Tag Archives: Tenant Advice

17Jun 2013

Property Landlord advice: Tenants Deposit Scheme rules apply.

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By Steve Roulstone

Tenants deposits

I have had cause on behalf of a member of my Family, to review an agreement on his behalf, just so he was aware of any areas that could cause problems for one of his children, due to rent a property outside of my area. Of course I am happy to do so and have over the past few years looked at several agreements on behalf of friends and Family. The agreement was clearly a standard one prepared by what appeared to be a Property owning organisation, as Landlords. The property itself was being advertised through a National Letting Agent who had been instructed to find a Tenant.

Having read the agreement I can best describe my reaction as raised eyebrows!

Firstly, notice was written as being two months. Now, my own Company once asked for the same notice, but many years ago (2005?) it was confirmed through the courts that notice only had to be one month from Tenant to Landlord and two months from Landlord to Tenant. To state that two months is required is therefore wrong and any Agent should be aware of this basic requirement.

Secondly, all deposits now have to be protected through a Government approved scheme; in this case the agreement confirms which scheme the money will be protected by. But it then goes on to state that the deposit is subject to the Landlords wishes, requirements and demands! Well this is as far away from the intent of the legislation as to be in another country.

Furthermore, it goes on to state that the deposit, at the Landlords discretion, may be used DURING the Tenancy and then the Tenant would have to replace what the Landlord saw fit to ‘appropriate’!

At the end of the day, this could just be a Landlord who has not received good advice. Advice it would seem they are in need of. But what struck me loud and clear was how a National organisation allows an agreement like this to be used, on a property they had marketed and with a Tenant that they sourced?

I find this kind of situation very depressing, even more so when you consider the call for professionalism in our industry that is currently being discussed at Government level and the manner in which organisations such as this one, which if their own publicity is to be believed are amongst the fastest growing in the Country, appear to be trading. Of course there could be a simple explanation, but it will be interesting to see what answers my relative receives to the questions they went away to ask!

I was taught right at the beginning of my training that we have a duty of care to any Tenants we deal with and in my opinion, to allow an agreement to be used which contains clauses which are just not enforceable or are just plain wrong is out of order.

There have been occasions when I have refused business because I could not accept the principles or methodology involved. At times, to remain professional, we all need to apply the same ethics. If we do not, then we can have no complaints about the weight of legislation that will fall upon our shoulders (and let’s not forget on Landlords as well) because fall it surely will if professional Agents continue to turn a blind eye to the Tenants in their hands.

29May 2013

Transparency of Agency Fees Discussed

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By Craig Smith

3 Agents Fees 290513

The big talking point in the lettings industry at the moment is something I wrote about just a short while ago. Due to the increase in the amount of rental properties at the moment, there seems to be a lot of ‘have a go’ agents popping up. As there is no compulsory regulatory body for letting agents, there are more and more stories of rogue agents leaving their clients out of pocket.

Hidden Extras

There are tales of agents disappearing and their clients having no clue about where their money is. But the other big concern is agents who don’t show a transparent fee structure to their clients which results in a lot of hidden costs.

Naturally, you would expect to pay a higher cost if a higher amount of work is needed. For example, you can buy yourself a pizza but if you want extra toppings you would be charged extra. The same principle applies to lettings, a Landlord taking a tenant find only service would pay extra for additional services such as an inventory. Although charging for additional services is fine some agents will hide the charges from clients in order to try and gain extra business.

I would just like to point out at this stage that Castle Estates have never hidden any fees. Tenants are asked to sign a terms & conditions leaflet before applying for any property which contain a set of possible fees, not just for the application but for almost every eventuality throughout the tenancy. Likewise, our agreements with Landlords contain a list of any fees that may be necessary throughout the tenancy.

Lack of Experience

The problem isn’t just with the rogues of the business out to make an early retirement, it is also down to the amount of agents who aren’t properly trained or have the support they need to know exactly what they need to do. Running an agency isn’t about sitting back and waiting for the money to come in, far from it! There is a lot of work that goes on behind the scenes that not everybody knows about to make sure a tenancy is properly managed & above board.

The BBC have likened the letting industry to the wild west which isn’t entirely true. Yes, there are some bad guys out there but for each one I bet there are 10 times more good agents. But without a compulsory regulatory body, there is often little or no comeback for those who have been affected by the bad guys.

Avoid the Sting

There are ways that Landlords and tenants can avoid being left out of pocket. You should always look for the agents who do belong to a professional body. Although it doesn’t guarantee a perfect service, it does mean there are better routes to go down in the event of a complaint.

22Nov 2012

Rental Property Advice: Damp or Condensation?

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By Craig Smith

One common issue reported by a lot of tenants is that of damp appearing in a property. But it isn’t necessarily damp that is the issue as a lot of ‘damp’ turn out to be nothing more than condensation which can be cured with a few simple pieces of advice.

Condensation Problems

The majority of these issues are, of course, condensation. This can come about if there is a lack of ventilation in a particular part of a property where the moist air can’t escape. Although we are approaching the winter months and the temperature is gradually getting colder (although hopefully not too cold this year!) it is still important to ensure rooms are kept well ventilated, mainly when showering or cooking.

Both of the above generate warm, moist air which can mostly be seen on window panes. What can’t always be seen is the amount of warmer air that cant escape and will eventually appear as black marks or peeling paint on walls or ceilings. We tend to find that most of these reported problems occur in bathroom or upstairs bedrooms, bathrooms due to the obvious showering & warm water and bedrooms as a lot of people prefer a nice warm bed to go home to and leave windows etc closed.

Putting a Dampener on Things

The symptoms for damp and condensation can be very similar; typically a black or mouldy mark and a musty smell where it has occurred. When someone notices a mouldy or wet patch on a wall or ceiling it is easy to mistake this for damp, particularly in older properties such as Victorian terraces. Damp is usually caused when there is a leak of water into the property such as a leaking roof or gutter or water coming up from the ground through the walls.

The repair job might not be as big as it sounds and can sometimes be fixed with a couple of hours work from a local trusted builder. From experience in our office, items such as a slipped roof tile, blocked/broken guttering or a crack in the outside wall are the most common causes of this.

Putting the Damage Right

For condensation the best cure is to keep the affected areas well ventilated (for example, using extractor fans where there is one and opening windows to keep air flowing through) and to wipe down any areas where the mould appears to help prevent it spreading. It will take time for it to eventually die down but with some good ventilation and some old fashioned elbow grease you should soon notice the difference.

As above, damp may need a little more than just cleaning but a good builder can recognise exactly what needs to be done to cure the problem. Once the job has been finished you will probably need a few coats of good paint or stain block once the moisture has dried up to stop the marks from appearing again.

Big Difference

Condensation usually occurs higher up in rooms whereas damp can lurk around outside walls where moisture can come in rather than it trying to get out. Sometimes it is better to do some investigative work yourself before involving any costly call out charges.

22Jun 2012

Property Letting Advice: Pets Still Causing Issues for Prospective Tenants & Their Landlords

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By Craig Smith

If you are a pet owner looking to move into a rental property you will perhaps already know that finding a Landlord who is willing to accept isn’t as easy as it sounds! Many Landlords prefer not to accept cats and dogs due to the damage caused by them and irresponsible owners.

Of course, Landlords know that the majority of pet owners are responsible and wouldn’t have a pet in the first place if they weren’t going to care for it. The issue here is that it only takes one irresponsible owner or uncaring tenant to cause a huge amount of grief for a Landlord.

Tenant Referencing Prior to Tenancy

Most letting agencies, including us, have a process of referencing a tenant prior to them being agreed for a tenancy. The vetting process (no pun intended!) usually includes credit & employer checks along with a reference from their current Landlord. The credit checks won’t tell a Landlord if they care for their current property but their previous Landlord reference might just do that.

Credit referencing agencies usually ask the referee to complete a questionnaire based on how the tenant has behave or how they have performed their obligations. It is always difficult to give a bad reference as by doing this, a Landlord could find themselves with a tenant who is unable to move as no-one else will accept them! However, if someone refuses to give a reference they usually have a good reason why and this should start to ring alarm bells for the prospective Landlord.

Additional Deposits for Pets

As a general rule through Castle Estates we usually ask for an extra £100 in the deposit per pet, subject to the Landlords approval. (You will probably find that most agencies around the country have a similar system with the additional cost varying.) We find this works quite well as this re-iterates the point to the tenant that the property must be looked after because there is more money in the pot to be lost if they don’t and the Landlord can sleep soundly knowing that there is more deposit money available should it be needed.

Undeclared Pets Cause Upset for Landlords

Some tenants feel that they have to keep their pets a secret which is bad news all round. You will find that most tenancy agreements contain a standard clause that prevents any animals being kept at a property which means that, if the Landlord finds out about the ‘secret pet’, they could have valid reason to ask you to leave the property.

A recent case that came through our office was that of a tenant who had moved into one of our managed properties and, a few months into the tenancy agreement, began looking after a family members dog. To be fair, the tenant had suggested that the dog had no-where else to go but this shouldn’t have prevented them from asking for permission and instead they left it until one of our periodic visits when we found the dog sat looking up at us in the hallway! The Landlord in this instance was reasonable and gave the tenant plenty of notice for which to have the dog removed form the property and after a lot of aggravation (and damage to the property by said tenants) the property was eventually returned to its original state.

Pets That Leave Their Unwanted Guests Behind!

Another problem that we have heard is when a tenant with a dog has left the property and at the final handover, everything appears to be fine. It was only later on, once their deposit had been returned, and a viewing was taking place that little black blobs started to appear on the viewers’ legs. Fleas!

I looked into this and found that fleas can lay eggs and will only hatch when they are vibrated. Whilst they are laid on the back of a cat or dog this is usually only a problem for the animal but once they find their way into the carpets you probably won’t even know they are there! With this particular property being completely empty until the viewing took place, the eggs had lay dormant until the carpets were walked over again.

It is always a recommendation that any carpets or fabrics are thoroughly cleaned at the end of the tenancy and, if done professionally, keep the receipt as proof!

19Apr 2012

Property Landlord Advice: Choosing a Tenant – Landlords needs first – by law!

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By Steve Roulstone

One of the areas that crop up again and again when we are going about our job, is the relationship between ourselves as Agents of the Landlord and our prospective and actual Tenants. It is and always has been in our interests to have good relationships with our Tenants and we continue to promote that at all times, but when it comes to our position legally we have to consider the Landlord above the needs of the Tenant and it is this stance which is often mis-understood!

Tenant’s rights.

 We do of course give the Tenants duty of care, but two situations have arisen this morning which yet again could and possibly does leave us looking like ‘bad boys’ if we proceeded and made what we believe to be the best decisions in the interests of the Landlord. The first issue surrounds another Tenant viewing and proceeding with a property before a second prospective Tenant had viewed. There was a statement made about who was due to see the property first which we could not agree with as we do not give preferential rights of viewing as a Company Policy.  

I saw it first!

This is simple enough to understand, if the first person to phone cannot view for a week, do we stop others who can view today? No because it would not be in the interest of the Landlord and our decision is an easy one! In this case what has clouded the issue for the prospective Tenant, is that they felt they had been promised to be shown first but as we never do give such promises, because it is never in the interests of our Landlords, this would simply never be the case. It is more likely that there was a misunderstanding of what was being asked and promised, but it ended with a nasty phone call to myself and my staff which of course is not acceptable for either party.

Best Tenant.

The second problem was one where in asking for information to assist finding a property for a potential Tenant, nothing has been forthcoming since we asked from the Tenant. Now when they ask to view a property again, which we know will be impossible without the information, do we tell them no without delay? We are of course always charged to find the best Tenant at all times for our Landlords and that inevitably means making decisions. We have to otherwise we would not be doing our job.  But it is highly likely this situation will again end up with a disappointed party, but we are not bound to find property for all who contact us, just those we believe will be good Tenants.

Overriding facts.

In every situation we are bound to make the decision that is in the best interests of our clients and that is our Landlords. This means disappointing some who contact us. But until Tenants understand that we have a legal commitment to serve our Landlords and that overrides any duty of care towards Tenants  (unless that neglect of duty includes an illegal act or stance) such issues will continue to occur. What of course we can hope is that not every time someone does not get what they want it does not end up in aggressive phone calls. 

28Mar 2012

Lettings News: Are Tenants Fully Aware of Their Responsibilities?

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By Craig Smith

At the beginning of February we posted about how some Landlords might not be fully aware of their responsibilities when letting a property. The Landlord doesn’t just have responsibilities at the start of the tenancy but throughout as well and, likewise, the tenant must ensure that they keep to their side of the contract too!

Tenant General Repairs

Common sense sometimes needs to be applied with regards to how far a tenants responsibility would reach. For example, a tenant would be responsible for changing a faulty light bulb or mowing a lawn regularly. Believe it or not some tenants will ask a Landlord to do some of the simplest tasks!

Another common area of dispute between a tenant and Landlord is when drains or pipes become blocked. Usually, this cost of having a drain unblocked would fall to the tenant, especially if they have lived at the property for some time. Whilst most tenants do take care of the property they live in like it was there own, occasionally items such as wipes will find their way into the sewer system. Generally, the rule is if a tenant has caused the issue then the tenant would be responsible for the cost of its rectification and this rule extends to most of the fixtures & fittings of a property.

Wear & Tear on a Rental Property

Over time some items will become worn regardless of whether the property is let or lived in by an owner. Electrical appliances such as washing machines or dishwashers will no doubt eventually break down. Of course, if the reason for the breakdown is the fault of the tenant (for example no salt being put into the dishwasher) then the tenant would be responsible as they should treat the appliance as their own, or in a ‘tenant like manner’. If the appliance has been looked after and has broken down due to age then the Landlord should be prepared to bear the cost.

Wear and tear is easily explained on appliances provided at a property but less so on the actual décor. Again, a tenant should make sure that wallpaper, carpets etc are looked after but a reasonable amount of wear & tear should be expected. The number of tenants can also determine the amount of wear expected, a family of 5 might cause heavier wear than a single person for instance.

Who Looks After the Garden?

Most tenancy agreements will state that the tenant should take care of the garden. Occasionally Landlords might include a gardener in the cost of the rental, more often so with large gardens or those with large trees & shrubs. Tenants would be expected to keep any lawns mowed, borders free of weeds and keeping the garden tidy. This will depend on the individual tenancy and, if a tenant is unsure, they should always check before entering into a tenancy.

Best Advice

As an agent, we always make tenants aware of their responsibilities before they sign any agreements with us. This helps to avoid any disputes further down the line and we would urge all Landlords to do the same! 

09Jan 2012

Rental Property Advice: What is the Role of a Guarantor?

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By Craig Smith

The majority of letting agents in England, including ourselves, usually insist that a tenant is referenced before proceeding with a tenancy. This usually includes a credit check and background checks on the prospective tenant in order to confirm their identity and credit history.

Who are the Referencing Company?

Different agents use different referencing companies to carry out the checks and some are more in depth than others. This doesn’t necessarily mean that, by having a tenant referenced, you are guaranteed a good tenant. Everybody’s circumstances are different and can change at almost any time, whether that is 10 years down the line or 10 days into the tenancy!

Poor Credit Equals Bad Tenant?

Similarly, it is not always the case that if someone may have poor credit that they won’t be good tenants and look after the home. With the aid of a guarantor, a tenant can proceed with an application for a tenancy with the Landlord knowing they have an additional ‘safeguard’ should the tenancy go wrong.

What Does a Guarantor do?

Provided the tenant pays the rent on time (and in full!) and looks after the property, the answer is nothing! But perhaps the best way of describing the responsibilities of a guarantor is that they have the same responsibilities as the tenant but without being able to actually live at the home. This does not just include and rent arrears but also and damages or costs should the tenant fail to cover them. For example, if a tenant is not contactable at the end of a tenancy but with damages to the property. The guarantor can also be used during the tenancy if a tenant fails to pay the rent on time.

A common misconception if the length of time that a guarantor is in place for. Most Assured Shorthold Tenancy Agreements are for 6 or 12 months or maybe more and guarantors can often believe that they would only be responsible for the initial term of the tenancy. However, unless agreed otherwise with a Landlord, the guarantor could remain in place for the full length of the tenancy, whether it lasted 6 months or 6 years!

If you are about to stand as guarantor for a tenancy you should be absolutely certain that you are in a position to do so. You should also seek advice if you are unsure of any of your responsibilities before signing any agreements! 

02Nov 2011

Property Landlord advice: Keeping the House Warm!

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By Steve Roulstone

At our office in Stafford, at this time of year, we like to remind our Tenants on behalf of our Landlords, especially in relation to their Insurance, that during the winter months they have the responsibility of keeping their rented property at the right temperature to combat our winter weather. We do this every year to ensure that property is left unprotected during holidays, be it skiing, a winter break or just over the Christmas period that Tenants are away, the home still needs protecting. Especially after the hard spells we experienced last year, which were a timely reminder ensuring we do not take any year for granted as far as the weather in this country is concerned.

Correct temperature recommended.

Of course one of the most important pieces of advice, in amongst information on emergency procedures and confirmation of responsibility, is the correct temperature that an empty house should be maintained at and it is this one figure that I wanted to highlight today, because should you ask any group of people what temperature they should maintain their own house at whilst away during the winter months, it would be my position that very few would be correct in their estimate!

Plumbers and Insurance agree.

The surprising thing was that the recommendation was agreed by both the Insurance companies (written as part of the policy) and the plumbers we spoke to, namely that the house should be kept between 12c and 15c. (I know that in my own house, and even in the rented property I now occupy, I have never aimed to keep the property at this figure) However, what matters here is that as Agents we advise the Tenants in a manner that they both realize their responsibilities and are advised in a way that the implications are understood.

Co-operation required.

If it is part of a Landlords Insurance policy that a minimum temperature be maintained when a property is empty, then it is important that Tenants are reminded at least once a year and that the reminder is timely, with the beginning of the winter being the best time to renew the instruction. There is no doubt that cold snaps such as we experienced last year may not come every year, but then there is just as much chance that they will and this is something that the Landlord cannot ignore, because should an Insurance Company be able to prove that a property has not been maintained correctly, then they have the ultimate sanction and could refuse to accept any subsequent claim!     

Clear advice and implications.

What we would all seek to avoid in such circumstances, is a situation where the Tenant can be held responsible for damage caused because they did not follow what was required of them so it is important that they are both made aware and advised of the clear implications that could follow from not carrying out there responsibility. What we do know from previous experience, is uncommon to popular belief, the majority of Tenants do understand and are sympathetic to what they need to do in these circumstances and therefore when advised properly and informed on time, they will co-operate and help to keep ‘burst pipes’ to a minimum! 

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! 

23May 2011

Property Letting Advice: The Importance of Good Communication

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By Craig Smith

In a recent ARLA publication, the property ombudsman (Christopher Hamer) has written an article relating to a tenant decorating a property. The story goes that, following the tenants request prior to signing the tenancy agreement, the Landlord would not decorate the property. The agent had then given permission for the tenant to carry out the works themselves. However, the Landlord had no knowledge of this and as such tried to claim for the costs of returning the property to its original condition from the deposit.

Tenants Decorating Permission

In this case, it appears that the Landlords agent had given permission for the tenant to redecorate, which could have cost the tenant a substantial amount of money, without first gaining the permission of the Landlord.  There really can be no excuse for this, even if the Landlord was away or unable to be contacted the agents should not have given the permission to the tenants.

Payback Time

As the Landlord had claimed for recompense from the deposit, the tenant then complained to the property ombudsman due to the distress caused by the lapse in communication. If an agent is a member of the ombudsman, it will deal with any complaints made in the most suitable manner.

The article states that the ombudsman awarded £200 in compensation to the tenant for the stress.

Lessons to be Learned

Although the tenant had quite rightly sought permission from the agent to carry out the decorating, the agent had not contacted the Landlord for their advice. Ultimately, it should have been the Landlords decision whether or not to allow the decorating to be carried out.

Best practice dictates that permissions should be in writing and a record kept of and do’s and don’t given to the tenant by the Landlord. The agent in question was at fault for not fulfilling their obligations to their Landlord, which goes to show the importance of having trust in your agent.