Tag Archives: Castle Estates

14Dec 2011

Tenant advice: Guarantor roll in property Letting.

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By Steve Roulstone

 

One recurring issue when problems occur with a Tenant who has failed to keep up to date with their rental payments, when a Guarantor is in place, is the sudden realisation that despite having had the situation explained at the beginning of the Tenancy and in our case at Castle Estates having signed a confirmation letter that clearly confirms the Guarantors role, that they may become liable themselves for the arrears and any additional costs generated by the departing Tenant at the house concerned.

Increasing requirement.

 

This is a problem which is not going to go away, in fact most reference Companies (with a mind to the current financial situation) are requesting a Guarantor to assist the Tenant being referenced in achieving a successful application, in probably twice as many cases as they were five years ago. This means that it is even more important that the Guarantor understands that should debt arise as the result of the Tenants actions, then they could be asked to make good the shortfall if the Tenant fails to do so after every reasonable effort has been made to achieve success with the Tenant, in a court of law.

For the lifetime of the agreement.

 

It is therefore important that the Guarantor is advised about any possible liability as soon as possible after it becomes clear that a problem exists. This is when we normally get asked for the Guarantor to be released from the agreement and of course without a replacement waiting in the wings who would also need to pass reference (and if a problem has occurred this is not a likely scenario) they cannot and should not be released. Signing your name to a legal document has implications and therefore should not be entered in too lightly. Indeed Guarantors need to understand fully their role, which is why we have a separate letter which we ask to be signed and wherever possible, have the Guarantor present at the check in to ensure they understand their responsibility.

End of Tenancy problems.

 

Of course most problems where a Guarantor has to be advised occur at the end of the Tenancy and just recently we have had a very serious abandonment, where the Guarantor was a close relative of the Tenant who seemed to be fully aware that the relative would have to face the consequences of the Tenants actions, of course such malicious actions are very rare, but it does serve as a timely reminder to ensure, as a Guarantor, you will still want to support the Tenant in possibly two or even three years time (average length of Tenancy is now close to two years) As Agents we have to be sympathetic, and make every effort to seek recourse with the Tenant, but legally the Guarantor will be required to stand in the Tenants shoes if the Tenant does fail and the reality of this should always be considered before the agreement is signed.

17Nov 2011

Tenant advice: Notice period and final days.

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By Steve Roulstone

It is a real advantage to be able to comment on situations which arise through the daily activity in our office as letting Agents, because it means that the Blogs are always relevant. This week is no different. Once again a theme which crops up on a regular basis has been discussed and I felt would make a good subject to advice Tenants about what to expect at the end of a Tenancy.

A full month’s rent?

It is rare for a Tenant to pay a full month’s rent for both the first month or the last month of their Tenancy and this would only happen, if for example, the Tenancy started on the 1st day of the month and ended on the last day of the month! There are two ways of dealing with rent payments and at Castle Estates Stafford, we opted for the system of taking a payment for the first month for the days remaining in that month and from then on rent is due on the 1st of the month for each calendar month in full. The other is to always take a full month’s rent due on the date that the Tenant moves in and the due date remains as that day throughout the Tenancy.

Matter of choice.

The problems are present for both systems, for example having the date a Tenant moves in as a due date, causes problems for any move after the 28th, because of February and months that only have 30 days. With our system, it is explaining why they do not just pay for a full month on the day the Tenancy commences. But as it is our job to look after Landlords first and foremost, we find that arrears are easier to control if all rents are due on the same day, then all arrears are of the same length and letters are all sent at the same time.

Monies due at the end of Tenancy.

The issue that does arrive though is not when Tenants leave at the end of a month, in line with the required length of notice, but when they leave at any other day in the month and for some reason feel that for example, if they leave on the same date they move in, the rent paid at the beginning of the Tenancy covers the extra days – is does not!

Best solution.

Has got to be good communications! It is important that Agents make it clear to Tenants what is due when and why, and of course systems in place to cover this ensure all Tenancies are treated the same. With the Tenants Deposit Scheme ensuring both parties to a deposit are happy prior to any return, it is doubly important to get this right. Bad communication in my experience leads to people digging their heels in and unless we as Agents can show clear instruction and reasoning, our customers, our Landlords, may lose out.

Proper dues.

Of course it is only what is legally due that Agents will collect and the best solution when all else fails, is to add up in total the number of days associated with any part months (only ever the first and last months) and with a daily rate to hand, calculate the rent due for both periods. Of course the daily rate has to be in line with the manner in which the courts approve daily rates to be calculated which should be confirmed as well, hopefully then as is the case with most Tenants the calculation is both understood and accepted. Unlike the Tenancy that ended badly because the Tenant expected a full month’s rent to be returned as well as the deposit, because he paid his rent in advance, even though his last payment was at the start of the month and he left on the last day!

07Nov 2011

Property Landlord advice: Landlords visiting property can cause problems.

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By Steve Roulstone

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

Managed should mean Managed.

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

Coming back to bite you.

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

Correct procedures at all times.

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

Implications.

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

Recommendations.

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

01Nov 2011

Tenant advice: Correct procedure for end of Tenancy.

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By Steve Roulstone

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

Correct procedure.

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

Time to address the issues.

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

Not by right.

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

How to avoid problems.

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

24Oct 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!

18Oct 2011

Property Landlord Advice: PAT testing for all!

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By Steve Roulstone

The ‘all’ in the title above is referring to all portable electrical goods in any rented accommodation which is a House of Multiple Occupation and in particular the Tenants goods as well as any electrical items supplied  by the Landlord which is not something that would automatically come to mind, but the principals are just the same as the reasons why goods are tested in the first place.

Portable Appliance Testing

It is one of those sayings which gets accepted as an acronym and slips in to our language so easily that the proper meaning can easily be forgotten.  But the reason for testing all appliances supplied by the Landlord, is lost if the appliances supplied by the Tenants are not tested as well. This means any heating device, television or even fridge that they supply, will need to be tested as well, otherwise the whole point of carrying any test out is lost.

Enforcing the rules.

Of course it is how you manage this and of course why it should be done in the first place that needs to be explained. In our case at Stafford, we manage two blocks of rooms (over 60 in each) which are run by Wardens that we supply and the recommendation came about as a result of a Health and Safety and Fire Inspection, on behalf of the insurers, who naturally want to know that everything is being done to minimize the risks involved, especially where foreign students or workers are concerned with electrical items that run on a different current to our own electrical system. (Rice cookers are a prime example) What we do is to advertise the day we have our own test carried out and then allow goods to be tested free of charge.

Contractually bound.

The difficulty is enforcing the rule, which we also add to our contract for the accommodation, because if this opportunity is ignored, then it is almost impossible to enforce the test, so it is very much about communications and taking advantage of every opportunity to have the work carried out, which is why testing for free along with the Landlords property is, we feel, such a good idea.

Computers.

Of course the biggest area is lap tops and computers as virtually every student and indeed worker would now have their own computer, which still needs to be tested and despite the obvious reaction that any test would ‘blow’ the computer, there are set standards and methods (of course!) to follow. Such information is vital when assuring your Tenant that the test needs to be carried out and you are faced with the inevitable statement to do so would destroy the computer.

14Oct 2011

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

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By Steve Roulstone

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

Review prices.

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

Comprehensive cover.

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

Value for money.

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

Review services.

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

11Oct 2011

Property Landlord advice: SAFEagent (3): At last friends in high places!!

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By Mike Edwards

The final stage in the initial creation of the SAFEagent scheme which soon launches to the public, will see it do so with a major endorsement from housing minister Grant Shapps. The endorsement includes displaying the kitemark on the CLG website, whilst Shapps has congratulated the industry for taking matters into its own hands and urged agents not signed up to the SAFEagent scheme to do so immediately. He announced the Government’s official support for the industry-led campaign at the same time as launching new factsheets for landlords and tenants. In them, both tenants and landlords are specifically advised that they should seek out a SAFEagent member. Shapps emphasised that he is supporting initiatives such as SAFEagent in preference to regulating the private rented sector. He has, however, has taken no convincing regarding the merits of the SAFEagent scheme. He said it was aimed at addressing a key area of concern for both tenants and landlords when it came to letting agents – making sure their money is safe. 

Shapps said: “The private rented sector provides a valuable source of accommodation for over three million people in England, and the vast majority of them are happy with the service they receive. “That’s why I have promised not to wrap the sector in red tape, but instead to work with the industry to help them develop their own plans to tackle those bad landlords, and with councils to throw the book at those who don’t live up to their responsibilities.” He added that with SAFEagent he was “delighted the lettings industry has taken matters into its own hands, and is launching a quality standard that will ensure that landlords and tenants know what to expect from their members.  These improvements could never be achieved by adding layers of pointless Government regulations.”      

He went on: “This is exactly the sort of measure the private rented sector needs – simple and sensible changes that are driven by industry and designed to deliver results.” The SAFEagent scheme has been mentioned in the House of Lords as an example of the kind of voluntary initiative the Government wants to see in raising standards. But mandatory regulation of the private rented sector was not ruled out. It happened during a debate on an amendment to the Localism Bill aiming to insert a new clause into the Bill that would enable the statutory regulation of private letting agents to be introduced at some point. The amendment was also supported by the British Property Property Federation, Residential Landlords Association and housing charities.           

Responding at the end of a lengthy debate, Lord Taylor of Holbeach, a Conservative peer and House of Lords whip, said: “I am delighted that the Government have been able to endorse the Safe Agent Fully Endorsed scheme – SAFE – recently launched by the industry which highlights a key risk around clients’ money. He went on: “I have considerable sympathy with those who have been caught out by bad practice, but we do not think that regulation now is the right answer.” September has been a good month for SAFEagent as apart from Government endorsement and passing 1200 agent registrations CFP Software, part of Guardian Media Group, is the latest industry supplier to offer its support to SAFEagent.  CFPwinMan is the most widely used lettings and property management software package across the UK and is installed in over 3,000 businesses, with tens of thousands of users. It is the first, and currently remains the only, property management software to be accredited by the ICAEW.

03Oct 2011

Property Landlord advice: SAFEagent (1) : New kitemark will 'clean up industry'

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By Mike Edwards

It is now 6 months since the first announcement of a new kitemark initiative for the lettings industry. Although I have previously commented on this initiative and expressed our wholehearted support for it much water has flowed under several bridges since the new kitemark initiative known as SAFEagent was launched for agent registration in May. It is free for agents in established client money protection (CMP) schemes to register, but just what is CMP? To the layperson in effect it is bonding, along the lines of ABTA where if your travel firm goes bust and they are ABTA bonded then ABTA steps in to bring you home.

CMP operates in the same way to protect Landlord and Tenant money held by agents with CMP cover. However the policy premium for CMP cover is eye wateringly expensive, and impossible for an individual agent or even a corporate chain to take out in their own name. So CMP cover is obtained by being a member of one of only 5 such group schemes in existence, these being administered by ARLA, NAEA, NALS, RICS and The Law Society. Because it is compulsory for CMP to be held by a member of SAFEagent so it follows that only members of the 5 organisations with the cover can become members. SAFEagent does not provide CMP itself and indeed to do so would be an expensive and unnecessary duplication as its members already have CMP in place.

SAFEagent was formed by a Steering Group of lettings agents and is administered by The National Approved Letting Scheme which in itself was created by the Government. It was the desire to deliver a simple message that led to the formation of SAFEagent – that by joining its members would have the means to differentiate those agents who operate with CMP and those who do not.           SAFE agent has some impressive friends and supporters. Apart from NALS which endorsed the scheme immediately and then offered to run the administration for it – an offer readily accepted by the Steering Group – the Property Ombudsman Christopher Hamer also welcomed the initiative many months ago, as has the Residential Landlords Association who commended its “clear and recognisable brand”.           

The Trading Standards Institute (TSI) has bolstered the initiative with Ron Gainsford its chief executive endorsing the introduction and promotion of a single mark to identify letting agents who are in Client Money Protection insurance schemes. This is the objective of SAFEagent – that by having just one kitemark will increase recall levels of the scheme and enable consumers to make sensible and safe choices of letting agents based on a raised awareness of the importance of that agent being part of a Client Money Protection insurance scheme. This in turn of course will help trading standards services in the fight to reduce the number of rogue and ‘uninsured’ letting agents who disappear with consumer money – a move that all honest agents would support.        

However, of the industry organisations, only NALS has come forward to welcome the kitemark. NALS, NAEA and RICS have yet to give their support despite SAFEagent growing impressively as will be seen in the nest article on this subject.

23Sep 2011

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

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By Steve Roulstone

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

Location Location.

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

Few changes.

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

Close second

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

Where did they go?

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

Conclusions drawn.

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