Tag Archives: Landlord Advice

01May 2012

Block Management Advise: Sub Letting can lead to problems.

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By Steve Roulstone

 

As an agent who act as both a Letting Agent and a Block Management Agent, we are in a fortunate position especially when renting property on sites that we manage as well, of being both aware and able to ensure that the rules of the site in question are adhered to in our Tenancy rental agreements. This was highlighted last week when a Tenant that we had turned down for a property because we knew pets were not allowed, was moved in to the same site through a different Agent, but still with pet dog at heel!

Clarification.

 

Let me first of all clarify the situation regarding the owners of Leasehold property. In law, they are Tenants of the property but on a lease which normally lasts in the region of 90 plus years. Therefore, when they let a property, they are in effect sub-letting to a second Tenant on a short term lease, usually an assured shorthold agreement. The important part of this clarification is that the Leaseholder has an agreement, the Lease, which he must abide by. This Lease will confirm what is allowed and what is not allowed to happen on site through covenants included within the lease, from the basic permission for the Leaseholder to sub-let, to such items as the use of the Car Park, balconies, use of common areas and of course the all important item for this Blog, permission for pets to be kept on site or not as the case may be!

 

The rights of the Tenant.

 

What is important for the Leaseholder is the need for such covenants that impact on the second Tenant to be included in the shorthold agreement, so that they can be enforced. Fail to state in an agreement that all covenants included in the site lease apply and such covenants cannot be enforced. I have had situations before where a second Tenant stored a caravan on the car park, which was against the lease and as Block Managing Agent it was our role to enforce the covenant. Fortunately the Tenant was very understanding as they wanted to stay long term and found alternative storage for the caravan. If they had not, the guilty party would have been the Leaseholder, as it is their responsibility to ensure, if allowed to sub let, that the terms of the Lease are upheld.

 

Back to the Dog.

 

So now we are faced with a situation where a potential Tenant had been turned away from the site because they had a pet. Correct on our part, we manage the site, we are aware of the covenant. The person concerned, because he wanted to live on this particular site, followed up another flat available through a different agent and because they said nothing, has moved in to the flat with dog ensconced. Now it is our duty to inform the Leaseholder that they have moved a pet in too a flat against the lease and that they must enforce the provisions of the covenant and remove the pet.

 

Implications.

 

Of course, providing the agreement is the normal six month Assured Shorthold agreement, then notice can be given and the matter dealt with sooner rather than later, although the reaction of the Tenant may not be as understanding as we achieved with the Caravan. I cannot foresee him finding somebody else to look after the animal having engineered a situation where he achieved his initial objective.  For the Landlord, somewhere along the line, the potential of greater costs and or loss of rent will be significant. If I were him, then a discussion with the agent would be forthcoming, again, sooner rather than later.

 

Conclusion.

 

What should always happen on any leasehold site is the lease should be checked, or at least the question asked of the Landlord, what are the restrictive covenants for the site concerned? For the Tenant in such situations, whether carried out with knowledge or not (although some would say in this case the action as carried out with full knowledge that pets were not allowed because we had already informed him) there is the question of compensation for at least moving costs and / or the cost of dealing with whatever the implications are of complying with unknown covenants at the time of signing the secondary lease.  These could of course be significant depending upon the situation, but the bottom line is that as Leaseholder the fault lies with allowing the situation to develop without sufficient safeguards in place. The question that has to be asked is why was the Tenant moved in without the Agent giving the Landlord best advice? Probably a question the agent may find difficult to answer!

25Apr 2012

Property Landlord advice: Things to consider when Buying to Let.

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By Steve Roulstone     

    

As the property market trundles on with its slow recovery, one thing that is noticeable is the increase in the number of people who are considering purchasing a property again for their rental market. In many cases this is existing Landlords who have property with us already and have arrived at the position where they have built a deposit to purchase another property, for as we all know, a significant deposit is now needed before a mortgage can be agreed. But we are also being asked by people looking to buy for the first time, as property becomes the preferred investment because of the lack of return from deposit accounts and the continued risk of traditional share investment markets.

Good planning.

I would have to say, that for those who chose tracker mortgages the current return from rental property has been significantly improved. Far from the reported problems that Landlords are supposed to be suffering when house prices dropped, good planning has led to an increase in revenue as the mortgages have dropped significantly. This has meant an opportunity, be it delayed as a sufficient deposit has been saved, for further purchases to be made and at a time, as I have reported recently, when property prices have started to grow again.

Sound advice.

But even for those who own property, it is always a good idea to discuss and visit the principles about what makes a good Buy to Let property again. This means that we are being asked to advice people more and more and we are always happy to do so. Our principal has always been good honest clear advise, even if it means saying no to a current opportunity, will in the long run, either when a potential Landlord returns or because of word of mouth that our advice can be trusted even when it does mean telling somebody that a property is not right for the rental market, will eventually pay off and at least we can sleep well at night!

 Points to consider.

So when considering property there are two areas that we believe should be considered in some cases even before you visit the property, so before a viewing is arranged, consider the following:

 Area concerned; Is it a popular area of the Town or City you are looking at. Or is the village on a sensible route.

Popularity of type of property; Is this the right property for the market. Flats or Family homes (such as three bed semi detached) are the common decision to be made and at times, depending on the size of available deposit, a careful look will be needed

Open to all markets; Such as is there a bath? Don’t forget that only having a shower will cut out everybody with small children.

Property facilities; Where are the local shops, bus routes, what are the standard of the local schools and where is the centre that people will head to for entertainment. This may not be important to you, but it will be for the Tenant.

Once inside.

The obvious consideration when you actual view the property is how much work has been done to the property and by whom? I have actually been in a property this week that has been altered beyond comparison from the original build, but by a builder owner and you can see the quality as soon a s you step inside. But be careful, I have also been in a property that a DIY enthusiast had left in such a poor state that three occupants could have been killed by fumes from the fire, electrocuted in a bath of water and by using too many appliances in a kitchen, and all the other occupants of the road would have known would have been a dimming of the lights!

List the advantages.

 Then most importantly, list all the good points. Do this when you are comparing property and you will find a decision can quite often be made for you! Garage or car-port? Drive or on road parking? En-suite or not? Conservatory or not? Low or high maintenance garden? One or two reception rooms? The property that ticks the right number of boxes will be the one that is more popular.

Good value.

This means that price is not the most important consideration, but when the bricks and mortar continue to be the main investment and the rent should serve to pay the rent and allow you to build up a maintenance reserve, that value will in the end remain constant and the property should produce less down time (between Tenants) and that of course, is what we as Agents strive to produce for all of our Landlords.

24Apr 2012

Why should a Landord use an Agent – Part 2

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By Mike Edwards

Part 2 of the top reasons why Landlords should choose a Letting Agent are included in this concluding post.

 

6.         They can often get you a better rent

Many letting agents are used by relocation agents and companies willing to pay high prices for the right property. Usually these companies will only use professional agents for sourcing property for their clients. This is because they are aware that they are going to get a consistent responce when being dealt with. Relocation is a part of the industry that is very specailaised and can be drawn out at times, especially when dealing with clients from abroad. They need to know they will be dealt with in a way that will not leave them sorting out issues that most Agents will already be aware of, such as type of agreement and security of deposit.

7.         They will get a proper inventory done and deal with the deposit for you

A really good inventory is absolutely essential nowadays if not the most important document involved and landlords who are taken to adjudication by their tenants will have little chance of winning without one. A good letting agency will often have staff specially trained to do this work and will usually be able to do a much better job than you can. There are also specialist software packages that are marketted at Agents and are sensibly only affordable by Letting Agents. There is also the advantage that if the matter ever does go to arbitration, the fact that the inventory was drafted up by an independent third party (your agent) will often mean that it is given greater weight by an adjudicator than one that was drafted up by you, the landlord. Your agent will also deal with protecting the deposit properly, making sure that all the proper information is given to the tenant within the time limits.

8.         They will deal with checking and referencing your tenant

A good agent will carefully screen and reference all prospective tenants as a matter of course. Not just by way of collecting letters, but through a professional Referencing body. This does not always mean that there are no problems later, but it certainly reduces the chances of this happening. It is a fact that those who have caused trouble in property before as a Tenant, know that they will not be able to pass a proper referencing investigation. Agents may also be able to recognise known bad tenants, and also recognise the signs of a bad or criminal tenant (for example one who is thinking of converting your property into a cannabis factory).

9.         They will deal with any problems that arise during the tenancy

There is a lot of work involved in renting property and it is not all just finding the tenant. Often problems arise at the property – for example minor repairs that need doing.  Tenants also sometimes lock themselves out and need helping. A good agent will also carry out regular inspections to make sure that the tenant is looking after the property properly and that all is well there. 

And finally:

 Finally of course there is the fact that most landlords really don’t want to be bothered with the tedious business of dealing with tenants, and agents take the burden of this away from them. A really good agent can be a blessing to a landlord. At the risk of being accused of agent bashing again, I do need to say here that not all agents are like this. I do feel strongly that agents SHOULD be regulated. If only for the benefit of all the good agents who inevitably, and most unfairly, get tainted by the press reports about the bad agents. The ones that don’t do their job properly and run off with all the money. 

19Apr 2012

Property Landlord Advice: Choosing a Tenant – Landlords needs first – by law!

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By Steve Roulstone

One of the areas that crop up again and again when we are going about our job, is the relationship between ourselves as Agents of the Landlord and our prospective and actual Tenants. It is and always has been in our interests to have good relationships with our Tenants and we continue to promote that at all times, but when it comes to our position legally we have to consider the Landlord above the needs of the Tenant and it is this stance which is often mis-understood!

Tenant’s rights.

 We do of course give the Tenants duty of care, but two situations have arisen this morning which yet again could and possibly does leave us looking like ‘bad boys’ if we proceeded and made what we believe to be the best decisions in the interests of the Landlord. The first issue surrounds another Tenant viewing and proceeding with a property before a second prospective Tenant had viewed. There was a statement made about who was due to see the property first which we could not agree with as we do not give preferential rights of viewing as a Company Policy.  

I saw it first!

This is simple enough to understand, if the first person to phone cannot view for a week, do we stop others who can view today? No because it would not be in the interest of the Landlord and our decision is an easy one! In this case what has clouded the issue for the prospective Tenant, is that they felt they had been promised to be shown first but as we never do give such promises, because it is never in the interests of our Landlords, this would simply never be the case. It is more likely that there was a misunderstanding of what was being asked and promised, but it ended with a nasty phone call to myself and my staff which of course is not acceptable for either party.

Best Tenant.

The second problem was one where in asking for information to assist finding a property for a potential Tenant, nothing has been forthcoming since we asked from the Tenant. Now when they ask to view a property again, which we know will be impossible without the information, do we tell them no without delay? We are of course always charged to find the best Tenant at all times for our Landlords and that inevitably means making decisions. We have to otherwise we would not be doing our job.  But it is highly likely this situation will again end up with a disappointed party, but we are not bound to find property for all who contact us, just those we believe will be good Tenants.

Overriding facts.

In every situation we are bound to make the decision that is in the best interests of our clients and that is our Landlords. This means disappointing some who contact us. But until Tenants understand that we have a legal commitment to serve our Landlords and that overrides any duty of care towards Tenants  (unless that neglect of duty includes an illegal act or stance) such issues will continue to occur. What of course we can hope is that not every time someone does not get what they want it does not end up in aggressive phone calls. 

12Apr 2012

Property Landlord advice: Choosing a Tenant – Landlords needs first – by law!

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By Steve Roulstone

One of the areas that crop up again and again when we are going about our job, is the relationship between ourselves as Agents of the Landlord and our prospective and actual Tenants. It is and always has been in our interests to have good relationships with our Tenants and we continue to promote that at all times, but when it comes to our position legally we have to consider the Landlord above the needs of the Tenant and it is this stance which is often mis-understood!

Tenant’s rights.

 We do of course give the Tenants duty of care, but two situations have arisen this morning which yet again could and possibly does leave us looking like ‘bad boys’ if we proceeded and made what we believe to be the best decisions in the interests of the Landlord. The first issue surrounds another Tenant viewing and proceeding with a property before a second prospective Tenant had viewed. There was a statement made about who was due to see the property first which we could not agree with as we do not give preferential rights of viewing as a Company Policy.  

I saw it first!

This is simple enough to understand, if the first person to phone cannot view for a week, do we stop others who can view today? No because it would not be in the interest of the Landlord and our decision is an easy one! In this case what has clouded the issue for the prospective Tenant, is that they felt they had been promised to be shown first but as we never do give such promises, because it is never in the interests of our Landlords, this would simply never be the case. It is more likely that there was a misunderstanding of what was being asked and promised, but it ended with an nasty phone call to myself and my staff which of course is not acceptable for either party.

Best Tenant.

The second problem was one where in asking for information to assist finding a property for a potential Tenant, nothing has been forthcoming since we asked from the Tenant. Now when they ask to view a property again, which we know will be impossible without the information, do we tell them no without delay? We are of course always charged to find the best Tenant at all times for our Landlords and that inevitably means making decisions. We have to otherwise we would not be doing our job.  But it is highly likely this situation will again end up with a disappointed party, but we are not bound to find property for all who contact us, just those we believe will be good Tenants.

Overiding facts.

In every situation we are bound to make the decision that is in the best interests of our clients and that is our Landlords. This means disappointing some who contact us. But until Tenants understand that we have a legal commitment to serve our Landlords and that overrides any duty of care towards Tenants  (unless that neglect of duty includes an illegal act or stance) such issues will continue to occur. What of course we can hope is that not every time someone does not get what they want it does not end up in aggressive phone calls.

11Apr 2012

Current Property News: Landlords to address Legionnaires disease as well!

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By Steve Roulstone

There are times a as a Letting Agent that it feels as if the whole world is looking to upset your apple cart. No sooner do we get to grips with the Localism Act when along comes the HSE and offers up another tasty treat for Landlords and Agents to comply with. This time it is Legionnaires disease and the implications of removing the size limit in water tanks that has bought every rented property in the country in line with the new Code of Practise issues by the HSE.

What Next!

I am not suprised that the Industry has read the detail and asked open mouthed what else are we liable to be asked to take on board? There are cases of Legionnaires found in residential homes, but if we start looking at statistics for the reasons why people fall ill in the home, or have accidents, then Legionnaires falls way down the list of matters that need addressing! The problem is that the HSE are the organisation responsible for controlling the disease, so as soon as the 300litre tank size restriction was removed, they have no option but to advise Landlords and Agents accordingly.

It’s a silly world.

It would of course be easy to look at other areas of concern and suggest for example that stairs are banned; all glass is covered by wire protection; cookers are limited to low temperatures; kettles are banned; children are banned from kitchens and treat all areas of danger in the same manner. There are times when we all think that such matters are treated with overkill, I am no different!

Deal with the facts.

 And those facts are that the industry is now evaluating the situation and dealing with the new Code of Practise. On the face of it and the initial reaction from the Industry suggested that there would now need to be further costs generated by regular inspections of all internal water systems. But I believe that those looking at the situation will be able to give us clear guide lines as we look to take the Code of Practise on board in a practical manner.  

Tenant responsibility.

Before and between tenancies, we will ensure systems are in place to deal with the requirements. Where a Tenancy exists, we will probably develop a strategy to deal with instructing the Tenant on how to ensure the problem is dealt with during the Tenancy by following prescribed instruction at regular intervals, such as heating the water system to required temperatures especially in modern property where the system can be easily dealt with. In older properties, it may well be a requirement that any areas of concern are highlighted and dealt with through an inspection.     

Professionals.

At the end of the day, we will deal with this as we have dealt with the numerous changes in legislation introduced in the last ten years, in the right manner. As I have always said if we call ourselves professionals, we deal with matters professionally. Even though it still seems like a sledge hammer to crack a nut! I once had a Health and Safety expert as a Tenant, who questioned the standard of fence between gardens at a newly built property, because his neighbours had a dog that barked at him every time he went in the garden. His take was that it is our responsibility to protect him as our Tenant from all eventualities.

Sensible solution.

 I wondered at the time if that would include building gates at the end of the drive, chopping down the trees across the road and installing conveyer belts for use instead of the stairs. What we do do as a matter of course is address these issues in a sensible and practical way. We ensure fences offer security, dog or no dog, trust people to be able to drive on the road and not crash in too the house, have people take responsibility for tree safety, in this case the local council on an adopted road and ensure that a hand rail is in place to assist everybody using the stairs. No doubt the solution for dealing with Legionnaires disease in the home will also prove to be just as practical!

10Apr 2012

Property Landlord advice: TDP paperwork plans finally in place.

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By Steve Roulstone

There are times as a Letting Agent that a job of work comes on the horizon which was unexpected but you know from day one, is going to take quite some time to research and complete. This has been the case with the legislation surrounding the Tenants Deposit Protection introduced in the Localism Act. We could see as soon as our advisors started to inform us of the upcoming release that this was going to be one of those times.

At the coal front.

It is still a saying that explains what has been needed to comply with the requirements of the Localism Act and the arranging, writing, collating, printing and posting has taken the best part of two weeks to complete. Not so surprising when you consider that every Landlord and Tenant has had to be contacted, but not only this but Tenants fell in too differing categories of action and therefore we have had to confirm where all of our Tenants sat before getting in touch. Being part of the day to day office means that I have been involved with dealing with most of this and that is why I use the coal face expression.

Understanding.

But by being the person who has written the letters, organised who needed to be placed in too what category, decided how each category has had to be dealt with (and physically collated the information and put the envelopes through the franking machine!) you end up with an understanding of not only what is being done but also why.

Implications.

Now we understand better the implications going forward and how it changes as our Tenants situation changes. For example, those who leave prior to the 5th of May, should only be concerned with how their next Tenancy is dealt with. But how many times have we known a move to break down just before it is completed! To counter this we have served paperwork on every Tenant, immaterial of when the Tenancy ends, because as we are a large Agency, there is more chance that at least one of those moving out will fall through and having worked so hard to ensure all the Tenants are dealt with correctly, this is not the time to let one slip through our net!

Revised procedures.

Getting to grips with these changes also means we have changed our procedures to ensure that the paperwork is correct now and every time. It has been discussed that Landlords and even some Agents would be better without a deposit as they will not be risking falling foul of the legislation in the first place if a deposit does not exist. I would disagree. As Agent of the Landlord, we are duty bound to give best advice about all scenarios and I cannot see a situation where no Deposit helps the Landlord. That means that we as Agents should be professional enough to deal with the paperwork correctly through our own systems.

Now is the time.

So what we have done is write to the Landlords two weeks ago, write to the Tenants last week and change our paperwork systems now, a full month before the legislation dictates that matters should be dealt with in line with the legislation. This will give us a full month to ensure our safeguards work and allow us to continue to offer a full professional service to our Landlords. Such changes and the work that they generate are not always welcome, change never is, but we must continue to embrace them, roll with them and adapt. Then and only then can we be in a position to call ourselves Professional Agents. Those who read my blog  regularly, will know I believe there is no other way!

28Mar 2012

Lettings News: Are Tenants Fully Aware of Their Responsibilities?

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By Craig Smith

At the beginning of February we posted about how some Landlords might not be fully aware of their responsibilities when letting a property. The Landlord doesn’t just have responsibilities at the start of the tenancy but throughout as well and, likewise, the tenant must ensure that they keep to their side of the contract too!

Tenant General Repairs

Common sense sometimes needs to be applied with regards to how far a tenants responsibility would reach. For example, a tenant would be responsible for changing a faulty light bulb or mowing a lawn regularly. Believe it or not some tenants will ask a Landlord to do some of the simplest tasks!

Another common area of dispute between a tenant and Landlord is when drains or pipes become blocked. Usually, this cost of having a drain unblocked would fall to the tenant, especially if they have lived at the property for some time. Whilst most tenants do take care of the property they live in like it was there own, occasionally items such as wipes will find their way into the sewer system. Generally, the rule is if a tenant has caused the issue then the tenant would be responsible for the cost of its rectification and this rule extends to most of the fixtures & fittings of a property.

Wear & Tear on a Rental Property

Over time some items will become worn regardless of whether the property is let or lived in by an owner. Electrical appliances such as washing machines or dishwashers will no doubt eventually break down. Of course, if the reason for the breakdown is the fault of the tenant (for example no salt being put into the dishwasher) then the tenant would be responsible as they should treat the appliance as their own, or in a ‘tenant like manner’. If the appliance has been looked after and has broken down due to age then the Landlord should be prepared to bear the cost.

Wear and tear is easily explained on appliances provided at a property but less so on the actual décor. Again, a tenant should make sure that wallpaper, carpets etc are looked after but a reasonable amount of wear & tear should be expected. The number of tenants can also determine the amount of wear expected, a family of 5 might cause heavier wear than a single person for instance.

Who Looks After the Garden?

Most tenancy agreements will state that the tenant should take care of the garden. Occasionally Landlords might include a gardener in the cost of the rental, more often so with large gardens or those with large trees & shrubs. Tenants would be expected to keep any lawns mowed, borders free of weeds and keeping the garden tidy. This will depend on the individual tenancy and, if a tenant is unsure, they should always check before entering into a tenancy.

Best Advice

As an agent, we always make tenants aware of their responsibilities before they sign any agreements with us. This helps to avoid any disputes further down the line and we would urge all Landlords to do the same! 

20Mar 2012

Lettings News: Are Landlords Fully Aware of Their Responsibilities?

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By Craig Smith

There are many reasons why someone may want to let out their home. A lot of home owners at the moment are struggling to sell their property but still need to move on with their lives, perhaps a job offer in a different part of the country or moving abroad. Putting a tenant into the property can keep the mortgage paid and the house looked after whilst the Landlord is away.

Basic Health & Safety

A lot of these Landlords can come into this situation knowing nothing at all about renting a property and it is our job to keep them on the right path. The Landlord would be responsible for ensuring that the property is safe, for example ensuring that any gas appliances are tested annually and that anything that the tenants are left with a safe environment to live in. Don’t forget that Landlords can (and have been) jailed for failing to ensure that their rental property is safe!

Then there are the less well known items that can catch out unsuspecting homeowners, such as ensuring that stairways are safe. One property that we looked after for a Landlord had no banister rail along the stairway and although it did look great, something did need to be done before a tenant moved in to prevent any accidents occurring. A simple banister was fitted in order for the stairs to be deemed safer, the Landlord would much rather have a small expense at the start of the tenancy than a claim for damages from an injured tenant!

General Repairs

Repairs also need to be covered by the Landlord throughout the tenancy, not just to the building itself but also to any items that have been left for use by the tenant. Of course, if a property has been let furnished and a tenants pet has ripped the cover on a sofa then the tenant would be liable for the damage. But it is the Landlord who should cover any wear & tear such as a cooker breaking down or rotten window frames.

Who Can Carry Out the Repairs?

For general repairs such as gardening or decorating a lot of Landlords prefer to do this themselves which will help to reduce any costs but for more specialist items such as electrics, qualified contractors need to be used. Some of the most well known include using a GasSafe registered engineer for works to gas appliances and most electrical works that are carried out must now be certified under Part P building regulations. 

09Mar 2012

Current Rental News: Localism Act shakes up the paperwork for TDP Legislation.

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By Steve Roulstone

Well it would seem we have reached the ‘All of the votes are in’ stage of the Localism Act and the changes in Law and its effect on the Tenants Deposit Protection legislation . These changes are now imminent, I have written before about the impact as charges were first of all discussed and then debated for the work which this act now confirms need to be carried out for virtually all Assured Shorthold Tenancies in the UK. Yes that’s right, all agreements entered in to that have now passed the initial six months (or longer?) fixed term, now need to be checked.

Clarity.

To be fair, this change in the Law clarifies the initial legislation. It has also been described as a way of closing all the loopholes, but without doubt, you need to add the judgement in the Swrpere case of last summer to the effect on what now needs to be done.

1988 Housing Act.

All Assured Shorthold tenancies that have passed their initial fixed term become periodic tenancies.  The Act itself does state exactly this as Section 5 of the Housing Act 1988 reads ‘A new Tenancy arising at the end of the fixed term’. So although no new tenancy agreement is entered into, the Law states a periodic is a new tenancy and therefore the necessary steps under the TDP provisions – deposit protection and PIN service – must be completed. The deposit will already be protected of course, but action may still need to be taken in respect of the two insured schemes. But what really matters and especially in the light of the much focused comments in the Swrpere v Nice 2011 judgement, is the serving of another PIN form within 30 days of the tenancy going periodic from now on, or by 5th May for existing periodic tenancies. This has always been ignored before the Localism Act 2011 for two reasons. First it was overlooked simply because no new Agreement is signed.  Secondly under the original TDP legislation and Court decisions it was always possible to protect the deposit and serve the PIN late. But The Localism Act 2011 closes off all these escape routes – protect AND serve later than 30 days, either of them, and you have committed an offence with no escape.

Correct procedure.

The act becomes law on the 6th of April and allows all details to be corrected by the 5th of May. So action will need to be taken sooner rather than later. All of our Landlords and Tenants will be receiving letters confirming how we will deal with the corrected procedures next week, as we look to deal with the issue at the first possible opportunity. It is centred on the Prescribed Information that all Tenants complete at the commencement of an agreement (The PIN Form) and ensuring this, as well as the Terms and Conditions of the scheme the Deposit is registered with, are served again in the case of the PIN and have been served correctly in the case of the T&C’s.

Not stopped there!

For the first time, the legislation will also apply to ALL AST’s as it looks to ensure that ALL agreements even if they pre-date the TDP Legislation, will now have a protected deposit. This of course means ensuring Tenants who will have now occupied a property for at least five years will have to be considered, have the scheme explained and dealt with by May 5th this year. There is no doubt that should this not be done, then it will be an offence under the Localism Act punishable by fine. It also needs to be said, that I am aware of enquiries by the ‘No Win – No Fee’ Solicitors as to the implications and procedures – could this be the next wave of adverts?

Summary!

Not easy, but suffice to say a broad brush approach should be taken and all Tenancies should be reviewed without delay. The whole Industry will need to get this right, and that means many questions will be asked and an understanding of the new legislation and the procedural changes this introduces will be needed by all concerned. We are fortunate to be associated with Companies who evaluate and advise about the impact such matters bring with them, which I believe will not stop with this topic alone. A case of watch this space, as further parts of the Act are clarified over the next few days with what defines a deposit next on the agenda!