Tag Archives: Castle Estates

25Mar 2011

Current Property News: Landlord specialist Insurance must be given strong consideration.

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By Steve Roulstone

It is time once again to stress the importance of Landlords Insurance in the rental market, as we approach another year of difficulties in the workplace. This at a time when record numbers of properties are coming to our market sector and in many cases the demand for rental property is outstripping the supply, the risks MUST be understood by Landlords and the added security of such Insurance Policies as far as I am concerned are the minimum requirement for Landlords, especially those who are renting property for the first time.

Nobody can be secure.

I am not alone in promoting the values of such Insurance and the common sense reasoning is there for all to see. With a policy that protects both the rent and covers the costs of evicting a Tenant, at a time when redundancies are growing (This BBC News link will confirm) Letting Agents should be suggesting that all Landlords take such a policy as a matter of course as no Letting Agent can confirm that the Tenant that they source for the property will not be one of those who may suffer this fate themselves.

Solutions do exist.

 

Of course, any professional Agency will have their tried and tested systems to show how arrears are dealt with and dependent upon the situation surrounding the Tenant (who will always be professionally referenced) could negotiate the surrender of the property on the Landlords behalf and of course with the Landlords approval. But with the best will in the world, and with the best of intentions, no Agent can either stop problems occurring or be able to foresee the manner in which Tenants may react to bad news.

Cost is not prohibitive.

 

With six month’s rent and legal expenses covered for as little as £100.00 in some cases, and as a Landlord myself, I can see no reason why this peace of mind policy should not be taken, but it is not just new Landlords that should take advantage of the policy, I believe all Landlords should consider doing so no matter how long they have rented their property. This cost when considered against the risk, whilst proving that the risk being covered is not a common problem (No insurance that covers a cost risk of several thousand pounds if claimed upon on a regular basis could still be available at such a low premium) is at such a low cost that it really should be taken against every property let, because when a Tenant neither pays or moves on it is not only the fact that it is such a costly process to the individual Landlord against the property concerned, I have also witnessed just how upsetting and time consuming it can be to the owner.   

Peace of mind.

 

It is the comfort factor alone, that income and legal expenses are covered that gives Landlords this feeling that at least they do not need to worry as professionals deal with the situation on their behalf. Instead of having to find a solicitor who not only understands property law (Not as common as you would think in the High Street) but have to be involved at every stage of the process themselves in the decision making, the policy ensures that professionals take all of these decisions on your behalf, as they ensure the matter is dealt with as swiftly as possible, simply because they are the ones paying if the matter is not dealt with in this manner, so yes I advice taking out this peace of mind insurance, perhaps the question should not be why, but rather why not?

16Mar 2011

Property Landlord advice: Block Management and Letting Agents (Part 2)

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By Steve Roulstone

There are several areas where having somebody who is qualified to understand the implications of renting leasehold property managing the site is to the advantage of the other Leaseholders and the running of the site (Block Management Company) in general. One of these is the need to ensure that any secondary agreement offered to a Tenant by a Leaseholder carries the requirements of the original lease within it, to ensure many basic stipulations of the site can be upheld.

Upholding the rules          

 

Without such inclusions, (which can be dealt with reasonably easily by anybody who understands the implications) such basic site rules as ‘No Caravans’ or ‘No Commercial Vehicles’ cannot be enforced as the agreement of the lease is with the leaseholder, not their Tenant The Tenant is only answerable to his legal agreement and if the clauses are not included, then the original Leaseholder in allowing the Tenant to break the lease and is the person therefore answerable to the Management Committee.

Ignorance is no excuse.

 

There is no way around this as I have found in my own experience, indeed it was only because one Tenant who parked a caravan on a site we Manage was very understanding, that we managed to have the rule enforced. The Leaseholder and therefore Landlord’s only excuse was lack of knowledge, because his Agent had not taken the time to check, which of course must be the situation up and down the country. But there are many clauses which can fall fowl of this problem, such as pets and of course the biggest problem of all, the permission to sub let in the first place.

Permission to rent.

 

Permission cannot be unreasonably withheld of course for any matter, but if the Leaseholders who live on the site as well as the Freeholder (if not self managed) who’s lease we are discussing here, did not intend the property to be available for rent, then by having a Letting Agent acting as block Managing Agent, whether acting for the Freeholder or the Block management Company (Residents) it is probably in the best interest of all concerned that the rule can be upheld.

Check before signing.

 

So the golden rule is to check before any sub-let is agreed and yet in all of my time as a Letting Agent who operates as a Block Managing Agent as well, I have never once received a phone call to request confirmation of the contents of the Lease or indeed ask if Permission is given on site, from either other agents or Landlords running their own Management. It begs the question just how many ticking time bombs exist out their?

02Mar 2011

Franchise News: Why choose a Property Franchise NOW!

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By Steve Roulstone

Last year I wrote a Blog about why somebody should choose a Property Franchise when looking for a new future in Franchising. This week some figures have been released as a result of the Communities and Local Government English Housing Survey for 2009-2010, which confirm if ever there was a right time, that time is now!

Increase in Rental properties.

The figures released based upon a survey of a total of 21.5 million properties in England, has shown what can only be described as a mammoth increase in the Private Rental sector over the preceding twelve months, which even outstripped the increase at the start of the housing sales slump in 2008 of 1.2%. This time the increase is 1.4% and this is confirmed by recent news items, suggesting that demand could see this increase outstripped during this current year. Indeed figures are being discussed which would give another record increase approaching an additional 2% possible this (current trading) year.

Steady growth.

The overall percentage in the private rental sector as shown in this survey is now 15.6% (Current figures being discussed are 17%) with the social rental sector now falling to 17%, it clearly looks as if private rented property could overtake the social sector to become the largest sector, within the next twelve months. In big round numbers, this is an increase of nearly 300,000 properties in one year, which is all additional potential business for Letting Agents, at a time when more and more self managed Landlords are also turning to the Industry.

Effect on local markets.

So how does this affect local markets, well let’s look at Birmingham, who confirmed 420000 properties within the City Council boundary paying Council Tax last year. 1.4% growth would represent a potential of up to 6000 additional properties, which, at £1000 average earnings per year as a conservative estimate, would produce potentially £6 million pounds additional turnover for the area. Even in a quarter of the City, £1.5 million additional turnover, should encourage anybody able to make a start in Franchising, that the market is buoyant and still growing.

Continued growth.

But it is not just the current growth which is encouraging, for the market has shown growth of over half of one percent year on year for the last decade. What is happening now is a clear sign that this growth is constant and growing. The icing on the cake for Letting Agencies is that the number of potential Tenants continues to grow. This has also been widely reported in the press, and again in a period after this latest survey. So never has there been a better time to become a Letting Agent so you will have to excuse me, whilst I go and make sure there is a clear path to my door!!

15Feb 2011

Property Landlord advice: Letting Agency visits a must.

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By Steve Roulstone

There is no doubt in my mind what so ever, that the Property visit for Landlords in a fully managed scenario, is one of the most important functions carried out by the agent on behalf of the Landlord. It works so well on so many levels that when I cannot understand why any professional agent should not carry them out.

Landlord benifits.

When you receive a report that the property is or even is not, being looked after by the existing Tenant, means that as a Landlord, you know that the agent is on the job and that you are receiving a return for the monthly fees being charged. A report on the current Tenancy, which should in my opinion (and practise and I am not alone!) be carried out every three months especially with a new Tenant can put your mind at rest about the property, or give an early warning about what may need to be done in the future. Whichever way this plays out, this becomes a strategy and the best way to manage any situation is to plan in advance and that is exactly what happens when holding regular property visits.

Tenant benifits.

Now what is not recognised so readily, but is an issue that I have seen firsthand, is that the same visit also gives the Tenant belief that the owner of the property cares about its condition (this to me is why so many Tenants talk about their agent as their Landlord by mistake, because the face of the Landlord IS the Agent and they know somebody cares!) and it is very important for the person paying the rent to know that they are not alone in being responsible, financially or otherwise, for the home they live in and pay to live in!

No losers!

So everybody wins when visits take place, but make sure it is organised well and legally, badly dealt with this could cause more problems than NOT visiting, but I continue to experience first hand that it can be difficult to get Landlords to carry out direct visits themselves especially under self Management, but what they do not realise is the harm it does to the perception of them as Landlords by the Tenants! I have stated before and firmly believe that if Tenant requests continue to be ignored by Landlords those very same Tenants who want action because they care, will stop doing so and that can only be bad news for the property itself.

Difference between Inspection and Visit?

Technically none, but it is worth pointing out that to the true definition of the word, it is Property Visits we carry out and not Inspections. Many years ago an Agent was successfully sued for failing to report on the failing condition of a property as part of the ‘Inspection’ which resulted in heavy cost for a Landlord which could have been avoided should the problem have been spotted at an earlier date. This then opened a can of worms for Agents and a better defined ‘role’ and ‘description’ was utilised, that I feel is better described as a ‘Visit’ to carry out a ‘Check’ on the manner in which the Tenancy is being carried out. This removes the risk on us not noticing that the chimney stack is cracking and the cost of replacement for not reporting at a time that remedial action could have been carried out!

20Jan 2011

Franchise News: Franchisee guidance and timetable – The key to clarity.

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By Steve Roulstone

If I have learnt anything in my first year as a Franchisor, it is that the best help and assistance I can give to any potential Franchisee is twofold; clarity of purpose and a clear route to achievement. I should not be surprised at all and really should have known from day one, as it was what I was looking for when I first approached Franchising as a way of achieving my objectives in life, back in 1999. But as it is something that happened in my case rather than something I knew I needed, it was something I accepted without questioning why or even realising it was what was being offered and subsequently was then delivered to me.

Franchise visits.

At the time that I was investigating the Franchising market, which luckily for me was in the autumn of that year, just at the time of the National Franchise Exhibition, I visited several organisations from differing trades and Industries, all of which in my mind could be an industry that I could operate in. In the end it did not take me long to choose the Company I now head, but looking back at why, is more revealing.

Why Castle Estates?

So why did I choose Castle Estates? I had decided that it was an Industry that I felt comfortable operating in (Requirement number one!) but they were not the only organisation that I looked at as I visited the possible partners in Franchising with my Wife (which is exactly what any prospective Franchisee should do, right from the start, as it is so important to ensure that all partners believe in the venture you are about to launch) so I asked her when I was thinking about the answer what she remembered of the day at the then Head Office in Milton Keynes and her answer was what formed the basis for this Blog.

A vision of how it worked!

Jenny’s words not mine, that was her answer and it is exactly what I have learnt in putting together the manner in which I present not only our Company, but also the Industry and most importantly, Franchising itself, to all who come to discuss the opportunity of becoming a Letting Agent with Castle Estates. It can be frustrating sometimes to realise why and how some things come together, what I have come to describe as ‘earth shatteringly obvious moments’! As a Franchisor, we need to offer a clear route to becoming a Franchisee, so that it is understood what is needed and how our goals are achieved, offered within a timetable which clearly states when all of this fits together as we work towards starting this all important and all encompassing venture for both parties. Added to clarity of vision, so that what we are trying to achieve is clear for all to understand and how it is achieved is understood as well as what is needed to continue to progress towards completion and the start of a new business. 

What to look for.

This is not something that has come easily and needs careful consideration in ensuring the plan (which in my case has taken the best part of six months to assemble, this with the assistance of professionals trainers to ensure nothing is left to chance) that every franchised organisation puts together is consistent and delivers ‘what it says on the tin’ (a saying I am using more and more) but I would recommend everybody looking at a Franchised Company considers this methodology above all others. Only when what you buy in too can be clear and decisive about what they deliver, can the end result be worthy of your investment.

14Jan 2011

Property Landlord advice: Rent arrears kept in control.

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By Steve Roulstone

It is that time of year again when as all Letting Agencies know, rent arrears are at their worst. The Christmas credit card bills start to arrive, if the bank account has not already been left dry because of too much celebrating during the Christmas Holiday, especially with the current financial climate So we must be extra vigilant and ensure that our systems are up to date and no time is lost in dealing with the issue.

Proper methods

The key to dealing with arrears is communication and a system that is tried and tested. At Castle Estates we use a system that has been built over the last twenty years and is based on regular communications that whilst leaving the Tenant in no doubt as to what the problem is, also ensures that they know we are always available to discuss the matter to hand.

Lets talk!                  

It is dealing with matters in this way that leads to resolution in most cases and even if the Tenant is unable to pay the rent, because of the loss of a job for example, it is communication and relationships that are going to give the best solution in the long term. I am not saying that legal action can be avoided just because we are on speaking terms with the Tenant, but the ability to have reasoned conversation does mean in most cases, that you will get a reasoned response!

Not forgetting protection           

Of course policies are available for Landlords to ensure they are covered for any loss and of course as I have stated before, we highly recommend Landlords take such a policy and that they also investigate which policy suits their needs of course to be sure that we are in line with FSA regulations, as a Company we do not recommend any particular Policy or provider, but we must ENSURE Landlords know that Rent and Legal Insurance policies exist.

Range of coverage.

But what I will comment on is the range of policies and differing levels of cover that they give and in some cases not always for the best. Letting Agencies can now link themselves to services which will take over the Management of the debt and serve the appropriate notice for them. Well forgive me, but that is like saying we are a Letting agent – to a point! These are intrinsic parts of a Letting Agents role to me and once again give clear demonstration of the difference between a Letting Agent and Letting Agencies. I for one would not wish to ‘offload’ what is a vital part of the service we offer our Landlords.

Be aware!

Every Landlord should of course not only expect their agent to be able to offer the service themselves but also ensure good communication to keep them fully aware of not only missed payments but what is being done and the responses received to deal with the problem. This will also ensure that progress towards the possible appointment of a solicitor if insurance is not in place will be known and not come as a shock. So be aware, act at the appropriate time and keep all informed. That way we can hopefully reduce the problems rather than increase them during difficult times.

 

24Dec 2010

Christmas Wishes to Landlords and Tenants

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By Steve Roulstone

It is one of my favourite times of the Year and because I spend my time writing about Tenants and Landlords and our thought provoking conversation filling Industry of ours always provides plenty of topics to write about, I thought it right to go ‘Off Piste’ for once and wish every Tenant and Landlord and anybody else who stumbles across this Property Franchise Blog a very Happy Christmas and above all a prosperous and fulfilling New Year for 2011.

New Year new hope.

No doubt in the weeks to come, we will again have plenty of ‘ammunition’ to write about and as always, your comments are welcome, but I feel this year is going to be a good one and we are going to see the stabilisation of the property industry, with sustainable levels of transactions and some relaxation of the availability of mortgages, especially in the Buy to Let market, enabling Landlords to supply what the current Rental market requires, more properties to let. After all, market forces do have a way of finding solutions.

New Topics

This will of course bring many new topics to discuss and I will endeavour to continue to supply a point of view and hopefully some helpful ones from within the Industry. I hope that as a professional Agent (there I go with that word again!) a Landlord and a Tenant and as somebody who has been a Franchisee for ten years and is now a Franchisor for nearly the last two have some valued insights and be able to consider all sides to any topic, even if my assumptions and writings cannot always be agreed with!

New roles

So to everybody who becomes a Tenant or Landlord in 2011 and indeed to everybody who becomes a letting Agent a hope your experiences are good ones and that you receive good advice, good service and find success in your new roles.

17Dec 2010

Property Landlord advice: Tenant Deposit clarity?

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By Steve Roulstone

I was reading an article this week about the Court of Appeal rulings on two recent cases and whilst I believe there is some underlying common sense in the decision in the short term, it has also been confirmed in my opinion, that long term, Landlords, who will probably have costs awarded against them in such circumstances, continue to risk the full weight of the penalties as laid out in the Tenant Deposit legislation if they do not register deposits correctly. It has of course raised a question of whether the legislation is now toothless, but it is the more practical fallout that I would like to look at.

14 Day rules

What the review has done is confirm that the 14 day registration is just that, a rule and therefore whilst it is right and proper that all Agents should register within the rules of the approved scheme that they are using, failure to do so is not covered by legislation confirming the appropriate penalties referred to within the legislation. It has also confirmed that should the Deposit not be registered within the 14 ruling then allowance will be given providing it is registered and therefore protected before any court action commences. In fact, all approved agencies cannot refuse to protect the Deposit. But I feel it is right and proper that whichever scheme an Agent or Landlord belongs to should be allowed to take appropriate action in such cases, but at present this is not the case.

Grey area

I hear that the matters ruled upon are now a subject of further appeal to a higher court. Add to this the ability for judges up and down the Country to still make rulings which do not have a common theme and we have what can only be described as a ‘grey area’ and this is the main factor that should be taken from this ruling.

Conclusion

To continue to risk penalty by failing to register a Tenants Deposit within the Tenants Deposit Scheme, apart from flying in the face of the intent of the original legislation, is a poor decision and will probably, to quote a well known saying ‘ all end in tears’ It is the role of National Companies such as ours and the Government approved agencies that carry out the role of protection, to discuss lobby and suggest ways of making this and any legislation work within the intent of the original act. At Castle Estates we will continue to carry out this role and as the agencies go about their task in getting the clarity we all need, to act against the intent will only give purpose to those who would argue against practical changes to make the legislation work to the better for all concerned.

03Dec 2010

Franchise News: Resolving Territory problems

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By Steve Roulstone

I have spent the last few weeks seeing many prospective Franchisees as a result of the National Franchise Exhibition at the Birmingham NEC held last October. This is a very busy time of year and of course very concentrated when it comes to discussing Franchising in general and the issues that affect people when they are considering joining the growing numbers of Franchisees in this country. As I said, concentrated, because I am being asked several questions on a daily basis and one of the major issues seems to be one of cross Territory trading.

Whose customer are you?

Boundaries are of course easier to define in some industries than in others. For example, we cannot insist that a Landlord only buys his property in the Territory that we ‘own’ as part of our Franchise agreement. This is easier for example if we were delivering produce, or providing a specific service at any particular address, rather than a centralised style of Management Business, especially one that the general public are associated with as Tenants, not because we are a Franchise, but rather because as a Franchised industry, we provide a service they want, such as housing.

Whose choice is it anyway?

The question that gets asked so often is how do we cope with property that falls in a different Franchised area, but where the Landlord wants to use the services of a different Franchise than the Franchisee who ‘owns’ the area where the property is situated. This will also be a problem for some service providing Indistries, especially where Family are concerned as they are bound to want to favour their own, and indeed may not even use the Company at all if it was not for this specific relationship.

Let the customer decide!

The answer is of course common sense, well it is for us, I cannot confirm for others. At Castle Estates we offer larger areas than most from the start, this means that our boundaries are always further from the central point (Office location) than others that operate within our (Management) Industry. This greatly reduces the chances of cross border problems, especially as we try to link areas that are both socially as well as geographically linked. But at the end of the day, by allowing the customer to decide and by accepting that it is the relationship with the preferred Franchisee that has given the opportunity for the business to be enjoyed by the brand in the first place, we ensure the customer (which for us means the Landlord) makes the decision.

Consequences

All we ask is the courtesy of advising your neighbour of what is happening, which again, because of the size of territory we offer, usually means co-operation in marketing anyway! Of course the other result of larger Territories is that we do not encourage cross border trading, as most of the Franchisees activity is bound to be close to the centre of operation and when borders are correctly positioned, for example, wherever possible, NOT through the centre of Towns and Cities, the risk is greatly reduced.

 

29Nov 2010

Rental issues: Property maintenance delays caused by freezing weather.

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By Steve Roulstone

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

When problems occur

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

Delays in Agent services

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

Services not serviced

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

Patience is still a virtue

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