Tag Archives: Tenant Information

By Steve Roulstone

too-many-drums

In the past week, several articles have been published which frankly slate my industry for what at best can be described as ‘sharp practises’ This hurts, not only on behalf of my own agency, but also on behalf of all Letting Agents that take their role and profession very seriously.

It is clear that there are real foundations to these reports and the launch of Shelters recent campaign to remove all Tenant charges in the UK is behind the surge in focus. What is being missed is the number of Letting Agents that are professional in how they carry out their business and who as a result of this negative journalism, are seeing their own reputation suffer.

There seems to be a general call from those who are adding their weight behind the criticism for Letting Agents to be regulated or meet the same standards as Estate Agents, but I feel it is time a step back was taken and the current situation looked at with a less reactive eye.

Those who take the time to read my Blog will already be aware, that we wholeheartedly back the call for professional registration of both Agents and Landlords. No argument and nothing more to be said, just a Government needed to be strong enough to introduce the realistic workable legislation.  

But act in the same professional manner as Estate Agents?

Granted they are better regulated (please see the last paragraph) but when I first started most Estate Agents did not get involved in the rental market, seeing it as their poorer relation. Now of course, they dare not ignore it as it has ensured their business is shored up following the collapse of the sales market. But at the time I started, it was also well known that the Agents who charged the greater fees, were indeed Estate Agents who were also involved in the Rental Market.

So here is the rub, over the last few years, nearly all Estate Agents have realised they can no longer ignore 20% of UK housing stock in the private rental sector and during these same years, the complaints about overcharging have grown and grown. Now I may be simply putting 2 and 2 together here, but I think it would be far more informative to see just how many (as a %) of the complaints came as a result of charges levied by Estate Agents who Let, as opposed to Letting agents who do not sell.

There is no doubt that the correct way forward is an open fee structure. Tenants should pay their share of costs, but the key word here is ‘share’. Fees should be transparent and Tenants should not be made to pay additional fees during a Tenancy unless they request a service which should rightly be chargeable.  What is missed is that by charging Tenants a higher percentage of the overall costs, Agents can charge Landlords less and appear to offer cheaper services, but that is another story! In the meantime, let’s do a little more work on those figures, and look a bit closer at which sector is causing Tenants to complain.

 

By Steve Roulstone

A Court of Appeal decision has confirmed that Landlords not only need to register Tenants deposit under the Tenants Deposit Protection legislation, but that they must provide Tenants with the Prescribed Information in connection with the scheme the money is protected with, or the courts now have a clear case confirming exactly what will happen should they fail.

Old News

Back in February this year, I confirmed the changes introduced by the Localism Act 2011 which was introduced in April this year. The changes surround not only when protection needed to be registered by, but also what was delivered to the Tenant in how we register deposits.

PI

The Prescribed Information is what was under review in this case, after a Landlord had failed to supply the data to the Tenant even though the deposit was protected. In fact in the original court decision, he thought the courts agreed with his stance, that the purpose of the legislation was to protect the money and that had been achieved. The Tenant on appeal, has won on the basis that protection MUST be accompanied by the information surrounding the Tenants rights and how to act to protect his money.

Fine.

The penalty is both full refund of the initial deposit and a fine to the value of three times this same amount. This is of course significant and places before anybody who felt otherwise, that the need to protect deposits is only half of the intended actions required under the act. But it is not just when the deposit is initially received that action needs to be taken.

End of fixed term.

Under the Localism Act, it also became clear that in clarifying how the legislation should work, new documents need to be given with every new Tenancy. This means, when a Tenancy ends its initial fixed term, new information needs to be given. The fine for failing to do so, is as was awarded in this case, three times the deposit.

Solution.

There is only one! Do things the right way to start with, understand the requirements and put in place a system that ensures all Tenants receive the data at the start of the Tenancy, as well as with any new agreement signed. This alone should be easy, if a Tenant is signing an agreement, hand out the scheme rules surrounding the deposit. If you then add a system that does the same when an agreement becomes periodic (Treated as a new agreement in the Localism Act) and ensures Tenants get the updated information at this time, you will be covered. But always, if in doubt? Ask!

By Steve Roulstone

Two items of news from the last week have caught our attention at Castle Estates in Stafford and that is news surrounding Carbon Monoxide Detectors. The first was the change is the Landlords Gas Safety Certificate to include inspection of flues running through voids and now it has been made compulsory in Northern Ireland for all new homes.

Swift progress.

Both of these moves are positive forces in the battle against this silent killer and whilst the change to include hidden flues within the Gas Safety Inspection is going to cause many problems before the end of the first year whilst the changes take effect (Many, in blocks of flats, will require access through areas which do not belong to the premises in question) the change in Northern Ireland is a move to have them as standard practise in all properties whether rented or owner occupied.

Balance in favour of rented property.

For many years as a Letting Agent I have known just how Tenants are better protected than owner occupiers, who would normally never dream of having a Gas Safety Inspection. Because I did think it a good idea, I found a Gas fire in a house I purchased was not vented at all when fitted, indeed the chimney breast was open and allowed fumes to pass directly in to the main bedroom through fitted drawers. I could have gone to bed and never woken up if we had not found the problem.

Good progress.

But the other point about Carbon Monoxide Detectors is that they are such a good idea! Because of this, as an Agent who likes to ensure we do things the right way, we are going to issue a free Carbon Monoxide detector for every new Landlord and change of Tenant.

Correct usage.

Of course one important matter is to ensure they are fitted and used. We have decided to provide one that is portable and allows the Tenant to have it in the lounge when the fire is on and then taken to the bedroom when they turn in for the night. This way we will be able to ensure that they are working from day one. The only maintenance being the replacement of the battery!

Law of the Land.

What must be remembered is the change in law came about because of a death and any move to reduce the risk has to be a good one. This is why we and our Plumbers believe it will not be long before it becomes Law for all properties. By providing them free of charge, we will remain ahead of the game and ensure this is one more area where are doing the best possible for our Landlords.

By Steve Roulstone

“The problem is they just do not realise that there are decent honest Landlords and Agents out there!” So said a fellow Letting Agent who just happened to be in my office this morning, when speaking about the Citizens Advice Bureau and the problems she had found in dealing with them. So it seems a regular problem is happening for other Agents, which does nothing to resolve the issue, but does make you realise that CAB are not perhaps the all knowing all seeing force that they convey, when demanding changes in the way we run our Industry.

Regular item.

In fact, it was only last week that I referred to their campaign to remove all Tenants fees, and support for a new five year agreement, but how can they be taken seriously as a champion of the Tenant when (taking our evidence from two conversations with them this morning) it is clear they do not even understand how, for example, the Tenants Deposit Scheme works!

Phone calls.

What happened this morning was an initial call from a Lady at the CAB asking why we were not returning a Tenants deposit (The Tenant having been at the house for many years) What she was not aware of was that the Deposit was not being refunded because of cigarette burns, yellowing paintwork caused by smoking, general untidiness and cleaning requirements. This in a house where the Tenant had been warned about the consequences when we carried out our Property visits of smoking inside.

Not aware.

The problem lay with the Lady not being aware of how the DPS (Our preferred Deposit organisation) works. So we had to advise them of what would happen and how the claim would go to adjudication as both parties could not agree. The Tenant stance was one of ‘but I have always paid my rent’ which of course was not acceptable.

Problem compounded!

Lo and behold, not an hour later, a second person from the CAB phoned and asked for the Tenants DPS reference number. Now for those who do not know, DPS will only give the Tenants reference number to the Tenant, but we would expect CAB to be aware of this at least, as it is such a basic rule of the system. Instead, we had to explain again how the system worked and be spoken to as if we were being obstructive in how we were dealing with the matter. This is unacceptable and speaks volumes about the manner in which CAB view Landlords and Agents.

Who knew!

The fact is, as a professional Agency, we pride ourselves on carrying out our affairs to the letter of the Law. The fact seems to be that our Tenant, who we had of course already the procedure explained to him, could not find anybody with the knowledge at the CAB to advice him well at all. The phone calls of course ended up, providing they were relayed correctly, with the same advice we had already passed on, but while I am of course aware that the CAB do a very good job in advising the public, it seems they need some training on what is now a basic staple of Tenant law, because what should have happened when the Tenant reported his situation in the first place to the CAB was an answer of, ‘Yes, that’s right!’

Review.

As a matter of course, we review every situation where we are in communication with organisations who act for others, whether it is another Agent, Solicitor or organisations such as the CAB. In doing so in this case we were satisfied we did our job correctly. The only question was one of language and translation, but as I have stated, the Tenant was long standing and we had held many conversation with him over the years and we are left in do doubt that the problem was not one of miscomprehension, rather a Tenant who did not get what he wanted, feeling he could get help from others. It is a pity we were spoken to by the CAB in such a poor way when what we did was correct and I just hope that in relaying the conversation our Tenant was advised that we are correct in our dealings on his behalf!

By Steve Roulstone

It seems some people just do not trust anybody when it comes to access to their homes and of course we both respect and understand that. Advising Tenants before we enter a property for whatever reason should always be done with permission and we fully endorse this golden rule. But sometimes we need access to enable us to do our job at differing times and when it comes to the end of the Tenancy it seems we run up against a brick wall more times than any other during a Tenancy.

Problems and mistakes.

Like any busy office, with property visits, viewings and maintenance issues to address on a daily basis, mistakes do sometimes occur.  This means a review of why and apologies to the person concerned, especially as it can sometimes be a misunderstanding. Other times, with Tenants who do not speak English well, we have to abort if we feel our requirements have not been fully understood if nobody is present when we call, or sometimes we can be wrong and only after a visit we thought was understood, find out it was not and again apologise. One thing for sure, we never enter a property without belief that we have received permission!

Access denied!

However, what we do find difficult is when Tenants that are approaching the end of their Tenancy deny us access at all times! There can be several reasons, problems during the Tenancy, having been given notice when they did not wish to leave, or of course just plain mistrust. It has to be said, no matter how hard you try, it is impossible to develop good relationships with every Tenant. The whole scenario surrounding the renting of property throws up a myriad of problems, some of which create problems Tenants do not appreciate no matter that we are doing our job. Relationships therefore can be strained.

Job requirements.

Of course at the end of one Tenancy we need to re-let the property for the next, which means viewings. There is also the need to review properties and look at any works required between tenants. Of course it is perfectly acceptable for property to be improved between Tenants which is sensibly the most practical time for improvements to be carried out. To be denied access for both is effectively stopping us from doing our job, and is exactly the reason why specific arrangements are included within the Tenancy agreement to ensure arrangements are clearly set out for all to understand.

Time limit.

Of course we must try to resolve all issues quickly and with agreement. We have been asked to wait two weeks before viewings start and will comply, because at least we have access for the last two weeks instead of none at all, but when we are denied all together, we then have (usually) an irate Landlord who wants to know why we cannot progress his property and along with that, we usually get the question who is going to pay for the two weeks lost rent? A good question which the law does not allow us to answer!

Conclusion.

The conclusion therefore is to try to get along with our Tenants which we do try to do as a matter of course. But not just to gain co-operation, but because all things end better if they start with a smile! (Must try to remember that one!) But it is important that Tenants understand just how important it is for us to do our job once notice has been served, remembering that we will arrange visits and viewings to coincide with when somebody is present at the property and always respect their position by giving a clear 48 hrs notice, so to the vast majority who understand – Thankyou!

 

 

By Steve Roulstone

I guess everybody wondered what the effect of the new style Student fees would have and reports have abounded supporting both sides of the fence. What cannot be denied are hard facts and in Stafford there is no doubt that Students have looked differently for their accommodation needs and because of the reduction in numbers, several Landlords have found themselves with no takers for their Student accommodation.

Change of use.

Of course at this time of year it is clear if nobody has come forward yet, then they are hardly likely too for the academic year that has just started and I have had three difficult conversations with Landlords about what options they have in their properties at present. Of course change to family let has been the recommendation on each occasion, but strangely this problem has not occurred in what we have found this year.

No vacancies!

We manage a large purpose built block in Stafford with 68 rooms spread between 14 flats. Our numbers are slightly down on last year, but have held up far better when compared to what seems to be happening in the traditional Houses of Multiple Occupation. Why? Well the cost is less and a Warden is present as well as private room and en-suite facilities. Add its location next door to the main Stafford College and perhaps we have the answers. But because our occupation is still high this is why I suggest they have looked at the market differently.

Market forces.

No doubt there has been a reduction in numbers, because most Student Landlords would manage the property themselves, so if we have seen three empty houses, the Town probably has two dozen! This would represent a marked drop in the overall Student accommodation requirement. But I am also convinced that quality is starting to play a hand as well and it is Market Forces that is driving demand as students search harder for value for money.

Still need for change.

Of course, none of this assists the Landlords of houses that are still empty now, especially if they are looking to move back to Students next year! Some requirements for the general market just do not sit with a more traditional ‘Family’ let. (Not to mention furniture which is hardly ever the best and rarely matching?) Locks on bedroom doors, fire blankets, Card Meters! All of these are better removed and of course rarely can that be done without affecting appearances. But worst of all, that dreaded style of decoration, woodchip wallpaper!

Back to market forces.

I was present in a property yesterday which was very well presented, but had to be honest with Landlords who were already going to see quite a drop in monthly income, from three students to a Family in a 1st floor flat, my advice had to be based on the property they were competing with! Small properties with three types of carpet that can all be seen from most of the rooms will not be well received when judged against the common fashion of using the same carpet throughout. It is comparing against other property that has to be the benchmark.

Conclusion.

The bottom line is in most cases lots of improvements need to be made and cost is always going to be an issue, but to then change back again is going to be a double whammy as for example, hardly anybody has storage room for furniture and would therefore have to buy new. Ironically it could be that very change that might attract Students in a market being driven by services and quality as I believe it now is. Either way, tired or poor accommodation will continue to struggle and the next two years could be a very hard challenge as more Students drop off after three years and the intake continues to fall!

By Steve Roulstone

A report from Shelter (as reported on the BBC news pages today) states that complaints about Landlords have risen by 27% over the last three years. As always there are statistics and statistics and the ones quoted in this report are a little ambiguous, but let’s take them at face value and assume they mean exactly what they say and assume we are measuring one year against another and that the 27% figure applies from 2008/09 to 2011/12.

More houses bigger numbers.

So let’s look at what has happened at face value, because some of this increase is purely down to trends. For a start, there are some 5% more houses in the private rental sector than there were four years ago and of course nowadays, people do choose the easy route and register a complaint with the authorities prior to actually reporting the issue to the Landlord. This must apply to at least 10% of the figure quoted.

No excuse.

But do not get me wrong, as a Letting Agent I am not making excuses for these figures, far from it, just wanting to put a little bit more reality to the situation. At our office for example, we have only ever had two instances of problems being reported to the Council and on both occasions we were not spoken to first. Problems can occur without the Landlord or Agents knowledge and unless we are informed we are powerless. In the two instances we have been involved with a Council inspection, only one resulted in work being needed and that is work that would have been completed should we have been made aware first!

Flooding in!

In the report for instance specific mention is made of damp houses. This year this is not a surprise as I can verify as a Tenant. Many Landlords will have found damp patches and rising water (In a cellar in my instance) without prior expectation or knowledge, as the water table has risen dramatically this summer and started from a high point (as it did in Staffordshire) this spring.

Action.

But none of this does remove the fact that more action is required and this is what concerns me about the report. Shelter ask for more positive action to be taken by Councils at the same time confirming a rise in the number of successful prosecutions or orders for improvements. But if Shelter feel this is not sufficient, then it is clear the system is not working and something else needs to be done.

Further breakdown.

Firstly, I would like to know exactly what the breakdown is between privately run property in the hands of Landlords and fully Managed property in the hands of Agents. As I have confirmed, two houses reported in twelve years with nearly 400 houses under our Management would suggest, if other Agencies operate with both the correct knowledge and standards, that the majority would be privately managed. So firstly let’s have a better breakdown of the figures and more information as to which areas Shelter feel better action needs to be taken.

Now for the old chestnut.

Because when figures are broken down and if Councils are unable to follow up and prosecute sufficient cases then clearly a new system is required and yes, for me that is qualified Agents who pass a Government designed test (with the co-operation and involvement of the Industry professional bodies if possible) and all Landlords must be registered and approved themselves, and if not then approved and registered Agents must look after their properties.

Standards improving.

There is no doubt that the quality of housing in the Private rental sector IS improving and best advice to all Landlords which should always be our objective when marketing a property, is to consider the competition. To Landlords who are not prepared to present and protect property and therefore their Tenants correctly, we must always point out what needs to be done and why using the same principle! If the advice is not taken, then we cannot manage the property. Surely, professional standards to the same level would be the solution bodies such as Shelter wish for?

Drum banging time.

Legislation is overdue because of confirmation in reports like this that the current system does not work. Councils are too thin on the ground and cannot police and control the current system. If all Agents and Landlords had to meet qualifications laid down or not be able to rent property out, the system would be self policing – surely this is the way forward.

By Steve Roulstone

One of the regular roles I undertake is contacting Landlords when Tenants give notice to leave their rented property. This is of course a worrying time for Landlords as nobody, me included, wants the risk of the property being empty when in by far the majority of cases the sitting Tenant has been settled for some time and we know they are looking after the house and paying the rent. A change of Tenant is always a stressful time for Landlords.

No change please.

So why do something that makes a Tenant think about moving? This was a thought that came to my mind when reading a report by David Salisbury, the Chairman of the National Landlords Association in the lettings section of Property Drum. The point he raised, about Tenants staying longer, along with rising instances of arrears is one that touches on my last Blog about Tenant charges, because some practises by Agents encourage Tenants to move on by making them feel uncomfortable in their role.

Tenant fees.

Practises that make a Tenant review their position cannot always be avoided, such as rent increases, which during our annual review are being looked at more and more as Tenants do stay longer in their homes. That does not mean we should avoid increases, all we can do is be fair which we always advise. But what can be avoided are unnecessary charges and in particular charging for and insisting upon a new agreement every year.

Agent practise and excuse.

You can tell we do not advocate this practise as the reason given, that it gives the Landlord security, actually backfires with the knowledge that more people move as a result of being badly treated (in their eyes yes, but after all it is their decision) We are also aware both locally and Nationally through discussion with other Castle Estates offices that even if Tenants do not move at that time, their perception changes as they see themselves being charged unfairly and then do move as soon as they can.

Consequences.

Now I know from experience that it is far better to have a happy Tenant in your home than an unhappy one. What care used be taken may not be so forthcoming when a Tenant feels aggrieved by the way they are treated and I know this personally as an Agent, Landlord and Tenant. The wider picture is far more serious for Landlords and another reason, when I have been aware of the moves by the CBA and Shelter to have Tenant fees scrapped by Law for the last Ten Years, why we do not charge Tenants additional fees that are not required. There is no doubt that such charges will be central to any campaign to enforce any change of Law.

Arrears.

This is one area where I can both understand the trend and also disagree with it at the same time, for as Agents who use a professional Referencing Agent we know how much more difficult it is to find Tenants who pass without additional requirements (Guarantors, larger deposits) But, to use any other type of referencing such as personal statements (The Magazine I was reading actually had another article on this very same subject on the same page)just does not cut muster and is asking for trouble. So in the long run and probably the reason why we are not finding arrears any more of a problem than usual using a Referencing Agency who have raised their own barrier before they issue a pass seems to be the answer and for us, we will continue to work harder to find the right Tenant understanding why.

By Steve Roulstone

Today’s subject has been a thorny one for Tenants as long as I have been a Letting Agent and longer. Problems that occur within houses if not reported can make far more damage than if reported without delay once it has been noted. The issue is who’s responsibility is the additional damage caused and who is liable for any costs in putting the situation right.

Old cases.

There are many that I could quote but I suppose the first time this happened is the one that I remember the best. This was a leak from a bathroom and the subsequent damage to a kitchen ceiling. The problem was water tracking around the side of a shower curtain and slowly soaking the plaster above the kitchen until a whole section fell off.

Tenant view.

The Tenant view was that the fault was with the shower curtain and that she could not be held responsible for the damage caused. Our view was that both the fact that it was obvious that water was finding its way through and the additional damage caused by failing to report the matter were both the responsibility of the Tenant. Just because something does not work correctly, does not mean you should keep using it ignoring the consequences.

Coverall.

Of course your agreement should ensure that it is quite clear that if secondary damage is caused under these circumstances then the cost is down to the Tenant for failing to address the issue (report it) then half of the battle is won, but we must not forget that we now have the arbitration system if Tenants disagree and I can confirm that the system has always supported us in such cases when claim has had to be made.

Long process.

Of course the knowledge that we should be proven right is not the whole and not what we rely upon, because in the first instance somebody has to pay for the remedial work and as we have found on numerous occasions, a system that does not allow for immediate resolution can annoy those who have to pay for works that they should not have to do so, and wait until a Tenant vacates before the money can be re-cooped.

Getting it right from the start.

This is why good Agents will endeavour to get resolution at the time of the incident and why Tenants may find themselves involved in lengthy discussions that they feel are invasive at the time. But as Property Managers, Agents cannot just ignore the situation.

Current case.

What bought the issue to mind is a Company let, where secondary damage is quiet severe, as a known leek from a cistern, instead of being reported, was contained in a small bowl and repeatedly emptied. The inevitable happened and the bowl was forgotten along it seems with the leak. The subsequent damage is a ruined carpet and underlay, damp walls to well over a meter high and ruined plasterwork and of course the decoration. Apart from anything else, having now dealt with the leak (The only bit the Landlord is responsible for) we now will have to wait several weeks, with the aid of a de-humidifier, before the repair work can be undertaken.

Conclusion.

This case will of course mean several difficult conversations and meetings but that is what we must do to protect the Landlord but as a clearer case I trust you can understand why the damage should not be at the Landlords expense and also understand why the Landlord should not have to stand out of pocket for works which are liable to cost anything up to £500 to repair.

By Steve Roulstone

There is an article in this week’s Property Drum on page 8 that has caught my eye as one of the chain of Letting Agents who have had to address issues in Scotland have commented upon the Shelter campaign surrounding the removal of Tenant fees. I would have to say I agree with  some of what they say, but I disagree with the main thrust of their argument.

Explaining the group.

First, to place some context behind what I wish to say about the subject, I need to explain where the difference lays between Martin & Co offices and Castle Estates offices, because we both have a Franchising background, but now Castle Estates is an independent group who share the same name, but operate entirely independently of each other and have no central controlling Head Office. Martin & Co remain a Franchising organisation where centre influence and dictate the policy of the group.

Comments are my own.

 Therefore I am commenting as an Independent Castle Estates in Staffordshire and not as the Head of an organisation in the same light as Sue Hopson, head of standards at Martin & Co is doing. As far as Castle Estates offices are concerned, if they operate in a manner I disagree with, then they are also the target of my comments.

Agreement.

Firstly I must say that the whole idea of dropping Tenant fees altogether as is the case in Scotland does not just move costs from the Tenant to the Landlord, for just as sure as Landlords will have to pay for the costs generated, these costs will be offset by increases in rent. Then, as has always been the case, market forces will drive rent levels to their correct rate. But they will start from and therefore remain at a higher level.

Major factor missed.

What the comments miss are the manner in which many Agents and I am not referring to anybody specifically when I say this, reduce Landlord fees and raise Tenant fees so they can market themselves as a cheap Agent in to Landlords in the first place! This is a short sighted policy and will surely attract the attention of such groups as Shelter and the CAB who have been looking at Tenants fees for well over ten years.

Bad practise.

In a market where the number of offices offering Letting services has probably doubled in the last three years as Estate Agents flooded to the Lettings Industry for financial reasons, the opportunity to advertise services to Landlords at low prices at the expense of the Tenants has seemed to much of an opportunity to miss for some. But the short sightedness of such an approach should Tenant fees be scrapped in England will need to be explained to Landlords and of course all of us will have to do this, not just those who overcharge.

Long term practise.

It is also a fact that high Tenant fees are nothing new and I have no problem in pointing the finger at Estate Agents who historically have been the main protagonists of this practise. Do I have Tenant fees? Yes, but they have hardly changed in over twelve years and I am happy to justify them, as I have done before now, to any Tenant coming through our system.

Inevitable?

Unless our Industry receives the backing of the Government in driving through legislation to ensure professional standards are upheld by all Letting Agencies, or they can no longer operate, then I believe the day will come when Tenant charges are dropped altogether justified or not, because those with this objective will always be able to point at practises that take advantage of Tenants where fees are concerned. But equally, as I have pointed out that from my own perspective I speak for my own office only, anybody else speaking on the subject should not ignore the current practise of high charges and should be able to ensure that offices under their control can justify what they charge Tenants as well!