Tag Archives: Professional Management

08Jul 2011

Property Landlord advice: Periodic Tenancies – friend or foe?

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By Mike Edwards

Under the provisions of section 5 Housing Act 1988 when a fixed term tenancy reaches its last fixed date from the next day onwards it becomes a periodic tenancy. This is an automatic process, no-one has to do anything and it happens whether or not the landlord is happy about it, or would prefer a new fixed term agreement to be in place. Either party can state if they want another fixed term but if the other party doesn’t agree then they are going to end up at best with a periodic tenancy. Or if it is the landlord that is insisting on a fixed term then his only option is to give notice to the existing tenant and find a new one.

Landlords decision.

Few Landlords normally feel that strongly but occasionally if the initial agreement is ending at a date that could make the end of any replacement tenancy awkward – say between mid November and mid March, then it is not uncommon for that Landlord to seek a longer term in an attempt to avoid having to re-let at what is generally acknowledged to be the worst time of the year. It is very much horses for courses at the end of a fixed term as to what the parties would prefer, or indeed insist upon. There are advantages and disadvantages for both parties both in being committed to a fixed term or in having a periodic tenancy. The most obvious for the Landlord is he is at the mercy of a month’s notice from the tenant at any time.

It’s that last day rule again!

The notice must expire on the last day of a period of the tenancy, so if rent is due as per the agreement 1st monthly the notice and any obligations under it – such as rental payments – must continue until that date unless the parties mutually agree an earlier surrender of the tenancy. The Landlord must give two months notice if it is an AST or an AT with the same end of notice period dating requirements. These were clarified in Church Commissioners v Meya (2006) in the Appeal Court and thus the decision is binding on lower Courts.

Notice period.

The requirement of two months notice in a periodic tenancy sometimes causes Landlords real difficulties so the trick is to do a standard visit 10 – 12 weeks before the known end date of the tenancy and while looking around subtly sound out the tenant’s intentions. If there is any hint they might want to go periodic rather than sign up for another fixed term (if that is what the Landlord wants) then serve a s21(1)(b) during the fixed term as a belt and braces position to protect the landlord. The matured notice can then be used at any time during the periodic state. This was enshrined in Case Law many years ago as there is no time stipulation stated in the Statute for how long a matured s21 notice remains valid and can be used in Court. So you could serve a s21(1)(b) on day 2 of a 6 month AST if you like and use it to evict the tenant after he has been periodic for 5 years or any time.

Agreed solution.

Finally if the tenant does want to go periodic then on giving one month’s notice a 13(2) notice can be used if a rent increase is due. A fixed term does give the landlord more certainty – but like the tenant it does mean he is stuck with the other party if his plans change and he wants the house back, so the key to unlock any problems? Discussion! Talk to your Tenants and reach an agreement that satisfies everybody – ah the art of Management!

04Jul 2011

Current Property News: Increased Renting demands pays dividends for Landlords.

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By Steve Roulstone

I have looked at three pieces of news this morning, all surrounding the property market and I believe all good, proving yet again that the rental property market continues to be positive in a period of time even for the current downturn we are experiencing that has seen nothing but negative news on closures, redundancies and negative forecasts. Other items I read this morning even hinted that ‘savvy’ business people might continue to look to the property market as a better investment than the more traditional stock and finance markets.

Squatting made illegal.

The really interesting point about the news released by the Government recently, is the amount of reporting that defends both the action of squatting and the need for squatters making this bad news for the public in general, but I would like to pick on two points that the majority of commentators have missed. Firstly, it is totally inappropriate to say that Squatters in some way make use of empty property and are therefore unlocking living space for those without a home of their own. This is just a way of turning the eye from the reality of the fact that they have no legal standing in occupying any home they choose, empty or not! I am not in disagreement that empty property could be better used, but only with the acceptance, knowledge or permission of the owner. I do not need to point out the damage caused to owners who are unable to utilise their property because of somebody squatting.  Secondly, all this does, is continue to take pressure of local Councils. This is where any move to utilise property that is truly left unused, as the Government and therefore local Council need to be the vehicle given the power to unlock property that is left empty long term, and is genuinely available to ease our housing needs. One further point for the writer, it is at least Mr Cameron and the words Prime Minister are suffixed by a capital letter!

Gazumping on the increase.

There is no doubt that rents are on the increase, but we are not seeing any great evidence of Gazumping outside of major cities, but before anybody starts to jump up and down about Landlords making profit, two points again that need to be confirmed. It is not often that I comment that we are in a similar position to Estate Agents as letting Agents, but it needs to be confirmed, that we are duty bound to advise our Landlords if a better offer for a property is received, just as Estate Agents would do for their customers, even more so because our contract with our Landlords gives us a duty of responsibility to comply with and therefore we have no choice but to both advise and react to our customers wishes. But holdfast! These were the same Landlords who were faceing offers on property below the asking price only two years ago and this current trend is only really redressing the balance from that period of rent reduction.

Renting numbers still increasing.

This is of course good news and confirms that by the end of this year, the percentage of rented property in the Private sector in the UK will have increased to something close to 20% and overtaken the Public sector at the same time. The issue that jumped out of this report at me was the mention of avoiding rogue agents in the links. Sorry to be a bore, but how simple would that job be if the Government were to protect this now significant and continually increasing sector, by introducing licensed Agents! (Now where have I heard that before?) For me, as a Professional who spends most of his time pushing the message that qualified Letting Agents are both the Tenants and Landlords best way of managing and finding property, allow me to add one more reason to the case: One of the main reasons we have an increase at present is because the Sale market is unable to move property for owners who need to move on and the rental market provides the outlet owners need. But by default, the Estate Agents who now have a captive audience are the beneficiaries of this business. My comment to owners is that they should try at least one qualified specialist Letting Agent. By doing so, you should be amazed just how knowledgeable they are and therefore better protected and prepared you will be in the rental market! This is what being trained in our market means and only by speaking with a specialist office will you find out for yourself what that difference means.

30Jun 2011

Property Landlord advice: Block Management: The importance of local services.

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By Steve Roulstone

I have written before about why so many Block Management sites, when the existing site Managers are failing through the eyes of the site Directors, end up in the hands of local Letting Agents, who can quickly make the adjustments to carry out the role of Managers for a site rather than for a Landlord, especially where maintenance is concerned. This is one of the major advantages for local Agencies, because in the nature of their day to day business, they will have developed working relationships with the whole gambit of building craftsmen who can help cement the Agencies new Property Management work.

 Local services for Local people!

 It is also not just that by being a local Company it is highly probable that there will be some relationship either privately with the Leaseholders or just by the very fact that the people concerned live in the same location. In Stafford for example, one of my main ‘fix all’ contractors, lives looking over a site that we manage. The relationship that this has developed between the Directors, some of whom already knew the chap concerned and the Contractor is so strong that they now insist he carries out the annual balcony maintenance programme we organise for them. The trust in his work and the way in which he deals with both the problems that occur and the people living on site is the reason the relationship has developed in this way. I believe what helps make this kind of situation possible when dealing with local trades, is the fact that they are Neighbours. Everybody feels more comfortable than the unknown quantity of a visitor from out of town!

 Time is not a factor.

And then of course, there is the ability to react quickly to any emergency situation, and I have known many schemes that operate Nationally for Letting Agents to deal with those Emergency call outs (and I know at first hand, that the level of performance from Contractors attending through such schemes leaves a lot to be desired) All of whom do not react in the same manner as a Contractor who is not only going to start the job to hand, but probably visit again to complete it. Not to mention being the Contractor who will have visited before and will no doubt be needed to visit again! All of these things make the local chap the choice for me.

 Not just Contractors.

 Of course other services are needed through the offices of Block Management and white collar trades also benefit from knowing the area. I have witnessed myself how the local Solicitors have been able to give more appropriate advice when legal issues have arisen, even benefiting from staff living on the site, in this case being able to clear a very difficult recognition problem for us, simply because when typing correspondence, they were able to answer the issue through personal knowledge of the person we were trying to trace. A situation which ended up benefiting all of those concerned and avoided higher costs to boot!

 No comparison.

 So being looked after by a Local Company has many advantages and I cannot see how the largest of the many major City based specialist Block Managing Companies can compare, and even though they may not advertise such services initially, if I were looking in relation to any property owned on a Leasehold site, I would not hesitate to check the local options first. Of course, they must also have a clear understanding of how to run a site in the proper manner, both legally and financially, on behalf of the owners, but I still believe that most organisations in our trade, if they knew they could not do a good job, would say no from day one. But then we all have to start somewhere as did I when I took my first site on back in 2003. But then I had the advantage of being part of a National Company who could offer me both training and other Franchisees who were already undertaking the role themselves, as they say, you cannot beat knowledge!

13Jun 2011

Current Property News: Jailed Rogue Agent fuels the fire for legislation at time of SAFE Agent launch.

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By Steve Roulstone

Two items of news were reported late last week, which are both of note but for differing reasons. One for the right reasons and one for the wrong reasons, but together they speak volumes about what the Industry is trying to do and what the Industry needs by way of regulation, which would in my opinion seriously reduce the number of times such events both occur and are therefore reported.

Launch of SAFE Agent scheme.

Better than expected numbers are turning to the SAFE Agent scheme which is really good news and reinforces my opinion that this type of scheme is exactly what the Industry needs and wants to be a part of. The very fact that so many Agents are looking for recognition in a way that they can announce to their customers, be them Tenants or Landlords that they operate in a way that all client’s monies are protected speaks volumes about the Agents who want to be seen as professional Companies and give re-assurance to their client base.

Government backing.

This scheme has been introduced simply because the Industry has felt that some recognition of professionalism was required by people within the Industry, who, by virtue of the organisations they belong to or who are able to represent, have been able to get both the message across quickly to what I believe to be a willing Industry (Certainly within Castle Estates) who seem to be embracing the message with open arms. What we need now is official recognition from the Government that they both support the scheme and will look to review registration of Agents sooner rather than later. Hopefully they will see by the numbers of Agents joining that the Industry will also embrace and because of the second item of news, see the need for Government legislation to support professionalism in the Lettings Industry.

‘Agent’ jailed for two years.

It is because we continue to see Agents stealing from their clients,  that Government legislation is still required, because even though we hope and will work towards SAFE Agent being a standard for all professional Letting Agent offices, it is only when the Government back us with registration that such occurrences can be really reduced. Allow me to repeat, for I have stated this many times, but registration of Agents who use sound proper methods of looking after client’s money and in running the business in general is the only way the Industry will become truly professional. We are now looking at an Industry, when Private Landlords are included, which is fast becoming responsible for 20% of UK Housing stock. How much longer can the Government ignore the shout for legislation?

 

Estate Agents.

It should also be recognised, that it is not just the Client’s money aspect of Management that needs to be legislated. In the last three years the Estate Agency market has jumped in their thousands in too Lettings and I know only too well, that many do not understand the legislation that any qualified Letting Agent would need to understand and learn before they could become achieve qualification. Now I could just imagine the clamour of noise if the situation had been reversed? Estate Agencies operate at best using RICS standards which have been adopted by the courts as a formal code of practise. Indeed there are far more statutory requirements upon professional Estate Agents than Letting Agents and I am sure the Estate Agents would be the first to shout loud and proud about standards should the reverse of the current market changes come about!

Good for everybody.

At the end of the day, all Industries benefit from raising standards and ours is no different. The problem in any sphere of operation is the people in it, and legislation always seeks to control people. So the sooner we are properly legislated, the sooner people such as Mr Stagg, will not be allowed to trade in the first place, for as the article points out – at present there is nothing stopping him from starting another agency the moment he leaves prison!

10Jun 2011

Property Landlord advice: Gardens and Renting how to get it right!

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By Steve Roulstone

This time of year, as agents visit the properties under their charge, the most common phone call to the Tenant, if they were not present during the property visit, becomes the request to tidy the Garden. So often the Garden, especially when the house concerned is a family home is so well tended and designed that when the property is let expectations about the manner in which it is kept can be misinterpreted resulting in disappointment at the very least and in some cases frustration and anger.

The problem.

We all know a tidy garden helps us rent the property, but Landlords need to understand that when they rent their property, whilst it is the Tenants responsibility to look after the house and garden in a proper manner, this does not necessarily mean it will be kept in the style you would wish. It is the translation of the term ‘proper manner’ which can cause the problem. If such a matter should reach court, as periodically they do, then the Judge is in all probability going to ignore any claim made against the Tenant because all a Tenant is charged to do is keep the Garden in reasonable order and not to the same standard or manner kept by the previous owners, as time would normally be given by the courts for the Tenant to address the issue.

Reasonable Standard.

This is what would be expected of all Tenants the problem being that reasonable can just be mowing the lawn and stopping the borders from being full of weeds. This does not include tending for plants, over wintering in a greenhouse or cutting back at the appropriate time of the year. The point that needs to be appreciated is that by renting the property you are accepting that the Tenants will be allowed to live in a manner which suits themselves and not how you may wish them too. The point being, that tending the garden to the standards you wish for is not required, just the ability to keep the appearance neat and tidy is all that should be expected by the Landlord.

Covering all bases.

This means that provision needs to be made prior to the property being rented to ensure the Landlord achieves what they want for the Garden. I myself, with a wife who just falls short of sleeping in the Garden, having just moved, made arrangements for a Gardener of our choice to visit the house every week. The resulting bill we pay, but were able to rent the property with Gardens tended at a better price. I believe this made the choice easier for our Tenants as they continue to enjoy a mature garden with plants flowering throughout the year. But even with this provision, we both know the Garden will slowly suffer, as nobody cares for a garden better than the Gardener!

Rent to a Gardener.

I have of course on many an occasion, been told by the prospective Tenant, ‘oh how lovely a garden I can look after’! Only to be disappointed by the lack of efforts they then put in. So my advice and I believe the only advice that can ensure the best results, is to ensure if it matters that much to you, the Gardens are looked after by the person you appoint – which means your own Gardener. I certainly would not suggest you do them yourself, as this would not be acceptable to the incoming Tenant.

Family home or Buy to Let?

Of course it matters so much as to why the house came to be rented in the first place and as so many houses that were lived in by Parents are now entering the Rental market, it is quite often that the Garden so lovingly nurtured by your parents is so important to you in how it is looked after by others. My advice in the past has also been to carry out a major re-fit if seeing the vegetable patch turn to weeds and slugs is going to be so upsetting. By having the Garden stripped and relayed to lawn for example, you remove the problem in one go. After all, nobody will ever look after the Garden in the manner your parents did and this can be a very good way of removing the garden as an issue, in the same way as ensuring the Bathroom and Kitchen (the two most important rooms in any house) are in a rentable condition, but that is another story!

08Jun 2011

Property Landlord advice: Length of Tenancy under BBC scrutiny.

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By Steve Roulstone

On Saturday morning I sat eating my Toast and Marmalade and was told during a report on the BBC 24 Hour News channel, that agreements for Tenants are six months long and that any Tenant who was in a property for longer than two years effectively became a squatter and could not be moved out! Well after I recovered from what I thought had been a tremendous shift in the legislation being introduced by the forthcoming Localism Bill I realised once again that here was my Industry being discussed on a National prime time News programme and once again the information being presented was at the very least misinformed if not just plain wrong!

Please check your facts.

It is a long term complaint of mine, that by allowing people to phone or e-mail or text in to News programmes, that the comments and therefore air time that is given to some outlandish views is so miss-representative of what the majority think and believe that it is treating the majority views with disrespect and paints such a false picture of whatever topic is being discussed as to be totally miss-leading of the nations views. But here we have a topic that I know about being given the same treatment by the chosen speakers who were given plenty of time to get the facts totally wrong.

Let’s put the record straight.

Firstly, that a Tenant who has been in a property for two years is as good as a squatter! Unbelievable! All I can say is if that was the Gentleman’s experience, then he needs to get better advice, because as long as the correct agreement is used to best suit the situation, then no matter if a Tenant has been in residence for ten years, both Landlord and Tenant rights remain the same. In fact, if the Landlord lived in the house as their main residence then with the correct agreement, when it is time for the Landlord to give notice, again providing that the notice is issued correctly should for some reason the Tenants not move out, which they would 999 times out of 1000 then the courts have no say in the matter and must award the property back to the Landlord.

Tenants can only stay six months?

Well forgive me but here is a situation which best serves both parties, because in order to ensure the Tenant is responsible in their actions and that the Tenant enjoys living at the property, an initial six months is just what is required, but that is not the end of it! I myself have just moved in to a property on a five year deal, which, with the correct clauses for bad health etc, is exactly what my wife and I wish for. It also suits the Tenant and with reason, for it should always be the case that length of Tenancy is for negotiation between the Tenant and the Landlord. But more interestingly, as a Letting Agent in my twelfth year of running an Agency, it is the Tenant who will always want the lesser time, indeed most stay in property under a periodic agreement after the initial period, which gives them the right to leave at short notice, because it suits their needs better!

Professional judgement!

Once again I see a situation that would have been presented in such a better manner if Professional Agents had been introduced to the situation (and it is a pity that once again I do not see our Industry professional bodies flying the flag for Letting Agents) at least the facts would have been correct, but perhaps it is because the powers that be at the BBC already know that the story would have much shorter legs, if a voice of common sense and reason was introduced to these sound bite discussions, which continue to pour confusion and fear on the housing market. What a pity that those who listened will probably consider the Lettings market something to be avoided. Instead of probably frightening house owners who cannot sell at present, they could have been re-assured that the rental market is a viable proposition and a possible answer to the lack of activity at a time when three times the normal number of properties than normally enter our market year on year are currently being rented throughout the UK!

17May 2011

Rental Issues: Reserving a rented property whilst a Sale completes.

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By Steve Roulstone

Rental Issues: Reserving a rented property whilst a Sale completes.

This is one of those issues that whilst rare does occur now and then and always causes confusion. I think clarity would help so that potential Tenants understand where Letting Agents are positioned and why we have to do what we do. It has happened at our office in Stafford again recently and it is the matter of how long we are prepared to hold a property before Tenants accept responsibility (sign a Tenancy agreement) that is nearly always at question. Under normal circumstances and with so many Tenants in the market at present, this problem does not and need not occur.

Legal position.

Tenants are only legally bound to pay for a property from the day they actually sign the agreement and of course Tenants do not wish to do so if they are subject to a sale which has not completed or could indeed collapse which seems to happen more often in recent years. Nobody would want to accept a minimum of six months liability for a property that should the sale collapse, you could neither afford or equally wish to use as your home. This is why Agents will quite often ask for payment from a date in time without signing the agreement as a payment in good faith but without committing the Tenant to legal documents which have far more lengthy implications.

Holding a property.

What needs to be realised is that Letting Agents have a legal responsibility to provide the best service and advise to the Landlord because of our legal position (as Agent of the Landlord) What also needs to be considered is that the Landlord will need to earn income from the property for as many days possible. Agents will do whatever they can to avoid void periods for Landlords, it is easy to see why anybody who owns a property as an investment, which is of course exactly what rental property is wants to earn rental income for every week possible. This is why once we have found a Tenant we will (in most cases?) confirm that we allow a four week period under normal circumstances for the move to be completed.

No similarity with sales.

This of course is the rub, there is nothing in the two processes which are alike, indeed the only comparison would be to expect Building Societies to allow payments to be suspended during the same period, so you can see how one sided the effect of waiting for a sale to complete now sits! Therefore we have to proceed in the best way possible for our Landlords and during a period where the rental market continues to improve, people who are renting after selling are not necessarily so attractive as prospective Tenants. I have known situations where sales collapsed after a seven week wait and resulted in the Landlord having a three month void period. Position this with our legal responsibility to give best service and advice to our Landlords and perhaps the situation becomes more understandable!

Co-operation required.

It is of course an emotive subject as anybody who has gone through a house sale nowadays would know. So we have to ask for co-operation from prospective Tenants under these circumstances and interim payments to reserve the property without asking for a legal commitment by signing the Tenancy agreement are a half way house which I believe offers both parties the ability to proceed and still deal with whatever the legal process of house selling throws at us, what we ask is that Tenants understand our liabilities and can co-operate in the same way.

12May 2011

Current Property News: Shelter Campaign launched supporting Licensed Landlords.

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By Steve Roulstone.

Shelter have produced a video in support of their call for action for the licensing of Landlords. It is an over the top production in the picture that it purveys, but there is no doubt that it does get the message across very well.

Dodgy practises.

It manages to cover several dodgy practises in a very short time, including illegal eviction, lack of proper procedure, unfit housing to name but a few, I would recommend all to watch it not just because of the content, but because as an industry we should think how Shelter feel they need to promote this issue to highlight the trend they report to have witnessed in recent times. Please note carefully, that during the video, Agents are added to the situation as being part of the problem!

Several messages.

At times it feels like those of us who are constantly calling for legislation to support us in our professional aims are knocking against closed doors, so I am grateful of any action that highlights the need for Registration of both Landlords and Agents. But it is a pity that it is not our own Industry professional bodies that are not the ones shouting the loudest! We need to recognise that many would see this video as a true representation of our Industry and not that farfetched. Agents, Landlords and bodies that truly care should be joining the call for the Government to take up the recommendations of the Rugg review of 2009. Otherwise, whilst rogue Landlords still exist and the evidence is still present for all to see, this tardy image will never go away.

Hard Times.

We should all be aware that during harder financial times for us all, the temptation to cut costs and corners is high, so whilst I feel Cambell Robb’s (Shelter CE) comment that ‘Landlords are cashing in’ a bit too simplistic and an easy jibe to make, we cannot hide from the fact that Shelter’s Campaign casts a very poor shadow across the whole of the rental market and it’s effect will touch us all one way or another. Follow the link above and you will not find one shred of comfort in the headlines, comment or follow up added to the page.

Join the call.

So yet again I find myself singing the same song, but this time my comments are directed towards the bodies that govern our Industry, the very same bodies that should such legislation be introduced, would want to be the people who oversaw its introduction, have a large say in how it was put together, would probably wish to police it and most importantly want to set the standard by which Landlords and Agents could be approved! I feel that the fact that organisations such as Shelter should be the party to start a Campaign and petition to promote professional standards reflects badly on your own efforts, efforts which we fund through our fees. Think and reflect on why your thunder has been well and truly stolen – this should be an Initiative that we should control within our own walls!

10May 2011

Property Landlord advice: Renting with white goods and part furnished.

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By Steve Roulstone

One of the roles of my position as Franchisor is to hold regular update meetings with other Castle Estate Franchisees. At a meeting held this week with a relatively new Franchisee an issue was raised that every agent has to deal with at one time or another and no matter which way a landlord wishes to get round the problem, leaving white goods and some furniture at a property will always remain a Landlords responsibility and my advise has always been simple – don’t!

White goods.

Once left at the start of a Tenancy, there is no clever way to stop white goods being either the responsibility of the Landlord or the subject of a dispute if and when it breaks down! I have spoken to so many Landlords who believe that by leaving a fridge their property will be more attractive to any potential Tenant. The truth is it is not and in simplistic terms, why worry? If an incoming Tenant cannot afford a fridge themselves, then they are probably not the Tenant the Landlord would wish for their house in the first place (Not including a cooker of course, which should always be supplied!)Plus what happens to the fridge they already own? Better remove both the goods and the responsibility in the first place.

Fitted white goods.

Now we have a situation where there is no simple answer, as fitted goods need to be maintained (and that does include the Dishwasher!) and when removed the property becomes less attractive. We need to think what our own reaction would be to being told we need to find our own washing machine for that hole in the cupboard? Of course this will be white goods we would probably never be able to use again, as fitted white goods are either smaller in depth or may not look pretty when installed without the cupboard surrounding it! Now be honest, would we seriously purchase our own in these circumstances?

Part Furnished.

Now we come to the worst of all scenarios, as I can absolutely guarantee, that should we find a Tenant who does need a three piece suite and a double and single bed first time round (providing of course that it meets safety requirements) we will not second time. Eventually you will end up removing all furniture as Tenants come along with their own bed and three piece, so rather than reduce the market to whom the house is acceptable, my advice is always remove all furniture now, for unless it is fully furnished (which is still a very small percentage of the overall market ) the furniture you do wish to leave will end up being a problem earlier or later in the lifetime of the rented property.  

Simple solution

In the end the advice to the Franchisee has not changed since I carried out the role myself, where possible remove white goods and furniture. Where it is to the detriment of the property, leave them but accept responsibility for maintenance. As far as furniture is concerned, unless fully furnished, remove all furniture from day one and make the property more acceptable to more of the market. All said with one rider – where the Landlord insists, we carry out our customers wishes!

06May 2011

Property Landlord advice: Rental horror story holds lessons for us all.

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By Steve Roulstone

Once in a while, and thankfully such occurrences’ are less common, a story comes along which encapsulates the problems that exist in our Industry all together. A story reported on in Letting Agent Today does just that. It is to the credit of the party concerned that they have viewed the incident in such a way that they are able to offer up the story to others as a lesson to be learnt.

Constant vigilance.

Within our own group, we have always ensured that our paperwork is constantly reviewed, even when problems occur and we can see we have done everything possible to carry out our responsibilities to the full, we still review processes and make changes if we believe we can further improve our service in carrying out our duty of Agency to the Landlord.  In this case it seems several essential services were not carried out correctly.

Referencing.

For me there is only one form of referencing and that is to use a professional referencing agency. So often we hear of Letting Agents who ask for references and proof of employment from Tenants and check them out themselves. The problem is clear for me, unless you have access to the information that a professional referencing agency does, there is no way you are able to investigate in full a Tenants history when problems would soon be found out. This is why Tenants with a poor history use independent Landlords fearing that referencing will find them out, so it is doubly disappointing in this case that the Landlord should suffer poor referencing.

Insurance.

Of course once a Tenant has passed professional referencing then Rent and Legal expenses insurance can be taken. It does not take a brain surgeon to understand why such Insurances are only available against Tenants that have passed such referencing in the first place. It has long been a recommendation of mine and I have written about the need for Landlords to take out Insurance recently.

Property visits.

As a Tenant I have just spent the last two months encouraging my Landlord (Privately Managed) to visit my Wife and I in our rented house, purely because of how important it is for Landlords to be confident that their property is in good hands. In the case of a managed property, the agent should carry out this work and when done correctly, and early enough, Tenants can be assessed in their property at a very early date, ensuring action can be taken earlier rather than later if they are failing to honour the agreement. Enabling notice to be issued at an early date if needed and always on an initial six month agreement, unless negotiated earlier, as for all practical reasons, a break clause after six months is the same as a six month agreement.

Professional management summed up!

It rather sounds as if this problem could have been dealt with cleaner and earlier on the Landlords behalf if all of the above had been followed correctly. At the end of the day you need to understand what the implications are of standing in the Landlord shoes, then and only then can you ensure you offer the best advice and service to your customer. After all, to do so is to carry out the role of agent in the correct manner, what other manner is their?