As a landlord, it’s your responsibility to provide a secure property for your tenants. No one wants to receive a call from a distressed renter who’s just been broken into. Safe and secure properties equal happy tenants.

Insufficient security against intruders is one of the most common hazards impacting well-being in the home. Burglaries and forced entry are not only alarming, but also result in a lot of hassle sorting out insurance claims.

So, how safe and secure is your property?

If you think there could be room for improvement, then read on.

Are the Locks Up to Scratch?

The first thing to think about when assessing the security of your property should be the standard of door locks in place.

Changing Locks Between Tenancies

It should be common practice to change all the locks on doors and windows for every change in occupancy. You never know who’s hands the keys of previous tenants can end up in, especially when getting new keys cut is so easy.

What Type of Lock to Choose?

The Residential Landlords Association advise using five lever mortice locks for external timber doors or a multi-point locking system for PVC doors.

It’s also worth fitting door chains onto front doors for added security.

Don’t Forget About Windows

Window locks are just as important as they are a common point of entry for intruders.

Ensure that all windows easily accessible from the outside have good quality locks. But note that locks should not be used for designated escape windows.

Are the Doors a Good Fit?

It’s all well and good having top-quality locks, but if external doors don’t fit the door frame properly your property is vulnerable to break ins.

Make sure that all exterior doors and garage doors are correctly fitted and are free from damage.

What About an Alarm System?

Fitting a security alarm is another way of keeping your property safe for your tenants. Raising the alarm is especially important if the occupants are away from the property for extended periods of time.

The security system doesn’t have to be state-of-the-art. A simple home security system is all you need to protect your property. There is a huge array of burglar alarms and defender alarms out there:

  • The simplest option is a ‘bells-only’ alarm which, when triggered, sets off an audible alarm to alert tenants or neighbours
  • A speed dialler alarm allows you to choose up to three contact numbers to be immediately contacted by text message when the alarm is set off
  • The most expensive alarm is a monitored system. When the alarm is sounded, a signal is sent to a remote monitoring centre. This means the centre can confirm whether there is a security issue, and if so, inform the police, freeing up more of your time

Is Your Property Visible?

If your property is located slightly off the beaten track or in an area without many neighbours around, it might be worth investing in a security camera.

CCTV systems are more affordable than they used to be, but make sure you comply with laws on the handling of digital images.

Is Your Property Well Lit?

A simple, yet effective security measure is to fit security lights. Outdoor lighting is essential for making your tenants feel safe when they return to the property late at night.

Important places to illuminate with sensor activated lights include the property entrance, gates, driveways and anywhere that could be a potential entry point for intruders.

It’s also worth fitting wall switch controlled lights near garden outbuildings, side and rear doors. Anywhere not overlooked by neighbours could benefit from additional lighting.

How Safe is the Area?

The location of your property can have a big impact on the risk of break ins. Ensure you research the area thoroughly before making the decision to buy new properties.

This type of research can take time. Time that busy landlords with multiple properties might not have to spare. Luckily, there are several property report services available to do the hard work for you. These reports look at factors such as historical crime data in the area as well as comparing local and national crime rates. They can also give you information on the nearest police stations to make property management simpler.

Do you Have a Vacant Property?

It’s important to keep tabs on any vacant properties you might have. Most insurance companies require vacant properties to be visited regularly to check the property is secure and manage any issues.

If you’re juggling multiple properties, why not delegate this task to a professional service? No Letting Go offers reliable vacant tenancy inspections so you don’t have to worry about any attempted break-ins.

Are Your Tenants Safety Aware?

It could be worth sending your tenants a quick email with advice to ensure they’re up to date with the latest safety information. If you’re renting to students or younger people this could be particularly beneficial.

It’s a nice way to show you care and are serious about your responsibilities as a landlord. Simple home security ideas and tips such as hiding valuables and leaving a light on in the bathroom when out could make all the difference.

Direct your tenants to the Met Police website for further home security information.

Secure Property Management

Hopefully, these security ideas will help you to provide the safest and securest properties for your tenants.

If you’ve already got a lot on your plate, let us help with our professional, unbiased inventory services and property reports. With No Letting Go’s assistance, you can rest assured your property meets all the safety standards.

Looking to invest in rental property? There are many things to consider before getting involved in buy-to-lets.

Whether you’re trying to increase your portfolio or you are just getting on the ladder, it’s worth keeping these key principles in mind when choosing a rental property to invest in.

Here’s a comprehensive guide to rental property investment.

 

Is Investing in a Rental Property a Good Idea?

In short, yes. Rental properties are very attractive to landlords as mortgage rates and interest rates are low and rental return is high. The current housing market means that there is a great demand in tenants looking to rent.

As a landlord, you need to have a business plan for rental property investment. It’s worth familiarising yourself with how much mortgage interest you will be able to claim and what income tax you will need to pay. By 2020, landlords will get a 20% tax credit on their mortgage payments which may push some property owners up a tax bracket.

Before investing in property, you will also need to consider stamp duty, how much maintenance costs will be and whether you need landlord insurance.

Once you’ve decided you will buy a property, there are some significant factors you need to take into account.

 

Choosing the Right Area

This is the most important thing to consider in real estate. You need to perform market research to work out whether you will get a good return on your investment.

It may sound simple but choose an area that renters would like to live in. There will be a price growth for properties bought in up and coming areas. You will get a higher return by investing in a developing area. Consider:

  • Transportation links
  • What are the local schools like? (if renting to families)
  • Are there enough shops, restaurants and businesses?
  • Is there a university?
  • What are the other properties in the area like? Do the neighbours correlate to your desired tenants?

This needs to be an area that your tenant will be able to afford.
Carefully consider how much rent to charge. Ideally this will be competitive for the area.

If you’re renting to students or younger tenants, they will be unlikely to afford high rent prices. You need to calculate the percentage of rent return compared to your mortgage rate.

What is the neighbourhood like for insurance premiums? Is the house likely to be broken into? Will you need to pay excess? These are all questions you must ask regarding your property.

Do you want to buy a rental property that is close to where you live or work? Being close to your property will allow you to monitor it if your tenants need assistance. However, there may be better areas further afield. If your property is not in a convenient location, you can hire a property manager to look after it.

Decide which cities to invest in by researching average rental yields. Invest in Manchester or areas surrounding London. Colchester, Essex had the second best rental yield after Manchester.

Choosing The Right Tenant

Deciding who you will rent your property to will inform what kind of property you will invest in.
It is important to choose the right tenant. These are some factors you need to consider about your tenant:

  • Their age
  • Is it a family? (E.g. single family or two income family)
  • What is their financial situation?
  • What do they want out of a rental?

The type of tenant you rent to will affect decisions you make about decorating your property, where the property will be located and the type of property you choose. To secure the best tenants, perform a tenant reference check.

Is it worth renting to students? If you decide to rent in a student area, you need to be aware of the benefits and pitfalls of this. There will be a consistent turnover of tenants who will keep your property from sitting empty and generate cash flow. However, students can be unreliable and do not always treat the property well. Maintenance of the home may cost you more in the long term.

The Type of Property

The type of property you choose will dictate what kind of tenant you will have. If you invest in a HMO (house in multiple occupation) property, it will likely be occupied by tenants aged between 22 and 30. A four bed house will be well suited to families or, you can convert a house into several flats and have multiple tenants.

This depends on what kind of landlord you want to be. Do you want to be hands on or would you prefer to outsource to a letting agency? Consider your schedule and your expertise.

What is the Condition of the Property?

You need to think about how much upkeep your property will need. If you want to invest in a property that needs renovating, you need to take into account the amount of time and money a renovation will take. In the long term, you may be able to charge a higher rent which will be a better investment.

Choosing to buy a home that needs little upkeep will be better for landlords who wish to receive a passive income. Tenants will not require as much assistance and you will not need to be too hands on with your property.

The Tenancy Agreement

Creating a good tenancy agreement is fundamental to your investment. Seek legal advice before choosing a rental property. This contract will set out what is expected from your tenants and how you will be expected to act as a landlord so it’s important to get it right.

For a standard tenancy, ensure your agreement covers the following:

  • A full inventory of the home
  • Clauses regarding the deposit and when it can be withheld
  • How you expect the tenants to treat the property
  • When the tenancy can be terminated

If it is a HMO property then you may need a license from the council. Your property may fall under the general definition of a HMO but might be exempt from licensing laws. Seek legal advice if you are unsure if this applies to you.

Seek out a tenancy template that will help you draw up your contract and familiarise yourself with the relevant bylaws.

It is important to prevent void periods. Choose trustworthy tenants who will occupy the home for long periods and try to be an organised and efficient landlord. If a tenancy is coming to an end then be sure to advertise your property as soon as possible.

How to Market Your Property

Once you have bought a rental property, you need to be able to market it successfully. You will find the best tenants by thinking about how to market to them.

  • Advertise the area your property is in and the benefits of that location according to what your desired tenant would be interested in. For example, a group of professionals are likely to be drawn to somewhere with good transport links for commuting
  • How is your property decorated? Is it furnished? What kind of facilities are there?
  • What is the length of the tenancy and how much will the rent be?
  • Describe the property as accurately as you can

The easiest way to market a property is by using a letting agency. They will be able to do the work for you, such as arranging newspaper advertisements and showing prospective tenants round the property. Agents will also be in charge of collecting deposits and rent payments and drawing up tenancy agreements.

Using a letting agency does not mean you won’t be involved with the management of your property. You can choose how much work you want to delegate to an agency and how much you want to do yourself.

It is important to look after your investment. For help with your property, use No Letting Go inventory services. We can conduct full reports on your properties so you can be confident that your investment is secure. Browse our full list of services to find out more about how we can help.

A landlord’s main responsibility is the tenant. But, do landlords have a duty of care to neighbours?

In short: yes and no.

It’s difficult to hold landlords legally responsible for their tenants. Unless, that is, the landlord is deliberately encouraging antisocial behaviour.

However, even without law involvement – neighbourhood disputes are never good for a landlord’s reputation.

Let’s settle this once and for all! Time to dig a little deeper…

Types of Problems Tenants Can Cause

So, in the eyes of a neighbour, what constitutes a problem tenant?

Volume Control

For many, when they hear the phrase ‘difficult tenant’, noise is often what first springs to mind. This is for good reason!

Noisy tenants are a huge nuisance. Particularly if these disruptions continue late into the night, it can cause problems for all neighbours living nearby.

What is classed as noise nuisance? Let’s dig a little deeper:

  • Late night DIY
  • Parties/ large gatherings with loud music
  • Uncontrolled pets
  • Children allowed to play in the communal areas of flats

Noise, caused by any of these reasons, can be a serious grounds for a dispute.

With noise nuisance – time of day is essential. Most neighbours will forgive being loud before it gets dark, within reason, of course!

Inconsiderate Behaviour

‘Inconsiderate behaviour’ is a broad term, as it encompasses many different things.

But, here are some of the worst offenders:

  • Parking across other drives
  • Refusal to empty bins
  • Leaving on bright lights that disturb others
  • Invasion of privacy
  • Abusive behaviour

If a tenant is displaying one or more of these habits, neighbours might have a lot to say. Is it fair for landlords to be held responsible?

A Landlord’s Duty of Care

Landlords have a number of responsibilities, most of these concerning the tenant. Similarly, a letting agent’s duty of care is to the tenant.

However, landlords will often find themselves in the firing line should the neighbours complain.

Landlord negligence cases don’t often relate to neighbours, simply because it’s difficult to proceed against landlords for the actions of their tenants. You can’t blame one human being for the actions of another!

However, is this always the case?

When is a Landlord Liable for Tenant Negligence?

In some cases, private landlords are liable for tenant negligence.

Often, this occurs when the landlord encourages the nuisance, or deliberately turns a blind eye.

Also, if the landlord deliberately let the property out with knowledge of a nuisance, this makes them liable. For example, leasing the property for use as a music venue.

Particularly if these problems are frequent, those living nearby may hold the landlord responsible.

Landlords do have a duty of care to neighbours to some extent!

 

You may also like: A Guide to the Best Tenant Referencing Companies

 

How to Deal With Noise Complaints

Of course, noise complaints aren’t the only reason for disputes. However, they are the most common.

If you have knowledge of a recurring antisocial tenant behaviour, you must be shown to do something about it. Reduce your risk of being liable by being seen to change your property management practices. Ensure you haven’t authorised actions that might constitute a complaint!

Difficulties with neighbours can harm your reputation, dissolve relationships and cause you a lot of hassle. If possible, avoid this at all costs!

The only problem is, how is this done?

Ensure Neighbours Have Your Contact Details

Many neighbours wonder how to get a landlord’s contact details. You must ensure they have yours!

There are many things that go into being a good landlord – availability is one of them. Do yourself a favour and find out who your neighbours are!

Put yourself in the position of those living near your tenants. Wouldn’t you wonder how to find a landlord’s details?

Talk to Your Tenant

The first step is always to talk to your tenant open and honestly. Try not to automatically look to them as the cause of the anti-social behaviour in private housing.

Go about things differently! Being receptive and able to talk about problems with your tenant is hugely important.

Don’t pick a fight deliberately, instead, ask their opinion on what the neighbours have been saying. Explain the problem, and ask how they’re going to rectify it. Offer some suggestions of your own.

It’s important to build a good relationship with your tenants, so ensure you listen to their side of the story!

Use the Tenancy Agreement

If problems persist, use your secret weapon.

The tenancy agreement should have set out a ‘nuisance’ or ‘noise’ clause. Refer to this if you discover your tenant is behaving problematically!

The agreement will have clearly laid out rules and regulations, which must be adhered to. Explain exactly which ones they’ve broken and why.

Of course, don’t threaten with eviction immediately. However, do explain that while you’re upholding your duties, their responsibility is to follow the tenancy agreement.

If they refuse to listen to your warnings, consider taking further action. But, this should never be your first step!

Inspect the Property Regularly

You can’t deal with the problem if you can’t see it!

There are rules surrounding landlord inspections, of course. However, particularly if you’ve been made aware of certain problems, it’s essential to visit your property regularly.

The likelihood is that tenants will be on their best behaviour around you. But, it’s a good opportunity to show your neighbours you’re taking steps to resolve the issue. Plus, it may ‘scare’ your tenants into changing their behaviour.

Involve the Neighbour

Don’t let your tenant’s actions reflect badly on you!

If possible, arrange a meeting between them and the neighbour. This can give them a chance to talk and, hopefully, clear the air.

Your tenant might not fully understand the impact their actions are having on their neighbour.

Take Serious Action

If nothing else works, take further action as a last resort.

This can come in many forms, such as:

  • Contacting your local council
  • Seeking legal advice
  • Serving them with a section 21 notice (this allows landlords in England and Wales to evict tenants)
  • Calling the police

The final option should only be used in extreme circumstances, such as abusive or aggressive behaviour.

Problem Neighbours in a Rented Property – Is it Your Tenant’s Fault?

Let’s put the shoe on the other foot.

What if your tenants aren’t the problem?

When it comes to neighbourhood disputes, landlords are between a rock and a hard place. As much as it’s important to keep up good relationships with the neighbours, you don’t want to alienate your tenant.

Particularly if you’re trying to encourage a long-term tenancy, you may feel as though you have to be on your tenant’s ‘side’.

However, sometimes it’s the neighbours that are the nuisance. Let’s have a look at why:

Can Neighbours Complain About Noise During the Day?

Some complaints, such as noise disputes, are simply unfair. It might be that your neighbour is being particularly pedantic.

For example, if your tenant has guests round during the day for a barbeque, this is not grounds for a noise complaint, unless it goes on until the early hours.

Be realistic. Your tenant is likely to have guests round sometimes! But, ensure this doesn’t contravine the tenancy agreement.

Is the Neighbour Lying?

If the complaints seem vague, or the neighbour ‘can’t remember’ the time of the day your tenant was loud, this should send alarm bells ringing.

Consider your tenant also. Do they seem like the kind of person they’re being painted out to be? Do they fulfill all their other tenant obligations?

Trust your instincts. The relationship between landlord and tenant is important!

It might be that your neighbour has problems with your property being let out, for example, to students.

Is the Neighbour Being Disruptive?

Perhaps it’s your neighbour who’s the nuisance. Landlord negligence has many forms, so don’t ignore your tenant is they come to you with a complaint about a neighbour.

Think of private tenant’s rights and noise disturbance. Do they deserve to live near rowdy neighbours?

Here’s what to do:

  • Ask your tenant to keep a record of the problems
  • Talk to the neighbour
  • Use a mitigation service
  • Contact your local authority
  • Take legal action

Follow these steps in that order, keeping communication with your tenant at all times. Never jump to legal action first!

We understand that being a landlord and managing your property can be tough. But, we’re here to help. We provide professional property inventory services, so you can avoid the pains and hassle of doing it yourself. Find out more about our services here.

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.

I am always interested in great property stories around the world and read an interesting article on CNN World about how it is now cheaper to buy than rent in most US cities ( http://money.cnn.com/2011/08/16/real_estate/buy_rent/ ) – if only that were the case in the UK.

Nick

This article up from Property Drum by Operations Manager for ARLA, Ian Potter, further highlights how critical inventories with schedule of condition report have become.

With such large sums of money at stake, ARLA has called on tenants and landlords to consider the benefits of establishing a comprehensive property inventory check upon the commencement of a new let.

Ian Potter, Operations Manager of ARLA, said, “Deposit disputes can be one of the biggest problems for both parties involved in any rental property, and many potential issues can be avoided if a professional inventory is prepared.

“A licensed letting agent will offer you the best advice on checking to see if an existing inventory is available or whether any extra charges are invoked in drawing up a new document. A true inventory is not simply a list of items in a property – it also includes a description of the condition and cleanliness at the start and finish of the tenancy, enabling one to be compared against the other with clarity and accuracy.

“Photographs are a good support for comments made in a written inventory but should not be considered a replacement for the written word. Photographs which are unsigned and undated generally are not worth the effort, so make sure they are accepted at the outset and again at the check-out stage.”

Ian Potter said, “A well put-together inventory can give both landlords and tenants peace of mind throughout the occupation period. The inventory is not designed to catch tenants out, but rather to ensure both parties are in agreement over the quality of the property being rented.

“If conducted correctly, and agreed by both tenant and landlord, an inventory should form a key point of reference for any deposit-return queries or issues over reported damage. In recognition of the importance of inventories ARLA has its own sub division, the Association of Professional Inventory Providers, whose members have passed an accreditation exam as well as having a Code of Practice to follow.”

For Professional Inventory Management Services throughout the UK talk to No Letting Go, APIP members, who can provide all inventory management services including Inventory, Check In, Propert Visits and Check Outs with full dilapidations reports. Contact us on 0800 8815 366 or contact one of our local offices at www.nolettinggo.co.uk/contact

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.”

Published in Jungledrum, Property Drum. March 2011

TDS state that the following percentage awards (in terms of deposits held) were made during 2010

Percentage of awards made to tenant – 56%

Percentage of awards made to landlord – 42%

Percentage of awards made to agents – 2%

The lack of landlord generated accurate paperwork seems to still be a problem.