Letting Agent Charges UpdateFriday, February 26th, 2010 / General
Foxtons has been banned from using certain commission terms within its lettings agreements as a result of a final High Court order secured by the Office of Fair Trading.
The order, revealed today on Feb 22 prevents the London agency from using terms, which require landlords to pay renewal commission to Foxtons after the sale of their property to a third party because the original tenant remains in occupation, and those which require landlords to pay a sales commission to Foxtons in the event they sell the property to their tenant.
It follows a landmark judgment in the High Court last July in proceedings brought by the OFT under the Unfair Terms in Consumer Contracts Regulations 1999. The court accepted that all the terms the OFT complained of were unfair.
The order has resulted in Foxtons overhauling its standard lettings contract terms, limiting renewal fees to two renewals. Commission is also now only payable where the original tenant remains in occupation, and the landlord will get a pro rata refund where the tenant leaves the property before the date set out in his lease.
The OFT plans to contact lettings agents to highlight acceptable terms of business.
5 TIPS TO AVOID BAD TENANTSTuesday, November 17th, 2009 / General
Below are 5 simple tips to avoiding bad tenants. Although tenancies are often problematic, potential issues can be minimised by tightening up on the vetting procedure for potential tenants. Having a strict procedure in place means all potential tenants are treated equally and potential bad tenants are discouraged or refused. - Correct Referencing and credit checking. Using a credit checking agency is more than just a credit check, it also acts as identity check. Although good tenants may sometimes fail credit checks, this process identifies ”serial offenders”, moving from property to property racking up debts. Correct referencing (employer, current agent/landlord & character) gives the landlord an insight into the tenants circumstances. Do not take tenants that cannot provide a reference.
- Deposit. Taking a deposit at the beginning of a tenancy (legal maximum is equivalent of 2 months rent) can deter bad tenants.
- In-depth Inventory and Schedule of Condition Report. This document is your proof of how the property was passed over. Without this, it is unlikely you can legally withhold the tenants deposit at the end of the tenancy.
- Solid Tenancy Agreement. This is the landlords chance to insert some of their own clauses into the tenancy (within fair contract terms legislation). Bad tenants may be unwilling to sign a legal document.
- Use a reputable letting agent. Bad tenants often only respond to notices in windows or private adverts in local papers. They will often be put off going through a letting agency vetting procedure. Good agents should have all the above procedures in place, reinforce the terms of the tenancy and the ensure action is taken swiftly in the event of any tenancy breaches.
Success at the Kilmarnock BranchFriday, October 30th, 2009 / General
Our Kilmarnock branch was formally opened on the 31st August 2009 and has continued to go from strength to strength ever since. The Kilmarnock branch supports the main Ayr branch with all lettings functions, but also acts as the main showcase for our investment properties. All clients are welcome to visit the office where they can view all our properties for sale and let. 2010 promises to be a fantastic year for Homesure and our clients as we work towards building and strengthening our client’s portfolios. Our current investment properties can be seen at : http://www.rightmove.co.uk/property-for-sale/find/Homesure/Ayr.html?locationIdentifier=BRANCH^54604&includeSSTC=true&_includeSSTC=on
Good news for Sineadh Kelly at HomesureFriday, October 30th, 2009 / General
Sineadh Kelly, one of our Portfolio Managers at the Ayr Branch shared the good news that she is pregnant and is expecting a baby next year.
Homesure will need to adapt our staffing to cover maternity leave around March 2010, however we look forward to Sineadh’s return from maternity leave early 2011. Landlords who have properties under Sineadh’s management will not be negatively affected as all the future staffing plans are now in place.
For those wishing to congratulate Sineadh (and her Fiancée Rob) , you can email Sineadh direct on sineadh@homesureproperties.co.uk , or call the office.
The Private Rented Housing PanelSaturday, October 17th, 2009 / General
I though a topic that might interest you all would be the implementation of The Private Rented Housing Panel (PRHP). This email should further help you understand your obligations as landlords and why Homesure arrange repairs on properties.
From 3 September 2007, the PRHP provides tenants with a way to force landlords to do necessary repairs. As part of the initial tenancy documentation, landlords need to issue a Repairing Standards letter at the beginning of the tenancy. This standard letter informs the tenant that if they have requested repairs and the landlord has not carried them out, they can then apply to the PHRP to investigate. Homesure need to issue this letter to each new tenant and give written notification of any outstanding repairs that will be carried out after the start of the tenancy.
As you will see from the attached letter, tenants are given (in advance of the tenancy) a way to report the landlord for not carrying out repairs. The PHRP may enforce the repairs – a quick example of a recent decision for is shown below (I have take this example from the website, it is not one from Homesure):
In particular the Private Rented Housing Committee requires the Landlord:-
(a) to carry out such works as are necessary for the area of ground underneath the kitchen window to be made good and level;
(b) to ensure that the drain at the rear of the lean-to extension functions properly and drains all water leading from the downpipe;
(c) to repair or replace the rear external door and to repair or replace the surrounding frame and threshold and to ensure that the door is wind and watertight;
(d) to repair or replace all external windows within the Property to ensure that they are wind and watertight and further to ensure that all windows are capable of properly opening and closing and that all holes surrounding the frames are made good;
(e) to repair or replace the internal door leading from the lean-to extension and to repair or replace the frame surrounding the door and to ensure it is affixed properly to the surrounding wall
(f) to properly complete the boundary wall adjacent to the rear gate and to ensure that it is in a proper state of repair; (g) to properly line the dining room chimney;
(h) to properly reinstate the kitchen and carry out all finishing off and decorating works;
(i) to replace the broken floorboard at the entrance to the northwest back bedroom;
(j) to install a proper mains operated fire detection system,
The Private Rented Housing Committee order that the works specified in this Order must be carried out and completed within the period of 3 months from the date of service of this Notice.
Sometimes landlords do not wish (or cannot afford) to carry out repairs, especially if the tenant is not looking after the property or in arrears. However when I am contacted by a tenant threatening to report a landlord to the PHRP, it is often the best decision to re-evaluate repairs and carry out essential ones that the PRHP might enforce. As the above example shows the PHRP might spot other repairs to carry out that the tenant was not initially reporting, so avoiding complaints to the PRHP is always the best course of action for Homesure to take to protect landlords. Reports to the PRHP will always certainly end up costing more money than the initial repairs in question.
For any further information on the PRHP, visit the main website – http://www.prhpscotland.gov.uk/prhp/1.html. This site also has a searchable database of previous decisions of the PHRP investigations.
I hope this email has been informative and give you another insight into some of the things your agent deals with behind the scenes that you may not be aware of.
Great news for Louise!Monday, September 14th, 2009 / General
Louise shared some great news with us today. She is pregnant with her first child. Her scan shown a perfect child, who is due on March 2010. All the team at Homesure wish her all the best for her pregnancy. Louise will remain part of the Homesure team as long as possible and is planning to return back to work as soon as possible.
For anyone wanting to wish her good luck, her direct email is: louise@homesureproperties.co.uk
Scott Weir – Director
Homesure joins The Property Ombudsman SchemeTuesday, August 25th, 2009 / General
Homesure Portfolio Management Ltd are proud to announce we are now part of The Property Ombudsman scheme for all our property sales activities. This offers buyers and sellers extra peace of mind.
The Property Ombudsman scheme offers a free, independent, and impartial service to members of the public who are dissatisfied with the service provided by an estate agent who is a member of the scheme during the buying or selling of a residential property. The Ombudsman can recommend member agents pay compensation of up to £25,000 in any one case.
Any decision made by the Ombudsman is binding on member agents but not on complainants, who are free to reject the Ombudsman’s decision and pursue the matter in the courts if they wish.
Details of this are available from Homesures Kilmarnock office.
New Kilmarnock Office Opening SoonMonday, June 15th, 2009 / General
Homesure are delighted to announce that our new office in Kilmarnock will be opening in August.
This will give landlords greater coverage of their properties and allow tenants a more local office to pay rents. Photos and details of the address will follow shortly.
New Legislation – Eviction ProceduresThursday, November 6th, 2008 / Landlord News
Under section 11 of the homelessness etc. (Scotland) Act 2003 when a landlord raises proceedings for possession of a dwelling house, the landlord must gibe notice of this to the local Authority in the area where the property is. This duty will come into force on 1 April 2009.
There will be a set format for such notification which can be sent by post or electronically. The regulations setting out the form and manner of notice will be laid before parliament in early October. Guidance will be drafted by the Scottish Government to provide assistance with this duty
The main purpose of this legislation is to alert local authorities to the fact that a household is a risk of homeless. This means that local Authorities may be able to respond to prevent homelessness either on an individual basis or by reassessing their strategic approach.
New Town Centre OfficesWednesday, July 16th, 2008 / General
Homesure is proud to announce that we have successfully relocated our offices to Carrick Street, Ayr. Our spacious, convenient offices are perfectly situated for clients to visit. We are right on Ayr High Street, which makes Homesure one of the best located agents in Ayr.
All existing and potential landlords are welcome to come in. We are now open to 7pm on a Friday and 10am – 2pm on Saturday.