With an estimated three million properties now saturating the private rented sector, there has been a stark increase in landlord’s experiencing uncertainty, lost payments and a lack of security associated with going it alone. Anything from tenants with late rental payments, damage to the property and disputes over deposits can raise their ugly head and to go it alone is certainly not for the faint hearted!
The new figures from the 2007-2008 Survey of English Housing, carried out by the Department for Communities and Local Government, indicate that while there are 300,000 extra rental properties in the UK, many landlords are facing real difficulty. For Rick Flay at Belvoir Sheffield,who offer a wide range of properties to let in Sheffield the current economic climate means that more tenants will find themselves in financial difficulty, he says “lettings is highly legislative and it is important for landlords to understand their rights and responsibilities.
Private landlords should be very wary about the increase in rent defaults. As the credit crunch sets in for the foreseeable future, we strongly recommend that property owners use a letting agent in Sheffield, such as Belvoir who will actively work to credit check applicants to minimize the risk of a bad tenant.
A thorough understanding of the law is vital and it is in this area where private landlords can often find themselves unstuck. Unless the landlord is planning on giving each property the same amount of hours as a full time job, and keep on top of industry changes, they could get fined or even put in jail.”
The case of Regina v. Parker, brings home the reality of being a private landlord home. The case involved a tenant dying from carbon monoxide poisoning, and had this case been brought by the Crown Prosecution Service, there would have probably been grounds for a custodial sentence, instead the landlord was fined £32,000 plus £24,861 costs.
Maria Heading from Nottingham used to clean rentals for a living and knows only too well the damage caused by unruly tenants, she said, “I have seen the true extent of the damage caused by letting out a property to the wrong person.
Over the years, I have heard of people leaving rotting meat locked in a bathroom to make a point to a property owner who would not return a deposit, properties almost destroyed by tenants who were going through a dispute with their property owner and I have even spoken to property owners whose tenants were secretly dealing drugs from their property.
“My best advice to anyone thinking of going it alone is don’t! It is simply not worth the hassle and heartache. Going with an agent means that they will inspect the property regularly and nip any problems in the bud before they get out of control.”
Rick added, “Landlords thinking of renting out their property alone need to make sure that they have adequate cover in the form of building, contents and rent protection and legal cover. If you do get it wrong it can cost you around £5000 to evict a bad tenant, which is so much more expensive than employing a reputable agent to do the dirty work for you.”
Now Rick Flay, Director at the leading letting agent in Sheffield Belvoir, is urging investors to think sensibly about the risks involved in going it alone. With ever changing legislation, private landlords are increasingly at risk of significant fines or even worse.
Rick suggests the following when deciding on an agent:
1. Ensure your Agent is a member of a regulatory body and that client money is protected.
2. Find out how the Agent will market your property. Which websites will your property be featured on? Does your Agent make use of social networking sites? Will they advertise in your local press?
3. Ask how your Agent credit checks prospective tenants. Does your Agent offer spec
