Welcome to “Landlords’ Barometer #5” – trending topics for landlords and agents. This week’s column has been inspired by issues that arose at the NALS Conference yesterday that are also trending on Property Tribes, the U.K.’s leading landlord community.
1. Private rented sector – industry regulation up-date
Thanks to social media, landlords are becoming increasingly aware of the issues affecting our industry and having an opinion on it. This week, EYE reported that Newham Council had fined several agents for not having joined a redress scheme. The deadline was 1st October 2014. Regulation is only effective IF it is enforced, so it’s good to see Newham Council taking a lead with this and sending out a clear message and also landlords supporting this stance.
Landlords want to work with reputable agents and I believe that they will be increasingly aware of such professional associations as ARLA, NALS, RICS, SAFEagent etc. Use your professional association memberships to differentiate yourself from the competition and win instructions … and educate landlords into the bargain!
At the NALS Conference in London yesterday, Policy Advisor Ruth Heyes, urged all agents to use the Government tools that had been provided to create consumer awareness, such as the “How to Rent Guide”. She also pledged Government support for SAFEagent and recognised the value of such professional bodies as NALS for supporting agents to operate to professional standards.
It is clear that issues about legislation in the PRS are coming to a head across the country!
One of our landlords wrote a report for us of the Leeds City Council Landlords PRS Conference
Interestingly, the only topics delegates wanted to discuss and air their points of view and grievances on were: Universal Credit, Direct Housing Benefit payments, “NO” to 3 year tenancies, and concerns about rogue landlords.
As the NALS Conference demonstrated yesterday, and Property Tribes does on a daily basis, when people get together and discuss things, clarity is the outcome and positive change can be a result of that process.
If you have any doubt about the value of networking, then read our discussion about it.
Have you considered putting on a monthly event for landlords to bring them together and help them keep up to date with trends and compliance? These type of events are very appealing to first time landlords searching for information, so this is a great opportunity to speak to them face to face and deliver value to show that you can assist them in their property ambitions.
3. Immigration Act / “Right to Rent”
Earlier this week I attended a seminar in London hosted by Anthony Gold Solicitors which was dealing with the Immigration Act 2014.
The guidelines are still only in “draft” form, even though it comes into effect in trial mode in specific areas of the country on 1st December.
I was left with the feeling that things had not been thought through very well by HM Government.
For instance, you cannot check someone’s papers if they are abroad. You have to wait until they arrive in the UK. If you offer them a tenancy agreement, and then find their documents are not in order, you will have to decline to rent to them. They can then sue you for “breach of contract”. Doh!
Landlords are none too happy that they are being assigned another task – this time as “Border Guard”!
Agents and landlords must carry out a “Right to rent” check on EVERY tenant, not just those they think might not be British. The check must only be used for this purpose, and not be used as any other part of the decision making process. This is an extra stage of tenant referencing that will now be added to the vettings procedure.
It is not a crime to fail to check. Enforcement is by a fine by the Home Office (not local authorities) and the fine increases for repeated offences.
Yesterday, at the NALS Conference in London, the Home Office came under fire! Emotions ran very high as delegates challenged the speakers and it was very powerful to see lettings agents fighting their corner and asking questions that the Home Office did not seem to have the answer to!
See more on EYE here
NALS offer an on-line course to help you get up to speed with “Right to Rent”.
I am of the opinion that the Immigration Act 2014 is a bombshell that is quietly ticking away. I don’t think anyone fully realises the problems it is going to cause! I believe that certain social-economic groups of our society who are British and/or are legitimately able to reside in this country will not be able to meet the document requirements to satisfy “Right to Rent”. What happens to them?!
Thank you for reading the Landlords’ Barometer and I will close with another of my favourite quotes:
“The more you learn, the more you earn” ~ Steve Bolton at the NALS Conference 2014.
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