Tag Archives: Castle Estates

19Sep 2011

Rental Issues: Can Tenants decorate?

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By Steve Roulstone

As I stated in my last blog, it has been one of those weeks where recurring issues have chosen to raise their heads all at the same time and the latest one that has attracted the attention of my ‘electronic pen’ is that of Tenants decorating a property, either with or without permission!! This week it has been one of the latter that has caused the problem and because of this, I felt these pages would be a good way of clarifying exactly what should happen and what is or is not allowed for Tenants wishing to decorate in a rental home.

Good call.

Firstly, unlike many of my compatriots in this industry, I appreciate where Tenants are coming from when at a viewing they ask if they can decorate. I can see that the person asking (it is usually a Female who would ask the question) does so because they wish to make the house their own and put their own stamp on what they perceive as their future ‘home’. It can be disappointing for a Landlord to be asked after they have just completed decoration in the neutral colours we suggested, so unless decoration is a real issue, we normally say not for the first six months, after all, as we explain, if the Tenants decide to move after six months, then we would rather they saved their money!

Without knowledge.

This is the scenario that we all fear and I well remember the first time this happened to me, when  a Mother, wishing to provide her kids with a bedroom that was definitely their own, decorated one bedroom in red, black and white Manchester United wallpaper, complete with gold and red crest and the second bedroom in Barbie pink! It was not just that the wallpaper was garish, but also because it was job had very badly carried out and even after removal of the paper, the paintwork resembled a poker dot finish rather than a normal painted finish.

The correct way.

Of course permission to carry out decoration should not and cannot be unreasonably withheld and that means that a system should be in place so that approval can be sought. This should include a written request from the Tenant including colour and paper samples, which will produce a written response from the Landlord either saying yes or no to the suggested scheme. This is because it is unreasonable to ask that a bedroom should be painted deep purple, no matter what the reason for the request, so it is therefore NOT unreasonable to refuse permission. But with acceptable colours a written acceptance ensures there is no comeback, either for the Tenant, or the Agent!

Professional Decorators.

But Tenants should be made aware, that even if the Landlord does accept the scheme itself, they will (and should) expect a professional finish in carrying out the work. I have known Landlords insist that any work is carried out by professional decorators and if the property has been decorated in this manner in the past, then to request painters and decorators to carry out the work again, is reasonable. But to allow people to carry out the work themselves does leave the standard of the work squarely on the shoulders of the Tenant and if they fail to carry out the work well, with badly fitting paperwork and the edges of paintwork not defined, then it is perfectly reasonable for the Landlord to insist the Tenants pay to have the room returned to its original state and condition.

Confirmation is everything.

This is a judgement call for both Landlord and Agent and in most cases is dealt with as previously mentioned by ensuring letters are in place, with perfectly clear obligations contained in the letter and with photographs of both before and after. If doubt does exist, then permission could be given for just one room, such as a bathroom or small bedroom, to judge the standard of decoration achieved prior to allowing any further work to be carried out. Either way this is a major part of Managing a property and should be taken seriously, and dealt with professionally to ensure mistakes are avoided for all concerned. But even though we advise all Tenants of the procedure before  commencement of all Tenancies when we discover that decoration without permission on a property visit we know the consequence will more than likely, not be good!

15Sep 2011

Blog Review: Renting a property proves the ‘Truth behind the Myth’ as trend continues.

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By Steve Roulstone

In June last year, I posted a blog entitled ‘The truth behind the Rental Myth’ and as part of a new section in the Castle Estates blog and because we have now been posting for well over a year, I have chosen this as the first in a new section where I will review what was originally written and comment on where matters have developed since the initial posting.

Initial intent.

I wrote this because despite ten years in the industry, I had recently been asked about the old chestnut of how did I cope with Tenants trashing property, when in fact it hardly ever happened and was in any case on the decline, so I wanted to say exactly what it said on the tin! Interestingly, whilst that is still the case and with regular property visits we have a method designed to give us an early warning system anyway, it was the rest of my comments that have been the reason for me choosing this Blog as a target for an update.

Renting on the increase.

My prediction that renting would become more popular and that what Tenants were doing was following a trend because of how our market suited a lifestyle was, as we can now see, exactly what has happened and only recently, I have commented again on how this lifestyle choice is what commentators are failing to observe when looking at market trends and commenting on them.

Legal options on the decrease.

What I did not foresee at that time, was that the Government, which of course had just changed, would decide to drop the recommendations of the Rugg review and fail to bring in the long trumpeted and as readers of this blog will already know, what I believe is needed for our industry, legislation  to introduce Agent and Landlord registration. This remains an issue for me and at a time when our market is growing at a pace never seen before, it does not marry that any new start Letting Agent will be struggling to get in front of the Landlords needed to grow the fledgling business.

Every Agent in town.

This is simply because the Estate Agents of this country turned to what it has perceived as its poorer sibling for so many years, to rescue its own business when the house sales market collapsed. Please do not misread what I say here, because there are plenty of very good Estate Agents that have turned to the Lettings market to survive, but I am equally sure that we will see and hear about (my bet is they will not differentiate between Estate Agents and letting Agents when reported!) stories of bad management as time progresses and problems do appear.

Here is an irony!           

The irony may well be that what is reported is property that has been trashed and my initial point will have travelled full circle! Because there is no doubt that bad management is one reason why houses do end up getting damaged. The why is a different story and not for this short article, but what I would hate to see, is our industry suffer (by way of reputation) because of Estate Agents who have jumping the fence purely out of necessity, ending up being the root cause of bad press for the Lettings industry and by association, Letting Agents as a group!

02Sep 2011

Current Property News: Home ownership figures give BBC cause for concern.

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By Steve Roulstone

Well they are at it again, and having listened to the latest report from the BBC on housing in my eyes they have confirmed once again just how they seem to relish putting a negative spin on anything relating to the housing market. Especially as they seem to be the only news agency that have put such a negative spin on the figures behind home ownership! In doing so they have completely ignored two very important  factors, firstly, the right for people to choose how they wish to live and the trends which have been evident for several years and the assumption that the home ownership which has been the UK way for so long is not the natural goal for every family any longer.

The Facts.

Firstly, what I can agree with is the numbers behind the report.  Private Rental Figures have been increasing by three times the normal rate now for at least the last two years and for the first time last year overtook the Public rental sector in the UK The BBC report stated that 64% of housing in the UK is owner occupied. This confirms the trend as currently believed with Public rental at 16.5% – 17% and the Private rental sector at 19% – 19.5%. So the figures are correct, it is the assumption that this is a major cause for concern that is wrong.

Freedom of choice.

For some years now, the average age of a first time buyer has been growing and I do not deny that some of the reason is the inability to be able to afford property at a younger age, but it is also clearly evident that we have a far more mobile work force who are prepared to and expect to move several times as they change jobs or move with jobs as careers develop. This will be confirmed by any Letting agency, as we are the people who see this trend and know for the reasons given by Tenants when initially renting and giving notice to move on again. The BBC chose to ignore this because they will have no knowledge of this trend and do not take time to find out by speaking to our Industry.

Change in pattern.

The other obvious point raised by the two reasons given above, is that firstly, as hard as the fact may be to accept, the housing market in finding its current level as the market dictates is confirming that cost of houses are settling above the affordability of younger couples and is being replaced by the rental market as an affordable choice. Secondly, this choice also suits the fluid lifestyle now being lived and mirrors what is happening across Europe where renting is an accepted way of life and it should not be too much of a mind jump to see that as we develop a cross border larger picture European style of living these changes are moving in line with our European neighbours.

The bigger picture.

But the BBC in reporting this news in the style chosen last night, ignored choice and took as its basis, that home ownership is still what we all strive for. What the BBC need to do, in my opinion is ask itself two very large questions. Why when reporting news from the Housing sector do they always give it a negative spin? and why do they report such news without consideration to the professionals within the market who could confirm what is actually happening in housing in the UK and why, rather than jumping to age old assumptions? My own ‘assumption’ is that what used to be the organisation that gave the world the news, has sunk to a world of sound bites and magazine style articles rather than in depth pure reporting that they used to be known for. That’s a trend that they do know about, but again one that I fear they will also ignore!

30Aug 2011

Rental Issues: Holding a property for rent.

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By Steve Roulstone

It has been a week of issues that repeat themselves at differing times in our Stafford office and the length of time that we are able to hold property has once again come to our attention.  We always receive calls from people who have decided to rent for a period after selling a home and the advice is usually the same. ‘Call us back at the most, six weeks before you are ready to move’. I have written before about the differences between Renting and selling property and what must be appreciated to understand the Landlords and agents requirements but there is still a lot of misunderstanding about how long a Landlord will hold a property for a prospective Tenant.

Change of mind.

One of the issues that rarely gets mentioned, is the way in which the law operates for Tenants and the fact that they can proceed with the intention of moving in to a property for months, and then have a change of mind for whatever reason, the day before without any penalty. What needs to be understood is that the Landlord has to start the process all over again and stand the loss of rent caused by the Tenant pulling out of the commitment. Experienced tells us that the shorter the period between the Tenant choosing a home and the day they sign the agreement (the day they move in) the less chance of a change of mind.

Normal circumstances.

It is also accepted by the majority of people renting, that apart from the need to give notice in the house they currently rent, by far the majority will move within a three week period. In fact it is still far more common for us to have Tenants wishing to move within one week than Tenants wanting to move in over six weeks! So the market itself produces a normal scenario and this is what most Landlords will expect. Therefore, when we do get asked to hold a property for a longer than normal length of time, as we must always ensure we follow the Landlords wishes, it is very rare for a Landlord to agree, rather, allowing any subsequent Tenants who wish to progress at an earlier date to rent the property instead.

Risk is inherent.

It is when a Landlord does indeed choose a Tenant wishing to move at an earlier date that the problems arise, because even though we confirm that we cannot accept the application for an extended wait, advising people that they have lost the property concerned understandably causes upset. We always ensure that we do not take any payment or accept referencing forms until we are able to commit any Tenant to the process, but even then, by following the Landlords wishes, as we are bound to do by our contract with the Landlord, as the Agent it is our staff that get the brunt of the disappointment, but it does explain why we always try to stop people looking for anything more than six weeks before they wish to move.

09Aug 2011

Property Landlord advice: Landlord Insurance – when fire comes to call.

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By Steve Roulstone

The press is once again full of adverts for Landlord Insurance at the moment and apart from the fact that they mean Building Insurance for Landlords (as opposed to Landlord Insurance for Rent and Legal expenses) when this week a property we manage was involved in a fire for a second time in our Company’s History several important points were raised and although on this second occasion ours was the property next door to the one which caught fire, our systems and practises were put to the test. The fire started in a shed, but spread via the garden fence to the house and subsequently next door.

When Fire strikes.

The important point about any Building Insurance for any Landlord in a Management scenario is that the Managing Agent is aware of all the details and has copies of the policy to hand. This week we were made aware in the middle of Wednesday afternoon that a fire had broken out and quickly established that it was the neighbouring property that was being attended by the Fire Brigade. We visited site straight away, established that our Tenants were OK and started to deal with the problem without delay, because the Fire Brigade had advised us that they were unsure at that moment that they were going to be able to allow the Tenants to return that night for safety reasons. This of course presented several problems and both the Landlord and Tenants were relying on a quick reaction to sort the problem out.

Proper procedure.

This meant that we had to contact the Insurance Company and loss adjusters, confirm the policy, confirm we were able to act on the Landlords behalf, for which with a signed Landlord contract to hand, we were able to do in moments and confirm within under an hour, that should the Tenants need overnight accommodation, they were covered by the policy and made it known that the damage to our Landlords house was added to the inspection and subsequent damage costing by the loss adjuster on day one. Details of who to contact and how were sent in writing and by the end of the day (for which our staff once again have my thanks for staying until all had been dealt with and everybody advised) everybody knew where they stood and how the problem would be dealt with.

Timely reminder.

One of the big issues raised here, is the point emphasised in the current adverts that I mentioned above, because should this not have been a Landlords policy, then the insurers would not have provided accommodation for the Tenants and probably refused to cover the damage because the house was rented without their knowledge. As a Managing Agent, it is therefore important to both advise and ensure that all Landlords are aware of what they should advice their property Insurers and take out the correct policy for a rented property.

First time.

The first time we experienced was the actual property e managed and was caused by a chip pan, left unattended because of a phone call. Again thankfully nobody was injured and the correct cover and thankfully fire protection was in place and the Landlords even provided alternative accommodation for the Tenant until the property was re-built, which considering the reason for the fire in the first place, was a very responsible response. I know that the Tenant, who returned to the original home after the work was completed, has never cooked a chip at home, ever again!

Summary.

I trust we have now had our share of fire related incidents for another ten years, because the initial thought of possible injuries or casualties is something nobody wants to have to go through but without a doubt, our systems and practises came to the fore for all concerned in both instances and confirm that there is more to Residential Letting Agents than just finding a Tenant and moving people in and out of houses. Good practise and attention to detail may never be needed for individual properties, but when it is I know which side of the fence I would rather be on!

27Jul 2011

Current Property News: Rental market increases just catching up.

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By Steve Roulstone

I have said before that the Sales market, which when healthy helps to ease finances in the UK market as a whole, would benefit from support for Landlords wishing to feed the demand for rental properties and current reports on rent increases confirm that the market is reacting to the demand in achieving the reported rises. The market (rent) will of course find its own level and whilst that needs to be looked at as a wider picture rather than just what is happening now, there is no doubt that the flicker of easing of availability we saw earlier this year is needed now more than at any other time in the last three years.

Lack of available property.

The report confirms that the demand has continued to increase over the last year and whilst once again the majority of what is reported refers to the market in London, the rest of the Country is also seeing higher demand, for as has been said for many a decade, what happens in London, flows through the whole country in time. But one point I would like to pick up on is that it is unusual for property to be let within one day! Well at my own office, this happens every year and far more often than the reporter would seem to appreciate for it to be worthy of note. Perhaps they have so much property available in London that renting in one day becomes unusual, for the majority of the Country it is not unusual and hopefully helps to explain for the rest of us why the need for more property is greater outside of London.

Rents catching rate of inflation .

One thing that the current increase is confirming is that the rate of inflation for the last ten years matches the increase in rent for the same period. I am of course aware that region by region this will differ, but locally when the average rent for a three bed semi (most common and popular type of property) is viewed for the last ten years, the increase falls just short of inflation, being between 2.25 and 2.5% per year. Therefore Landlords are not taking advantage of the situation financially, by charging more than is justified, rather the increases are placing rents where they would expect to be in line with inflation. The only area where they perform better, is when set against other methods of investment, for whilst value of property may have declined recently, increased rents, especially for those with flexible mortgage rates, have continued to repay Landlords for their investment.

Is anybody watching?

To return to my initial point in this Blog, if those in a position of influence are looking at this demand and increase in rents closely, then hopefully Buy to Let Mortgages will show signs of being more readily available again. Last time I made the same call, the financial situation was not as poor as it currently stands, with European Country after Country struggling to maintain its own economy without being bailed out and the possible fall out to our own markets should our exports be badly hit. Add this to the effects of our own stringent financial measures starting to take effect, especially in the public sector and it is difficult to be positive, so any request for easier terms would be matched by more demands for care. However, I am sure that there is room for some movement and as heard on a report earlier this week (cannot confirm where as I was passing a radio in the middle of Oxford supposedly on Holiday!) Buy to Let mortgage applications are on the increase and the return is increasing and by ignoring this improving market again, I believe another opportunity to kick start the sales market will have been lost!

18Jul 2011

Rental Issues: Checking in advice for Tenants.

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By Steve Roulstone

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

You have to be there!

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

That means you!

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

Achieving completeness.

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

Prior arrangements make for better action.

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

13Jul 2011

Landlord Advice: Utility Bills under control

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By Craig Smith

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

Ensuring the Accounts are set up Correctly

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

Debt Chasing and Court Action

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

Choose Your Suppliers Wisely!

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

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

Water Supply

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

Council Tax

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

13Jul 2011

Advertising a Rental Property: Where and How?

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By Craig Smith

Each advertising platform may try to tell you that they are the best to market your property, whether it be online or in your local newsagents. But which really is the best way of advertising a property?

Internet Property Advertising

Well, I guess there can’t really be a right or wrong answer to this as there are so many factors to take into account. Perhaps the most wide reaching method is the Internet with, according to the Office of National Statistics, more than 30 million adults having Internet. In turn, some of the more widely recognised property advertising sites advertise using television and radio campaigns, which then generate more users for the agents using the sites.

It is a fact that most enquiries we take are from Internet sources. The majority seem to be either from our own website, Zoopla or Rightmove just to name a few. Some of these sites are particularly useful to working professionals who might not always be at home to read the local newspapers or they can perhaps even look whilst they are at work or travelling with the aid of modern mobile phones or a laptop.

As an ARLA regulated agent, Castle Estates also display available properties on Property Live (refer to our previous blog on agent regulating).

Your Local Newspapers

If you are looking to stay in your local area, most local newspapers have sections for property for sale and to let. The disadvantage to this is that it will only reach a local audience and won’t appeal to the national audience. We see a large number of professionals who move from various places around the country and even abroad for work or to be closer to family. However, newspapers might only be published once or twice a week, whereas Internet advertising can be changed as and when properties come available.

Of course, there are still a number of people who don’t have Internet access or prefer not to use it, which is where the local newspaper will reach more prospective clients. Most areas have a weekly free newspaper which will be distributed throughout the area and should reach a large number of people.

The Good Old Advertising Boards!

Some people will see boards displayed at a property as a nuisance, particularly if a number of properties are available in a small road. However, on busy roads and popular housing estates, these boards can generate a lot of interest in a property. A lot of people will see a board and then go onto the Internet to find out further information. They also come in very handy if your not sure whereabouts the property actually is!

So Then, Which is Best?

Unfortunately, there is no definitive conclusion on this. Each way of advertising has is benefits and disadvantages, which might suggest that the best way is to use all of them. The best would be whichever suits the clients that are being targeted, in our area there are rural villages where many people prefer a local paper than using the Internet, but also people relocating who find it easier to look at the up to the minute details on the web. 

08Jul 2011

Property Landlord advice: Periodic Tenancies – friend or foe?

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By Mike Edwards

Under the provisions of section 5 Housing Act 1988 when a fixed term tenancy reaches its last fixed date from the next day onwards it becomes a periodic tenancy. This is an automatic process, no-one has to do anything and it happens whether or not the landlord is happy about it, or would prefer a new fixed term agreement to be in place. Either party can state if they want another fixed term but if the other party doesn’t agree then they are going to end up at best with a periodic tenancy. Or if it is the landlord that is insisting on a fixed term then his only option is to give notice to the existing tenant and find a new one.

Landlords decision.

Few Landlords normally feel that strongly but occasionally if the initial agreement is ending at a date that could make the end of any replacement tenancy awkward – say between mid November and mid March, then it is not uncommon for that Landlord to seek a longer term in an attempt to avoid having to re-let at what is generally acknowledged to be the worst time of the year. It is very much horses for courses at the end of a fixed term as to what the parties would prefer, or indeed insist upon. There are advantages and disadvantages for both parties both in being committed to a fixed term or in having a periodic tenancy. The most obvious for the Landlord is he is at the mercy of a month’s notice from the tenant at any time.

It’s that last day rule again!

The notice must expire on the last day of a period of the tenancy, so if rent is due as per the agreement 1st monthly the notice and any obligations under it – such as rental payments – must continue until that date unless the parties mutually agree an earlier surrender of the tenancy. The Landlord must give two months notice if it is an AST or an AT with the same end of notice period dating requirements. These were clarified in Church Commissioners v Meya (2006) in the Appeal Court and thus the decision is binding on lower Courts.

Notice period.

The requirement of two months notice in a periodic tenancy sometimes causes Landlords real difficulties so the trick is to do a standard visit 10 – 12 weeks before the known end date of the tenancy and while looking around subtly sound out the tenant’s intentions. If there is any hint they might want to go periodic rather than sign up for another fixed term (if that is what the Landlord wants) then serve a s21(1)(b) during the fixed term as a belt and braces position to protect the landlord. The matured notice can then be used at any time during the periodic state. This was enshrined in Case Law many years ago as there is no time stipulation stated in the Statute for how long a matured s21 notice remains valid and can be used in Court. So you could serve a s21(1)(b) on day 2 of a 6 month AST if you like and use it to evict the tenant after he has been periodic for 5 years or any time.

Agreed solution.

Finally if the tenant does want to go periodic then on giving one month’s notice a 13(2) notice can be used if a rent increase is due. A fixed term does give the landlord more certainty – but like the tenant it does mean he is stuck with the other party if his plans change and he wants the house back, so the key to unlock any problems? Discussion! Talk to your Tenants and reach an agreement that satisfies everybody – ah the art of Management!