Posts with tag: letting agents

Today’s the Day for Change in the Welsh Private Rental Sector

Published On: November 23, 2015 at 9:55 am

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Today's the Day for Change in the Welsh Private Rental Sector

Today’s the Day for Change in the Welsh Private Rental Sector

The day has arrived for landlords and letting agents in Wales to join up to the Rent Smart Wales scheme.

The Welsh private rental sector will experience many changes from today, including the requirement for letting agents to display fees. This was only announced last week, despite being mandatory.

Everyone renting out accommodation in Wales must register themselves and register details of their rental properties from today.

All managing agents and landlords that manage or conduct maintenance on their properties must also apply for a license, pass a fit and proper person test, participate in a training course and adhere to a code of practice as part of Rent Smart Wales.

Landlords that are registered but unlicensed must appoint a licensed agent to manage their properties.

Landlords and agents have one year to comply with the regulations before enforcement begins on 23rd November 2016.

Although the Rent Smart Wales scheme has been known about for a while, the obligation for letting agents to prominently display their fees in their offices and on their websites could come as a shock. The Association of Residential Letting Agents (ARLA) was not aware of the rule until last week.

If you let property in Wales, ensure that you are not caught out by either of these regulations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Welsh Letting Agents Given Just Days to Comply with New Law

Published On: November 20, 2015 at 12:46 pm

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Letting agents in Wales must be aware that from Monday (23rd November 2015), they must display the fees they charge.

Welsh Letting Agents Given Just Days to Comply with New Law

Welsh Letting Agents Given Just Days to Comply with New Law

All agents are under a legal obligation to display their fees. It is believed that many will struggle to comply with the new law, as there has been no prior warning and they are subject to a tight deadline.

The obligation forms part of the Consumer Rights Act 2015, which required a ministerial or commencement order to become law in Wales.

The legal requirement for letting agents to display their fees only applies in England at present, after enforcement on 27th May this year.

The Welsh government made the announcement of the new law with under a week before implementation.

It should also be reiterated that on Monday, landlords and letting agents must register and become licensed as part of the Rent Smart Wales scheme.

Previous communications on the new scheme did not mention the compulsory advertisement of fees or the Consumer Rights Act.

The Managing Director of the Association of Residential Letting Agents (ARLA), David Cox, advises agents to display a list of all the fees they charge, including any additional fees, charges or penalties.

Fees should be displayed including VAT, and agents must advertise fees at each office and on their website.

ARLA has produced a fees template for its members.

The announcement can be found here: http://i.emlfiles1.com/cmpdoc/6/9/5/5/4/files/334662_consumer-rights-act-2015—duty-of-letting-agents-to-publish-fees—november-2015-2-002.pdf?dm_t=0,0,0,0,0

From Monday, landlords and agents have 12 months to register and become licensed under Rent Smart Wales.

Additionally, the Renting Homes (Wales) Act was passed this week. It introduces two new types of occupational contract, replacing the majority of existing tenancy agreement types. It also requires landlords to make repairs and hopes to offer extra protection for tenants. Landlords must provide their tenants with written statements of their rights.

Landlord and Agent fined over unlicensed HMO

Published On: November 16, 2015 at 10:22 am

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A letting agent and landlord have been fined and prosecuted after it transpired that they have been operating number of bedsits at an address in South London, without the necessary declaration.

Landlord Javaid Akhtar and agent Zahoor Mansoor failed to disclose that they rented out eight bedsits in an end-of-terrace property in Tooting.

Legal Obligations

Both owners and managing agents of properties such as this are legally permitted to make sure that a HMO licence is obtained. In this case however, both men were guilty of disobeying this. As a result, they pleaded guilty to breaching the Housing Act 2004 when taken to court.

Mr Akhtar was ordered to pay £7,120 in fines and court costs, while Mr Mansoor was fined £2,550.

Landlord and Agent fined over unlicensed HMO

Landlord and Agent fined over unlicensed HMO

A Wandsworth council spokesman commented that,’ this legislation was introduced to make sure that tenants are fully protected from potentially unscrupulous landlords who might want to make unreasonable profits by cramming in too many tenants or by cutting corners on fire safety.’[1]

‘It is vitally important that homes that have been converted into multiple flats or bedsits are maintained to a high standard and that all the necessary safety measures are met in full,’ the council spokesman added.[2]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2015/11/letting-agent-and-landlord-fined-over-unlicensed-hmo

 

 

 

Two more agents expelled from Ombudsman

Published On: November 11, 2015 at 2:40 pm

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Another brace of letting agents have been expelled by The Property Ombudsman after failing to pay compensation, not co-operating with an investigation and showing a lack of compliance to outlined codes of practice.

A S Moon & Partners from Northumberland and CityWest.co.uk from Hounslow, have both been banned from the redress scheme for a minimum of two years.

Complaints

The decision to remove CiyWest from TPO membership came about following a complaint from a would-be buyer who gave the agent £2,500 for what he maintained was a deposit. However, the agent said that this fee was to fund speaking to mortgage lenders and arranging with suitable solicitors.

After consideration, the Ombudsman did not accept that the initial fee was a deposit. As a result, when the potential purchase fell through, the fee was not refunded. The Property Ombudsman criticised CityWest’s lack of explanation into whether the fee would be retained or returned. In addition, he considered the taking of the fee as unfair business practice. It has transpired that the potential buyer’s first language is not English and he was a first time buyer.

In spite of the agent claiming that they had charged the would-be buyer for their time, it emerged that the complainant was billed before the start of any work.

Two more agents expelled from Ombudsman

Two more agents expelled from Ombudsman

No Moon rising

A decision to expel A S Moon was taken following a complaint from a landlord of two properties. For the first, the complainant said that the agent returned a deposit to his tenant in full, despite there being significant damage to the property. For the second home, the landlord himself complained about not receiving rent and a failure to carry out a full inventory check, alongside failing to address and respond to the complaints made. As such, the Ombudsman upheld all complaints.

‘In these cases, both agents have failed to co-operate fully and bot have failed to pay awards made,’ said Property Ombudsman chair elect, Gerry Fitzjohn. ‘In the case of A S Moon & Partners the sum of £750 and in the case of CiyWest the sum of £2,800.’[1]

‘I would like to remind agents of their obligation to co-operate with any investigations by TPO, The Ombudsman requires any evidence they can provide and that is their chance to put across their side of the story. While the vast majority of agents do co-operate, the small number who do not do so, put themselves at greater risk of having a complaint upheld, when The Ombudsman has only the consumer’s evidence to consider, Fitzjohn added.[1]

[1] https://www.estateagenttoday.co.uk/breaking-news/2015/11/two-agents-expelled-from-the-property-ombudsman-for-not-paying-compensation

 

 

 

Hastings Council Launches its Own Letting Agency

Published On: October 28, 2015 at 4:01 pm

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Are you a landlord in Hastings? Or perhaps you’re searching for a rental property there? If so, Hasting Council’s new letting agency could help you out.

Hastings Council Launches its Own Letting Agency

Hastings Council Launches its Own Letting Agency

The council has set up its own agency, Letstart Letting.

The local authority hopes to make rental accommodation accessible and affordable for local families struggling to find secure housing. It also aims to make the lettings process simple and easy for landlords.

There will be no contractual agreement between the landlord and the tenant, as the council takes full responsibility, including finding the tenant, signing the tenant up, collecting rent, some repair work and ending tenancies.

Councillor Kim Forward, Deputy Leader of Hastings Council and Lead Member for Housing and Communities, explains the new agency: “Once the council takes on the management of a property, the Letstart Letting agency team will find suitable tenants and carry out all necessary checks while offering a guaranteed lease period of up to three years, and rent will be paid to the landlord even if the property is empty.

“Throughout the tenancy, the team will deal with the day-to-day care of the landlord’s property and will take every reasonable measure to ensure that it’s protected and treated well.

“The team will act upon all emergency situations and liaise with tenant and landlord on repairs. The property will be returned to the landlord at the end of the lease in exactly the same condition it was taken on (minus fair wear and tear), and repairs will be done to address any tenant damage.”

She adds: “This really is hassle-free letting. So, if you have a property to let or know of someone that does, why not contact the Letstart Letting team to find out more. Also, if you are a tenant, you can recommend this service to your landlord.”1

1 https://www.landlordtoday.co.uk/breaking-news/2015/10/hastings-council-sets-up-own-letting-agency

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property Ombudsman offers competition law guidance

Published On: October 13, 2015 at 12:38 pm

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The Property Ombudsman scheme has provided a supplementary membership guidance note to assist letting agents in understanding their obligations under the revised Codes of Practice. This move has come to ensure compliance with the Competition Act.

Approved by the Chartered Trading Act, the revised codes came into effect on the 1st October.

Assistance

‘As part of the most recent Codes of Practice review process, we have produced further guidance in collaboration with the Competition and Markets Authority (CMA) to help support TPO members and improve standards within the industry,’ said Christopher Hamer, the Property Ombudsman. ‘This guidance note supplements section 3 of the TPO Code of Practice for Residential Estate Agents and has been drafted with the aim of ensuring agents do not compromise honesty in relation to the advertising of fees.’[1]

‘These guidelines come as a result of a well reported case that happened earlier this year where the CMA found that an association of estate agents and a newspaper publisher had entered into an illegal anti-competitive arrangement, breaking the competition. CMA imposed penalties of over £735,000,’ Hamer continued.[1]

Property Ombudsman offers competition law guidance

Property Ombudsman offers competition law guidance

Clarity

Ann Pope, CMA Senior Director of Antitrust Enforcement, added that, ’it is clear that some agents are still unclear how competition law applies to their business which is why we wanted this guidance to be disseminated widely. We wanted to assist agents and help the industry understand their responsibilities and what is seen as inappropriate practice.’[1]

‘In particular, we wanted to highlight that the ability of agents to advertise their fees or discounts freely plays an important role in stimulating price competition between competitors. If agents are prevented from advertising their fees or discounts in the media fee levels may be artificially inflated and owners are likely to find it harder to assess which agents offer the best value for money. It could also make it harder for new entrants to enter the market and compete effectively with established agents. Agents that continue to restrict their advertising of fees or discounts in this way are breaking the law and may face severe consequences,’ Pope added.[1]

[1] http://www.propertyreporter.co.uk/business/the-property-ombudsman-issues-competition-law-guidance-note-to-agents.html