Tag Archives: Professional Management

21Feb 2011

Current Property News: Good practise stops Fake Agents operating!

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By Steve Roulstone

A report in the press at the weekend, has stated that Tenants should look out for fake ‘agents’ operating through the web, as false sites have been set up to mimic the way in which the sites for genuine registered agents appear, even including the logos and details of the industry approved bodies such as ARLA. As a professional member of ARLAjust as a Letting Agent, I always look at articles like this and compare what would happen to anybody visiting my agency, Castle Estates.

Good practise

I am pleased to confirm that our good practises would ensure that this could never happen with us. Meaning, that by ensuring good practises are always offered to our clients, they should be the wiser as well. Of course the only way good practises can be widely known, is to respond to such articles by advertising them, that way, hopefully, more people will be better informed in the future, ensuring they do not get caught out in this manner. So what we would always ensure is:

Deposit at the start of the Tenancy.

Any deposit is refundable under law, if the subject for the deposit is not purchased, entered in too or commenced. Therefore, there is no way that any Deposit should be taken until the day that the Tenancy commences. This will ensure at a stroke that no monies are lost through paying for a property which does not exist. This is because the contract does not actually exist until it is signed and Tenants under most circumstances, should sign at the property, on the day of the start of the Tenancy, when keys are released and monies become due (Rent)

No viewing – No fees accepted.

It has long been a golden rule within our Company that no Tenant is allowed to pay the initial Referencing and Documentation fee, without first viewing the property in person. This was introduced to ensure that our Landlords were not left with a tenant that we had not seen (Difficult to justify ensuring Tenants sourced through us are acceptable without meeting them first) either pulling out when they do see the property because it was not as expected, or ending up being a poor Tenant and not respecting the agreement. There have been occasions where the reason behind the request has been genuine, but that is where relatives or Company representatives can carry out the role and give us a situation we can work with. Not forgetting that all applications would be referenced as well.

Simple principals, Best outcome.

So our advice to avoid disappointment, as the saying goes, is to follow these simple rules, then Tenants will not fall fowl of criminal activities of this nature. Of course it is once again professionalism and education that will ensure such matters are well known by all. I say once again, because nearly every scenario where our industry is either poorly represented or open to corruption such as these false agents operating on the web, would be answered by professional standards and registration of agents. This will provide the insurance and education that our customers, as either Tenants or Landlords, need as they will know what to ask for and expect when renting property. Of course, traditional methods of visiting the Companies premises and or viewing in person take care of the problem in one fell swoop, which is why I still feel that we are some way from an industry which is solely represented by web presence alone!

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?

03Feb 2011

Property Landlord advice: Rent Increase time of the year.

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By Steve Roulstone

If being involved in the rental market for over ten years has taught me anything when it comes to increasing rent for a sitting Tenant, then it is that thoughts turn to the subject in the spring, more than at any other time of the year. So much so that it is the time of the year, that as an agency we review all of our rents on behalf of our Landlords so that we can actually advise our Landlords with knowledge of having done the work before we get asked.

Important procedure.

But it is not just a matter of advising the Tenant and awaiting the increased rent to arrive. Far from it! There are several considerations, not least of which, that rent can only be increased once in any one year and perhaps more importantly, rent should be increased by issuing the correct notice, in line with the requirements of the Housing Act 1988.

Once per year.

This sensible rule ensures that Tenants, who are outside of any fixed period as stated in their Tenancy Agreement, know exactly how long they have between rent increases. An increase raised through agreements or renewals, can be the best way to achieve an increase, as the Tenant knows again that the period is fixed and therefore so is the rent for the same period. This also means that after any fixed period and for example after the traditional initial six month period rent can be increased, but only once per year. Now I have had many conversations with Landlords about the impact of increasing rents within the first year of a Tenancy and any such request has be to handled with care to avoid the Tenant immediately giving notice to leave.  

Correct Section notice

Again, by using the prescribed documentation, you can ensure that the procedure is dealt with in accordance with the Housing Act that introduced the legislation, allowing increases to be served whilst Tenants are outside of any fixed period agreement. (Periodic) This ensures that there can be no argument about the legality of the new rent. Also, I cannot write about rent increases without stating that any increase should consider the Tenant, the property and what it would rent for if empty at that time and the market and current financial situation. Then and only then can the increase be justified if the Tenant does question the increase, and yes, it is right and proper that it can be.

Investment requirement.

It is part of the market in the same way that investments can go up or down, that Rent Increases are part of owning a rental property. There have been occasions, most noticeably when property could not sell, that rents have gone in the opposite direction, as Tenants, realising that there were many properties available at the time, made offers to Landlords who needed a Tenant in their property rather than waiting another month for the full asking price. After all, in the lettings market you cannot recover rent for the period property sits empty, but that is not the case now and it has been well documented that rents will increase this year. For Letting Agencies, now is the traditional time to carry out the preparation and be ready to carry out the role on behalf of our Landlords, most importantly, correctly and professionally!

24Jan 2011

Property Landlord advice: Frozen pipes, whose responsibility?

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By Mike Edwards

Property Landlord advice: Frozen pipes, whose responsibility?

Doubtless we will suffer another bout of cold weather before this winter is finished, and indeed even as I write this the temperatures are dropping fast at night and hard frosts are a regular feature again.

So problems with frozen pipes and lack of water supply have in some areas created unprecedented calls for help (witness Northern Ireland’s woes in December) all of this has raised several important questions for Landlords.

Who arranges and pays for the Contractor?

Maintaining the supply of Water is the Landlord’s responsibility under section 11 of the Landlord and Tenant Act 1985, so he should shoulder it all, including arranging contractors. The only possible exception might be tenant negligence but there is a court case where it was held that a tenant is not required to insulate pipes, just live in the property reasonably. If there is a power cut or as was the case during December the conditions are simply exceptional, this will not be the tenant’s problem.

What happens if the tenant says “We have no running water at all” (as opposed to no heating) and tries to go for temporary absence at the Landlord’s expense or possibly early release from the agreement with no penalty. There are no easy answers and it all depends very much on circumstances.

Pipes outside which are badly designed or poorly insulated (including roofs) have to be considered by the landlord. Be careful also with self condensing boilers where the small bore evaporation pipe is external to the property there have been a lot of problems with these freezing this winter. Yes they can be defrosted with a hair dryer in about five minutes but is it reasonable to expect the tenant to go out into a blizzard armed only with a hair dryer more than once in a winter?

Council viewpoint

But what happens if the Landlord has in effect done all they can and are as much a victim of extreme conditions as the tenant – except they are not living in the property of course!! Well courtesy of the current fitness standards as dictated by HHSRS a property with no water supply for whatever reason would be condemned as not fit for human habitation by almost any Council or Court.

If the tenant considers it necessary, they could speak to the local council who will then make a decision and if they consider them homeless, have the obligation to re-house them. Let the Council decide for you – but again beware as If faced with such an obligation and related costs the Council would almost certainly send in the Environmental Health inspectors to conduct an HHSRS examination of the entire property.

Who can claim and for what?

So the system is frozen and a leak expected, if a contractor is called in can any costs be claimed? Well not by the tenant as it would be under the buildings cover but not by the Landlord either as the only insurable peril is any subsequent leak and damage.

If there is subsequent damage, the word reasonable will keep cropping up. Did the landlord act reasonably and did the tenant act reasonably? If the answer to both is “yes” then in response to the original question it will be a landlord problem to solve

The other issue to be wary of especially with tenants trying to thaw out frozen pipes in an inappropriate manner is when pipes are known to be frozen making sure that the damage is strictly minimized. Otherwise in any subsequent damage claim the insurance may be able to wriggle if they say you did not take enough care to control damage during the defrosting of the pipes especially if a professional plumber was not involved.

To minimize the problem

The best advise has got to be take advise, especially from professionals who know the law and what would happen in these circumstances, bur remember, quick action and cooperation should always be looked for before freezing problems get out of hand!

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.

 

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!