As the Scottish Government gets set to embark on the regulation of letting agents – regulation which is badly needed in my view – I fear that my worst nightmare may be about to become true.
A recent case in Edinburgh Sheriff Court saw a landlord who had failed to protect his tenant’s deposit fined £3,450. This shows that landlords, and their agents, must take seriously their new...
Since 1st May 2013 landlords in Scotland have had a new statutory obligation to give new tenants a Tenant Information Pack, before the start of the tenancy, setting out key information about –
the...
The First-tier Tribunal deals with a whole range of landlord/tenant disputes and other housing matters and not just cases arising from non-payment of rent. It would be good to get an understanding from the tribunal service of the cause(s) of delay (other than the statutory periods referred to in the article): Shortage of tribunal members? Infrequency of hearings?
Replacement of Sheriff Court procedures by references to the Tribunal were expected to bring speedier resolution and it will be important to understand why this isn't happening and consider measures to improve matters.... Read More
If only all landlords would heed Sam's advice on choosing agents. This is exactly why all agents should be regulated and carry client money protection, as will soon be the case in Scotland.
Much is likely to depend on the content of the contract between you, Nilesh, and your agents, if you can trace them and they are solvent. But, as landlord and as owner of the property, I'm sorry to say that you are likely to be held responsible for their actions.... Read More
I agree with Mandy that it is the ill-informed landlords who don't really understand what they need to be doing who give landlords in general a bad name. I'm constantly surprised to discover how many friends and contacts own a rented property or two, and it doesn't take much of a conversation with them to discover that they are blissfully unaware of what the law requires of them, how to secure reliable tenants and how to relate to their tenants in a way which will minimise problems.
What's happening in Scotland is interesting as a new tenancy regime is being introduced. I believe this has real potential to professionalise letting and marginalise poor practice.
Rather then re-run my rationale here, why not take a wee look at my blog on the subject - https://www.linkedin.com/pulse/end-road-scottish-residential-letting-john-gell?trk=prof-post... Read More
Many of our tenants are affluent professionals on short-term employment contracts or on transient career paths who absolutely have no wish to be property owners at this stage in their careers. They are in Inverness for a year or two or three and then their career path takes them elsewhere. They don't want to buy, but they do want, and can afford, well presented and well managed rented property.
If the suppliers of such properties (and most of our client landlords are working individuals who have invested in one or two properties) consider that the reduced returns resulting from the Chancellor's tinkering no longer justify the inputs and risk and so pull out, those homes are more likely to leave the renting market than to be acquired by other landlords. What then for those tenants? And this at a time when the Scottish Government is seeking to expand the private rented sector in recognition of acute housing shortage.
Flexibility of housing options is critical for labour mobility and, in turn, for a vibrant economy. Are the Chancellor, his advisors and Miss Foges so blinkered that they cannot see that? I can only assume so, or should I listen to the cynic in me who says it's all about votes and playing politics?... Read More
I run a letting agency and, as such, have a professional obligation to our landlord clients to maintain rents at parity with market values. We therefore conduct an annual rent review, but this generally produces a "no change" outcome as the Inverness market remains fairly well balanced between supply and demand.
Ultimately it is that balance which determines rental values. I wonder if the presence in the market of non-avaricious landlords is supressing rental values. It will be interesting to see how fiscal changes and rising costs impact on that, given that tenants, quite rightly, are free to move on.
Interestingly, at a landlord conference in Edinburgh last week, a view was put forward that, while evidence shows rent increases lagging behind inflation, Scottish Governement proposals to give certain "hot spot" local authorities powers to limit rent increases to one each year and by the rate of inflation plus 1% could well result in an increase in rental growth by shifting landlords to a formulaic approach.... Read More
I'd be inclined to leave it Matthew as it sounds like an attractive feature which should enhance appeal of the property.
Essential however to follow Neil's advice and also to stipulate in the tenancy agreement that only wood is burnt (unless the stove is specifically designed to also burn coal). Tenants burn g damp logs can cause problems with tarring of the flue so you should advise them not to do that.... Read More
This all sounds terrible, and you have been very unlucky.
Landlords and letting agents have an obligation under consumer protection law to advise potential tenants of any factors they are aware of which might affect the tenant's decision to rent a particular property. This would include the problematic neighbour. I suggest you raise that with your local consumer protection people.
Commenting as a letting agent rather than a landlord, we were summoned to appear before the Sheriff, in the days before statutory deposit protection, by a disgruntled former tenant who alleged that we had unjustifiably retained part of her deposit.
The retention was to defray costs incurred in cleaning the flat, and particularly the fridge, after her departure. She had disagreed, at check-out, that the standard of cleanliness was lacking compared to that at check-in.
Our evidence to the Sheriff consisted essentially of before and after photographs, the former showing a sparkling clean fridge interior and the latter evidencing food scraps and spillages within it. Also exhibited was the cleaning company's invoice.
Case dismissed and we emerged with a clean record.... Read More
There was a Scottish case last year. See http://www.bbc.co.uk/news/uk-scotland-edinburgh-east-fife-23930567 and you'll find other references through Google.
The Sheriff awarded the maximum penalty because, I understand, he regarded the landlord as contemptuous of the requirement to lodge the deposit. His recorded comments in court certainly conveyed that impression.... Read More
If the verbal agreement with the landlord that he would remove the furniture wasn't confirmed in writing, then there may be very little you can do Tracy, other then trying to persuade the landlord to keep his word. What does the Tenancy Agreement state in relation to furnished/unfurnished?... Read More
What a mess Maxwell. Much will depend on the contract you have with your agent and it may be that you just have to put it down to experience and carry on a wiser man.
What level of investigation did you undertake before appointing your agent? It's important to be aware that not all agents are the same and it's perhaps not generally realised that anyone can set up in business as a letting agent regardless of ability, expertise and level of client protection offered.
It is therefore vital that landlords undertake due diligence before appointing a letting agent. There's a blog on the subject at http://simplylet.biz/news/Diligence... Read More
There's already sufficient legislation to deal with the real rogues who're out to flout the law and take advantage of folks. Government seems intent however on devising new regulation and then failing to enforce it.
Authorities just need to be joined up, and focused, as you've said.
I'm convinced that most poor practice stems from lack of awareness rather than ill intent, so why not use our local and national government resources to raise awareness of best practice instead of hounding those who're already performing well?... Read More
I don't think there's a cut and dried answer to that.
Those landlords who are keen to remain below the radar or who distrust authority may not be bad in the sense that that they are ill intentioned. Many, I suspect, are just uninformed - unaware of best practice or of what the law requires.
Responsible landlords will have had their ear to the ground and so will have been aware of Landlord Registration and will have voluntarily registered.
What is lacking is any effective management by government of its regulatory roll out and so unless landlords are astute they are likely to remain blissfully unaware of requirements. So, we have regulation, often with draconian but unenforced penalties, by a government with apparently little understanding of how PRS actually works in practice, many low grade landlords unaware of much of it, and a cohort of responsible landlords who for the most part probably don't need to be regulated but who comply because they're astute and law abiding folks.
To put matters in context it's perhaps worth adding that Landlord Registration in Scotland was driven by a small number of MSPs representing constituencies where laisez faire landlords were letting to DSS-funded tenants (and receiving the DSS-funded rent directly from the local authority, with no need to engage with their tenants) and where those tenants were causing significant anti-social issues.
Instead of isolating and addressing that problem, a minor one in the national context, government introduced registration of all landlords and so appeared to be blind to good practice where it existed, lumping all landlords together as "not to be trusted - we need to know where you are"
I feel that the efforts and practices of those letting agents who take pains to act responsibly are about to similarly overlooked in framing agent regulation.
9:48 AM, 15th January 2020, About 5 years ago
The First-tier Tribunal deals with a whole range of landlord/tenant disputes and other housing matters and not just cases arising from non-payment of rent. It would be good to get an understanding from the tribunal service of the cause(s) of delay (other than the statutory periods referred to in the article): Shortage of tribunal members? Infrequency of hearings?
Replacement of Sheriff Court procedures by references to the Tribunal were expected to bring speedier resolution and it will be important to understand why this isn't happening and consider measures to improve matters.... Read More
12:56 PM, 23rd August 2016, About 8 years ago
If only all landlords would heed Sam's advice on choosing agents. This is exactly why all agents should be regulated and carry client money protection, as will soon be the case in Scotland.
Much is likely to depend on the content of the contract between you, Nilesh, and your agents, if you can trace them and they are solvent. But, as landlord and as owner of the property, I'm sorry to say that you are likely to be held responsible for their actions.... Read More
12:40 PM, 21st July 2016, About 8 years ago
I agree with Mandy that it is the ill-informed landlords who don't really understand what they need to be doing who give landlords in general a bad name. I'm constantly surprised to discover how many friends and contacts own a rented property or two, and it doesn't take much of a conversation with them to discover that they are blissfully unaware of what the law requires of them, how to secure reliable tenants and how to relate to their tenants in a way which will minimise problems.
What's happening in Scotland is interesting as a new tenancy regime is being introduced. I believe this has real potential to professionalise letting and marginalise poor practice.
Rather then re-run my rationale here, why not take a wee look at my blog on the subject - https://www.linkedin.com/pulse/end-road-scottish-residential-letting-john-gell?trk=prof-post... Read More
16:52 PM, 10th February 2016, About 9 years ago
Many of our tenants are affluent professionals on short-term employment contracts or on transient career paths who absolutely have no wish to be property owners at this stage in their careers. They are in Inverness for a year or two or three and then their career path takes them elsewhere. They don't want to buy, but they do want, and can afford, well presented and well managed rented property.
If the suppliers of such properties (and most of our client landlords are working individuals who have invested in one or two properties) consider that the reduced returns resulting from the Chancellor's tinkering no longer justify the inputs and risk and so pull out, those homes are more likely to leave the renting market than to be acquired by other landlords. What then for those tenants? And this at a time when the Scottish Government is seeking to expand the private rented sector in recognition of acute housing shortage.
Flexibility of housing options is critical for labour mobility and, in turn, for a vibrant economy. Are the Chancellor, his advisors and Miss Foges so blinkered that they cannot see that? I can only assume so, or should I listen to the cynic in me who says it's all about votes and playing politics?... Read More
11:55 AM, 9th February 2016, About 9 years ago
What a superbly written piece Gareth. Love it.... Read More
20:09 PM, 9th November 2015, About 9 years ago
Curious to know,DC, why you have historically set rents below market rate, and what has prompted change to annual increases.
What will guide the amount of increase?... Read More
20:07 PM, 9th November 2015, About 9 years ago
Curious to know, DC, why you have historically set rents below market level, and what has prompted change to annual increase.
What will guide the rate of increase?... Read More
17:40 PM, 9th November 2015, About 9 years ago
I run a letting agency and, as such, have a professional obligation to our landlord clients to maintain rents at parity with market values. We therefore conduct an annual rent review, but this generally produces a "no change" outcome as the Inverness market remains fairly well balanced between supply and demand.
Ultimately it is that balance which determines rental values. I wonder if the presence in the market of non-avaricious landlords is supressing rental values. It will be interesting to see how fiscal changes and rising costs impact on that, given that tenants, quite rightly, are free to move on.
Interestingly, at a landlord conference in Edinburgh last week, a view was put forward that, while evidence shows rent increases lagging behind inflation, Scottish Governement proposals to give certain "hot spot" local authorities powers to limit rent increases to one each year and by the rate of inflation plus 1% could well result in an increase in rental growth by shifting landlords to a formulaic approach.... Read More
13:11 PM, 7th January 2015, About 10 years ago
I'd be inclined to leave it Matthew as it sounds like an attractive feature which should enhance appeal of the property.
Essential however to follow Neil's advice and also to stipulate in the tenancy agreement that only wood is burnt (unless the stove is specifically designed to also burn coal). Tenants burn g damp logs can cause problems with tarring of the flue so you should advise them not to do that.... Read More
14:47 PM, 24th December 2014, About 10 years ago
Alice,
This all sounds terrible, and you have been very unlucky.
Landlords and letting agents have an obligation under consumer protection law to advise potential tenants of any factors they are aware of which might affect the tenant's decision to rent a particular property. This would include the problematic neighbour. I suggest you raise that with your local consumer protection people.
Good luck.... Read More
11:35 AM, 30th May 2014, About 11 years ago
Mark,
Commenting as a letting agent rather than a landlord, we were summoned to appear before the Sheriff, in the days before statutory deposit protection, by a disgruntled former tenant who alleged that we had unjustifiably retained part of her deposit.
The retention was to defray costs incurred in cleaning the flat, and particularly the fridge, after her departure. She had disagreed, at check-out, that the standard of cleanliness was lacking compared to that at check-in.
Our evidence to the Sheriff consisted essentially of before and after photographs, the former showing a sparkling clean fridge interior and the latter evidencing food scraps and spillages within it. Also exhibited was the cleaning company's invoice.
Case dismissed and we emerged with a clean record.... Read More
15:57 PM, 23rd May 2014, About 11 years ago
The judgement is at http://www.scotcourts.gov.uk/opinions/B641_13.html... Read More
15:55 PM, 23rd May 2014, About 11 years ago
Stephen,
There was a Scottish case last year. See http://www.bbc.co.uk/news/uk-scotland-edinburgh-east-fife-23930567 and you'll find other references through Google.
The Sheriff awarded the maximum penalty because, I understand, he regarded the landlord as contemptuous of the requirement to lodge the deposit. His recorded comments in court certainly conveyed that impression.... Read More
13:22 PM, 19th May 2014, About 11 years ago
If the verbal agreement with the landlord that he would remove the furniture wasn't confirmed in writing, then there may be very little you can do Tracy, other then trying to persuade the landlord to keep his word. What does the Tenancy Agreement state in relation to furnished/unfurnished?... Read More
12:57 PM, 28th January 2014, About 11 years ago
What a mess Maxwell. Much will depend on the contract you have with your agent and it may be that you just have to put it down to experience and carry on a wiser man.
What level of investigation did you undertake before appointing your agent? It's important to be aware that not all agents are the same and it's perhaps not generally realised that anyone can set up in business as a letting agent regardless of ability, expertise and level of client protection offered.
It is therefore vital that landlords undertake due diligence before appointing a letting agent. There's a blog on the subject at http://simplylet.biz/news/Diligence... Read More
14:44 PM, 2nd October 2013, About 11 years ago
Well said Mark!
There's already sufficient legislation to deal with the real rogues who're out to flout the law and take advantage of folks. Government seems intent however on devising new regulation and then failing to enforce it.
Authorities just need to be joined up, and focused, as you've said.
I'm convinced that most poor practice stems from lack of awareness rather than ill intent, so why not use our local and national government resources to raise awareness of best practice instead of hounding those who're already performing well?... Read More
23:28 PM, 16th September 2013, About 11 years ago
Hi Mark.
I don't think there's a cut and dried answer to that.
Those landlords who are keen to remain below the radar or who distrust authority may not be bad in the sense that that they are ill intentioned. Many, I suspect, are just uninformed - unaware of best practice or of what the law requires.
Responsible landlords will have had their ear to the ground and so will have been aware of Landlord Registration and will have voluntarily registered.
What is lacking is any effective management by government of its regulatory roll out and so unless landlords are astute they are likely to remain blissfully unaware of requirements. So, we have regulation, often with draconian but unenforced penalties, by a government with apparently little understanding of how PRS actually works in practice, many low grade landlords unaware of much of it, and a cohort of responsible landlords who for the most part probably don't need to be regulated but who comply because they're astute and law abiding folks.
I believe it's what's known as a " disconnect"
John.... Read More
21:33 PM, 16th September 2013, About 11 years ago
Thanks for all your comments folks.
To put matters in context it's perhaps worth adding that Landlord Registration in Scotland was driven by a small number of MSPs representing constituencies where laisez faire landlords were letting to DSS-funded tenants (and receiving the DSS-funded rent directly from the local authority, with no need to engage with their tenants) and where those tenants were causing significant anti-social issues.
Instead of isolating and addressing that problem, a minor one in the national context, government introduced registration of all landlords and so appeared to be blind to good practice where it existed, lumping all landlords together as "not to be trusted - we need to know where you are"
I feel that the efforts and practices of those letting agents who take pains to act responsibly are about to similarly overlooked in framing agent regulation.
John Gell.... Read More
22:14 PM, 13th September 2013, About 11 years ago
Reply to the comment left by "Kirsty McGregor" at "13/09/2013 - 20:18
... Read More
21:53 PM, 13th September 2013, About 11 years ago
Reply to the comment left by "Kirsty McGregor" at "13/09/2013 - 16:22
... Read More