Tag Archives: Renting Property

21Mar 2011

Property Landlord advice: Utility Warehouse charges unfair on Landlords.

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By Steve Roulstone

I had a very upsetting and disturbing situation develop last week on a house of mine that is occupied by Tenants and has been since I moved out last December. The disturbing matter, was that I received what can best be described as a mixture between a debt letter and a threatening letter advising that my account with Utility Warehouse was overdue by some £430.00 and that if I did not take IMMIEDIATE ACTION or worse still IGNORED THIS LETTER charges could rise to over £800.00

First reaction.

Now I do not know about you, but if somebody sends me a debt letter, for no reason what so ever, it does not make me very happy – what transpired when I phoned Utility Warehouse, for it appears to have been their debt collecting agency as I was internally transferred without any delay, made me even angrier!

The facts in this case.

What had actually happened was that we had advised UW that we were moving gave them our forwarding address and subsequently paid the final invoice and closed our account, something that was easy to confirm, as the account number on the stated debt letter was different than the one on our old invoices for this same address. The new Tenants had also been in touch, but they (UW) did not approve of the paperwork sent to confirm the Tenancy and instead of trying anything else they moved straight to debt recovery letter.

 Debt has to be recovered – does it not?

The problem with this debt letter was that they immediately opened another account in my name (as Landlord) and sent the debt letter to us! Now, I know that this could never stand up in court, but I just wonder how many people are not aware? It is a fact that no debt for services amassed by one person can be the responsibility of others, owners or not. No, what UW did here was take the easy way out and send a letter to somebody to get a reaction. Well I have news for you UW it worked!

My advice.

 What I am guessing they did not expect, was that the Landlord in this case would then put this absurd situation in writing and advise all Landlords NOT to have UW as their provider. It is a fact that the Tenant (A Company) as somebody that I have dealt with professionally for several years had no intention of staying with UW and had advised them of this fact, not that UW then made contact back with the Tenant to try and address the issue direct with the person responsible for the bills! Oh no, instead they opened an account in my name without even speaking with me. Now, let’s just look at that again.

Contradiction the name of the game.

 So because they were unhappy with paperwork sent by the people who were generating the invoices, UW would not accept them for a new account. Not that they did not open one in their name, rather that they changed the name when they decided the information was not complete. Now it is what they did next that is, in my opinion, a contradiction of what appear to be their own rules!  So rather than contact the Tenant and sort it out, they opened the account in my name, even though I had not asked for one and they had received no paperwork which they could approve or otherwise!! So it seems that what was not acceptable for the correct person did not matter for the wrong person!

Soft target!

And this is the rub for me, just because we made it known where we live and what we were doing with the property, UW decided to send us the invoice for no other reason than because we were there and available. This is treating Landlords with disrespect in my book and I get fed up of being treated as second class citizens where the rental market is concerned. (I did ask them to investigate and call me back, but their offices only receive incoming calls! Says it all really) We all know what our responsibilities are and we all know this would not happen if the property had been sold! UW would not have sent the invoice to the original owner and yet we are just as liable (as in not liable at all) as Landlords or as past owners. Think again UW treat us all with equal respect and put more effort in too sorting out problems rather than shooting at soft targets!

 

 

 

 

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!

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?

18Jan 2011

Current Property news: Mortgage demand providing a good platform.

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By Steve Roulstone

Even as early as the second week in the New Year, agencies are reporting a big increase in Mortgage demand and the majority seems to be in the rental sector as Landlords continue to react to the need for an increased number of rental properties. Indeed, as a Country that normally follows what happens in the USA by way of financial trends, it could be argued that we are right on the heels of trends in America as they start to ease the availability of mortgages across the pond.

 Follow that lead!

I have stated before and would repeat with this very current news of increasing demand, that we are building up a head of steam which would when the market releases a product that would be acceptable to Landlords, result in an increase in sales for the coming year, which I believe will at the very least aid the recovery (if not start the recovery) of the housing market in the UK. There is no doubt that the Mortgage houses are looking at what demand would bring as they continue to sample the market place with short term offers, and this is producing strong demand, confirming my beliefs that the demand is high amongst Landlords, who are only delaying because they do not wish to be tied in too the wrong style of mortgage for their investment portfolio.

Strong Rental demand

There is no doubt that the demand is continuing to grow and this at what is normally a quiet time, even allowing for the spike of demand caused by the extended Bank Holiday blues! As Agents, at Castle Estates we are gearing ourselves to be ready for a year of high demand by ensuring we have the right technology to supply our Tenants demand for information and ensuring we remain competitive in an industry where Tenant charges can sometimes be difficult to justify. We have always maintained that the relationship with our Tenants is the key to the art of good Management and we wish to ensure we supply the service demanded by an ever increasing technically knowledgeable customer.

Producing higher rents.

For the result of the current shortage of rental property will result in higher rents for the Landlords, that is what market forces will dictate, even with the knowledge that affordability will be a large part of any increases in the current financial climate that we are living through, so giving Landlords even more reason to increase their portfolio of property. The market professionals and providers know this and will be looking for sustained signs before releasing the products that the industry requires. There is no doubt that this continued increase in demand will be playing a large part in providing that very proof!

16Jan 2011

Property Landlord advice: Further problems for reluctant Landlords.

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By Steve Roulstone

It is strange how some matters come up on more than one occasion and this week, we have seen two occasions where absent property owners were at risk without even being aware and it is a situation that I now recommend everybody to be aware of, indeed check with your own Insurance Company to ensure the house insured is covered under your normal homeowners Buildings Insurance policy. The outcome may have a great effect on you becoming a reluctant Landlord.

Empty property.

The two occasions that have arisen this week, both concern owners, who in our case are Landlords both, who have found that their property is not insured under their existing Insurance policy, because the property is currently empty. In the first case, the property was empty whilst the Landlord had work carried out in preparation for renting the property, to ensure that the house was presented in the best possible condition. His policy only gave cover for sixty days and was discovered because of damage being claimed through a burst pipe during the recent cold weather. Needless to say he was not aware of the clause and I wonder just how many insured are?

Policy renewed.

The second case is even worse, in that because of what had happened to the first Landlord we asked the second, who had moved on over a year ago, only to find that he only had thirty days cover and the property had been empty for over a year. In fact, the Landlord had recently renewed and even with the address change, nobody at the Insurance Company asked the question about why, so it appears they gladly took the payment without even taking the opportunity to check if the house was covered! When you consider the questions we have to answer to ensure our position (property) is insurable, it seems strange that the reverse does not happen, i.e. we are not asked if a situation exists, even with evidence to support that it does (the different address) that means any claim would be rejected!

Now the implications

The advice has got to be that any owner looking to move on and leave a property empty, advises the Insurance Company from day one and of course checks how long the house is covered in their absence. But the implication for owners wishing to achieve a sale before deciding to consider their options (our experience suggests this can be anything up to six months) is that they are liable to find that their Insurance policy will not allow them the grace of time and a decision may well be forced.

Renting options

What we normally see is a request for information before owners move on, so that if they do decide to rent they will have already decided who to appoint as Managing Agents and do not have to return to the area to make an appointment. Far be it from me to suggest otherwise and of course we are accustomed to gathering everything we need at that first appointment to enable us to do our job without the then landlords having to return. But under these circumstances, owners are going to have to make that decision at an earlier date and I for one would not argue! but we must always give best advice and as was proven this week, it will be the property owner who will benefit in the long run!

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.

 

07Jan 2011

Property Landlord advice: Positive property news reported negatively.

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By Steve Roulstone

Once again I have cause to comment on the way that news concerning property is reported in a negative manner. During December according to most organisations reporting on prices, we saw an increase of the average price. In fact Nationwide reported that during 2010 prices increased at the same rate of 0.4% overall. Guess what was reported as a forecast for 2010 a year ago?

BBC looking for bad news

The commentator in this report states that forecasts for 2010 were between a slight increase and a decrease of up to 20% The guest from the RICS states that they forecast a slight increase and the commentator goes on to ask what changes would signal a decrease. Well Mr Leaf, well done you got it right and yet again the BBC reporter shows just how much they love taking a negative view of housing!

Now for 2011

What changes can we see for 2011 then, well it looks as if we will not see any! Even when figures confirm the slight increase, the BBC still manages to find a negative slant on the news and even more depressingly, a report from my own professional body, stated the same increase and then within the article commented that some (unconfirmed) bodies are forecasting a decrease of up to 20% next year, but goes on at the end of the article to confirm who is saying what and the maximum forecast is only shown as -5%!  

Past performance

Is really what we need to look at here and if we consider the two reports mentioned above, then it seems that forecasting poor performance attracts the eyes of those who want bad news. The BBC 2010 forecast report stated figures between increases of a few % through to a decrease of up to 20%. Well and overall increase of .4% is so far from a 20% drop, this indicates that from this year’s forecasts (confirmed sources) in the NFOPP Newsletter article that we are liable to achieve a small decline at worst as the market continues to settle

Factors that affect the result

 We are all aware that there are several factors that will affect this result, how the Nationalised Banks will perform now that the Government have removed mortgage targets. But what we do not know is how the Building Societies will react now that the market is again a level playing field. Or indeed whether the need for Rental property will provide a lift as Landlords seek to supply property and market forces in the rental market take effect.

In conclusion

The statement about ‘forecasting being for fools’ is I feel the main point about house prices and that market forces will determine what happens over year to come, so let’s stop making bad news out of forecasts which are so wide of the mark. Negative comments ONLY have a negative effect. I for one will continue to comment on what happens and when asked for my opinion, will give it with honest confidence, not negative guesswork!

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.

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.

29Nov 2010

Rental issues: Property maintenance delays caused by freezing weather.

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By Steve Roulstone

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

When problems occur

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

Delays in Agent services

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

Services not serviced

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

Patience is still a virtue

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