Tag Archives: Castle Estates

05Jul 2011

Property Rental Advice: Unregulated Agents May Not be Properly Trained

⋅ Leave a Comment

By Craig Smith

There have been a number of news articles recently about the number of letting agents going out of business whilst still in possession of money that is owed to Tenants and Landlords. Sometimes the office may relocate to save costs but sometimes poor communication can lead to a lot of confusion and Landlords being out of pocket.

Professional Bodies

There are a number of professional bodies that agents can join, there is ARLA, RICS and NALS to name just a few, and Castle Estates Staffordshire is an ARLA regulated agent. By being members of a governing body, this can give Landlords and Tenants reassurance that their money is safe and protected as necessary.

Is Your Agent ‘In the Know’?

There is no current law that says a letting agent must be governed and near enough anybody could start their own letting agency. Some of these agents may be charging very low management fees which will no doubt attract some Landlords due to the lesser amount of money that they would have to pay out. But do some agents have the experience and the knowledge to manage a property correctly?

We are proud to have 4 fully ARLA trained staff in our office and 3 more staff members currently working their way through the training material and examinations. By having staff members completing this training, they show that they understand the current legislations and practices that dictate the world of lettings as well as receiving regular updates in lettings news.

Safety Risks

As mentioned earlier, some agents may not have the experience or the know-how when some matters arise. In turn, this could compromise Tenant safety during a tenancy, for example not having a Landlords Gas Safety Certificate completed each year. The safety check is perhaps the most commonly thought of but there are dozens of other examples, such as the Fire & Furnishing Regulations Act 1988 where furniture provided by a Landlord must meet certain safety criteria.

So Who Can We Trust?

There are a number of unregulated agents who are more than trustworthy and we do not aim to ‘tar everybody with the same brush’ where this is concerned. Likewise, there are still a few rogue agents who will be regulated but may still choose to deal in an inappropriate manner. Sometimes the best marketing tool is the simplest… recommendation! 

28Jun 2011

Cost Cutting Leads to More Disputes Between Landlords and Tenants

⋅ Leave a Comment

By Craig Smith

In recent years, the country has been through a recession (some people would argue that we a still in the recession) and the cost of living seems to be ever increasing. Not only the cost of food and necessities but the cost of fuel has risen dramatically in just the last few months. This has had a knock on effect in the way that some properties are presented at the end of some tenancies.

Increasing Disagreements Between Landlords & Tenants

We have seen an increasing number of disagreements between Landlords and Tenants over some items which may be considered insignificant in the scheme of things. For example, a shower curtain may be left in a well used condition at the end of a tenancy by a Tenant who doesn’t think they should spend £10-20 replacing it. However, the Landlord may also be less willing to replace it as they may see this as an unnecessary expense. This then leads to a dispute between them and can sometimes turn what was a perfect tenancy into a feud.

Deposit Disputes

Thankfully, we don’t have a great deal of deposits that go through the DPS adjudication process (please refer back to our blog relating to best practice for deposits) although it is increasingly difficult to reach an agreement between both parties. We act as agents on behalf of our Landlords which means that some Tenants see us as ‘taking sides’ This isn’t the case and whilst we do work for Landlords primarily, we always try to reach a fair decision. For example, a Landlord who may be trying to charge £100 for that shower curtain probably wont get his money if the case went to dispute.

Issues at the Start of a Tenancy

Not all disagreements occur at the end of a tenancy. Some Landlords may not see the need to clean a property before tenants move in or have those little jobs finished. This then comes back round in a circle at the end of a tenancy when the Tenant may feel that they should leave it in the same condition.

What to Do?

Best practice dictates that a property should always be presented clean and in good condition at the start of a tenancy. By doing this, there is a benchmark for how the property should be returned when a Tenant vacates. Although wear and tear can only be expected, properties should always be presented as you would like to find it!

24Jun 2011

Current Property News: Castle Blog celebrates 1st year Anniversary!

⋅ Leave a Comment

By Steve Roulstone

It is now a year ago that we started the Castle Estates Blog and I am pleased to say that we continue to attract comment and contributions from the Industry with two new contributors due in the next month. We have provided blogs under several headings during this time, covering Current Property News – Property Landlord advice – Rental Issues and of course as a Franchising organisation – Franchising News.

Current Property News   

We have used this heading to concentrate on breaking news items which over the last year has mainly involved Industry Legislation (and my ongoing belief that we need the Government to introduce both a registration scheme for both Landlords and Letting agents) The Housing Market and Mortgages, legal cases surrounding our Industry (not forgetting announcments such as this!) as well as those times when high profile people within the Lettings Industry have reported, mainly on the BBC, who, because of their apparent dislike of the Housing market cannot wait to deliver any news item in a negative way – as they say, bad news pays!

Property Landlord advice.

In this section, mainly based upon advice and information for Landlords, we have reported on bad and good trends, given advice on HMO’s as well as Resident Landlords, as well as advice on differing scenarios that present themselves as Landlord choices, such as furnished property, Excluded rooms and Garages. Property presentation issues such as gardens and decoration, not forgetting the two most important rooms in any house, the bathroom and kitchen!

Rental Issues.

This heading has been used to give information and hopefully clarity over perceived problems within the Industry through the eyes of the Tenants. I believe the area that needs clarifying above all others is the role (legal) of the Agent and how we stand in law in delivering a duty of responsibility to our Landlords, but a duty of care to our Tenants and how this difference manifests itself in our day to day role and through the contracts we employ. In doing so we have reported on notice periods and the reasons why, holding rented property for Tenants and explaining the effect of void periods to Landlords.

Franchise news

This has been our vehicle to get news out there about how the market is changing, the advantages of Franchising and how we see them, as well as were individuals can benefit from networks such as ours. It has also been the heading that we have shared with others in our Industry where our opinion has relevance to the message that they have been passing on to their readers.

Visitors and the year to come.

There have been many, many, more subjects covered in the well over 100 blogs we have posted on this site, too many topics to list sensibly, but we will continue to write about our industry, the housing market and legislation that effects the industry in the same vein over the coming year, with as already promised more contributors from all sections of our industry, joining the writers we already have from the Insurance markets, Training and Legal advice circles as well as Professions from within the Franchising Market. Thank-you for looking in, please continue to tell your friends!

23May 2011

Property Letting Advice: The Importance of Good Communication

⋅ Leave a Comment

By Craig Smith

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

Tenants Decorating Permission

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

Payback Time

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

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

Lessons to be Learned

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

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

17May 2011

Local Housing Allowance Changes to Affect Landlords & Tenants

⋅ Leave a Comment

By Craig Smith

Since the coalition government came in to power in May 2010, a number of cuts have been announced as part of their plan to reduce the deficit. One of these cuts is to the LHA (Local Housing Allowance) which is paid to the unemployed or those with lower incomes who are living in rented accommodation.

The Affect to Tenants

The amount of LHA paid to tenants will be reduced, typically around £30 per month on a 3 bedroom house (see the handy table which has been produced on the DirectGov website). This might not sound like a lot to lose, but this could be an extra £360 a year to find, and when your already struggling to make ends meet this can be a lot of money. Put this together with the ever increasing cost of living and things only seem to look worse!

The cuts come into place either on the renewal of a claim (12 monthly anniversary) or when there is a significant change to the claim, such as a new baby or moving from one property to another.

Landlords Reactions

A member of staff from Castle Estates recently attended a local Council Private Sector Landlord Forum which was to discuss the changes and keep Landlords informed of what is going to happen. The meeting itself was perhaps aimed more at private Landlords (as the title suggests!) although a lot of useful information was provided to everyone who attended regarding the cuts.

As the amount paid to Tenants is to be reduced, the extra money needs to come from somewhere. And if the money can’t be found then the council’s answer was simple… reduce the rent. At this moment the room fell silent for a second or two, until a few Landlords began to chuckle. They seemed to have forgotten that Landlords still have mortgages to pay, insurance to cover and repairs to be made.

The Route Forward?

Perhaps the first thing to come into a Landlords mind is to steer clear of any Tenants who may be in receipt of LHA payments. However, in the long run this would mean less and less housing available to those Tenants. This doesn’t necessarily mean that some Tenants may not be claiming in the future, for example, someone who has recently been made redundant and is unable to find new employment?

The other way of looking at the situation is that although the payments would be a lesser amount than would have been expected before, the payments would be made regularly to the Tenant. This doesn’t always guarantee that the Tenant will pay the money to the Landlord, but some good tenant referencing would also help in the selection of a suitable tenant. 

18Apr 2011

Rental Issues: Tenant Referencing disclosure eases the way

⋅ Leave a Comment

By Steve Roulstone

One of the advantages of being part of a Company that both sells the Franchise and runs a Franchise is the close access and conversations that I hold with my Staff. For example, Suzie who has worked at our Stafford office for the last two years was telling me this week how difficult it was to get people through their referencing at present, something which in the current financial environment we could all probably understand.

The requirement is justified.

What has to be remembered here is that Landlords must have a successful reference to be able to obtain a Rent and Legal expenses policy, something which I have confirmed on many occasions, is a must in the present climate. So as agent of the Landlord, we must do what is best for our Landlords at all times, the problem can occur when the Tenant who wants to live in the Landlords house, feels that our requirements to get such a pass are either becoming expensive in the Tenants eyes (which is a problem that has been reported for years and I fully expect it to be in the news again this year) or that the requirements to achieve the pass (Self employed parents usually the problem, or Guarantors who are retired) are far too onerous for the circumstances.

Information is everything.

Of course, what every agent should do is provide the prospective Tenants with as comprehensive a pack of information explaining the process they are entering in to as clearly as possible, as well as costs associated with the process and options available as the process develops. But it is our experience that Tenants do quite often sign without reading, or pay scant regard to the content. It is only when, again in doing our job, having already assessed the situation prior to taking any costs from the Tenant, initial applications fail and we try our best to find an acceptable solution to enable the Tenants to move ahead, that the process can suddenly come under scrutiny when full attention at the commencement could have avoided this common scenario.

Openness and Honesty.

The worst case scenario for us is when the Referencing Agency come across something in the Tenants background that has been omitted from the initial information requested. Now we have a problem for all parties having advised the Landlord we have a Tenant being processed and a Tenant having to find somebody to stand in their shoes (Guarantor) to enable them to proceed. This can be the time, depending upon what has been discovered, to take the Landlords opinion, with our recommendation and bring a stop to the process. But if a decision is made to continue Tenants must understand that for both the re-application to the Referencing Agency and the additional time and effort put in by our staff additional costs will be generated and therefore paid for.

Producing effort and savings.

So at a time when Referencing Agencies are correctly taking a sterner view on Tenant applications, complications are just not needed, because Tenants must remember that the property is effectively off the market whilst we go through the process with them and other Tenants more suitable could have come and gone during the Referencing period, so our recommendations has to be to give full disclosure from day one. Honesty really is the best policy and you will either get the full effort of the Agent to guide you through the process because of this or at least be given an experienced opinion which could save you your money in the first place.

13Apr 2011

Lettings Update: Change in EPC Rules to be Implemented

⋅ 1 Comment

By Craig Smith

From 1st October 2008, most residential properties need to have an EPC (Energy Performance Certificate) in place before they are able to be marketed. However, this looks set to change from 1st July 2011 due to new government rulings which have been announced to the energy assessors.

Current Regulations

At the moment, an EPC graph should be provided to prospective Tenants at a viewing and most certainly before they take tenure of a property. An EPC will last for 10 years for a rental property unless there are significant changes made to a property, such as the fitting of a new heating system, insulation being put in or new double glazed windows fitted.

Are EPC’s Useful?

If you asked us how many times a prospective Tenant has asked to view an EPC at a viewing since October 2008, you could probably count them on just one hand! This seems to be the general feedback from many Landlords and Agents. So that must mean that not many people even bother to look at them!

The certificates do good information on how to reduce the amount of energy used and improve efficiency. But again, if no-one looks at them what use are they?

The New Rulings

A government memo has been seen by one of the industry’s biggest publications which suggests that from July 2011, a full EPC report should be provided with ANY written details for a property. At the moment, the first page of the report is sufficient as this shows the performance graphs. So lets just get this straight, we should have to provide a complete document, usually around 7 pages, for most people to throw away. Why?!

Full EPC’s are available on request anyway (not that we ever seem to have requests for them) and if anybody does happen to be interested in the energy usage, it is usually only a quick glance at the graphs. Being perfectly honest, we cant remember having a single viewer say no to a property because of the results of the EPC!

Your Opinion?

We would like to hear your opinions on the subject, whether you are a Landlord or a Tenant. Maybe you have found an EPC to be useful when refurbishing a property or when choosing a property to move in to, please feel free to add a comment using the button below! 

11Apr 2011

Property Landlord advice: Lettings Sector set to grow on back of stamp duty reforms in buy-to-let market.

⋅ Leave a Comment

by Nick Strong, MD www.SelectYourFranchise.com

Lettings agent franchise networks are understandably excited about the potential for market growth in the buy to let market sector in 2011.  In the recent budget George Osborne made it easier for large investors to enter the buy-to-let market. 

 The coalition government has identified buy-to-let as a way of solving the housing crises that has been exacerbated by the difficulty of first time buyers accessing funding over the past two years of recession.

 Buy-to-let opportunities have therefore been opened by stamp duty reform.  So much so that Aviva, which has been lobbying for reform for some time is seeking to put together a £1billion fund which could be enough to purchase 5000 buy-to-let properties. This is because stamp duty on the purchase of more than one property will now be calculated by the average value of the properties, not the bulk value, which the industry has campaigned for.

 It is understood that other institutions and pension funds who have eyed the sector are Aegon, Terrace Hill, Legal & General, and LaSalle Investment Management. Property agent CBRE has estimated that institutional investors have allocated £7.5bn for residential property.

 It is thought unlikely that these initiations will want to manage their own property portfolios given the difficulties that the likes of Countrywide experienced when they entered the property market.

 There is clearly the opportunity potential for Letting franchise sector business to grow if large investing corporate decide to distribute their buy-to-let portfolio via agents with significant access to market across the UK.

 Steve Roulstone, MD of Castle Estates said ‘I have been lobbying for changes such as this especially through the pages of this site, for some time now, as I firmly believe that by easing the way for Landlords to start investing again we will start to build confidence in the property market again. Nobody is asking for financial restraints to be removed completely, as nobody sensibly wishes to go through a period of unrestrained growth that could then result, but sensible steps such as easing tax burdens imposed on Landlords can only help’.

05Apr 2011

Landlord Advice: Keeping on Top of Utility Bills

⋅ 1 Comment

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. (See Steve Roulstone’s Blog here for more information.) 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! 

29Mar 2011

Landlord Property Visits: Good Management or Just Being Nosey?

⋅ Leave a Comment

By Craig Smith

One way of monitoring the condition of a let property is to visit on a regular basis for a property visit.  This can be an ideal time to discuss any issues that may have arisen or any future plans, but are the visits to keep the property in good condition or just to have a look at what the Tenant is doing?

Always Arrange an Appointment

Any visits by the Landlord or Landlord’s agent should be agreed with the Tenant. Best practice states that agreement should be in writing although in some circumstances, a telephone conversation may be more personal. Whether it is the Landlord or a contractor to carry out repairs, permission should always be sought from the Tenant in order to gain access to the property, even if it is exterior work!

Shouldn’t This Have a Battery?!

The visits should ONLY be to monitor the condition of the property and, if needed, give advice to the Tenant as to how to best look after the property to avoid any damage. For example, maybe mould is developing around a window, you may advise the Tenant to clean it off and keep the room ventilated.

Also, the Landlord should make reasonable steps to ensure that fixtures and appliances are still in working order, such as smoke alarms. The Tenant should always ensure that any battery is working and should test the alarm regularly but if the Landlord tests it themselves on a visit, best advice can be given to the Tenant.

How Often Should I Visit?

There is no real right or wrong answer as to how often a Landlord should visit their rental property, although trying to visit too often could make a Tenant feel harassed. Castle Estates visit fully managed properties on a Landlords behalf around every 3 months or so. This is to keep an eye on any parts of the property that may deteriorate such as bath & sink seals or window frames becoming rotten.  By reporting back to our Landlords, we can carry out preventative maintenance or advise the Tenants on how best to avoid any costs.

But the Dishes Haven’t Been Washed!

Remember, property visits are only to assess the condition of the property and not how a Tenant chooses to live. Everybody lives differently so some people may be tidier than others but whether belongings are left tidy or not is only a matter of opinion. The best way of looking at the difference is that there may be unwashed saucepans left on the kitchen worktop which is fine, but when a hot saucepan has burnt into the worktop, there should be correspondence between the Landlord/Agent and Tenant as this could help to avoid any disputes at the end of a tenancy.