By now everyone has heard of the landmark decision of Lord Justice Lloyd on 14 June in a case that has sent shockwaves through the lettings industry. Put simply, the Court of Appeal decision in Superstrike v Rodrigues states that where an AST started before the advent of the deposit registration regulations but rolled over into a statutory periodic tenancy after 6 April 2007, any deposit should have been registered and prescribed information served. The implications of that decision are significant for the thousands of landlords and their agents who still have statutory periodic tenancies that arose in the months after April 2007. The decision is also a worry for all of those tenants who may have been evicted since then on the basis of an “unlawful” section 21 notice. After all, if the deposit was not registered and prescribed information not served, their landlord was not able to serve a valid section 21 notice to bring the AST to an end.
Since April of 2007 official sources suggest that over 1 million individuals have been forced to relocate in circumstances where, thanks to the Superstrike decision, a possession order was made on an invalid section 21 notice. The implication for landlords, managing agents and the judicial system is troubling. It is doubtless causing sleepless nights for those in the Department for Communities and Local Government charged with bringing some order out of the chaos.
Accordingly, it will come as no surprise for readers to learn that over the last few weeks there have been a number of meetings at a fairly senior level between representatives of the lettings industry, including ARLA, the principal deposit registration organisations and government officials to map out a way forward. Whether Mark Prisk, the current housing minister, will table new legislation to effectively overturn the Superstrike decision remains to be seen. However, with Parliament about to recess as I type this blog, it looks highly unlikely that there will be any significant change in the current position until October 2013 at the very earliest.
In the circumstances what should agents and landlords do if they have a pre-April 2007 AST which is still running on as a periodic tenancy?
The short answer is to refund the deposit as soon as possible to the tenant. Sadly, with the implementation of the Localism Act 2011 last year, it is no longer an option simply to register a deposit late if one wants to serve a section 21 notice. The deposit must be refunded in full.
To make matters worse, even if a deposit was registered on time – and remember time limits changed with effect from 6 April 2012 – if the prescribed information was served late, that now triggers a penalty of between 1 and 3 times the deposit plus the return of the deposit itself.
One intriguing aspect of the Superstrike decision concerns comments by Lord Justice Lloyd which suggest that when an existing AST lapses from a fixed term into a statutory periodic tenancy, it may be necessary to re-register the deposit, or at least re-serve the prescribed information. Logically this must be correct as the effect of the Housing Act 1988 is to create a “different” type of tenancy when an initial fixed term comes to an end. As a purely precautionary measure, therefore, we are now suggesting to all our clients that at the end of a fixed term, prescribed information is indeed re-served. Individual landlords and managing agents should also check with their deposit registration provider as to what else might need to be done to avoid their tenancy becoming a future test case!
One area which is being actively explored by some of the larger national chains is whether the entire problem of re-registration/re-service might be avoided by changing the definition of the fixed term. To avoid a statutory periodic tenancy arising at the end of, say, a twelve month AST, consider adding a rider to the definition of the term. This might provide that the tenancy continues “thereafter on a month by month basis until terminated by two months notice on either side”. Arguably this could prevent the tenancy changing from a contractual to statutory tenancy in the way that Lord Justice Lloyd mentioned in his judgment.
Clearly this has implications for renewal fees and flexibility. Accordingly, landlords and agents should seek professional advice both on the efficacy of adding such a clause and its exact wording.
As always, subscribers to our telephone helpline can receive “free” advice by calling the dedicated line provided. If you are not already a member of the Dutton Gregory telephone helpline service, please telephone one of our team on 01962 844333 for further details.
ROBERT J BOLWELL
Head of Landlord and Tenant Department
e-mail: [email protected]
Mention the word ‘landlord’ to some people and it will yield a reaction of dread or intense anger. Stories of landlords from hell are all too common, and while most are genuine and responsible, a small number of landlords ignoring their legal duties have allowed the few to tarnish the name of the many. If you find yourself in a situation whereby a landlord is refusing to carry out repairs that you feel are his or her responsibility, there are steps you can take.
Build a case
If a landlord is flat out refusing to do repairs or is ignoring your repeated requests, it may be that you have to take legal action; but before doing this you will need to build a strong case, which requires the help of a home or flat inventory company.
An inventory report is generally carried out before a tenant moves into a property and after they move out. However, it is possible to have in-depth reports quarterly, yearly, or at the mid-point in a tenancy agreement. By compiling a report, home or flat inventories can show clear evidence of damage and how a property has deteriorated since a previous report.
In addition to this, you should compile your own portfolio of evidence, by taking photographs of required repairs, copies of medical notes showing proof of your health being affected by the problem, receipts for any money spent on trying to fix the problem, and copies of letters sent to a landlord in relation to repairs.
While building a case, you should continually write to your landlord about the issue.
Contact Housing Standards Team
The next step is to contact your local council housing standards team. Housing standards are committed to ensuring all properties within their borough meet acceptable living conditions. Housing standards will ask for details and evidence of disrepair as well as name and contact details of the landlord. They will then arrange to visit the property and inspect the damage. At this time, the landlord will be contacted and given the opportunity to undertake all repairs. If he or she fails to do so, the council may serve statuary notices, followed by court action.
Taking legal action
It may be possible to take your landlord to court where an order can be given for necessary repair works to be carried out and possible compensation paid to you for inconvenience, damage to personal property and health caused by repairs not being done. Before taking this step though, you should be aware that court action can be a long and expensive process and should always be a last resort.
It is essential that you speak to your solicitor or to Citizen’s Advice before making a decision on legal action, and find out if you are eligible for legal aid. The evidence compiled by a home and flat inventory company and yourself will ensure you stand a good chance of winning in court; however, only ever proceed after having received comprehensive legal advice.
Photo sources: roaringapps.com – everythingsimple.com
There’s no doubt that the process of finding tenants for your property has been made far easier thanks to the web, but are landlords using online resources effectively to maximise revenue off the back of increased demand?
When it comes to property, location is everything, but often that maxim is never fruitfully applied to the rental market where competition for properties in certain parts of UK ensures that even the most run-down rooms in less-than-desirable neighbourhoods command a battle for occupancy.
If you’re a landlord, why not try following these 3 simple steps to ensure that increased demand results in increased rent as a result?
Step 1: Understand the value that the local area brings to your property
No man is an island, wrote the poet John Donne, but equally, no property is either. Understanding how local amenities create demand is key to pricing your rent effectively.
Recent research from LSE suggests that a property in the close vicinity of a school rated Outstanding can be worth up to 8% more than those near to merely satisfactory schools. Schools, parks, leisure facilities, open spaces, great pubs and restaurants all act to push up the desirability of an area, and it’s only right that properties ticking all the boxes should command a premium. In fact, anecdotal evidence from Savills indicates that even the smallest things can have an impact: homes that have Waitrose as their local supermarket are typically worth 10% more than those with access to other brands.
ACTION: Identify all the potential selling points for the local area and try to assess the uplift in value that each one brings
Step 2: Prepare an information pack outlining the neighbourhood benefits
There’s no doubting that property particulars are important, but have you considered providing prospective tenants with an information pack about the local area? As well as being an excellent way to demostrate your utility and support as a potential landlord, it’s another great tool for helping tenants understand the triggers that are creating local demand for housing.
Don’t stop there though; use the information pack to highlight why there’s such interest in your property and why it might be worth paying more for ready access to a neighbourhood containing everything a tenant might need.
ACTION: Create or download information packs for your property to sell the benefits of the local area
Step 3: Understand the demographic demand of the area
Demographically, property values and household income used to be closely intertwined, but over time the link is becoming looser and looser, particularly in densely-populated urban areas. If you want to maximise rental income, it’s important to understand the demographics of those creating demand in the area – and to respond to that need with an appropriate rental price. High-income city workers might consider living in less affluent areas for reasons of convenience and accessibility, and in some instances that demand can allow landlords to increase rents above the local market average.
ACTION: Research the demographics of those moving into the area and pitch your pricing at the trend, not those already living there
Author: Barry Bridges is the Co-Founder of Property Detective; a powerful tool that helps landlords, buyers and tenants research more intelligently the local issues affecting a property. He writes about property research, data and due diligence on their blog: www.propertydetective.com/blog
Summer is here which means its holiday time and a chance to escape the daily stresses and struggles that come with being a landlord. While they may be stereotyped as being a serious bunch, landlords like to have fun just like everybody else, and a summer holiday is one of the few times a year that they get to swap that stern expression for a smiley one. However, being a landlord means that it’s not possible to just pack a suitcase of leave; you have a duty of care to tenants and thorough preparation is needed before embarking on a well-earned break away from the UK. Property inventories need to be taken care of, tenants need to be informed of your plans, and contacts need to be arranged before you even think about which swim trunks to pack.
If you are a landlord planning a holiday, here are a few steps you need to take to ensure everything runs smoothly in your absence.
Notify your tenants
The first thing you will need to do is notify your tenants that you will be away. You never know what is going to happen to a property in your absence and there is a chance that your tenants may need to contact you. It is best to give tenants as much notice as possible that you are going to be away and provide them with dates, contact details, and emergency contact details in writing. Send all letters to tenants by recorded delivery so that you can be sure they have received the information.
Arrange an emergency contact
You owe it to yourself to distance yourself from work as much as possible and, while you should always remain contactable, it is best to hand over responsibilities to someone that you trust. Whether that happens to be a family member or a friend, ensure that they have everything needed to deal with every eventuality.
When your emergency contact is running things in the UK, property inventories, rental agreements with new tenants and pre-existing repairs should all have been taken care of before you leave. Provide your contact with the following list of items:
- all keys to all properties, garages, units and lock-ups
- contact details for all tenants including names, addresses, phone numbers, and email addresses
- money to pay for any unexpected bills (i.e. any emergency repairs that need to be carried out)
- a list of contractors that you regularly use in case of emergency repairs
- details on how you can be contacted (i.e. phone number, email address, hotel details).
You should also personally take your contact to each rental property and show them how to access and turn off water, gas, and electricity in the event of an emergency.
There is a lot of work that goes in to having a relaxing holiday as a landlord, but if you want to forget about rental inventory services, UK tenancy deposit schemes and rental agreements for just two weeks of the year, you have to prepare. Remember, failing to prepare is preparing to fail – do not give your tenants reason to disturb your holiday!
Lots of people dream about running their own business – for reasons which range from escaping the commute, spending more time with family or to simply fulfill an ambition and earn more money.
And one of the best ways to begin is to become a franchisee which will help you become quickly established with a business that is tried and tested.
Having a franchise means you will get the help and support you need for your business to do well and this is where becoming a franchisee for No Letting Go becomes a win-win situation.
You don’t need expensive overheads such as an office, you don’t need prior experience of the property market – you just need a computer, access to the internet and a ‘can do’ attitude.
Nick Lyons is the managing director of No Letting Go and he says: “Running a business from home is tough but the upside outweighs the downside – there’s no commuting, there is lots of flexibility, it’s cheap to do and you do get to spend more time with your family.
“However, there’s no getting away from the fact that you will have to work extra hard in networking, getting out and mixing with client prospects and then you have the possible loneliness because you don’t mix with other people as you may have done previously.”
As a home-based No Letting Go franchise you may still have clients visiting so you can’t afford to be sat around in your pyjamas all day long and you still have to report to a regional office.
Nick adds: “Franchising is a great opportunity for the right people. The reward potential is enormous but it still requires energy, discipline and dedication to be successful.”
There are franchising opportunities for a wide range of industries and No Letting Go have become the leaders in what is termed inventory management. That is when an inventory is made at a property for the landlord which is independent as well as being fair and accurate.
Like many opportunities, franchising is about what you put into it. It is not a short cut to success and you will need to be professional in your outlook and establish a routine that works for you which means no slacking to watch TV or entertaining people to coffee on a regular basis.
It also means that you need an office space which, ideally, has a door so you can keep distractions and family on the other side of it. Everyone needs to understand that when the door is closed, then you are at ‘work’ and should not be disturbed.
It’s only natural that some people won’t understand the difference and think that being at home means you are available for chores or favours. You will have to be firm – relent once and it will become a common feature and will lead to working for longer trying to get the work done.
Some people will also struggle to get their ‘business head on’ which is to say they don’t commute and don’t have that time between home and work to focus from one place to the next. It helps to dress as if you are going out to work.
The next big issue is spending long periods by yourself. Let’s be honest: after years of working in hectic office environments, this is going to take some getting used to.
You will need to structure your day and allocate time to achieving a set list of tasks. You will also need regular breaks from the computer and to get some fresh air and exercise. Do not start playing computer games or over-indulging in social media such as Facebook or Twitter – turn them off and you will reap the rewards.
It may also be a great idea to start networking and joining business clubs (especially if you become a franchisee of No Letting Go because the potential contacts you make could bring money in).
Finally, working from home is a great way to earn a living but if you don’t take time to make friends and create new networks then who will you boast to about your successes?
For more information about becoming a franchisee with the fast-expanding business No Letting Go, then visit: https://nolettinggo.co.uk/join-our-inventory-management-team.html or call 0800 8815 366.
No Letting Go are the UK’s leading provider of inventory management services, providing check in and check out services, property inventory and condition reports and specialist on site services to landlords, lettings agents and property professionals.
From all the media stories, no-one is quite sure whether the property market is booming or not!
The simple answer is that the buy-to-let sector is doing very well but it would be doing even better if there were more new properties to buy. There’s an increasing market in the number of people looking to rent which means that demand is pushing up rents.
Indeed, the Council of Mortgage Lenders recently said that investing in houses and flats to rent is growing in popularity once more.
They say that the number of buy-to-let properties soared by 84,000 last year – with buy-to-let mortgages now accounting for nearly 13 per cent of the total outstanding value of home loans in the UK.
That means that investing in property to rent is a worthwhile proposition once again.
But let’s not kid ourselves about the current situation for prospective investors. While the buy-to-let market is picking up, it’s nowhere near the heady heights of the 2007 property boom. And most of the investors picking up properties for their letting portfolios are cash-rich investors.
It makes sense really: property prices are relatively low and rent prices are still fairly high which means that there’s a good return on your investment.
And the market for renting a home in the UK is continuing to grow.
Estate agents Countrywide say that last year, more than 275,000 new tenants registered for private rental accommodation – a 24 per cent increase on the previous year.
Across most of the UK there is a shortage of property to rent which means rental prices are remaining high and increasing in some areas.
Potential landlords can still buy property to enjoy the rental market using buy-to-let mortgages from many lenders. In fact, there’s so much competition for a potential landlord’s business that the average borrowing rate on a buy-to-let mortgage has fallen in recent months.
The headline of this article is: How is the shortage of new properties affecting the buy to let market? However, it would be wiser to read this as: How is the shortage of new good quality properties affecting the buy to let market?
That’s because the population of the UK is growing and it’s a relatively transient one – people are moving to where the work is and they are willing to pay for a good quality home.
Though there is no doubt that underpinning the buy-to-let market is the fact that not enough new homes are being built and people are living longer as well as the fact that there are more single person occupied homes.
For more information and advice on the current state of the buy-to-let market, contact the UK’s premium provider of landlord services NoLettingGo.co.uk or call 0800 8815 366.
No Letting Go are the UK’s leading provider of inventory management services, providing check in and check out services, property inventory and condition reports and specialist on site services to landlords, lettings agents and property professionals.
It’s always a situation you hope, as a landlord, you don’t have to deal with – when a tenant leaves early.
Not only do you have the issues of finding another tenant you also have the potential legal issues to deal with surrounding the tenant’s leaving.
First things first: you should have in your tenancy agreement a clause that covers such an occurrence. This is vital – especially if the tenant’s leaving turns into a legal dispute.
When a tenant puts in a request to terminate and leave early from a fixed term tenancy it is essentially a negotiation between them and the landlord. (The issue is clouded if there is one tenant leaving, leaving others behind and this would be covered by ‘Surrender in Part’ and is a slightly different issue).
A landlord is not obliged to let a tenant break the terms of the tenancy but it’s often common sense to negotiate. You need to calculate any loss of fees you may incur – which in itself may be disputed – or whether your clause for early termination has an actual penalty value to cover the costs you will have to carry and is one agreed by the tenant when s/he signs the contract.
A leaving tenant may also find the landlord a replacement tenant. Do not at any point say yes to the new tenant without carrying out your usual vetting procedures. They may be a perfectly good tenant but they aren’t taking over the tenancy as theirs will be a fresh contract.
This situation is going to occur so it’s more of a situation of how you handle the transition. By working with the leaving tenant you will part on good terms and avoid any missed rent payments.
It’s always wise to talk since any costs you incur funding a replacement will have to be borne by the leaving tenant (or, if you have a penalty clause, the costs will be covered by that).
When a tenant decides to leave a property is something of a legal grey area.
There is no legislation covering this eventuality and landlords need to set the terms for early termination, notice of termination and how the notice is served. This is purely a contractual matter between landlord and tenant.
This termination date needs to be agreed. You should get a proper ‘Surrender of Tenancy Letter’ which will act as a written document and which will then be proof that the tenant has given up possession of the property to the landlord.
If the tenancy agreement between landlord and tenant does not have a break clause and the landlord refuses to accept the termination notice then the tenant is contractually liable to pay the remaining rent balance for the fixed term tenancy.
This is where the art of negotiation is necessary. If there are seven months remaining on the tenancy then you could both settle on four months rent as a settlement to quit.
For more information and advice about how to deal with one tenant leaving during a tenancy, contact the UK’s premium provider of landlord services NoLettingGo.co.uk or call 0800 8815 366.
No Letting Go are the UK’s leading provider of inventory management services, providing check in and check out services, property inventory and condition reports and specialist on site services to landlords, lettings agents and property professionals.
With student market nearly upon us, New Student Publications carried out an interesting straw survey on Student Landlord Problems
Different categories were addressed covering areas from unpaid rent to cleanliness issues.
Unpaid rent, filthy tenants and panicking about filling your properties for next year?
The results were astounding, with over 14% of landlords saying that their current biggest problem is just finding tenants to take their properties and fill in any gaps should someone drop out during a contract, with more than 2% feeling like they are struggling just to get viewings. One agent simply said “we have unlet properties remaining for July 2011, the situation is worse than in previous years” In a similar 2009 survey finding tenants was also the biggest problem raised by landlords.
Dirty Tenants
Landlords cited dirty tenants as their second biggest problem, with 16% left to pick up massive cleaning bills, or called out at 4am to change a lightbulb. The general consensus was “students don’t take care of the property or make any effort to keep the house clean.” 3.5% of agents thought that students demanded a much higher standard of accommodation than ever before, although it seems that tenants are unwilling to take out contracts for a full twelve months, with one landlord struggling to get even shorter terms “the majority of people contact me to rent for one or two months.”
Pressure From Pupose Built Halls
Many of the landlords surveyed said that they felt increased pressure from new purpose built student villages found in many city centres; more than 8% of those surveyed would eradicate those villages if we gave them one wish! 2% of landlords are afraid that their properties were not close enough to ‘hotspots’ and so would soon be abandoned in favour of more central locations.
Unpaid Rent
11% of businesses struggle with unpaid rent, while 2% note that this messes with their cash flow and although some are sympathetic to the issues caused by the Student Loans Company, most are fixed on the bigger picture; “a lot of time is spent chasing payment. Students seem to think that it is not always necessary for them to pay their rent.” This coupled with tenants excessively using all inclusive utilities means that businesses are less profitable. One landlord’s wish was simply that we could ‘undo the recession’ as 8 different landlords complained of increases to the cost of maintaining their properties to a decent standard.
Relax Regulations
Bogged down with HMO paperwork and expense? Over 18% of those surveyed would love to change or relax the regulations and the council powers to control them. One landlord stated; “there should be a national guide for HMO legislation.” Some landlords feel so strongly about HMO licensing that they named specific city councils or even actual councillors as their biggest fear for the future. 3 landlords said they had qualms about council schemes to shift populations from one area of a city to another, and how it would affect their business.
Worries Over Tuition Fee Increase
Landlords are worried about the tuition fee increase, with more than 14% saying that if they had one wish, they would fight the fees and leave the system as it stands, a worry which probably contributes to 13% of them saying that they feel the future of the market is uncertain, as some students may choose to stay at home to study. Competition from the university owned housing is a headache too, with 4% saying an increase in that sort of accommodation would be detrimental to their ability to let.
Problems With Advertising
Landlords raised the issue of advertising, when to do it and how the culture of marketing lets so early can damage the business, with nearly 5% of landlords thinking there should be a guideline that means property is marketed in January and not before. 4% thought university accommodation offices charged them too much for advertising, and 5% would like to see cheaper, and more effective advertising available to them.
Deposit Protection Unfair
Some landlords were concerned that the existing Deposit Protection Scheme did not offer them enough scope to reclaim money for damage to their properties. Eight separate landlords would like to see the entire system revised, with 1% of those surveyed listing it as their biggest problem. A case from the survey highlights the DPS’s flaws; “£1500 worth of damage but ex tenants refuse to give consent to DPS to pay the landlord.” And some feel that from a legal standpoint the law does not protect them, 3% of landlords would like to see more legislation to protect the financial interests of the landlord.
Worries Over The Potential Drop In Student Numbers
And what of the future of the student property market? More than half of those surveyed were very worried about the potential drop in student numbers next year, with one landlord summing up the problems this will create; “if student numbers drop because of the £9,000 a year course fees then we might see empty houses, lower rents or both.” A worry shared by 3% of those surveyed, who fear the contraction in the market will mean a forced reduction of rents, while other suggested offering shorter term contracts or starting to appeal to the housing benefit market was the only way to keep the business afloat.
No Problems At All
But this isn’t the full picture. Almost 9% of those surveyed have no major problems with the lettings market, their tenants or filling their properties. One landlord is more than happy with his tenants; “we enjoy our students. We pride ourselves in helping them learn how to care for and run the house. We regard them as ‘professionals-in-training’ and teach them what they should reasonably expect from a landlord and what they should reasonably do as a tenant.” One respondent would use a magic wand to change the public’s attitude towards students; “they tend to live in larger houses that are too big for modern families and therefore almost act as guardians for some of our most impressive architecture. They should be seen as a positive part of any community.”
| Top 5 biggest fears for the future | Number of responses | Percentage |
| Fewer students in the future | 101 | 54% |
| Student villages | 15 | 8% |
| Legislation increasing workload | 15 | 8% |
| Unpaid rent due to fees | 10 | 5% |
| Universities moving into market | 8 | 4% |
| Top 5 current biggest problems | Number of responses | Percentage |
| Bad tenants | 51 | 13.6% |
| Uncertainty for the future | 49 | 13.1% |
| Finding tenants | 48 | 12% |
| Unpaid rent | 41 | 11% |
| HMOs | 17 | 4.5% |
No Letting Go are working with a number of student letting agents and bodies around the UK to help protect both landlords and tenants from many of the issues arising from cleanliness and deposit protection. Better use of Inventory services, checking tenants in, property visits and managing the check out is critical to ensuring that potential problems are dealt with in advance and issues arising from check outs are dealt with quickly and efficiently. Contact No Letting Go on 0800 881 5366 or find your nearest office at www.nolettinggo.co.uk
Compiled by Emma Parker New Student – Student Housing Magazines – www.newstudent.co.uk
The uptake of HomeLet’s new tenant reference, Optimum, which guarantees to remove the tenant if they fail to pay the rent, is up 150 per cent on projected sales figures. With inflation and unemployment rising the popularity of this product has been attributed to growing concern of rental arrears.
Commenting on the news HomeLet MD, John Boyle explained, “Naturally we’re pleased with the uptake of our new ‘Optimum’ reference, we developed this product specifically to counter the concerns of both our letting agent customers and their landlords. With rents remaining high conditions are particularly hard for tenants at the moment. The latest statistics make for grim reading; inflation is way up on the Bank of England’s targets and unemployment is continuing to creep upwards. These and other factors sadly mean that 2011 will be a tough year for many tenants’ which is obviously a major concern for landlords, who are also facing these difficult conditions.”
According to the latest Residential Lettings Survey from the Royal Institution of Chartered Surveyors strong tenant demand resulted in rents rising rapidly in the three months to the end of January. Figures released by the Council of Mortgage Lenders show that number of new mortgages lent to house buyers slumped by 29 per cent in January when compared to December. With lending likely to remain low throughout the year, demand for rented property is likely to push rents up further in 2011.
Matt Billingham, Owner, Billingham Cooke Estate Agents said, “Demand for high quality rented property is only going to increase in 2011. In many areas across the country tenants are already bracing themselves for an expected increase in rents. For many a rise in rents whilst inflation is so high will only increase the pressure on their budgets and many landlords are starting to realise that a service, which provides an element of cover should a tenant fail to pay the rent, is essential.”
Commenting on Optimum, Sara Bailey, Manager, Aquarius Homes said, “More landlords are asking for a service that also offers to protect their investment income. We’ve seen a number of traditionally safe tenants who’ve passed their references with flying colours fall on hard times, especially with the cuts in the public sector. This is a real concern for landlords, especially reluctant landlords or those with highly geared investments.”
John Boyle concluded, “Following the credit crunch, housing agency Threshold reported an increase in threatened or actual cases of illegal eviction. Evicting a tenant can be a difficult, costly and emotional process, and landlords shouldn’t take matters in to their own hands.
“When they’re covered by Optimum, through their local letting agent, our in-house Legal and Claims department take care of everything whilst ensuring that tenants are treated fairly and that every letter of the law is followed when obtaining vacant possession of a property. We also offer a range of products that provide missed rental payments as well as legal cover.”
Source: Property Drum Newsletter
Two lettings firms, one in London and the other in Torbay, have been expelled by The Property Ombudsman scheme.
Madisons of 7, Odeon Parade, 468, London Road, Isleworth, was expelled for failing to pass on rent it had collected and for mishandling tenants’ deposits.
However TPO is required under the terms of the Consumers, Estate Agents and Redress Act 2007, to maintain Madisons’ registration for sales activities.
The Disciplinary Standards Committee (DSC) of the TPO Council considered a number of complaints where Madisons collected rent and did not pass it on.
When the matter was referred to the Ombudsman he determined that the rent should be paid over to the landlords, and that compensation be paid for breaches of the TPO Code of Practice for Letting Agents in the firm’s general failing to provide a service consistent with fairness, integrity and best practice. In one case, although the rents have now been paid, the compensatory award made by the Ombudsman has not been met.
“This has been a sorry and frustrating business for both Madisons’ clients and TPO,” said Gerry Fitzjohn (right), vice chairman of the company operating TPO.
“It concerns us that while we can expel their lettings business from the scheme we have no option but to continue registration for their sales business until the Office of Fair Trading bans the agent.
“In the meantime, it is our duty to make the public aware of the situation regarding Madisons.”
The second firm to be expelled is Torbay Residential Lettings (TRL), of 49 Market Street, Torquay.
The firm had breached several aspects of the TPO Code of Practice for letting agents by not co-operating with the Ombudsman’s investigation, not paying the award made by the Ombudsman after he had found the firm had not registered the tenants’ deposit, failing to complete a proper check-out process, and failing to provide an appropriate form of tenancy agreement.
The Disciplinary Standards Committee (DSC) of the TPO Council, in deciding to expel TRL also noted that one of the directors of the firm had been jailed for three years in January, 2010, for child cruelty and perverting the course of justice.
The remaining director considered that the dispute being decided upon by the Ombudsman was not the firm’s responsibility because the complaint arose from the actions of the jailed director. The DSC took the view that this was not relevant and the firm was liable to meet its obligations as a TPO member.
“Such behaviour is unacceptable,” said Gerry Fitzjohn. “Our scheme’s primary purpose is to resolve disputes between agents and consumers but we also aim to raise professionalism and insist on certain levels of service. Where these are not met, we make it clear that an agent is no longer fit for membership and recommend the public take notice of this.”