08th Sep2011

Dealing with tenants in arrears of rent

by admin

Unless you’re a really hardnosed Landlord, dealing with tenants in arrears in often not an easy position to be in. Often this is the reason a Landlord will appoint a letting agent, that should the situation arise they don’t have to communicate with the tenant on such matters.

What can make the situation extremely difficult is if in the past the tenant has been reliable. The main principle is to communicate and then communicate some more. Often Landlords and Lettings agents alike let the situation get out of hand and then, sadly that is when the acrimony sets in.

If the tenant has truly up to that point been reliable, I would always recommend giving some leeway you might even consider giving them a rent reduction for a couple of months on the basis that they make it up in the future. Truly good tenants are priceless. You need however, to get the proposal in writing and agreed a good payment plan helps.

When it comes to tenants who fail to communicate their situation and just stop paying rent without explaining their situation you have to take a much firmer stance. They should be served with a possession notice (often a section 21 or section  8 ) if this does not amend the situation at least you these in place, and once these have been served the clock is ticking in the landlord favour.
I have always been recognized as both a fair Letting agent and Landlord, however, I have never been an advocate that Landlords should be expected to house tenants free of charge. I often say to the tenants if you go the grocery store and when at the checkout ask to pay in a month’s time for the groceries, I think we will all know the response.

It does not do your tenant any favours if you let the arrears build up, it is better for all concerned parties to take action fast.

If a tenant has money troubles, for some reason the first thing they stop paying is the rent! Few curtail their social activities. Rental arrears unless nipped in the bud will just escalate out of control. If a Landlord you remain silent hoping the tenant will sort it all out, the tenants will just pay their more vocal creditors and allow the arrears to rise.

However nice the tenant is, if they cannot rectify the arrears at the end of the following month, that is when you have to serve notices, even if you explain in a courtesy manner, the reasons for your actions. Because failure to act could mean that if all things turn sour and the arrears level continues not only will you have lost money but also time in getting back possession of the property.

If a landlord contacts the tenants immediately the rent falls into arrears, the tenant will no doubt make more of an effort to pay. Long term this will be to his advantage, as his problems will only be made worse if he is homeless.

If you are considering investing in Bristol or need assistance with your existing portfolio, I have over 15 years experience in Letting and Property Management in Bristol, letting properties from studios to Penthouses. Feel free to call me today on 0845 652 1428 or contact me at www.igloolets.com

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06th Sep2011

Why deposits are importance

by admin

No doubt you have heard the old adage ‘Something is better than nothing’ having been called a fair letting agent and also Landlord. I have always been an advocate of the deposit scheme. However, I know that not all Landlords and lettings agents have been.

Occasionally I am told by landlords that they don’t take a deposit, it’s not worth the hassle. This kind of comment always amazes me. Even if your only just renting out rooms, to replace a well soiled carpet would cost you £150-200 pounds. Whilst you have to prove that the tenant damaged the property, prior to any deduction being made, if adequate preparation is made at the commencement of the tenancy, most disputes can be avoided.

With many tenancies these days’ deposits can amount to thousands of pounds. Often a clean and rectification of damage might only require spending a few hundred pounds. If you have no deposit to even start with your on a looser before you start! I would like to think that you are by now realizing where I am coming from.

To set the benchmark with properties that we manage, it is important to check the property completely before new tenants move in. Making sure that little niggly things are rectified. If your property is presented right at the start of the tenancy, more often than not the property is returned in a reasonable condition.

In my previous post “Why do I need an Inventory?”, if at the end of the tenancy you have a disagreement with your outgoing tenant about the condition of the property or ‘that inevitable red wine stain’ there is little point in beating yourself up over the best course of action you might just as well have it settled through the arbitration service which was set up as part of the Deposit Protection Scheme(s)

In the Housing Act 2004, a new law was introduced that meant any monies received by Landlords as a deposit must be protected within 14 days with one of the aforementioned tenancy deposit schemes. There are plenty of options for Landlords when it comes to choosing one, and the process is fairly straightforward, with the deposit normally being protected by the scheme until the end of the tenancy where it is returned to the relevant party.

As a leading lettings and property management agent in Bristol, we include protecting deposits as standard with both our Fully Managed and Let Only Service. We believe in having our Landlords covered.

If you are looking for further FREE information or assistance 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

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01st Sep2011

Why Do I Need an Inventory?

by admin

One of the top ten questions I am asked by a prospective Landlord when I go to look at a property, is “If I am going to let out my property unfurnished Why do I need an inventory? Quite simply the answer is always yes.

Even when the property is going to be let unfurnished, you will still be providing some things that can potentially be damaged such as a fitted kitchen, a bathroom, and even such things as walls and carpets.

An inventory or schedule of condition is increasingly fundamentally important, now that deposits are protected. When a tenancy comes to an end and there is a rather noticeable mark on the light cream carpet, no doubt as a landlord you will expect some form of compensation. Without an inventory, you chances of success are limited, as often the tenant will say “But it was like it when we moved in”

Statistics have read that over 80% of deposits are returned to tenants and not landlords because they fail to have a professional inventory prepared at the commencement of the tenancy. In the past a Landlord has been able to deduct money from a deposit and the tenants has to fight their case not to have deductions made, with the changes in the deposit rules, this has now changed and the onus is on the Landlord to prove a case for deposit deductions.

What was then is past what is now is the present, still often many landlords feel it is a false economy to have a professional inventory prepared., or simply they didn’t know how to do one. Sadly just making a list of items present without pictures or descriptions is no longer good enough.

Even if as a Landlord you still choose to do your own inventory, here are a few basic steps to consider

List the rooms in your property in a logical order

List the contents and everything you can see from top to bottom

Remember things such as curtains, curtain poles and alarm sensors

Make a note of any marks/stains as you go

Take a series of photographs of each room and any large or noticeable stains/marks

Photo the inside of ovens, toilets, baths and washing machines etc.

Have the tenant check and sign the inventory to say they agree with it, before they move in

These tips are not exhaustive, but taking them into consideration will certain benefit you in the longer term

At igloolets.com we are able to provide the full services of qualified and accredited inventory clerks as part of our Managed and Letting only services. So you can be assured and confident that this has been taken care of before the commencement of the tenancy.

For more information why not call us today on 0117 230 5056 or email us at admin@igloolets.com

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25th Aug2011

Does your Landlord have a BIG one or small one – Why size does matter

by admin

Photographs which are no larger than thumbnails creates problems when it comes to damage disagreement at the end of the tenancies

According to Pat Barber, of the Association of Independent Inventory Clerks, inappropriate and often inadequate sized photographs are regularly used in both the inventory check-in and check-out.

The practice leaves the owners subject to potentially costly litigation and time consuming disputes over wear and tear, with tenants winning their case if it goes to arbitration, because of the use of thumbnail undated pictures, where it is extremely difficult to see the details of the alleged damages

It is not just a small low-resolution photos, which cause problems.

Recently a case was lost, because the Landlord felt that all that was needed was to take a few photographs (sadly all undated) and provide no other written evidence as to the condition of the property at the commencement of the tenancy. Unfortunately the landlord had to finance some expensive replacements

Barber, president of CNA, said: “The inventory reports must contain a complete description of a building and its contents, with details of each bit of damage and its exact location at the beginning of the lease. This can be supported by photographs – but they must be of high quality printing up to A4 or A3, so that damage can be clearly seen, or supplied on a disc

“The photographs can not replace an accurate statement and properly detailed inventory . A landlord has no evidence to prove that the property has been damaged in any way during the tenancy if he / she must rely on the thumbnail images of poor quality, and therefore may find it almost impossible to retain any of the deposit from tenants. ”

Barber points out that the evidence presented to the arbitrators to resolve disputes with damage must include both “before” and “after” pictures, with a clear narrative of what the image is displayed, for example, colour, description of ‘ object, marks on the surface.

Photographs must include something to show the scale of the image, and should clearly show the condition of the property at the time.

Although the images are to be included in the inventory as a further mark of reference, they should be a decent size.

The photographs must be dated, most modern camera can be set to automatically do this

If the photographs to be printed, the printer needs to be good quality. Too often, inexpensive printers distort the colours. Even good quality printers distort the colours when they are starting to run out

Category : landlords, move in, tenants
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18th Aug2011

Dispute resolution guidelines

by admin

A new guide ‘Guide to Tenancy Deposits, Disputes and Damages’ has been jointly published by all three government authorised tenancy deposit protection schemes.

Since 2007 some 47,000 disputes have been settled by the schemes alternative dispute resolution processes. The pooling or information on these disputes and their eventual outcomes has allowed the schemes to  indenitfy common issues and work  together to publish collectively guidelines.

The new guide covers items, such as the collation of evidence and what an adjudicator looks for when considering a dispute, and outlines the principles on which scheme adjudicators make decisions so that the process is consistent and transparent for letting agent, landlord and tenant alike.

The guide can be seen here

http://www.depositprotection.com/documents/a-guide-to-tenancy-deposits-disputes-and-damages.pdf

I have worked in Letting’s and Property Management for 15 years and I love the industry. I am totally passionate about Property and believe that the only way to do business is basing a relationship with clients on integrity and trust. I would be delighted to be of assistance to you. Please contact me either by email admin@igloolets.com or telephone 0845 652 1428

 

 

 

 

 

 

 

 

 

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30th Jun2011

The Student Deposit Dispute Season has arrived are you prepared?

by admin

Letting Agents all over the country, and for myself being just one of a whole lot of Bristol Letting Agents who will within the next few days be checking out lots of students.

I thought I would share with you this great blog from Tom Derrett, who is an experienced deposit protection adjudicator who was unhappy at having to decide a disproportionate number of cases against landlords when he felt that they could often have won if they had presented their case properly. In a twist on the poacher turned gamekeeper scenario, Tom set up ADR Solution, a deposit protection consultancy, to provide landlords with the advice and support necessary to win deposit disputes, at an affordable cost.

So over to you Tom:-

If the weather is anything to go by, summer is upon us already, which can only mean one thing for thousands of landlords up and down the country: student changeover time.
In my, admittedly anecdotal, experience adjudicating deposit disputes, there are three groups of people responsible for significantly more damage to rented property than everyone else put together. They are:

1. Barristers (the shame!)
2. Doctors. I saw a defence from a tenant once that read “I don’t have to clean, I’m a doctor”. They didn’t win.
3. Students. It’s no surprise really. Students have a well deserved reputation for trashing properties and there will be very few student landlords who don’t need to make a claim on any protected deposits this summer, so here is some advice for landlords in the run up to changeover season.

As the end of the tenancy approaches, send your tenants a letter reminding them of their obligations. Point out any relevant terms of the contract that might prompt them to clean up and tidy garden. Remind them that they have a copy of the inventory, or even give them another copy, and gently suggest that the inventory provides a useful guide as to how the property should be left, subject to fair wear and tear, of course.
Make an appointment with the tenants to check-out the property when the last one leaves. If they are going home before the end of the tenancy, you can hold the check-out early provided they voluntarily hand over their keys. If you come to an agreement at the check-out meeting regarding deductions from the deposit, make a note there and then as to how much was agreed and what for, and have the tenants sign it.
Sometimes, even with the best will in the world, relations between landlord and tenant break down over repayment of the deposit. One of the pitfalls of student letting is that indignant parents who couldn’t possibly believe their little darling could be responsible for any damage wade in with their best legal sounding letters. If you find yourself in a pickle over a deposit, with a difficult parent giving you a hard time, please call ADR Solution. We will always do our best to make sure you get a fair deal, and can even deal with the tenant or parent on your behalf, which can be very helpful if you are no longer able to have a constructive discussion.

If you have a property you are considering letting, Igloolets.com are on hand to assist you. For a no-obligation confidential discussion about letting your property please call us 0117 2305056 or email on admin@igloolets.com looking forward to hearing from you.

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