Treat tenants softly softly sometimes says David Lawrenson of Letting Focus
Sometimes it pays to treat tenants softly softly says David Lawrenson of lettingfocus.com
I look after a couple of properties in Kent for people who live abroad ad let them out.
This has given me quite an insight into the mindset of other landlords
One of the things I always say, (and I have a good letting agent friend to thank for this) is, “Don’t sweat the small stuff.”
What do I mean by this?
This example will explain all….
About 6 months ago one of the landlords (despite my advice) came over rather heavy onto a rather prickly and potentially difficult tenant.
The tenant, who had been in occupation for a few years, said we was going to leave soon and to protect his position, decided to withhold the last months rent.
She had always paid the rent on time – for 3 years.
Her justification for withholding the last months rent was because there was no inventory when she moved in.
The landlord admits he was remiss not doing an inventory (not advised by me back then, I’m afraid!).
Tenant Concern
Well, to some extent, I can understand the tenant’s concern and I guess some other landlord may have withheld her deposit in the past. So, as a result, she’s not trusting landlords anymore
Having met the tenant and been inside the property a year after she moved in, it was my view that the property would probably be left in a good condition when she left.
So, no need for the landlord to get heavy.
But get heavy he did and immediately gave the tenant notice for non payment of rent along with a shirty letter.
That was a mistake.
The tenant got cross and left the place in a mess.
This could have been avoided by a polite letter requesting the rent. The tenant would have left in due course and I’m pretty sure in this case that the landlord would not have been left out of pocket.
The message is, sometimes it pays to take a deep breath.
Foxtons and the OFT
On another matter, I see the Office of Fair Trading are claiming against letting agent Foxtons under the Unfair Terms in Consumer Contracts Regulations 1999.
The OFT consider that their agency contract requiring landlords to pay a fee if the tenant continues in occupation, even if Foxtons is no longer managing the property, are unfair.
They are also objecting to a clause requiring the landlord to pay commission if the tenant purchases the property even where Foxtons play no part in negotiating the sale.
Foxtons claim that these clauses are fair and are continuing to use them.
The OFT have therefore issued proceedings in the High Court for an injunction to prevent them using them.
It will be interesting to see how this goes.
As I have said before, landlords should pay a fair up front finders’ fee to letting agents –which should be at least 10% plus VAT - and strike out any renewal fees unless the agency actually does some work to earn them.
In other words, don’t be mean. If you are, it will only tempt agents into trying to make a living by inflating other charges like renewal fees.
If you need more advice on property management or buy to let property in general please ask me.
I’m David Lawrenson from property investment advisors http://www.lettingfocus.com/
I’m the author of the buy to let book “Successful Property Letting - How to Make Money in Buy to Let” the UK’s top selling property title.
Buy the new edition here: http://www.amazon.co.uk/Successful-Property-Letting-Right-Plus/dp/0716030195/ref=sr_1_1?ie=UTF8&s=books&qid=1203933977&sr=1-1
It is fully up to date with all the recent changes to tenancy deposit schemes, HMOs, licensing, capital gains taxes and it has new sections on buying below market value. I’m an expert on property investing for profit and a well known property freelance writer and I contribute to newspapers and a host of property websites, write a property investment blog, a number of columns in the press and run a landlords advice service.
I also work as a consultant helping banks, building societies, housing associations and web portals with their buy to let and property products and services.
You can read more of my property investment blog and details of my networking, advice, buy to let networking programme at my website http://www.lettingfocus.com/
My next London property investors networking meeting is on March 12th. Click here for details: Property Investment Advice
What’s unique about lettingfocus.com is that we offer independent property mentoring because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.
Copyright: David Lawrenson 2008. This blog is updated at least twice a week. Permission must be sought before using the material in the blog.
I look after a couple of properties in Kent for people who live abroad ad let them out.
This has given me quite an insight into the mindset of other landlords
One of the things I always say, (and I have a good letting agent friend to thank for this) is, “Don’t sweat the small stuff.”
What do I mean by this?
This example will explain all….
About 6 months ago one of the landlords (despite my advice) came over rather heavy onto a rather prickly and potentially difficult tenant.
The tenant, who had been in occupation for a few years, said we was going to leave soon and to protect his position, decided to withhold the last months rent.
She had always paid the rent on time – for 3 years.
Her justification for withholding the last months rent was because there was no inventory when she moved in.
The landlord admits he was remiss not doing an inventory (not advised by me back then, I’m afraid!).
Tenant Concern
Well, to some extent, I can understand the tenant’s concern and I guess some other landlord may have withheld her deposit in the past. So, as a result, she’s not trusting landlords anymore
Having met the tenant and been inside the property a year after she moved in, it was my view that the property would probably be left in a good condition when she left.
So, no need for the landlord to get heavy.
But get heavy he did and immediately gave the tenant notice for non payment of rent along with a shirty letter.
That was a mistake.
The tenant got cross and left the place in a mess.
This could have been avoided by a polite letter requesting the rent. The tenant would have left in due course and I’m pretty sure in this case that the landlord would not have been left out of pocket.
The message is, sometimes it pays to take a deep breath.
Foxtons and the OFT
On another matter, I see the Office of Fair Trading are claiming against letting agent Foxtons under the Unfair Terms in Consumer Contracts Regulations 1999.
The OFT consider that their agency contract requiring landlords to pay a fee if the tenant continues in occupation, even if Foxtons is no longer managing the property, are unfair.
They are also objecting to a clause requiring the landlord to pay commission if the tenant purchases the property even where Foxtons play no part in negotiating the sale.
Foxtons claim that these clauses are fair and are continuing to use them.
The OFT have therefore issued proceedings in the High Court for an injunction to prevent them using them.
It will be interesting to see how this goes.
As I have said before, landlords should pay a fair up front finders’ fee to letting agents –which should be at least 10% plus VAT - and strike out any renewal fees unless the agency actually does some work to earn them.
In other words, don’t be mean. If you are, it will only tempt agents into trying to make a living by inflating other charges like renewal fees.
If you need more advice on property management or buy to let property in general please ask me.
I’m David Lawrenson from property investment advisors http://www.lettingfocus.com/
I’m the author of the buy to let book “Successful Property Letting - How to Make Money in Buy to Let” the UK’s top selling property title.
Buy the new edition here: http://www.amazon.co.uk/Successful-Property-Letting-Right-Plus/dp/0716030195/ref=sr_1_1?ie=UTF8&s=books&qid=1203933977&sr=1-1
It is fully up to date with all the recent changes to tenancy deposit schemes, HMOs, licensing, capital gains taxes and it has new sections on buying below market value. I’m an expert on property investing for profit and a well known property freelance writer and I contribute to newspapers and a host of property websites, write a property investment blog, a number of columns in the press and run a landlords advice service.
I also work as a consultant helping banks, building societies, housing associations and web portals with their buy to let and property products and services.
You can read more of my property investment blog and details of my networking, advice, buy to let networking programme at my website http://www.lettingfocus.com/
My next London property investors networking meeting is on March 12th. Click here for details: Property Investment Advice
What’s unique about lettingfocus.com is that we offer independent property mentoring because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, agent or bridging loan financier and do not receive commissions from any of these sources.If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.
Copyright: David Lawrenson 2008. This blog is updated at least twice a week. Permission must be sought before using the material in the blog.
Labels: Foxtons, Foxtons unfair fees, landlord advice, management of tenants, tenant management
This entry was posted by lettingfocus, on
Tuesday, March 11, 2008.
