IS YOUR LETTING AGENT LEGIT?

The lettings sector used to be the Wild West of the property market, with a small group of unscrupulous agents giving the industry a bad name.

Thankfully, the introduction of stricter regulations in recent years has sent many cowboy agents riding off into the sunset. 

But no industry is perfect, and landlords and tenants still need to be wary of rogue operators.

If you’re looking to do business with a letting agent, one of the first things you should check is that they are a member of a client money protection scheme (CMPS).

By law, all letting agents in Scotland who handle ‘client money’ – in other words, hold rent, maintenance funds or holding deposits on behalf of customers – must be a member of a CMPS. (Note: this is different to a tenant deposit scheme, which agents should also utilise.)

A CMPS is basically an insurance policy. It means that if an agent goes bust or does a runner while holding funds on behalf of clients, the landlords and tenants affected receive compensation. (This didn’t always happen in the old days.)

How can I tell if an agent is a member of a CMPS?                                        

There are six approved CMPSs: Client Money Protect, Money Shield, Propertymark, RICS, Safeagent (previously NALS), and UKALA Client Money Protection.

For the record, here at Parkview Property Ltd, we’re members of Client Money Protection.

Agents must display details of their CMPS membership on their website and in their office. 

Always verify an agent’s membership claim by cross-checking with the relevant CMPS (you can do this online in minutes).

It’s good practice

If an agent gives you a blank look or the run-around when you ask about their CMPS membership, alarm bells should ring.

A good letting agent will have no trouble answering the question (and be impressed by your industry knowledge).

An agent who isn’t a member of a CMPS can be fined up to £30,000. Local authorities, through their Trading Standards operations, enforce these rules.

From all of us here at Parkview Property, stay safe and thanks for reading

by Andy

What Rules and Regulations Are Ayrshire Landlords Falling Foul of the Most?

Being a landlord is a tricky business. There are nearly 200 different pieces of legislation covering the how, why, and when of managing a rental property. Here are just four that landlords are often not getting quite right.

Deposit protection

In England, Scotland, and Wales, the deposit must be registered with a deposit protection scheme. The 2021 UK Landlord Survey found that 81% of landlords find registering their deposit difficult.

The deposit must be registered within 30 days of receiving cleared funds. The schemes are government-approved and the tenant must be informed where the money is deposited.

Energy performance certificates

Every rental property in the UK has to have an Energy Performance Certificate (EPC). They are stored on an electronic register that is publicly available. However, they also have to be included in any advertising you do for your property.

Electrical safety regulations

In December 2015, strict rules about electrical testing for new tenancies in rental properties came into force. Inspections must be carried out by a qualified person on all fixed electrical installations.

Gas safety check regulations

If you have gas going in to your rental property, all appliances, pipework, and flues must be checked annually.

As for the electrical safety tests, ensure that you use a qualified engineer and don’t plump for the cheapest. The report must be given to the tenant within 28 days as well.

TOP TIP: As with any time you need to visit, or arrange a visit to the property, make sure you give the tenant at least 24 hours’ notice. Keep a record of having given notice. If the tenant refuses access, you’ve then got the evidence that you tried.

If you’re a landlord in Ayrshire and are not 100% sure on all the rules and regulations you need to abide by, get in touch with us at Parkview Property. A free, no-obligation chat will show you what you might need to tweak or if you’re on the right track.

by Andy

How To Avoid Bad Tenants

https://youtu.be/f8_B6D6DxWE

New landlords often flirt with the idea of ditching traditional tenant selection processes and taking a DIY approach instead.

After all, there are so many ways to source tenants these days – like Gumtree or social media – why bother with anything else?

Trust us, side-stepping a formal selection process may seem like it might save you time, but it can be so much costlier in the long run.

Wind up with a bad tenant and you can expect:

  • Sleepless nights.
  • Sky-high legal bills.
  • Lost income.
  • Property damage.

Let me explain more about the risks of skipping proper reference and credit checks.

If you use an online platform like Gumtree

The internet has made it easier for landlords to find tenants, but not easier to find good tenants. Post an ad online, and you’ll get lots of responses – but many of them will be from time-wasters and con artists, not genuine candidates. Professionals are more likely to use a traditional bricks and mortar letting agent because they’re wary of getting ripped off in an online scam.

Tenants aren’t the only ones to fall prey to online scammers; landlords can be targets, too. Online crooks often use ‘to let’ adverts as ‘phishing’ opportunities. They pose as tenants to get as much information as they can about you and your vacant property, before they get to work fleecing you.

If you let to a mate or relative after asking around on social media

You may be tempted to ask your contacts on WhatsApp or Facebook if they’re looking for a place to rent. But be warned: things can get very messy when you blur the lines between personal and professional. If things don’t work out, it could cause a major family fall-out or friendship rift.

Sometimes, when a landlord knows the tenant, they don’t bother with a contract. Please, never, ever do this. If you do get into a dispute later, your legal options will be limited.

Some buy-to-let mortgages prevent landlords from renting to a family member or friend. Always check the fine print before making a decision.

Insurance companies often get twitchy if the tenant is a relative. In some cases, your cover is invalidated if the tenant is a family member. In other circumstances, you won’t be covered if you haven’t conducted reference checks.

What’s the alternative?

Here at Parkview Property, we have a 5 star tenant selection process that offers you peace of mind and legal protection. It involves screening candidates by phone, in-person interviews, and rigorous reference, credit, and employment checks.

Remember, it’s never too late to screen your tenants – even if they’ve already moved in.

If you want to know more about our referencing procedures, please feel free to contact us here at Parkview Property Ltd  Tel; 01292 442888

Copyright 2021

by Andy

Buy To Let Calculator

https://www.youtube.com/watch?v=Okw_o4PvTho

Here's a quick and simple calculation to help you figure out if your Buy To Let Property will offer you a healthy return. If in doubt, do the math! Don't buy blind, always consider the 're sale' value for long term capital gains.

Here are a couple of things to take into consideration when looking for a really good investment.

  1. How much is the property and will you achieve enough rent to make it worth your while
  2. How long has the property been on the market. Too long? - Find out why
  3. Is it in a good Rental area, i.e. close to travel links, shops, university.
  4. Has it been rented before. If so, ask for legislative certificates and why are there no tenants in situ?
  5. What Capital Gains might I get. Although you’re initially looking at rental income as your key return, long term capital gains and property price increases can be very nice too. So invest in up and coming areas.

If you're unsure of where, what or how to purchase a Buy To Let, feel free to call us on 01292 442888

Our advice is always free with no strings attached.

by Andy

6 Reasons Why Property Inspections Are a Must for Landlords

In this three-minute read, we look at why regular inspections should be central to your property management strategy.

When you’re a busy landlord juggling a multitude of responsibilities, it’s easy to let a crucial part of managing a property – regular inspections – slide.

Landlords usually carry out inspections with clockwork regularity at the start of a tenancy, but things can get a little lax over time.

Perhaps the tenant presents as a model citizen, and the landlord develops a false sense of security. (To which we say, remember Walter White, the unassuming science teacher turned crystal meth baron in the TV series Breaking Bad.)

Or maybe, the tenant pays their rent on time and never says a peep, so the landlord assumes that everything is ticking along nicely (silence is golden, right?).

No matter how much you like your tenant or how busy you are with other commitments, never skip or delay a property inspection. They are one of the best ways to protect your investment – and head off disaster.

Here are six reasons why Ayrshirelandlords should carry out regular inspections.

  1. Maintenance

It’s easier (and cheaper) to rectify a minor maintenance issue than a major one. A tenant may not mention a leaky tap or a little bit of damp, but these problems can morph into expensive repair jobs if left unresolved. It’s also essential that you check that carbon monoxide monitors and smoke alarms are working.

  • Paper trail

The photographs and notes you take during each inspection (yes, you should be doing this) create a valuable paper trail. If there is a dispute at a later date, you’ll have evidence to support your side of the story.

  • Build rapport

If your tenants find you approachable, they’ll be more likely to let you know when there is an issue and treat your property respectfully.

  • Contractual obligations

It’s important to know that your tenants are complying with their contract and haven’t sublet the property or sneakily adopted a pack of Great Danes.

  • Spot illegal activities

With regular inspections, you can ensure your property isn’t being misused by a criminal gang. We know this sounds far-fetched, but gangs – particularly those involved in cannabis production – are becoming increasingly brazen. Trust us, the last thing you want is a police cordon and Sky News reporter outside your property.

  • Insurance disputes

Many insurers won’t pay out on a major claim if the landlord hasn’t conducted regular inspections. They argue that by neglecting to visit the property, the landlord has not been vigilant and has therefore invalidated the policy. Whatever you make of this justification, cover yourself, so you don’t wind up out of pocket.

For advice about our property management services, please contact us here at Parkview Property 01292 442888.

by Andy

Landlords and Data Protection

For more information to protect both yourself and your tenants, watch the video or read more details below

https://www.youtube.com/watch?v=_wfjsi8L77U

The ICO is the Information Commissioner’s Office and covers the whole of the UK. The ICO website explains that they are ‘The UK’s independent authority set up to uphold information rights in the public interest, promoting openness by public bodies and data privacy for individuals.’

It doesn’t matter how many properties you have, how many tenants, nor how many people you work with or have working for you. It is the whole business that must be registered. As a landlord, you are considered to be a business, even if you’re a sole trader.

Some landlords think that their letting agent has to be registered and therefore, they themselves are exempt. This is not the case. Anyone who handles personal data and stores it electronically must register. This could be as little as a name or phone number for the tenant that was texted or emailed to you.

The ICO fee will be between £40 and £2,900 per annum. The fee is paid annually. It is worked out depending on the size of the business and turnover. There is a self-assessment you can carry out on the website. Have a look at it, ico.org.uk  This will show you what amount you will have to pay.

Tenants could raise complaints about you to the ICO if they believe you’re misusing their data. The ICO might then investigate. If you had a complaint about the tenant, like unpaid rent, the tenants could use your non-registration against you. If you don’t register with the ICO and get caught, the fines can range from £400 to £4,350.

It’s a simple 15-minute process to get registered. It’s not something an agent can do on your behalf.

Here’s what you’ll need to get started;

  • The name and address of the business that needs to be registered
  • Turnover and staff numbers
  • Business details
  • Credit/debit card details

The fee will be due again in 12 months’ time. It could be easier to give the ICO direct debit details. If you are a landlord and would like further advice about this or any other lettings issue, please don’t hesitate to get in touch for a free, no-obligation chat on 01292 442888

by Andy

WARNING - The Property Survey That Every Ayrshire Landlord Should Read

In this three-minute read, we look at a study that found some landlords were putting themselves and their investment at risk by cutting corners on checks and maintenance.

Landlords are leaving themselves exposed to the risk of criminal and civil prosecution by failing to conduct critical safety checks and taking a back seat on maintenance, a survey of renters has revealed.

The study by property management platform Plentific found that a surprisingly high proportion of landlords aren’t meeting their legal responsibilities regarding gas safety and that in some cases, tenants are handling maintenance and repairs.

The survey of 1,000 tenants found that:

  • 46% of private tenants don’t believe their gas appliances have been checked in the last year.
  • 52% of private tenants don’t have a gas safety certificate.
  • 56% of private tenants don’t have a carbon monoxide alarm.

What the law says

Annual gas safety checks must be carried out at all rental properties by a qualified engineer and all tenants should receive a copy of the subsequent safety report.

Landlords who fail to meet these obligations could face prosecution – and be fined or imprisoned. 

Furthermore, landlords could wind up embroiled in a civil suit if a tenant is injured or killed in a fire, explosion or carbon monoxide poisoning at the property.

Other maintenance issues

The survey also looked at how landlords respond to maintenance concerns raised by tenants. 

About 40% of private renters said requested works were completed within three days, although overall, the average was ten days.

Issues raised included damage to the garden (26%), property damage (24%), ­maintenance (21%), and electrical problems (20%).

Worryingly, 37% of renters said they had organised repair works themselves (20% with permission from the landlord, and 16% without).

We would advise landlords in Ayrshire to oversee maintenance and repairs (or to entrust a property expert like a letting agent to handle it) to ensure that work is done to a safe standard for a fair price.

Faulty work could result in further problems down the line or damage to your property that proves costly to rectify.

Managing your responsibilities

Being a landlord comes with a host of legal responsibilities. If staying on top of all the paperwork and red tape feels overwhelming, then you could benefit from working with a reputable letting agent like us. We can shoulder the burden for you and will advise you expertly and honestly.

Let us take the stress out of managing the property and use our experience to make your life a whole lot easier.

Please get in touch with us here at Parkview Property Ltd if you have any questions about property management.

COPYRIGHT Parkview Property Ltd 2021

by Andy