Tag Archives: Tenant Information

21Feb 2011

Current Property News: Good practise stops Fake Agents operating!

⋅ 1 Comment

By Steve Roulstone

A report in the press at the weekend, has stated that Tenants should look out for fake ‘agents’ operating through the web, as false sites have been set up to mimic the way in which the sites for genuine registered agents appear, even including the logos and details of the industry approved bodies such as ARLA. As a professional member of ARLAjust as a Letting Agent, I always look at articles like this and compare what would happen to anybody visiting my agency, Castle Estates.

Good practise

I am pleased to confirm that our good practises would ensure that this could never happen with us. Meaning, that by ensuring good practises are always offered to our clients, they should be the wiser as well. Of course the only way good practises can be widely known, is to respond to such articles by advertising them, that way, hopefully, more people will be better informed in the future, ensuring they do not get caught out in this manner. So what we would always ensure is:

Deposit at the start of the Tenancy.

Any deposit is refundable under law, if the subject for the deposit is not purchased, entered in too or commenced. Therefore, there is no way that any Deposit should be taken until the day that the Tenancy commences. This will ensure at a stroke that no monies are lost through paying for a property which does not exist. This is because the contract does not actually exist until it is signed and Tenants under most circumstances, should sign at the property, on the day of the start of the Tenancy, when keys are released and monies become due (Rent)

No viewing – No fees accepted.

It has long been a golden rule within our Company that no Tenant is allowed to pay the initial Referencing and Documentation fee, without first viewing the property in person. This was introduced to ensure that our Landlords were not left with a tenant that we had not seen (Difficult to justify ensuring Tenants sourced through us are acceptable without meeting them first) either pulling out when they do see the property because it was not as expected, or ending up being a poor Tenant and not respecting the agreement. There have been occasions where the reason behind the request has been genuine, but that is where relatives or Company representatives can carry out the role and give us a situation we can work with. Not forgetting that all applications would be referenced as well.

Simple principals, Best outcome.

So our advice to avoid disappointment, as the saying goes, is to follow these simple rules, then Tenants will not fall fowl of criminal activities of this nature. Of course it is once again professionalism and education that will ensure such matters are well known by all. I say once again, because nearly every scenario where our industry is either poorly represented or open to corruption such as these false agents operating on the web, would be answered by professional standards and registration of agents. This will provide the insurance and education that our customers, as either Tenants or Landlords, need as they will know what to ask for and expect when renting property. Of course, traditional methods of visiting the Companies premises and or viewing in person take care of the problem in one fell swoop, which is why I still feel that we are some way from an industry which is solely represented by web presence alone!

10Feb 2011

Rental Issues: Do tenants need home insurance?

⋅ 1 Comment

By Felicity Hannah, deputy editor at moneysupermarket.com

If you’re a tenant, do you still need home insurance or will your landlords’ cover protect your belongings? We take a look… Renting can be a trouble-free way of putting a roof over your head. No maintenance costs to meet and no housing market worries. In fact, with many rooms let on a bills-included basis, some tenants don’t even have to worry about paying anything except their rent. This can make it all too easy to forget about Home Insurance cover or to assume that the landlord’s policy will protect your possessions if disaster strikes. But in actual fact, the vast majority of tenants will need to buy their own insurance policies. So what do you need to know?

 Home insurance cover for tenants

 When people refer to ‘home insurance’, they are lumping together two different kinds of protection – contents and buildings cover. Roughly speaking, if you picture your house or flat being turned upside down and shaken, then everything that falls out would be covered by contents insurance and everything that’s attached would be protected by building insurance. Anyone with a mortgage needs to have buildings insurance as part of their agreement, so your landlord’s policy would pay out if a tree toppled into the roof, for example, or if flood waters destroyed the wiring. However, without contents insurance, your personal possessions aren’t protected from fires, floods, thieves, accidents and other disasters. 

Do I need contents insurance?

 Unlike buildings insurance, there’s no requirement for anyone to take out contents cover – but it’s essential for peace of mind. Although some cover exists that is specifically designed for tenants, for most people, a standard contents insurance policy will be perfectly suitable. Make sure you shop around for the best price but remember that different policies vary and the cheapest isn’t always the best. Be confident you can afford the excess and consider paying a bit extra for new-for-old replacement cover. That means the policy would pay to replace items with equivalent new versions at today’s prices. You can add out-of-home cover, meaning your belongings are insured when you carry them out of the house – that’s especially good for technology and jewellery. Don’t skimp on the cover you need, you don’t want to be left out of pocket in the event you have to claim. You’ll have enough on your mind if that happens without worrying about whether your policy will pay out enough.

 How much cover should I have?

 When you apply for a policy, you’ll be asked to estimate the value of your stuff. Be as thorough as you can about this, don’t leave yourself underinsured. Go from room to room and assess the worth of what’s in each. Underinsuring yourself can cause serious issues if you need to claim. If your home’s contents are worth £20,000 collectively but you only insure them for £10,000 then your insurer may only agree to pay for half your claim – even if that’s for less than £10,000.  

Will my contents insurance protect my landlord’s furniture?

 Most contents insurance policies will only protect the possessions of the policyholder and their family. However, you may want your accidental damage cover to protect any furniture that belongs to your landlord, so you can avoid losing your deposit. Check with your home insurance provider if it can provide this additional cover. Some tenant-specific policies may well be able to do so.

 What if I live with my landlord?

 A large number of tenants actually live with their landlord, renting a room in their home rather than a whole property. If you’re in that position then you may find it hard to insure just your own possessions, especially if you don’t have a lock on your door. Ask your landlord to check with their home insurer if the policy can be extended to cover you as well. If not, look at a specialist policy for tenants.

05Jan 2011

Property Landlord advice: Rental Insurance for Landlords and Tenants.

⋅ 1 Comment

By Steve Roulstone

I have used these pages before to give my opinion that all Landlords should consider specialist rent guarantee Insurance to ensure that they protect their rent at a time when the best intentioned of Tenants may find themselves unable to pay because of losing their income. At the start of the New Year it has once again come to my attention (a Landlord of our office in Stafford found there Tenant in a similar position) at a time when arrears are always at their worst because of overspending at Christmas and let’s be honest who can say they have never been guilty of doing exactly the same!

Good advice!

Is exactly what every agent should give to their Landlords and unless the agent concerned is registered with the FSA as somebody qualified to give specific policy advise, then it is very much our role to make Landlords aware of what type of insurance policies are available, rather than sell any specific policy. Like it or not, current financial legislation, set up to protect our customers, only allows the majority of agents, through best advice practises, to inform our customers, our Landlords, what type of policy they should be taking usually by way of an introduction and there after leave the selling of the policies to those who are qualified and more specifically registered with the FSA.

Rental Insurance policies

So what type of policy can or should be taken by either Landlord or Tenant? so to clarify, and again only with regard to the type of policy rather than any specific product, Landlords should of course continue to insure the building and discuss with their provider what minimum contents are included, as they should still consider carpets, curtains, bathroom and kitchen fitted furniture for example. Then of course, rent and legal expenses insurance, to cover referenced Tenants who find themselves unable to pay and to cover the cost of legal action taken by Industry specialists to evict if required.

Tenant policies

And finally the policy that most forget, Tenants! All agents should have some system to try to ensure Tenants DO take a policy to cover their own contents and with the knowledge that policies exist that will cover the Landlords contents for accidental damage, a specialist policy that unless advised about, most Tenants would not know existed, it is especially important that in giving best service to our Landlords, we ensure that Tenants are indeed introduced to such a policy at all times.

Basic cover

There are of course other policies, and other considerations and items covered within differing policies, but to cover them all would need more time and space than this media provides and would endanger me of discussing specific policies rather than in general (something the FSA regulations did not intent to include but never the less does, where have we heard that before? Sorry, I meant how many times have we heard that before!) but it is our duty to ensure knowledge is available to both Landlords and Tenants at all stages of the process, so we must make sure we foster the knowledge so that we can continue to give good advice and current advice, whenever the need arises.

21Dec 2010

Rental Issues: Utility problems

⋅ Leave a Comment

By Steve Roulstone

It has long been my impression that Utility Companies really do not have a clue when it comes to understanding the relationship between Tenants and Landlords and the implications of a property used for the rental market and nothing has happened over the last couple of years to change my mind in this respect. Then take the confusion every time a tenant does not pay the final bill and the overbearing reaction of the provider to invoice the Landlord for the unpaid bill! Never mind the ongoing question of who is responsible when?

Just what it says on the tin!

How nice that would be! To have a Company who looked after the interests of all concerned and more than that – understood what happens when a property changes hands three times in sometimes as little as two weeks. It is a fact that some organisations in my opinion just see this as a chance to make money. In my own region, the amount Severn Trent WA would invoice a Landlord for the few days he became liable between Tenancies would suggest the actual annual invoice was up to three times the actual annual cost. But what can you expect from an organisation that in my knowledge takes at least £100 more than is needed by those of us who have decided that paying by Direct Debit removes the hassle of calculating and making monthly payments. (Just work that across the region and see how much they have in their account that does not legitimately belong to them)

Services catered for

Well actually not yet! Yes Companies do exist but they have not yet managed to deliver the services they promise. I am sure the intent is good and without a doubt, they do assist us as Letting Agents in removing some of the hassle we have to go through in dealing directly with the suppliers, but as yet, the co-operation that should exist between them does not seem to exist.

All round benefits

What is needed is not somebody acting as a middle man, resulting in services at good prices (Still amazed at how much prices vary in the utility market, especially if you do not keep on top!) but somebody who can be trusted to look after the interests of all parties, especially the Tenant in ensuring they buy competitively and the Landlord in ensuring they do not fall foul of DATA protection legislation (or indeed be threatened that they have, which can be just as upsetting) and that they no longer get silly little invoices for short periods when a property is empty. (Take note STWA!) The problem for us as Agents, is that we are only ever going to be able to pick the best system whilst not being able to do the work needed to improve the service supplied.

Future competitive market                                            

And the point is that it is very competitive now! The private rental market alone is calculated at being over 14% of housing stock in this Country and I would hope that Companies that are able to work at the way in which utility providers go about their business would take the time to look seriously at the option available by providing both a system and a service which is simple and time saving for all concerned.

29Nov 2010

Rental issues: Property maintenance delays caused by freezing weather.

⋅ 1 Comment

By Steve Roulstone

As a Landlord I have experienced that dreaded call from the Tenants on many occasions, the one about the leak when the weather is -5 and giving no sign of letting up. Now as a Tenant and a Landlord, I am currently experiencing both. I must admit that I have had a good look around the property I now rent to see if any weak spots exist, but even in temperatures as low as we have experienced this weekend all seems well!

When problems occur

But when problems do occur especially at this time of year, it can be a nightmare for those concerned. I know that plumbers, who of course work all hours when we have cold spells of this nature, have to turn work away and often work a fortnight in advance. What all concerned have to do here is realise that (as agents) we do not have the right to demand contractors arrive at the property we manage before and in advance of their other customers. The problems occur when Tenants feel they should not have to wait because they are renting the property. Well now I may be in the same boat, but I know that I will understand if we are faced with any delays.

Delays in Agent services

It is not just plumbing where problems can occur, all types of property maintenance services can be delayed and on one occasion this month I am aware of a Tenant who felt sufficiently aggrieved to raise a complaint against the agent concerned. The security of the property had been placed at risk because of the actions of others and whilst there are many occasions where special arrangements can be made for all manner of maintenance issues, on this occasion none were. The point being that in the vast majority of cases special arrangements are not made and neither should they be. When you own a property you do not have all manner of immediate response contracts with every service conceivable, but unfortunately because Tenants pay rent sometimes we are expected to provide such cover.

Services not serviced

As agent of the Landlord we are charged with looking after our Landlords interests and this of course includes the property, we will therefore note all special arrangements in existence and provide services when needed, for whatever may befall the property in our charge. But that does not mean for example that we are going to stand guard over a broken front door for a weekend whilst the Tenant goes shopping! Of course the vast majority understand our responsibility and take sensible steps to cope until we can do our job.

Patience is still a virtue

What we all need to do is give some patience and assistance by way of availability and flexibility of when property can be accessed (I know of one Plumber who will work until midnight under circumstance that currently exist) that way more will be done sooner and let’s not forget, human nature makes us all try harder for those who treat us nicely! I know that’s how we treat our Contractors and that’s how we manage to get that little bit extra that so often makes the difference!

26Nov 2010

The Castle Blog explained

⋅ Leave a Comment

By Steve Roulstone

We have been operating our Blog now for over six months and I thought it time to put some explanation behind the near 50 blogs we have so far posted which will of course continue to climb as the weeks pass. The idea is to post blogs under specific headings, covering both Property Lettings and our Franchise so that all aspects of our business are covered. We could of course increase the number of headings and may do so in time, but I feel we have managed to cover the whole aspect of our industry within the headings used, so I feel, to use a well known saying,  we can indeed claim to deliver, exactly what it says on the tin! So the individual headings:

Franchise News

‘The tin’ in this case is anything revolving around the running of the Franchise, including Industry news and views. The recent National Franchise Exhibition for example was always going to be linked as Franchise News, as are reports concerning the Lettings Industry such as trading trends, or anything which affects our group nationally, such as the recent Launch of our new ‘To Let’ boards. It has also included Blogs about our trading partners such as the banks, as well as training related news.  

Rental Issues

This is the section that sweeps up all breaking news surrounding Letting property, including legislation, where it is being reported in its broadest sense, rather than the effect any legislation has on property or Landlords. It could also be described as the Tenants section, not purposefully, but when I look back at Blogs that have been included in this section information relating to Tenants does appear in this section more often than elsewhere!

Property Landlord advice

This can rightly be described as the main section and has been left to last intentionally. This is the main reason the blog was created. Customers for Letting Agents are, by law, our Landlords (Because we act under the law of agency on the Landlords behalf) It is under this section, that the intention was from the start to advice and inform the Landlords throughout the UK of the problems and trends affecting this industry of ours, to keep them well informed and in tune with market trends. Under this section we have written Blogs covering legislation effects, housing opportunities, warnings about property scams, explaining about our Industry and how we operate and the advantages of the services provided through Professional agencies.

In summary

I hope that helps and I hope it assists you in finding the posts that are more relevant to you as individuals. In writing and reviewing our Blog, I have noticed how many times we use the word professional. I do not apologise for this, rather, I expect we will continue to promote Professionalism in our industry. Enjoy reading them and please let us know your thoughts or indeed requests for further information or new topics for us to add. and finally, Thanks for visiting our site.

25Nov 2010

Property Landlord Advice: Private Rental sector gets Government boost.

⋅ 2 Comments

By Samantha Knight

The Prime Minister said the Government may introduce “fixed period” tenancies to ensure new social housing tenants can be evicted if their circumstances improve. People who are given council houses are currently awarded an indefinite “secure tenancy” if they successfully complete a 12-month trial tenancy. This means they can only be evicted through the courts if they fail to pay rent, cause serious problems for their neighbours or in other exceptional circumstances. If they die, their secure tenancy can be passed on to a partner or child. Mr Cameron said the current rules meant that people in more severe need of housing were being kept on council waiting lists while some tenants’ situations got better.

Controversial statement:

“At the moment we have a system very much where, if you get a council house or an affordable house, it is yours forever … And actually it ought to be about need,” Mr Cameron told a public forum in Birmingham. His comments came in response to a mother of two teenagers, who told him she slept on a blow-up bed for two years because her council could not find her a bigger house. Your need has got greater,” Mr Cameron told her, “and yet there isn’t really the opportunity to move.

“There is a question mark about whether, in future, should we be asking, actually, when you are given a council home, is it for fixed period, because maybe in five or 10 years you will be doing a different job and be better paid and you won’t need that home, you will be able to go into the private sector.” A total of 1.8 million families are currently on waiting lists for council housing. The Government advises local authorities on how they should ration properties but councils also use their own criteria,

Changes will be difficult.

Local families living in cramped conditions and people who are homeless or have medical conditions being made worse by their houses are usually prioritised. Only some local authorities consider the income of applicants. It is thought councils and housing associations would be left to decide how long local fixed-term tenancies would last. Mr Cameron conceded that an attempt to reform the system would cause “a big argument” but was necessary. “Looking at a more flexible system I think makes sense,” he said.

The Prime Minister said that any changes would not, however, apply to people already in social housing. The Conservatives pledged in their general election manifesto to protect the rights of existing tenants. All good news for private landlords, making investing in rental property with affordable rents a safe bet.  If the Prime Ministers plans go ahead, we will have a queue of tenants now in need of private rental properties.

24Nov 2010

Rental Issues: Tenants Protected against defaulting Borrowers

⋅ Leave a Comment

By Mike Edwards

Tenants will no longer be at the same risk of losing their home with little warning if their landlord defaults on their mortgage, because new rules have come into force giving judges the power to delay repossessions in order to give tenants time to find a new home.

Prior to the change           

People could previously be evicted from rental properties relatively quickly if their landlord defaulted on the mortgage and had failed to inform their lender that they were renting out the property. In most cases tenants were totally unaware of the situation until a Court Summons was received or bailiffs arrived to enforce the Court

New Legislation

Under new rules tenants with a valid tenancy will be able to attend Court possession hearings for the first time. Judges will be able to take their situation into account and delay repossession by up to two months though but even now if a lender is seeking possession under Ground 2 it is 2 months notice and only then can proceedings commence. However the tenant may be unaware that proceedings have commenced.       

Lenders must also ensure tenants know that their home is going to be repossessed by sending a letter to the property giving them notice of a court hearing date. Again however having said that lenders have been under such an obligation since the Civil Procedure Rules were changed many years ago requiring lenders to write to the property addressing the letter to The Occupier.

This letter should be sent at the earliest possible opportunity when it becomes apparent that a lender is likely to institute proceedings against a borrower but most lenders have consistently failed to do so only advising of the proceedings very shortly before they were listed or even after the event thus adding to the problems.

The end Result

Once a repossession order has been granted, the lender must without fail send a second letter to the property telling tenants they have a warrant for its possession.
The tenant can then request a delay of up to two months if they have not previously had the opportunity to do so and this is the big change introduced by the new rules.

05Nov 2010

Rental Issues: Good Landlord Tenant relationships.

⋅ 6 Comments

By Steve Roulstone

 

I have just rented a property for the first time, mainly because it has made sense for me to accept an offer from a third party to rent my own home for several years and the offer was too good to miss! But whilst that is the reason why I have rented, I wanted to comment on the relationship I have developed with my new Landlord and how trust and good relationships can still matter.

Lesson to be learnt.

I am dealing directly with my Landlord rather than through an agent and it has enabled me to get across our wishes in relation to the property so much easier than what I know would have happened if I had been operating through a Managing Agent. I know because I know how I would have reacted if I had been that agent and this is the lesson for us all – too many times we forget to look behind the request at the individual and are too scared to advice anything but caution in relating Tenant requests to our Landlords.

Improvements to the Property.

Of course, I am in a position where the last thing I would want is negative press about my dealings as a Tenant in my home town, no that would be just too embarrassing, and I feel that my Landlord knows this, and this has helped her to trust that we will indeed improve her property with our wishes, it also enabled me to negotiate a long term agreement as well, which was exactly what we wanted. But it is the fact that so many people do have good intentions which we as agents may be losing by taking a defensive line instead of putting more work in too finding ground and grounds upon which a Tenant could be allowed to put their own stamp on property they wish to call home, especially if it encourages them to stay longer. It has been a long term belief of mine that we should do everything to encourage Tenants to stay as long as possible on behalf of the Landlord anyway, less footfall, less movement in and out, is bound to be in your Landlords interest in looking after any property in our charge.

Keeping the Tenant happy – as well!

Of course I am not suggesting we throw caution to the wind and allow Tenants what they want when they want (we have to stay within a legal framework at all times) but rather that we should try that little bit harder to recognise good intention and look closely at what Tenants are proposing, especially if the property will benefit and therefore our Landlord also, in the long run. There is nothing like experiencing matters at first hand to remind us that in keeping our duty of responsibility to our Landlords, ‘No’ is not always the best answer and not always in the best interest of all concerned. We should always keep in mind that a happy Tenant looks after a house and pays the rent. I do not know about you, but as a Landlord as well, these are the very things I want from and for my Tenants!!

02Sep 2010

Rental Issues: Tenants status with Letting Agents.

⋅ 1 Comment

By Steve Roulstone

Welcome to another heading in my Blog, highlighting issues and hopefully clarifying same for the better understanding of all concerned. My first Blog concerns the position of the Tenant when they are dealing with Letting Agents. It is something that I do not think is explained often enough and only with better understanding will problems that occur regularly be removed.

The Agent in Law.

As the link above demonstrates, when Letting Agents sign a contract with Landlords who employ them, they are both confirming the services they will provide and through this document confirming that we stand as ‘Agent of the Landlord’ in this relationship. This means that we are employed by the Landlord and in seeking a Tenant for the property concerned, we are providing the service highlighted in the contract.

The Tenants position.

We do not sign a Contract with the Tenant and therefore our relationship is totally different, especially in the eyes of the Law and that is important, because in being party to a contract with the Landlord, it is through the Law that our actions for the Landlord may be judged. The contract the Tenant signs is either 1) The Tenancy agreement confirming their status in the property concerned, how they will and must perform and equally how the Landlord will and must perform, but only in relation to the property concerned. Or 2) What we at Castle Estates call our terms and Conditions, which is also about being sure the Tenant is aware of how the process of becoming a Tenant works and again what is expected of them during the Tenancy.

In Summary for the Letting Agent.

 When I went through my initial training with Castle Estates I was given a way of summarising where we stand as Letting Agents in this triangle of relationships and it has never been surpassed as the best and easily understood way of describing it. A Letting Agent has a duty of responsibility to the Landlord and a duty of care to the Tenant. This is a statement that I have used on many occasions, not lightly, because I firmly believe in both parts and it is important that Letting agents provide both with integrity. But if this was explained to Tenants more often, then they would be better informed to understand the duty we perform in carrying out our role as Letting Agents.