Posts with tag: letting agents

Government Plans to Regulate all Letting and Management Agents in England

Published On: October 19, 2017 at 9:25 am

Author:

Categories: Property News

Tags: ,,

Yesterday, Government ministers outlined plans to regulate all letting and management agents in England.

Government Plans to Regulate all Letting and Management Agents in England

Government Plans to Regulate all Letting and Management Agents in England

The proposals are designed to protect leaseholders and tenants from unfair costs in the property management system.

The Department for Communities and Local Government (DCLG) said that it wants to clamp down on a “small minority of rogue agents” operating property management services who force consumers to pay over-inflated charges, and will consider changing the law so that all letting and management agents must be qualified and regulated to practice.

The Communities Secretary, Sajid Javid, is launching a six-week “call for evidence” to establish whether a regulatory overhaul of the sector is necessary.

David Cox, the Chief Executive of ARLA Propertymark (the Association of Residential Letting Agents), and Mark Hayward, the Chief Executive of NAEA Propertymark (the National Association of Estate Agents), have commented on the plans: “ARLA and NAEA Propertymark welcome this announcement; we have long called for greater regulation of the housing sector. It will give consumers greater control over who manages their property, create long needed transparency, and raise the bar for those wishing to work in the housing sector. However, it’s concerning that estate agents don’t fall under the Government’s initial scope – we urge ministers to widen the remit to include the whole housing market.

“We are committed to ensuring consumers receive the best level of service when looking to buy, sell, rent or lease a property. Our members are required to have deposit and Client Money Protection schemes in place, and undertake regular training. However, this doesn’t stop some rogue agents from giving the industry a bad name. Blanket regulation is the right approach if we are to give consumers the confidence they deserve and reassurance that they will be treated fairly, no matter which agent they use.”

Adam Joseph, the CEO of The Happy Tenant Company, has also responded: “Enforcing transparency is the best way to give landlords, renters and leaseholders greater confidence that their managing agent is acting professionally and ethically. Whilst it may only be the minority of unscrupulous agents that load invoices with excessive charges for menial tasks, it tarnishes the reputation of the whole sector and must be stopped.

“Landlords and tenants should be able to see invoices from contractors and, in most cases, be given the option of two to three quotes to choose from before the work is carried out, particularly on more expensive maintenance works, such as boiler installations. Proptech software has made the sharing of maintenance works and associated costs really easy to facilitate, and any reputable managing agent should be happy to disclose all costs.”

Do you support the Government’s plans?

Landlords and Agents Accepting Forged Passports Due to Right to Rent Scheme

Published On: October 17, 2017 at 9:05 am

Author:

Categories: Landlord News

Tags: ,,,

Landlords and letting agents are unknowingly accepting forged passports from prospective tenants, as the Right to Rent scheme is fuelling a black market in fake IDs, a new report claims.

Landlords and Agents Accepting Forged Passports Due to Right to Rent Scheme

Landlords and Agents Accepting Forged Passports Due to Right to Rent Scheme

The Right to Rent scheme, which was rolled out across England last year, requires landlords and their letting agents to check the immigration status of all prospective tenants, to determine whether they have the right to live in the UK.

However, there is growing concern that the scheme has fuelled discrimination against British citizens that do not have a passport, as well as foreign tenants, leaving them at a disadvantage in the private rental sector.

A new investigation by the BBC has found that many landlords and letting agents are unable to identify forged passports, leaving them vulnerable to fraudsters with fake IDs.

The research found that criminal gangs are using forged passports that are impossible to identify with the naked eye.

An undercover reporter for BBC Inside Out London was able to purchase fake passports, as well as National Insurance cards and residence permits, from illegal dealers across London.

Using a secret camera, the reporter recorded the deals, with fraudsters charging up to £500 for a forged passport. Some documents arrived within 48 hours.

The forged IDs were then presented to letting agents, who were secretly filmed accepting them without question as proof of UK residency status.

Akhbar* told Inside Out: “In an average week, they were selling between six to ten fake residence permits or passports. In the last few months or so, I would say they got even busier.”

Home Office figures show that 170 fines have been issued to landlords under the Right to Rent scheme since October 2016. However, a Home Affairs spokesperson told the BBC that landlords and letting agents are not expected to be experts in spotting forged documents.

But David Smith, of Anthony Gold Solicitors, who specialises in landlord and tenant law, has expressed concerns.

“They [landlords] do not have the knowledge or skills to do the job properly. I’ve never met a landlord who can tell a valid Liechtenstein passport from a forgery,” he told the BBC.

Although you are not required to identify forged passports under the Right to Rent scheme, we do remind all landlords to stick to the law to avoid harsh penalties.

*Not his real name

Letting Agents Welcome New Inquiry into Private Rental Sector

Published On: October 16, 2017 at 8:28 am

Author:

Categories: Property News

Tags: ,,,

ARLA Propertymark (the Association of Residential Letting Agents) has welcomed the launch of a new inquiry into the private rental sector.

Letting Agents Welcome New Inquiry into Private Rental Sector

Letting Agents Welcome New Inquiry into Private Rental Sector

The Communities and Local Government Committee (CLG) will look into whether councils have adequate powers to tackle rogue landlords.

The inquiry, which follows a report published by the CLG in 2013, highlighting where the Government should take action to improve the private rental sector, will also look at whether landlord licensing schemes are promoting higher quality accommodation and the effectiveness of complaint mechanism for tenants.

The Chair of the CLG, Clive Betts MP, says: “With a big rise in the number of people renting over the last decade, there are real concerns about the ability of local authorities to protect tenants by tackling bad landlords and practices.

“Our inquiry will examine how local authorities can carry out enforcement work to deal with rogue landlords, as well as looking at approaches used by councils to provide private rented accommodation in their areas.”

ARLA Propertymark, one of the UK’s professional bodies for letting agents, has welcomed the inquiry as a “great opportunity” to review enforcement in the private rental sector.

David Cox, the Chief Executive of ARLA Propertymark, comments on the launch: “ARLA Propertymark welcomes this inquiry. This is a great opportunity to review enforcement in the private rented sector. For years, successive governments have introduced law after law with no evaluation of their effectiveness. With what appears to be a coherent strategy on the regulation of the PRS coming from the Government, it is an ideal time to review what has worked and what hasn’t.”

The CLG is now looking for written evidence for the inquiry by 24th November 2017, which you can submit online here: http://www.parliament.uk/business/committees/committees-a-z/commons-select/communities-and-local-government-committee/inquiries/parliament-2017/inquiry1/commons-written-submission-form/

Do you believe that the inquiry has come at a good time, and what do you think needs to be done moving forward?

The Top 10 Tips all Tenants Need to Know

Published On: October 11, 2017 at 9:43 am

Author:

Categories: Property News

Tags: ,,

Whether you’re a first time tenant or an experienced renter, renting a property can present challenges for anyone if you’re unprepared. We have the top ten tips all tenants need to know…

From losing your deposit to falling foul of rogue landlords, it’s important that all tenants take the advice and help available to them to make the lettings experience as simple as possible.

ARLA Propertymark (the Association of Residential Letting Agents) shares its top ten tips to help avoid the common pitfalls of renting.

Sally Lawson, the President of ARLA Propertymark, says: “With more and more people completely priced out of the property market and a desperate shortage of housing, private rentals have become the norm. However, there is a lot to consider when choosing a property to rent and there can be a lot of unanswered questions, which can be overwhelming.

“The below checklist has been created to make sure your next letting experience is a positive one, including all there is to know on the process to make it as simple and stress-free as possible.”

Before you start looking:

Know what’s important to you 

The Top 10 Tips all Tenants Need to Know

The Top 10 Tips all Tenants Need to Know

Before you start looking for a new rental home, work out what’s important to you, such as the number of bedrooms or parking spaces the property has, as well as local amenities and proximity to friends, family, schools and work.

What can you afford?

Decide what you can afford before you start house hunting. Remember that you will also have to budget on top of your rent for household bills, including gas, electricity and water, internet, TV licence, contents insurance and Council Tax, as well as food and general household items.

Choose your housemates carefully 

Disagreements between housemates are very common in the rental sector. Conflicting lifestyles and personality clashes can cause misery and stress; remember that a fun friend is not necessarily a good housemate, so choose wisely.

When you’re looking:

Using a letting agent

If you are using a letting agent, make sure that it is a member of an authorised redress scheme, as this should mean that it has Client Money Protection (CMP). This ensures that, if the agent goes bust or runs off with your money, the scheme will reimburse you and make sure that you’re not left out of pocket. You will not get this protection if you rent directly from a landlord or through an unregulated letting agent.

Ensure you’re protected

You are entering a legally binding agreement when you sign a contract with your landlord, so don’t feel pressured to sign immediately. Make sure that you take your time to read the contract thoroughly. Ask as many questions as you want to, until you’re comfortable that you understand everything it contains. If you’re not happy, ask for any changes or amendments that you want.

Know your rights

Before you sign the tenancy agreement, you will be asked to provide proof that you have the right to rent in the UK, so make sure that you have your identification documents (such as your passport) to hand. After you sign the contract, you must be given a copy of your new home’s gas safety certificate (if the property has gas), its Energy Performance Certificate (EPC), the Government’s How to Rent guide, your deposit protection certificate and the prescribed information, and any licence for your property from the local council (if a licensing scheme exists in the area).

Once you’re in the property: 

Make sure your new home is safe 

Smoke alarms are required on all floors of your home and carbon monoxide detectors are needed in any room where solid fuels are burnt. These need to be tested and working on the first day of the tenancy; this is usually done at check-in. The landlord or letting agent will also probably undertake an inventory and schedule of condition at this point. Make sure that you go through these documents, and notify your landlord or agent if you disagree with what they contain, as this will affect how much of your deposit you get back at the end of the tenancy.

Sort out the bills and insurance

If this hasn’t been done by your letting agent, notify the utilities companies and give them meter readings, your move-in date and the names of all new tenants. Make sure that you have contents insurance – your landlord will insure the buildings and their own contents, but you need to cover your own belongings against loss or damage.

Address issues before they become bigger problems

Don’t be afraid to report repairs to your landlord or agent. It’s much easier, faster and cheaper for your landlord to fix an issue when you first notice it than when it becomes a bigger problem. If you leave the home empty for a prolonged period, consider leaving the heating on low to ensure that pipes don’t freeze during the winter. Also, if you’re going away for more than a couple of weeks, let your landlord or agent know so that they can keep an eye on the property.

Return the property as you found it

Most deposit disputes are over the condition of the property at the end of the tenancy. Make sure that you give the place a thorough clean before you move out and leave it in the same condition as the day you arrived.

We hope that these top tips help you on your way to having a successful lettings experience!

Technology Set to Change the Tenant, Landlord and Letting Agent Experience

Published On: October 10, 2017 at 7:56 am

Author:

Categories: Property News

Tags: ,,

Technology Set to Change the Tenant, Landlord and Letting Agent Experience

Technology Set to Change the Tenant, Landlord and Letting Agent Experience

Technology is set to change the whole lettings experience for tenants, landlords and letting agents, according to property management software firm Arthur.

With over one million apps now available across the leading app stores, it won’t be long until technology will infiltrate the lettings sector with its power functionality.

Apps now enable users to do almost everything that they can do on a desktop computer, making everyday tasks, such as chatting with friends, checking your bank balance, booking a holiday and watching the latest news videos, quicker and simpler.

Arthur believes that smartphones have the potential for not only improving the communications between a tenant, landlord and letting agent, but also for improving tenant safety and security.

The Managing Director of the firm, Marc Trup, explains how technology will enhance the sector: “Tenants in multiple occupation buildings could have a safe button that they can use in the event of a fire, or have the ability to unlock their front door, or report a leak just by taking a picture of it.

“Smartphone apps can empower tenants and provide access to live communications between them, the landlord and/or the letting agent, which is transparent, immediate and auditable. This rules out any misunderstandings and keeps the relationship at arm’s length. There is also a commercial benefit for the landlord – if tenants are happy, they improve the value of rental properties.”

He continues: “In the future, a tenant will be able to search for a property, sign the lease agreement, check the inventory, pay their rent and organise all aspects of their moving via their smartphone. They won’t need to pick up keys to enter the property, as access will be via an app, which will also control the lighting and heating etc. Smartphone apps using proximity technology will enable this to happen and is already being used by some hotels, instead of key cards etc.

“It is inevitable that technology will change the relationship between the landlord, tenant and letting agent for the better.  It has the potential to improve communications, empower the tenant and make property management easier.”

What are your thoughts on using technology in your lettings business – is the traditional method better?

Outright Ban on Lettings Fees Branded “Dangerous Move”

Published On: October 5, 2017 at 9:36 am

Author:

Categories: Landlord News

Tags: ,,,

Outright Ban on Lettings Fees Branded "Dangerous Move"

Outright Ban on Lettings Fees Branded “Dangerous Move”

An outright ban on lettings fees charged to tenants in Wales has been branded a “dangerous move” by a landlords’ organisation.

The Welsh division of the Residential Landlords Association (RLA) has responded to the Welsh Government’s consultation on an outright ban on lettings fees charged to tenants, which follows similar moves in England.

In its consultation response, the RLA states that an outright ban, as is expected to be introduced in England, would be a dangerous move, with ripple effects throughout the sector.

With a major source of revenue eliminated, letting agents would have no choice but to pass on their overhead costs to landlords, who, in turn, would have no choice but to absorb these higher charges by raising rents for tenants, believes the RLA.

Landlords are already facing huge financial pressure at present, due to new regulatory changes to mortgage interest tax relief, Stamp Duty, mandatory licensing in Wales, and the new Energy Performance Certificate (EPC) standards, which will be introduced next spring.

The Welsh wing of the RLA is arguing that, rather than an outright ban, a capped fee should be introduced, within which a set of services would be required. These could include: referencing, credit checks, and assistance with negotiating the terms of a tenancy with the landlord.

Additionally, the RLA is advocating a set menu of fees for services that might not apply to every tenancy, such as guarantor referencing and surcharges for lost keys.

What is your opinion on an outright ban on letting agents charging fees to tenants and, if you don’t agree with the plans, what are your proposed alternatives?

We will continue to keep you updated with the development of plans for an outright ban on lettings fees, as well as helping you stick to all of the laws governing the private rental sector with our free guides: https://landlordnews.co.uk/guides/