Tag Archives: Letting Agents

17Feb 2011

Property Landlord advice: Data protection and Letting Agents.

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By Steve Roulstone

I have been amazed to see a report lately that very few Letting Agencies and indeed Estate Agencies are registered with the Data Protection Act. As a member of an organisation that has included registration as part of its new Franchisee set up system, I am amazed to find out that this is the case.

Implications.

So how does that affect you if you are a Landlord in such circumstances? Well hopefully not at all, although situations could arise, such as passing information on when an agent is appointed incorrectly, but this is the business of your agent to ensure that they are registered as a handler of personal information on their clients, both Landlord and Tenant. Of course registration alone does not stop anybody from being prosecuted!

Nobody told me!

It is how Agents could have managed NOT to know that they should be registered that amazes me! There have been scams where claims have been made to be the Data protection agency writing and asking for fees from all manner of organisations (although I now wonder if they only wrote to Companies that were registered!) as well of information direct from the agency and Government bodies that regularly arrives on my desk. How do Companies avoid all of this? Unless of course ignorance has been by design!

No action taken?

Perhaps it is because I am a sceptic and of course have witnessed and seen for myself that it is only the open and honest amongst us that join in by registering in the first place, but is this another case of no action being taken to ascertain who has not registered? Because the Data Protection Act was introduced in 1998 and the sceptic in me has to consider the implications of action only just being taken to pursue those who have failed to register!

Recent legislation promises.

I have recently reported through these pages, in a blog about legislation on the 8th of February, where the Government stated that sufficient legislation existed for the Councils to take action against rogue Landlords. The problem being they are too understaffed to do so, as I have been advised myself by representatives from my own Council, so is this the evidence of how long an act has to be time served before action is finally taken, thirteen years!!

Conclusion.

So sceptic that I am, I trust I am incorrect in my assumption, time will tell! But as a Landlord, this is just one more job than I am surprised most be carried out when checking the professionalism of your chosen agent (No apologies for the use of the prof word again!) when surely a simple registration which would have to include such requirements would clarify the issue for all concerned, or is that just me going on again!

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!

08Feb 2011

Current Property News: NLA Chairman fights back, but legislation is still needed!

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By Steve Roulstone

I was busy doing those Saturday morning chores this weekend, when I report on BBC Breakfast caught my attention. What I then heard was the BBC once again doing what they do best, trying to put a negative slant on a housing matter, this time the report was about the standard of rental property nationwide. Answering the main point that a large proportion of rental property in the private sector in the UK is in poor condition, was the Chairman of the National Landlords Association, Mr David Salusbury. Very calmly and with clear comments he put the presenter straight about the standard of the majority of rental property in the Country, to the extent, I thought of reducing the length of the report as I felt the presenter had very little left to pick at once David had made his point with such authority and presence!

Missed opportunity.

Of course what David could not do in any depth, was to get the conversation round to what should have been the made drive of the report, which the BBC report failed to do, namely that legislation recommended by the Rugg review and rejected by the current Government, is what is needed to address the issues that do exist with rogue Landlords.

Councils to look after us.

The Housing Minister Grant Shapps, has stuck to the line that Local Councils have the powers already, but two things struck me from what was stated that really have an effect on what is actually happening on the ground. Firstly and most importantly, Councils may have the powers, but there is no way they have the man power to carry out this role! I remember being advised when the HMO regulations came in, that it would take our Council several years to inspect the property they already knew was due for inspection, before they even got around to investigating the property they did NOT know about! (Therefore the property where real action was needed) because we all know that the property the Council are aware of is that owned by responsible Landlords (probable members of such organisations as the NLA or managed by professional agents!)

Let’s not forget the work carried out so far!

Secondly, what is not mentioned is how the market has improved greatly over the last ten years. I can remember being asked to look at some property in the past where I have wiped my feet on the way out not that long ago! Now Landlords listen to what we agents say, because they know they need to compete in this market and prepare in a way to ensure prospective Tenants want to live in their home, not the opposite.

Let’s catch the rest.

So what needs to happen is recognition that bad Landlords do not operate through professional Agents, we need as a profession, to keep making this blindingly obvious statement until bodies such as the BBC and more importantly the Government, listen to us. This is why the registration is so important, because it would catch everybody who does not operate in this way and if our industry could be self policing, which could be operated through a qualification needed to operate for both Landlords and Agents, then what problems do exist, would be dealt with very quickly.

Conclusion.

 This is why I keep stating the same point again and again! Stop emphasising the bad points, speak about the good, let’s get a balanced opinion of our industry, housing and the need for more and then we just might start to get positive ways forward. And for what it is worth, my way would be a simple qualification that all Landlords and Agents would need to qualify for, run within the industry, by the industry, which, when Landlord or Agent fall foul off, would remove the ability to trade in this way. (on a sliding scale which could include penalties dependent upon the severity of the offence, right up to dismissal from the scheme, removing the ability to Manage property themselves)

This would force bad Landlords to be Managed by professional Agents and would stop any bad Agent from trading at all.

Now, let’s consider what effect this would have on the quality of rental housing stock in the UK?

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.

 

12Jan 2011

Franchise News: Letting agents WANT ‘The Hook’

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By Steve Roulstone

It may seem that I am paranoid about the BBC. My wife would probably agree, far from it, I always start with the BBC before any other channel whenever I turn the TV on. But there are times when I do despair about the way in which they report matters and it is not just the Housing market or in particular the Letting Industry that grabs my attention, just listen to the bad news angle taken within the weather forecasts and you will know what I mean!

Popular news reports.

One of the automatic results of being the BBC is whatever they write, especially within the news, they always get ‘Star billing’ within Google. Well done to them, after all we are all looking for better placement, but over the last couple of weeks, a report by the BBC from back in June 2010 has kept appearing within the criteria of my Google search. It is entitled ‘Letting Agents let off the hook by Government’ so this morning, when it appeared again, I read it.

Principals .

One of the important principals about writing anything for publication on the web, if you wish for people to find your scribbling, is to make sure that your article explains the title, so it falls in the ‘what it says on the tin’ principal, or at least that is what I have always been taught.  However, having read the article I would have to describe this as a tenuous link at the very least. The comment within the article that the title refers to is about agents who I assume are not part of any professional body, as either the ARLA spokesman did not confirm this in what he said, or only part of his comment was printed.

Actual intent.

What is confirmed by ARLA and indeed the CAB is that the legislation was both welcome and good in its intent. That some will take advantage of the decision is a matter of conjecture, as professionals, we believe the legislation would have stopped that happening.  So the actual meaning of professional agents (and in my opinion letting agents are qualified individuals, letting agencies are offices!) is not differentiated in the article headline.

Now for the rub!

And the reason I list this as Franchise news, because the result of the visibility such articles get through Google, is that hundreds of people will read the title and without even reading the article, my Industry will be tarred with a brush, that when you read and understand the article, we do not deserve! It is difficult enough to prove that my industry is not suffering in the same way that House selling has suffered over the last few years and indeed that we have benefitted in so many ways. I do not ask that we have good news just to suit my Industry and I would not state or write anything that I cannot support, but it is time that the BBC went back to the agency that reports the news in a factual manner and stopped looking for elements of bad news so often in its reporting.

The reality is different.

Because they are who they are, the BBC have far more influence that such practises deserve, in the meantime how many people have written off a Property Management Franchise on the back of articles and reports like this that give what in my opinion is a negative approach, when in actual fact, as an Industry we would welcome such legislation and the article says just that. Pity the title the BBC chose disagrees!  

 

10Jan 2011

Current Preoperty news: Cannabis factory increases.

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By Mike Edwards

I would not normally copy information from elsewhere for my own writings, but as this is very good and timely advice from the Police on the prevention of Cannabis Factories, I will make an exception and copy in full a circular I received from Thames Valley Police sent to me because of my position advising our franchised offices within Castle Estates:

Dear Landlord/Estate Agency,

 Cannabis Cultivation

Commercial cannabis cultivation is a growing industry in the UK. In the past two years, Thames Valley Police has uncovered more than 300 cannabis factories, with an estimated yield of £4.4 million.

Cannabis factories range from small enterprises in a bedroom, to barns and industrial premises adapted for large-scale production. Because properties are often sub let from existing tenants, it can be difficult to trace those responsible.

The damage to property caused by this kind of activity can be substantial. Landlords face severe penalties for failing to report illegal drug production, and could be sentenced to a maximum of 14 years in prison.

Information for Landlords, giving advice on how to spot if drug production might be taking place at one of your properties and what to watch out for with regard to a new tenant is available on our force website by following the link below.

http://www.thamesvalley.police.uk/crprev/crprev-home/crprev-home-canprod/crprev-home-canprod-adv.htm

Use this number, 08458 505505, to report a non-emergency crime or to give information to Thames Valley Police. You can contact Crimestoppers anonymously by calling 0800 555 111.  Always call 999 in an emergency.

 If I can be of any further assistance please don’t hesitate to contact me.

 Kind Regards,

 Wendy Walker, Community Information Manager, Force Intelligence Bureau, Thames Valley Police. Tel: 701 3967 (External 01865 293967) Mobile 07837 496532. Email:  [email protected]

 The area is of course not significant, but the advice is paramount.

Good advice

Any advice of this nature should of course be well received and what matters most is the ability to put steps in place to stop such a disaster happening to any Landlord and of course, when fully managed by an agent, who would carry out regular property visits, it should not! Only when Landlords leave a Tenant in the property without visiting between Tenancies do such opportunities arise and when you consider the possible actions taken against the Landlord, surely this is reason enough to ensure all properties are visited on a regular basis!

05Jan 2011

Property Landlord advice: Rental Insurance for Landlords and Tenants.

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By Steve Roulstone

I have used these pages before to give my opinion that all Landlords should consider specialist rent guarantee Insurance to ensure that they protect their rent at a time when the best intentioned of Tenants may find themselves unable to pay because of losing their income. At the start of the New Year it has once again come to my attention (a Landlord of our office in Stafford found there Tenant in a similar position) at a time when arrears are always at their worst because of overspending at Christmas and let’s be honest who can say they have never been guilty of doing exactly the same!

Good advice!

Is exactly what every agent should give to their Landlords and unless the agent concerned is registered with the FSA as somebody qualified to give specific policy advise, then it is very much our role to make Landlords aware of what type of insurance policies are available, rather than sell any specific policy. Like it or not, current financial legislation, set up to protect our customers, only allows the majority of agents, through best advice practises, to inform our customers, our Landlords, what type of policy they should be taking usually by way of an introduction and there after leave the selling of the policies to those who are qualified and more specifically registered with the FSA.

Rental Insurance policies

So what type of policy can or should be taken by either Landlord or Tenant? so to clarify, and again only with regard to the type of policy rather than any specific product, Landlords should of course continue to insure the building and discuss with their provider what minimum contents are included, as they should still consider carpets, curtains, bathroom and kitchen fitted furniture for example. Then of course, rent and legal expenses insurance, to cover referenced Tenants who find themselves unable to pay and to cover the cost of legal action taken by Industry specialists to evict if required.

Tenant policies

And finally the policy that most forget, Tenants! All agents should have some system to try to ensure Tenants DO take a policy to cover their own contents and with the knowledge that policies exist that will cover the Landlords contents for accidental damage, a specialist policy that unless advised about, most Tenants would not know existed, it is especially important that in giving best service to our Landlords, we ensure that Tenants are indeed introduced to such a policy at all times.

Basic cover

There are of course other policies, and other considerations and items covered within differing policies, but to cover them all would need more time and space than this media provides and would endanger me of discussing specific policies rather than in general (something the FSA regulations did not intent to include but never the less does, where have we heard that before? Sorry, I meant how many times have we heard that before!) but it is our duty to ensure knowledge is available to both Landlords and Tenants at all stages of the process, so we must make sure we foster the knowledge so that we can continue to give good advice and current advice, whenever the need arises.

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.

21Dec 2010

Rental Issues: Utility problems

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By Steve Roulstone

It has long been my impression that Utility Companies really do not have a clue when it comes to understanding the relationship between Tenants and Landlords and the implications of a property used for the rental market and nothing has happened over the last couple of years to change my mind in this respect. Then take the confusion every time a tenant does not pay the final bill and the overbearing reaction of the provider to invoice the Landlord for the unpaid bill! Never mind the ongoing question of who is responsible when?

Just what it says on the tin!

How nice that would be! To have a Company who looked after the interests of all concerned and more than that – understood what happens when a property changes hands three times in sometimes as little as two weeks. It is a fact that some organisations in my opinion just see this as a chance to make money. In my own region, the amount Severn Trent WA would invoice a Landlord for the few days he became liable between Tenancies would suggest the actual annual invoice was up to three times the actual annual cost. But what can you expect from an organisation that in my knowledge takes at least £100 more than is needed by those of us who have decided that paying by Direct Debit removes the hassle of calculating and making monthly payments. (Just work that across the region and see how much they have in their account that does not legitimately belong to them)

Services catered for

Well actually not yet! Yes Companies do exist but they have not yet managed to deliver the services they promise. I am sure the intent is good and without a doubt, they do assist us as Letting Agents in removing some of the hassle we have to go through in dealing directly with the suppliers, but as yet, the co-operation that should exist between them does not seem to exist.

All round benefits

What is needed is not somebody acting as a middle man, resulting in services at good prices (Still amazed at how much prices vary in the utility market, especially if you do not keep on top!) but somebody who can be trusted to look after the interests of all parties, especially the Tenant in ensuring they buy competitively and the Landlord in ensuring they do not fall foul of DATA protection legislation (or indeed be threatened that they have, which can be just as upsetting) and that they no longer get silly little invoices for short periods when a property is empty. (Take note STWA!) The problem for us as Agents, is that we are only ever going to be able to pick the best system whilst not being able to do the work needed to improve the service supplied.

Future competitive market                                            

And the point is that it is very competitive now! The private rental market alone is calculated at being over 14% of housing stock in this Country and I would hope that Companies that are able to work at the way in which utility providers go about their business would take the time to look seriously at the option available by providing both a system and a service which is simple and time saving for all concerned.

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.