07th Jul2011

As a tenant do I have to pay inventory fees?

by admin

After spending hours and days tramping around Bristol diving in and out of Bristol Lettings Agents offices, you finally find more of less that dream home.

You flash your cash pay the fees and sign the agreement, arrange your move in date with the inventory clerk, all’s going well, then suddenly you realise that, YOU are expected to pay for the inventory clerk!
Hey they can’t do that isn’t it the Landlord who should pay for that?

Well that depends. In reading through the agreement, well you did read it didn’t you before you signed it. AH! You were so excited you really only skimmed it.

Since the deposit protection scheme was brought in for tenants, increasingly Bristol Letting agents, have started to use independent inventory clerks to carry out independant checkin’s and check out’s of property.

It is now quite common for tenancy agreements to include clauses for inventory clerk charges. However, these should be shared equally between the Landlord and the tenant, often the Landlord pays for the check in and the tenant for the check out. This fee is normally collected when the tenancy is signed and fees, deposits and first month’s rent are paid. A tenant cannot be expected to pay for both, or this would be deemed to be unfair contract.

On average the fee is about £45 give or take, anything above would be an exception. If the charges seem reasonable pay up and be grateful that the checkin is being carried out in a professional manner, and by someone independent of the agent.

One tip offered by Landlord Law expert Tessa Shepperson is this, if the fee is way over average, offer to pay (and send a cheque for) the average amount. If your covering letter says the cheque is sent in ‘full and final settlement’ and they cash it, the agent will not be able to claim anything more from you.

If the inventory clerk fee is not mentioned in your agreement, and the demand for payment is the first you knew about it, you may be justified in not paying.

Category : landlords, move in, tenants
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19th Jan2011

Why bother to reference tenants?

by admin

As we enter 2011, never have most people felt more squeezed financially than they do now, none of us know quite what the future holds, well especially for this year at least. But we can be sure of some things, costs will certainly rise, salaries with be stagnant, and sadly some people will lose their jobs and income.

In these uncertain times never has it been more important to fully reference your tenants. Ok you can’t guarantee someone is not going to lose their job however much you reference them. But it is a good benchmark in which to start to have a successful tenancy for both you and the tenant.

Finding the right tenant is a fundamental part of a Letting Agencies service. When you have referenced as many people as I have, it’s not all about do they tick the financial boxes, often it is also about do they tick the personality boxes.  If I am managing a property on behalf of a client, I need to get along with the tenant on a day to day basis, if situations arrive during the tenancy. Likewise I feel the same if I am only offering a Tenant Find only service for a Landlord. If you have two parties with conflicting personalities, I have to consider that just because the prospective tenant can pay the rent, will I or the Landlord get along, leading to a stress free tenancy for all concerned parties.

In my opinion, the first impression when you first meet someone, that gut feeling, that feeling in the back of the neck situation, is absolutely critical.

Often when you let out your house, the person who comes and takes the initial instruction will not be the same person who shows the prospective tenants around. Often the corporate companies, operate with one branch manager, a couple of Negotiators and an administrator come receptionist. In a cost cutting exercise most of the property Management and Prospective tenant progress is either out source or dealt with elsewhere.  Well you maybe asking, what has this got to do with referencing?  Well in many cases the reassuring chat you had with the person you first gave the business to, will not have fully communicated all your requirements, and since the negotiators salary is mostly built up out of commission, the person conducting the viewing is primarily interested in one thing only, getting his commission.

As the main principle of Igloolets, I want you to return your business and recommend me to your friends.  So it’s not just about ticking those boxes.

Most agents now outsource referencing, and Igloolets includes itself in that. Why? because the likes of Experian who we use to reference prospective tenants have access to information not available to the public domain.  Often they dig up some information not offered by the tenant.

A good reference should include the following information.

Credit Score/Any adverse credit history

Employers’ reference

Previous Landlord

Personal reference

Affordability calculator/check

Fraud score indicator

Since no one can really predict the next 12-18 months, a Landlord may want to consider taking out a Rental Guarantee Insurance policy, currently our provider who is Endsleigh insurance offer a policy for a small premium of £70 per person per annum.  This type of policy can prevent your tenants’ financial problems becoming yours. This policy also covers legal expenses should the need arise.

However, rental guarantee insurance is not available to tenants that have not been fully referenced, so make sure your agency has done just that.

If you looking for further FREE information or advice on renting out your property in Bristol, I have over 15 years experience in Letting and Property Management in Bristol, letting all various properties from studios to Penthouses. Call me today on  0845 652 1428  or contact me via our site  www.igloolets.com

Category : landlords
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28th Aug2010

Bristol lettings market now in Landlords Favour

by admin

I wanted to share this recent blog posting by my co professional Sally Asling – with over 20 years experience she knows here stuff. Whilst one of a lots of Bristol Lettings Agents, my experience is similar to Sally’s if you have any questions regarding anything you read in one of my blogs please feel free to contact me, at igloolets.com

The Lettings market is now, most certainly, in the favour of the Landlord.

The change from previous years over supply has now turned. Many Landlords have taken an exit from the Buy-To-Let market to free up equity. Reluctant Landlords took advantage of the brief rise in sales prices earlier in the year to finally sell, and overseas Landlords who rented whilst moving with their career have been posted back home.

The facts in the rental market her are now are:

The reduction in supply to the rental market is ever increasing
Demand from tenants is rising
Void periods are falling
rental levels are slowly increasing, though this is still more significant in the smaller units and family homes market
Yields are increasing

sally says the following and offers this sound advice

I think without a doubt, we are heading for the largest shortage of property in the rental market that I have ever experienced spanning a 20 year career. Its a worrying situation, and whilst rents have gone up and agents are pushing for the best rentals for their clients, its important to keep it in perspective and look at the whole situation.

Some Landlords are cashing in on the news, making it a nightmare for potential tenants. I have read about Landlords serving notice to get an extra £100 a month in response to these news headlines. For an extra £50 – £100 is it worth serving notice to get new tenants if your current tenants can’t afford the hike? Is it not “better the devil you know? Is it worth the risk of a 1 week “turnaround” void that eats into the increase, and when you add in the costs involved in getting a new tenant in, inventory fees etc, is it all really worth it?

My advice to landlords is to keep it fair, keep it reasonable and look at the quality of the tenant, the longevity of the let and the stability that you have with your existing tenant before imposing rental hikes at renewal stage. If you are getting in new tenants, do quality reference checks to ensure the rental is affordable so you dont run into problems if a tenant has a change of fortune and do take out rental and legal cost insurance.

There is still a lot of job insecurity out there, inflation is affecting the daily lives of everyone, so whilst there may be a shortage of property that you can cash in on, it is worth balancing that out with ensuring the rental is sustainable with the tenants that are placed and they are not overstretching themselves.

That said, for some Landlords who took significant rental drops in the previous years, now may be the time to look at getting a higher rental if the property comes naturally up for reletting.

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