Posts with tag: letting agents

RICS calls for minimum money laundering competence

Published On: September 28, 2015 at 11:46 am

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The Royal Institution of Chartered Surveyors has called for, ‘minimum competency,’ requirements for sales and letting agents to deal with anti-money laundering issues.

Director of regulation for the UK and Ireland at RICS, Luay Al-Khatib, believes that competency standards should be brought in as soon as possible. In addition, he feels that these new measures should be regulated by the industry and possibly by RICS itself.

Issues

Al-Khatib told the Estates Gazette magazine that, ‘the biggest issues surrounding money laundering are perhaps ignorance and complacency.’ He added that by law, ‘agents have a responsibility to check the identity of customers.’[1]

Continuing, Mr Al-Khatib said he wants RICS to play a prominent role in any future regulation of letting and sales agents. He stated, ‘there’s a lot professional bodies can do to ensure compliance by members. RICS will be applying to become a Treasury-designated supervisory body for anti-money laundering.’[1]

In the same article, written in response to the Channel 4 documentary, ‘From Russia With Love,’the National Association of Estate Agents says the focus of agents should be on identifying and assessing buyers and sellers alike.

RICS calls for minimum money laundering competence

RICS calls for minimum money laundering competence

‘Anti-money laundering procedures in the UK have centered on the seller rather than buyer, with agents failing to appreciate the implications of the Proceeds of Crime Act,’ said NAEA managing director Mark Hayward.[1]

Overhaul

Trevor Mealham, founder of the Independent Network of Estate Agents, was more severe in his calls, stating that, ‘legislation should insist properties for sale would first be identified and registered.’ He also said, ‘geo-location, property type, usage, ownership and secondary titles could be established.’[1]

‘Using data analysis, there could be investigation triggers sent to HMRC, the Treasury, Serious Fraud and so on,’ he continued.[1]

[1] https://www.estateagenttoday.co.uk/breaking-news/2015/9/money-laundering-rics-wants-higher-standards-and-self-regulation

 

 

Property Redress Scheme ban agent

Published On: August 11, 2015 at 9:52 am

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The Property Redress Scheme has today decided to expel a letting agent for showing non-compliance to a redress decision.

Ban

Croydon-based agent Jordan Residential was banned following an initial complaint of holding a deposit. After seeing a property advertised by the letting agent as a three-bedroom home, the tenant in question arrived to the house to find that the property had only two bedrooms with a converted lounge.

After allegedly being rushed and pressured by Jordan Residential, the tenant paid a deposit of £600, without receiving an explanation of what it would cover or whether it would eventually be refunded.

Sensibly upon reflection, the tenant decided that they were unhappy with the situation. As such, they then informed the agent within 24 hours that they would still accept the property but only at a lower market rent, based on typical two bedroom rental amounts in the local region.

Refusal

Jordan Residential then verbally refused the offer and proceeded to not enter into any more correspondence with the tenant following this conversation. Despite sending two letters to the agent, the tenants’ communication attempts were still ignored.

As a result, the tenant lodged a complaint with the Property Redress Scheme, who ultimately decided that in this instance, the retention of the tenants’ deposit was unfair as:

  • The tenant pulled out of the tenancy before the relevant costs covered by the holding deposit had actually been incurred by the agent.
  • The Agent had not yet taken the property off the market so the landlord had not suffered any loss by the property being held.
  • The property did not conform to its description. [1]
Property Redress Scheme ban agent

Property Redress Scheme ban agent

Costly

In addition, the head of redress told Jordan Residential to pay £612.80 to the complainant, in lieu of the holding deposit and subsequent postal costs that were incurred by the tenant. As yet, Jordan Residential have yet to pay the award.

What’s more, the letting agent has not even acknowledged the demands of the Property Redress Scheme, nor attempted to deal with the situation as a genuine claim.

Jordan Residential had its membership suspended with the promise of a full enquiry by the head of redress. A recommendation was made that the agent was expelled due to a lack of co-operation with the complaints process and a failure to pay the award.

Chief executive of the Property Redress Scheme Sean Hooker commented, ‘failure to pay an award, however large or small, is a serious breach of our terms of reference. Agents must not assume that the complaint will go away if they remain silent and refuse to engage with the scheme.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2015/8/prs-expels-agent-for-failing-to-pay-award-to-tenant

Two managing agents fined heavily

Published On: June 29, 2015 at 10:55 am

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Two managing agents in Hatfield are seriously out of pocket this morning after being order to pay a combined £42,534 in fines, following being found guilty of 46 offences.

Fines

Odus Ltd admitted liability for 41 regulation offences at St Albans Magistrates’ Court. These breaches of legislation related to fire safety and disrepair features on four properties. The company was fined £17,600 with Welwyn Borough Council being awarded £17,424 in costs.[1]

The second management agent to be fined was XS Property Management and Maintenance, who admitted five offences. These included failure to licence a HMO and disregard to fire safety measures. In this case, the agent was fined £4,300, with the council being given £3,210.12 in cost payments.[1]

This was the first time that Welwyn Hatfield Borough Council has ever prosecuted a number of managing agents, part of their ongoing crackdown on poor management procedures.

Two managing agents fined heavily

Two managing agents fined heavily

Signal

Councillor Mandy Perkins, executive member for planning, housing and community, commented, ‘we are very pleased with this outcome; it is proof that we will not tolerate managing agents in our borough who compromise the safety of their tenants, particularly relating to fire safety issues.’ She went on to say that, ‘we hugely value the contribution that good quality rented accommodation makes to the local housing market, but we hope this sends a clear signal to managing agents that they must comply with the law.’[1]

‘I would urge residents to protect themselves by checking their managing agent or landlord is PAL accredited. This is a council-run scheme, which strives to ensure that accredited managing agents meet their legal obligations,’ Perkins added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2015/6/hertfordshire-agents-must-pay-over-40k-in-fines

 

Short-term lets on the increase

Published On: June 23, 2015 at 2:33 pm

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Short term lets appear to be on the rise, according to a new survey from the Association of Residential Letting Agents (ARLA).

Research from the organisation suggests that 26% of letting agents have experienced an increase in the number of enquiries for short period lets.

Increases

With both Wimbledon and the British Grand Prix approaching and with the summer (supposedly!) in full-swing, the number of short-term lets is sure to rise still further.

Short-term lets are classed as under 90 days and offer many advantages to landlords, such as a quick income and for the tenant, an alternative to hotels. There are however a number of legal requirements that must be adhered to in order to comply with the law.

Advice

Homeowners looking to let their property out for a short period of time should follow these pieces of advice in order to ensure compliance and a smooth tenancy:

  • check mortgage and tenancy agreements to make sure it is permitted that the property can be rented
  • use an approved agent to look after the letting process. This will also ensure that all legislation is being adhered to
  • make sure that the property is in a good condition, with no clutter, clean and with no damage
  • check that all furniture complies with health and safety legislation. Safety checks will have to be carried out before a property is allowed to be let
  • arrange with someone trustworthy to visit the property during the period and perform duties such as cleaning and changing bed sheets.
Short-term lets on the increase

Short-term lets on the increase

David Cox, Managing Director at the Association of Residential Letting Agents said,’ short term lets can be hugely beneficial for both parties. A short let can also be a more profitable option as you may be able to charge a higher rent than you would if you were letting a property out full time. We’ve already seen a massive rise in the number of enquiries for short term lets and with the rising popularity of websites like Airbnb this is only going to continue. Landlords looking to let their property out short-term should follow our simple tips to ensure they’re following best practice. Being a landlord is a full time job, not a hobby – even short term lets. So it’s worth working with a reputable ARLA Licensed agent, who can take the ‘job’ aspect out of it; allowing you to reap the rewards.[1]

[1] http://www.propertyreporter.co.uk/landlords/short-term-lets-on-the-rise.html

Foreign investors unhappy with agents fees

Published On: June 22, 2015 at 3:59 pm

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Concerns over letting agent fees are growing, with a leading buying agent claiming that overseas investors are left surprised with the perceived high costs.

Henry Sherwood is managing director of The Buying Agents, an agency which helps wealthy overseas purchasers find property, says that many are put off by high fees.

Add-ons

‘Foreign clients are delighted for a buying agent to find a property and negotiate a good price in return for a 1.5% fee,’ said Sherwood. However, he went on to say that, ‘they then let it out and can’t believe the 10 or 20 per cent charges they receive from letting agents.’[1]

In comparison, Sherwood believes that the majority of UK landlords take these fees as mandatory. ‘Most don’t even look at what the charges are for,’ he said. ‘Smaller items of a few hundred pounds are often lost amongst bigger costs of 10 per cent for this and 6 per cent for that.’[1]

As a result of these fees, Mr Sherwood says that he prefers agents of property management services that offer alternatives.

Foreign investors unhappy with agents fees

Foreign investors unhappy with agents fees

Happy Tenant

An example of a company that does things differently is Happy Tenant. Founded by media lawyer Jonathan Monjack, the organisation levies an annual fee, with a one-off charge when a new tenant moves into a home. Next, the company flexes its bulk purchasing muscles to secure cut priced services from mainstream agents to find tenants, alongside a variety of services to handle EPCs and everyday maintenance.

Sherwood believes that the result is a membership-style agency that charges less than a traditional agent for very similar services.

‘We have also heard of situations where landlords actually think agents are inventing jobs during quiet periods to increase their revenue,’ he stated, before going on to say in many cases, ‘the landlords does not even know it is happening, they simply think they have bought a dud or are abroad so have no way of checking.’[1]

 

[1] http://www.lettingagenttoday.co.uk/breaking-news/2015/6/agent-says-foreign-investors-cannot-believe-uk-letting-agent-fees

 

 

Property Ombudsman to stand down

Published On: May 7, 2015 at 11:35 am

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Just as the curtain is coming down on this government’s stay in office, the Property Ombudsman has also announced that they are to stand down.

After nine years, Christopher Hamer will officially stand down on the 30th November 2015.

Property Ombudsman

The Property Ombudsman scheme, of which Hamer is currently head, is a government approved independent dispute resolution service aimed to aid consumers who are unable to resolve disputes amicably with agents or landlords.

As a result, the Ombudsman can provide redress to position the consumer in their original position before any complaints were made, achieving a full settlement of the dispute and all associated claims from either party.

‘I have been in the post for many years, have enjoyed it immensely and found working with all the various stakeholder organisations and individuals most rewarding,’ said Hamer in a statement. ‘I hope the next Property Obmudsman finds it as enjoyable and rewarding as I did and I would like to wish them the best of luck,’ he added. [1]

 

[1] http://www.propertyreporter.co.uk/business/christopher-hamer-stands-down-as-the-property-ombudsman.html