prior to the agreement being signed.

You have to be there!

And in all seriousness, that is the answer short and simple. If you are promised by a Landlord, or Agent, that repairs will be undertaken or decoration carried out prior to the date you expect to move in, or not wanted furniture and belongings removed for the same timescale, then always without exception, do not sign the agreement until you have confirmed that the work or removals have been carried out or removed. Of course, more simple matters, such as cleaners who have failed to turn up, or a spare bed that is not required can be dealt with on the spot. No the situations I was reading about were matters that needed referring to Environmental Health, or rooms still full of somebody else’s furniture! The best way to achieve this aim? Arrange for the signing at the property on the day the agreement is due to commence.

That means you!

You must look on this as an important date and even if there are several people signing the agreement, they should treat it seriously enough to be present on the day. Then, everybody will be able to see that promises have been carried out and the agreement can be executed (signed) without any issues remaining. Even in the situation I studied the most, where one person was not moving in for a few weeks, either still be present on the day, or have arranged for a signature by proxy and stay in touch (This could be one of the other Tenants or better still your own representative.

Achieving completeness.

This is the name of the game, after all the Landlord or Agent is not going to release keys until all monies have been paid and accounted for (at least no Landlord or Agent I know would consider completing before being paid) so if the outstanding work is that important and I would say state and condition is a good marker for any new Tenancy (how will the Landlord react if and when further problems occur?) do not pay or complete!

Prior arrangements make for better action.

The other important issue here, is that as my own Agency would never consider starting a Tenancy without the Tenant present at the property by advising the people controlling any Tenancy that you as Tenant wish this to be part of the arrangements, it should, if those very same people have any intention of completing the work in the first place, focus their minds to the fact that they are walking in to a problem by not completing what they have promised, so by just confirming this practical and sensible routine, you could be ensuring the work is carried out. And if it has not, then do not sign and think very seriously about if you really want to under these circumstances!

13Jul 2011

Landlord Advice: Utility Bills under control

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By Craig Smith

A lot of Landlords may not realise that, even if a property is unoccupied, they could still be liable for utility bills at a rental property. Usually, unless a property has been let with bills included, the Tenant would be responsible for payments. But what happens during the periods that a property is empty?

Ensuring the Accounts are set up Correctly

During an empty period, the utility accounts need to be set up in the name of the Landlord. It is important to take meter readings at the start and end of a tenancy to ensure that Tenants and Landlords don’t pay for each others energy used. A lot of companies will automatically send an estimated bill so regular meter readings should help to keep costs down. Most utility companies will be happy to send billing to another address, such as the Landlords home or letting agent address, which helps to prevent any debt letters coming through the post.

Debt Chasing and Court Action

If a bill gets missed, the utility companies usually send reminders and letters threatening court action, regardless of whether or not they intend to take you to court. (Further information Blog)) The best action is to act quickly to resolve any issues, the majority of cases are where the companies haven’t taken note of meter readings or start/end dates of a tenancy.

Choose Your Suppliers Wisely!

Landlord cannot force a Tenant to take a particular supplier for gas & electricity, although there is usually no choice for water and Council Tax! However, different suppliers charge different amounts for energy used. If a property is going to be empty for a period of time, it is always worth looking into the prices charged by different suppliers. Some suppliers will charge a standing charge, so even if no energy is used at a property a daily charge could still be payable!

Whenever a Tenant leaves a property, the Landlord should always aim to obtain the gas and electricity providers. If the Tenants don’t give the information, the suppliers can be found by contacting National Grid for gas and MPAS for electricity.

Water Supply

Some water companies will also make a standing charge even if no water is used. This is to cover costs of drainage and maintenance to the pipe supply. If the stop cock is turned off in a property, inform the supplier! Usually, if the supplier has been informed that the stop cock is turned off then the standing charges are normally cancelled (from our experience with Severn Trent).

Council Tax

A property can have an exemption from council tax payments if it unoccupied & unfurnished, usually for up to 6 months in each financial year. After this, a 50% rate is applied and will become payable, although after 6 months you would certainly hope that the property has been relet!

05Jul 2011

Property Rental Advice: Unregulated Agents May Not be Properly Trained

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By Craig Smith

There have been a number of news articles recently about the number of letting agents going out of business whilst still in possession of money that is owed to Tenants and Landlords. Sometimes the office may relocate to save costs but sometimes poor communication can lead to a lot of confusion and Landlords being out of pocket.

Professional Bodies

There are a number of professional bodies that agents can join, there is ARLA, RICS and NALS to name just a few, and Castle Estates Staffordshire is an ARLA regulated agent. By being members of a governing body, this can give Landlords and Tenants reassurance that their money is safe and protected as necessary.

Is Your Agent ‘In the Know’?

There is no current law that says a letting agent must be governed and near enough anybody could start their own letting agency. Some of these agents may be charging very low management fees which will no doubt attract some Landlords due to the lesser amount of money that they would have to pay out. But do some agents have the experience and the knowledge to manage a property correctly?

We are proud to have 4 fully ARLA trained staff in our office and 3 more staff members currently working their way through the training material and examinations. By having staff members completing this training, they show that they understand the current legislations and practices that dictate the world of lettings as well as receiving regular updates in lettings news.

Safety Risks

As mentioned earlier, some agents may not have the experience or the know-how when some matters arise. In turn, this could compromise Tenant safety during a tenancy, for example not having a Landlords Gas Safety Certificate completed each year. The safety check is perhaps the most commonly thought of but there are dozens of other examples, such as the Fire & Furnishing Regulations Act 1988 where furniture provided by a Landlord must meet certain safety criteria.

So Who Can We Trust?

There are a number of unregulated agents who are more than trustworthy and we do not aim to ‘tar everybody with the same brush’ where this is concerned. Likewise, there are still a few rogue agents who will be regulated but may still choose to deal in an inappropriate manner. Sometimes the best marketing tool is the simplest… recommendation! 

30Jun 2011

Property Landlord advice: Block Management: The importance of local services.

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By Steve Roulstone

I have written before about why so many Block Management sites, when the existing site Managers are failing through the eyes of the site Directors, end up in the hands of local Letting Agents, who can quickly make the adjustments to carry out the role of Managers for a site rather than for a Landlord, especially where maintenance is concerned. This is one of the major advantages for local Agencies, because in the nature of their day to day business, they will have developed working relationships with the whole gambit of building craftsmen who can help cement the Agencies new Property Management work.

 Local services for Local people!

 It is also not just that by being a local Company it is highly probable that there will be some relationship either privately with the Leaseholders or just by the very fact that the people concerned live in the same location. In Stafford for example, one of my main ‘fix all’ contractors, lives looking over a site that we manage. The relationship that this has developed between the Directors, some of whom already knew the chap concerned and the Contractor is so strong that they now insist he carries out the annual balcony maintenance programme we organise for them. The trust in his work and the way in which he deals with both the problems that occur and the people living on site is the reason the relationship has developed in this way. I believe what helps make this kind of situation possible when dealing with local trades, is the fact that they are Neighbours. Everybody feels more comfortable than the unknown quantity of a visitor from out of town!

 Time is not a factor.

And then of course, there is the ability to react quickly to any emergency situation, and I have known many schemes that operate Nationally for Letting Agents to deal with those Emergency call outs (and I know at first hand, that the level of performance from Contractors attending through such schemes leaves a lot to be desired) All of whom do not react in the same manner as a Contractor who is not only going to start the job to hand, but probably visit again to complete it. Not to mention being the Contractor who will have visited before and will no doubt be needed to visit again! All of these things make the local chap the choice for me.

 Not just Contractors.

 Of course other services are needed through the offices of Block Management and white collar trades also benefit from knowing the area. I have witnessed myself how the local Solicitors have been able to give more appropriate advice when legal issues have arisen, even benefiting from staff living on the site, in this case being able to clear a very difficult recognition problem for us, simply because when typing correspondence, they were able to answer the issue through personal knowledge of the person we were trying to trace. A situation which ended up benefiting all of those concerned and avoided higher costs to boot!

 No comparison.

 So being looked after by a Local Company has many advantages and I cannot see how the largest of the many major City based specialist Block Managing Companies can compare, and even though they may not advertise such services initially, if I were looking in relation to any property owned on a Leasehold site, I would not hesitate to check the local options first. Of course, they must also have a clear understanding of how to run a site in the proper manner, both legally and financially, on behalf of the owners, but I still believe that most organisations in our trade, if they knew they could not do a good job, would say no from day one. But then we all have to start somewhere as did I when I took my first site on back in 2003. But then I had the advantage of being part of a National Company who could offer me both training and other Franchisees who were already undertaking the role themselves, as they say, you cannot beat knowledge!

13Jun 2011

Current Property News: Jailed Rogue Agent fuels the fire for legislation at time of SAFE Agent launch.

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By Steve Roulstone

Two items of news were reported late last week, which are both of note but for differing reasons. One for the right reasons and one for the wrong reasons, but together they speak volumes about what the Industry is trying to do and what the Industry needs by way of regulation, which would in my opinion seriously reduce the number of times such events both occur and are therefore reported.

Launch of SAFE Agent scheme.

Better than expected numbers are turning to the SAFE Agent scheme which is really good news and reinforces my opinion that this type of scheme is exactly what the Industry needs and wants to be a part of. The very fact that so many Agents are looking for recognition in a way that they can announce to their customers, be them Tenants or Landlords that they operate in a way that all client’s monies are protected speaks volumes about the Agents who want to be seen as professional Companies and give re-assurance to their client base.

Government backing.

This scheme has been introduced simply because the Industry has felt that some recognition of professionalism was required by people within the Industry, who, by virtue of the organisations they belong to or who are able to represent, have been able to get both the message across quickly to what I believe to be a willing Industry (Certainly within Castle Estates) who seem to be embracing the message with open arms. What we need now is official recognition from the Government that they both support the scheme and will look to review registration of Agents sooner rather than later. Hopefully they will see by the numbers of Agents joining that the Industry will also embrace and because of the second item of news, see the need for Government legislation to support professionalism in the Lettings Industry.

‘Agent’ jailed for two years.

It is because we continue to see Agents stealing from their clients,  that Government legislation is still required, because even though we hope and will work towards SAFE Agent being a standard for all professional Letting Agent offices, it is only when the Government back us with registration that such occurrences can be really reduced. Allow me to repeat, for I have stated this many times, but registration of Agents who use sound proper methods of looking after client’s money and in running the business in general is the only way the Industry will become truly professional. We are now looking at an Industry, when Private Landlords are included, which is fast becoming responsible for 20% of UK Housing stock. How much longer can the Government ignore the shout for legislation?

 

Estate Agents.

It should also be recognised, that it is not just the Client’s money aspect of Management that needs to be legislated. In the last three years the Estate Agency market has jumped in their thousands in too Lettings and I know only too well, that many do not understand the legislation that any qualified Letting Agent would need to understand and learn before they could become achieve qualification. Now I could just imagine the clamour of noise if the situation had been reversed? Estate Agencies operate at best using RICS standards which have been adopted by the courts as a formal code of practise. Indeed there are far more statutory requirements upon professional Estate Agents than Letting Agents and I am sure the Estate Agents would be the first to shout loud and proud about standards should the reverse of the current market changes come about!

Good for everybody.

At the end of the day, all Industries benefit from raising standards and ours is no different. The problem in any sphere of operation is the people in it, and legislation always seeks to control people. So the sooner we are properly legislated, the sooner people such as Mr Stagg, will not be allowed to trade in the first place, for as the article points out – at present there is nothing stopping him from starting another agency the moment he leaves prison!

10Jun 2011

Property Landlord advice: Gardens and Renting how to get it right!

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By Steve Roulstone

This time of year, as agents visit the properties under their charge, the most common phone call to the Tenant, if they were not present during the property visit, becomes the request to tidy the Garden. So often the Garden, especially when the house concerned is a family home is so well tended and designed that when the property is let expectations about the manner in which it is kept can be misinterpreted resulting in disappointment at the very least and in some cases frustration and anger.

The problem.

We all know a tidy garden helps us rent the property, but Landlords need to understand that when they rent their property, whilst it is the Tenants responsibility to look after the house and garden in a proper manner, this does not necessarily mean it will be kept in the style you would wish. It is the translation of the term ‘proper manner’ which can cause the problem. If such a matter should reach court, as periodically they do, then the Judge is in all probability going to ignore any claim made against the Tenant because all a Tenant is charged to do is keep the Garden in reasonable order and not to the same standard or manner kept by the previous owners, as time would normally be given by the courts for the Tenant to address the issue.

Reasonable Standard.

This is what would be expected of all Tenants the problem being that reasonable can just be mowing the lawn and stopping the borders from being full of weeds. This does not include tending for plants, over wintering in a greenhouse or cutting back at the appropriate time of the year. The point that needs to be appreciated is that by renting the property you are accepting that the Tenants will be allowed to live in a manner which suits themselves and not how you may wish them too. The point being, that tending the garden to the standards you wish for is not required, just the ability to keep the appearance neat and tidy is all that should be expected by the Landlord.

Covering all bases.

This means that provision needs to be made prior to the property being rented to ensure the Landlord achieves what they want for the Garden. I myself, with a wife who just falls short of sleeping in the Garden, having just moved, made arrangements for a Gardener of our choice to visit the house every week. The resulting bill we pay, but were able to rent the property with Gardens tended at a better price. I believe this made the choice easier for our Tenants as they continue to enjoy a mature garden with plants flowering throughout the year. But even with this provision, we both know the Garden will slowly suffer, as nobody cares for a garden better than the Gardener!

Rent to a Gardener.

I have of course on many an occasion, been told by the prospective Tenant, ‘oh how lovely a garden I can look after’! Only to be disappointed by the lack of efforts they then put in. So my advice and I believe the only advice that can ensure the best results, is to ensure if it matters that much to you, the Gardens are looked after by the person you appoint – which means your own Gardener. I certainly would not suggest you do them yourself, as this would not be acceptable to the incoming Tenant.

Family home or Buy to Let?

Of course it matters so much as to why the house came to be rented in the first place and as so many houses that were lived in by Parents are now entering the Rental market, it is quite often that the Garden so lovingly nurtured by your parents is so important to you in how it is looked after by others. My advice in the past has also been to carry out a major re-fit if seeing the vegetable patch turn to weeds and slugs is going to be so upsetting. By having the Garden stripped and relayed to lawn for example, you remove the problem in one go. After all, nobody will ever look after the Garden in the manner your parents did and this can be a very good way of removing the garden as an issue, in the same way as ensuring the Bathroom and Kitchen (the two most important rooms in any house) are in a rentable condition, but that is another story!

03Jun 2011

Property Landlord advice: Student Accommodation and Council Tax for part time Students.

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By Steve Roulstone

I have recently come across a situation that I would both welcome comment on and happily post as a warning to all Student Landlords that possession of a Student card does not always mean that as far as the local Council are concerned, the person you are dealing with is not necessarily considered to be a Student. This has specific impact on the Council Tax status of your property.

Large Student accomnodation.

The situation we have just found ourselves in is somewhat complicated by the building in which the students reside. We manage a converted ex County Council building in the middle of Stafford, which comprises of two sets of accommodation, split by a central corridor. To maximise the Landlords return, one half is for Students and one half used for normal Council Tax paying workers. The Student half, comprises of 12 flats, with anywhere between four and ten rooms per flat. They have centralised kitchens, en-suite facilities and they all share one large common room on the ground floor. So not the usual Student accommodation, more purpose built.

Not enough hours.

The problem we encountered with the Student concerned was that they were only a part time Student, on a course which was for 16 hours per week. The problem arose when the Student concerned approached the Council for financial assistance, even though we had advised they would not be eligible. They were not, but the Council then questioned the Student status and quoted from their own web site that: ‘To qualify as a student, the course must be over 21 hours per week and last for at least one year’

Caught out.

I am sure we are not the first to have fallen foul of this ruling and because it is on the Council web site we cannot complain too loudly. But this does show one very alarming hole in what we normally accept as proof of status. This is that the Student card issued by the College is not sufficient proof for the Council to agree. In future we will be insisting on seeing the appointment letter as well as the Student card, because as usual in these situations the consequences are financial!

Consequences.

In the Councils eyes, any property which has been used as their main residence by a person who is not a registered Student (to their own translation) no longer applies for full Student discount. The end result is that the Council have asked for Council Tax for the whole flat for the period that the person lived in this accommodation. This totalled a period of six months. Now many people would already be aware of this rule, but obviously we were not and this is why I have chosen to post this information in this manner. It just proves the old adage; you are never too old to learn!

26Apr 2011

Property Landlord advice: Poor condition of Private Property to rent raises more causes for concern.

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By Steve Roulstone

 As this report shows, it is still not difficult to find evidence of poor standards in the Private Rental sector. Yet again the Industry as a whole suffers from the performance of one individual as we suffer by reflection, although I note there is no mention of an agent in this case. The frustration for me as a Letting Agent is that we are available to give the kind of advice that would ensure standards could be upheld should we be asked, and of course listened too!

Property shortages do not help.

As I am only too aware, during periods when available housing to rent is at a shortage the limited choice means that many will not have the options they would appreciate when choosing a property to live in. I have just experienced something similar when looking for a Country property and only because I happened to look very early one day and by an incredible piece of luck (the person I asked for directions was part of the family who owned the property; access gained no more than thirty minutes later!) did we manage to get first ‘dibs’ on a Farmhouse close to where we work. But for those who are not so lucky, they can be forced to take the best of what is left and of course conscious decisions cannot form part of the process.

Professional links.

Just like the new Kitemark being pushed by our industry at present, professional links for both Landlords and Agents would allow people to have a considered decision to make; lack of available property removes that decision in so many cases. Not that I would ever discourage anybody from forging such links, as the person reports from the local Landlords association, poor Landlords do exist and the more we bang the drum about professionalism the better we will be heard. So whenever possible Tenants should look for some kind of link with a body who promote good standards to give them some re-assurance about the lease they are entering in to and the future maintenance of the property they wish to call home for the next few years.

Advice is needed.

As the property programmes show, good advice is not always listened too, but when it comes to basic standards, unless a Landlord has asked, or been offered advice by somebody within the profession, then there remains nothing more that can be done to say if the Landlord then goes on to look after the property in question and therefore the Tenants who will presumably be paying the Landlords Mortgage or giving them a good living, or if they take the opposite view and look at the situation purely from a financial standpoint, which is surely what causes the majority of problems for Tenants and just will not spend on basic housing standards that most of us would view as second nature. (and of course is covered by Government legislation)

Another call for registration?    

The result (indeed the National picture) is more proof of the need for some form of legislation to put a stop to the ease with which people can become Landlords without even asking one simple basic question about the Tenants rights, even though they are going to have such an influence on the standard of the Tenants life for the duration of the agreement. At present the need is becoming greater as Landlords, being no different than anybody else protecting their income at the moment, look for ways of cutting expenditure where possible. But when that decision effects the life of others, that’s when we should be able to turn  to those who legislate the Country for support, but hopefully the comment from the Housing Minister Grant Sharps, that the situation was under review in the medium turn suggests that the banging is beginning to get through!