Posts with tag: complaints

Lettings Complaint Surge comes as No Surprise, Says AIIC

Published On: September 11, 2017 at 9:38 am

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A lettings complaint surge, recorded by the Property Redress Scheme (PRS) in 2016, comes as no surprise to the Association of Independent Inventory Clerks (AIIC)…

In August, the PRS published its annual report, which showed a 40% increase in complaints made last year compared to 2015.

Lettings Complaint Surge comes as No Surprise, Says AIIC

Lettings Complaint Surge comes as No Surprise, Says AIIC

The organisation also revealed that either tenants (51%) or landlords (35%) made more than 85% of the complaints that it received.

Property management (29%), deposits (27%) and problems with rent (15%) were the most common complaints received by the redress scheme in 2016.

The AIIC notes that the complicated nature of the lettings process, alongside an increase in legislation, could be responsible for the lettings complaint surge.

According to the PRS, the overall rise in complaints is partly down to its membership growth, but also partly down to a heightened public awareness of the formal complaints procedure – a sentiment echoed by the AIIC.

The Joint Chair of the AIIC, Danny Zane, says: “Here at the AIIC, we were not surprised to see that the vast majority of complaints received by the PRS in 2016 were made either by landlords or tenants.

“Rental relationships can be complicated, and the more transient nature of the letting sector increases the scope for disharmony between tenants, landlords and letting agents.”

He adds: “In recent years, agents, landlords and even tenants have been required to jump through more legislative hoops, and so there is now more potential for things to go wrong and, put simply, more things to complain about.”

Deposit problems were one of the most common complaints made last year, and the AIIC says that, if more letting agents and landlords provided professionally compiled, independent inventories, then the number of complaints relating to deposits could be reduced.

We have created a comprehensive guide to help landlords put together a thorough inventory: /guide-compiling-good-inventory/

Emma Glencross, another Joint Chair of the AIIC, continues: “An impartial and professional inventory comprehensively details the condition and contents of the property at the start and end of the tenancy.

“They help to reduce disputes at the end of a tenancy, as landlords can make fair and legitimate deposit deductions, while showing tenants exactly what they are being charged for.”

Zane concludes: “That’s why we’re of the long-standing viewpoint that independent, professionally compiled inventories should be made compulsory by the Government.

“If all parties provided independently compiled, professional inventories to a uniform standard, then there would be fewer complaints relating to deposits.”

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Property Redress Scheme Membership Up by 33%

Published On: August 16, 2017 at 9:46 am

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Categories: Property News

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Property Redress Scheme Membership Up by 33%

Property Redress Scheme Membership Up by 33%

Property Redress Scheme membership rose by 33% in the year from 2015 to 2016, shows its 2016 Annual Report.

The research also highlights a 40% increase in formal complaint notifications, which may be a result of the rise in members.

At the end of 2016, a total of 5,259 agent offices (31% sales and 79% lettings) had Property Redress Scheme membership, with a further 227 property professionals – such as inventory clerks – choosing to join the scheme to promote best practice within their organisations.

Total Property Redress Scheme membership currently stands at more than 7,000, with almost 700 UK Association of Letting Agents (UKALA) members now having access to Property Redress Scheme membership, following the announcement of a formal partnership in October 2016.

As well as growth in membership, the annual report also shows that the Property Redress Scheme has seen a 40% increase in formal complaint notifications. In the report, the Head of Redress at the organisation, Sean Hooker, acknowledges that this can be partly attributed to overall growth of the scheme, but he believes it also indicates an upward trend in consumer awareness of the complaint process.

The most common causes for complaints were property management (29%), deposits (27%) and problems with rent (15%). Service and fees both resulted in 6% of complaints. Tenants made the majority of complaints (51%), while 35% were made by landlords, 8% by leaseholders, 3% by buyers and just 1% by sellers.

The Property Redress Scheme awarded a total of £152,819 in compensation, with the average amount awarded being £375.27.

Hooker comments: “Although formal complaints have risen, so too has the number of complaints resolved at the early stages of our process. Around 40% of our cases are resolved at recommendation stage and 99% are dealt with in less than 90 days from receiving the initial complaint through to a decision.

“We continuously look at improvement and initiatives to increase the effectiveness and delivery of our service. We hope that the most recent introduction of our online complaint system will further reduce the average time to complaint resolution.”

Have you considered Property Redress Scheme membership?

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How Technology Could Reduce Complaints Against Letting Agents

Published On: August 2, 2017 at 9:45 am

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Effective use of technology and automation could help to reduce the number of consumer complaints against letting agents, according to payment management solution PayProp.

The firm makes the claim following the recent publication of The Property Ombudsman’s (TPO) annual report.

How Technology Could Reduce Complaints Against Letting Agents

How Technology Could Reduce Complaints Against Letting Agents

The study showed that letting agents were ordered to pay 51% more in awards to consumers during 2016 than the previous year.

What’s more, the number of resolved complaints against letting agents increased during this period, with an average lettings reward of £531.

TPO’s latest report shows that management, and communication and record keeping are two of the top four causes of complaints against letting agents, while PayProp says it is in these areas where technology could help firms become more efficient.

The CEO of PayProp in the UK, Neil Cobbold, confirms: “The finding that many agents have fallen down when it comes to management, record keeping and communication tallies with our own data.”

He believes that in these instances, incorporating streamlined and automated processes could reduce the chances of agents receiving complaints, particularly as there will be a record of all their activity, which is difficult to constitute with paper-based processes.

Cobbold also notes that when it comes to bad record keeping and management, there are two types of agencies – those who make inadvertent mistakes and a small minority who use the lettings industry to break the law intentionally.

He insists that technology can help in both cases: “It can stamp out incorrect handling of some steps, by helping with management, communications and record keeping, and it can also be used to track and trace wrongdoing.

“Although it can’t stop an agent doing anything illegal, it can help provide insurmountable evidence and an indelible audit trail.”

He adds that effective application of technology can raise transparency: “It gives rogue agents less to hide behind and helps to make sure that agents are acting in landlords’ interests.”

The CEO of the up-and-coming proptech provider repeats earlier statements that reservations about technology are unfounded.

“When properly embraced, technology makes one’s job easier, it doesn’t get rid of it,” concludes Cobbold. “For example, by automating administration, you can reclaim more of your time, allowing you to devote more to your business.”

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Landlords should cover letting agent fees, says Citizens Advice

Published On: September 19, 2016 at 9:12 am

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Categories: Landlord News

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Citizens Advice has called for all letting agency fees to be paid by landlords as opposed to tenants, as is the case in Scotland.

The charity believes that landlords have an advantage of being able to shop around for the most suitable deals. On the other hand, tenants however have no choice over the agent they deal with, nor the fees they are charged, following finding a suitable property.

Complaints

More numbers of renters are contacting the charity with complaints about letting agents. Citizens Advice said it received 6,500 calls about the sector in the year to June. This was a rise from 6,200 in the same month last year and 5,700 the year previously.

In the past, many tenants have lodged complaints about delays and getting repairs fixed. However, it now appears that complaints are more prominently about letting agents’ fees.

Presently, tenant fees are charged for a number of services, including preparing a tenancy agreement, referencing and making credit checks. Citizens Advice believes these features should be paid for by landlords.

Chief Executive of Citizen’s Advice, Gillian Guy, said, ‘private renters shop around for properties, not for letting agents. Landlords are better able to choose agencies based on performance and cost and it should therefore be landlords paying letting agent fees, not tenants picking up these rising costs.’[1]

Landlords should cover letting agent fees, says Citizens Advice

Landlords should cover letting agent fees, says Citizens Advice

Fairness

Responding to the claim, David Cox, managing director of the Association of Residential Letting Agents (ARLA), said he believes that letting agents have a ‘fair pricing structure,’ and do not make a, ‘noticeable profit.

Cox feels that landlords are left with little choice but no charge for essential items such as credit checks, rent to rent assessments and inventories.

‘Rather than simply transferring the total cost onto the side on the landlord, what is crucial is to provide consumer protection through better regulation of the private rented sector,’ Cox noted.[2]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/9/all-letting-fees-should-be-covered-by-landlords-says-charity