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Landlords who are prepared to cut corners to save a few hundred pounds in fees could face tough sanctions and hefty penalties. There are over 150 reasons why landlords in these ever-changing times need a good local agent to manage their properties. An agent with bags of experience and local knowledge in the field can give landlords a glimpse of what to expect moving forward.
Do all landlords and even experienced investors know all current regulations?
Most landlords will look at the financial costs and the minimal possible service for the minimal possible cost to find a tenant on a let only basis. I have just a few questions for you;
- · Do you take a deposit? If so is it registered in the correct and proper way?
- · How many of you have a professional inventory? and how many landlords don’t have one at all?
- · Can you as a landlord deal with any legal issue with a tenancy if it should arise?
- · How many who do manage themselves take meter readings and inform relevant utility providers?
- · How many of you record maintenance requests and act on them?
- · Do you have all the necessary health and safety certificates incl. gas, electric and legionella?
- · How many take up references? and credit checks?
I could go on there are so many, and if you have answered no to any of the above then you could be faced with a problem. Either a fine or prison sentence could well be the outcome of failure to comply with these legislations, extreme I know but a possibility.
I have a great portfolio of managed properties which I have been managing for nearly 10 years, they run legally and in the correct manner, but over 50% of landlords still want to manage their own properties and save themselves money. This is an average of one month’s rent in the year for a full management service, good value in my opinion, you may well think of course he would say that.
This is how dangerous and costly ignorance can be;
I recently heard of landlord who had totally renovated a property from top to bottom and moved an acquaintance into her property without taking up references. The tenant never paid a penny of rent after she moved in. When the landlord went to claim the rent due, the tenant refused as the landlord had not carried out any major repairs to the property (despite it had only just been refurbished). No inventory was prepared meaning no images and proof of condition at the time of occupation were available. Over the following year the tenant made various complaints about being harassed by the landlord for non-payment of rent (by sending texts) in a nutshell the tenant made a counter claim in respect of her state of stress and illegal eviction proceedings, totalling £9000.
Still think that an average of one month’s rent income over a year isn’t worth it? Think again! It’s a staggering amount and a wipe out of profit for over a year for any investor.