20th March 2016
I was talking to a landlord at a networking event last week, and he was explaining that he has no idea what all the fuss is about, and how he gets his files and move ins done in just 10 minutes, why on earth would he consider outsourcing this function?
This perplexed, me, because i know the high level of administration required to stay compliant, so i could not resist digging a bit further to see what it was he was doing in his 10 minute let file prep. He explained how he has used the same tenancy agreement for the last 10 years, and he has never had a problem with it, he doesn’t take deposits (he just takes rent in advance instead and uses that as a deposit) and the referencing consists of a letter from their employer that they bring in for him.
In my position its quite difficult to turn a blind eye, to such errors in paperwork handling, so i’m afraid i could stop myself from getting into a rather lengthy conversation about how he “should” be doing the pre move in paperwork... the problem is, that this is a conversation, i am having every week, to varying degrees with landlords across the country.
From a landlords perspective the increasing burden of paperwork is becoming quite a chore, and i can see why many have decided to take no or little notice of the new rules, but the fines, prosecutions and potential criminal offences are getting heavier and more severe, so landlords really do need to take note.
With the frequent changes in legislation, tenancy agreements need to be changed at least once a year, with fraudulent applicants on the rise, trying to get around the latest immigration act rules, references need to be sought direct from a verified employer and if a payment is to be treated like a deposit then in law it is a deposit and should be protected like one, but that is just the beginning.
We have a motto in our office, that says that “If they file is right the management is right” and it is so true, if you put satisfactory care and attention into referencing the tenant, checking the property ad getting all the safety elements in place and ensuring the legals are up to date and in order, the rest of the property management element certainly becomes a lot easier.
So what is involved in setting up a tenancy file? Our checklist for our staff consists of 56 items, but to list the main ones, they are
In addition making sure the keys are issued, and the tenant has instruction books for all appliances in the property and then you will be good to go.
I’m no genius but to do all of that in 10 minutes, would be quite a challenge, in my opinion, so a good process is required for all landlords and agents to make sure that all is in order from the outset, so that when it comes to issues later on, it is much easier to resolve with the proper paperwork in place
Taking the de-regulation bill alone, just the failing to log the issuing of the How to Rent Guide, can stop a landlord being able to issue a section 21, and the potential financial issue this, could run into literally thousands.
So in brief, in order to stay safe, its all about the paperwork, now more than it ever has been before, in the past, landlords may have been able to “wing it” but not any more. Agents will have to be better, landlords will have to be better, or else they will for sure be suffering rather severe consequences