AVOIDING AGENTS FEES ... IS IT WORTH IT?

by Alan Davis, Partner
Penyards Property Management

In tough financial times the chance to make a saving is always attractive and tempting. Perhaps these cuts in expenditure would seem less worthwhile if the dangers were properly understood. Penyards Property Management has encountered many landlords and tenants who have let or rented a property where the professional input of a regulated and properly insured agent was not present. As a result the company has assisted in dealing with lack of clarity in the tenancy agreement, affecting the responsibility of each of the landlord and tenant. It has assisted in the credit control issues, where landlords had not received their rents on time. It has dealt with the removal of tenants where the landlords did not properly issue the statutory notices required to legally end a tenancy.

Tenants too, can fall into the trap of low fee situations where no agent plays a role in the agreement, finding themselves in a tenancy where the deposit is not properly handled, their landlords trample their legitimate rights and their deposit disappears. This is avoided by dealing with regulated agents, where the deposit is held by the agent as stakeholder to ensure a fair outcome to a dispute over the deposit return.

Cost savings are always tempting, but can the loss of control of a substantial asset due to bad tenants and inadequate management be worth those few extra, tax deductible pounds? The loss of a dilapidations deposit cannot be worth the extra cost of dealing through a reputable agent, rather than scouring the small ads.

These serious issues will be avoided entirely by dealing with a regulated ARLA agent, where the back up of access to a Tenancy Deposit Scheme and the code of conduct of The Property Ombudsman, protect both landlords and tenants, ensuring high standards of service from the agent and easy access to statutory protection for landlord and tenant. Penyards Property Management has been a member of the trade body, ARLA for 15 years, and was an early signatory to The Property Ombudsman code of practice.

 For further advice on the rental market or a FREE valuation, please write to or call Alan Davis, Penyards Property Management, 23 Southgate Street, Winchester SO23 9EB  alan.davis@penyards.co.uk 01962 860303 

FAMILY HOMES IN HIGH DEMAND
by Judith Davis
Penyards Property Management, Winchester

Two houses in St Cross, Winchester, let within a few days of instruction ....

Now is the hot time of year for the demand of family homes to rent.  Professional families relocating from London and overseas are concentrating their efforts during the month of June towards finding good quality houses to move to before the start of the Autumn term. To achieve the best rent, these houses should be in good commutable areas – preferably within a few minutes’ walk or drive from a mainline station.

Houses in areas within easy reach of private schools or those with a good Ofsted Report are also in extremely high demand. Those in the St Cross, Hyde, Fulflood or Badger Farm areas of Winchester usually let within a few days.  Penyards Property Management has let two properties in the St Cross area of Winchester and one in each of Badger Farm, Hyde and Fulflood - all within a week of instruction.  They now have potential tenants on their database who were disappointed as they were too late for these sought-after homes.

If you have a family sized property which would suit the commutable and academic criteria required by the rental market then please give Penyards Property Management a call on 01962 860303 or email info@penyards.co.uk to arrange a free rental appraisal.

WE LET …….. YOU RELAX!
by Judith Davis
Penyards Property Management, Winchester

The rental market is hot and rents are rising!

If you cannot sell and are looking to move on, Penyards Property Management can let your home for you quickly and efficiently and take away your financial worries.

The next few weeks are crucial in the lettings market with prospective tenants hoping to secure a tenancy and move in before the Autumn School Term starts.

With a shortage of properties available to rent in central Winchester and the suburbs, now is the time to consider letting. Marketing in July or August may just be too late.

If you are currently unable to sell your property, why not let it for a year and remarket with a fresh approach in 2012. In the meantime your mortgage and outgoings will be paid for you by the tenant, the legalities will be looked after by an agent, and you can relax and get on with your life.

Winchester has so much to offer young professional families and couples relocating from London, with its excellent schools and colleges, cultural background and fast train service to London. It’s no wonder that it’s a city always in hot demand.

Preparation of your investment is important. It should be decorated and carpeted in neutral colours; with white goods, window coverings and light fittings in place and the garden tidy. If the rental is realistic it will only be a matter of weeks before new tenants are collecting the keys and moving into to their new home

EVERYONE WANTS A TOWN HOUSE!
By Lisa Bartlett,
Penyards Property Management, Winchester

Penyards Property Management hops skips and jumps into the spring season with its most successful March in years behind them. This early success is a result of the persistent hard work that all members of the team at the central Winchester office have put in since the turn of the New Year. Spurred on by a flurry of phone calls, viewings and closed deals the passionate and dedicated staff are delighted with the year’s results so far.

It’s also that time of year when young professional families are queuing up at the door in the quest for that perfect family city house in time for the new school year in September. The attraction of good schools coupled with the delightful aesthetics of the city makes Winchester a most appealing area to relocate to. People are excited about renting a piece of history as they wander through old Winchester or view the significant and archetypal family homes in St Cross.

Penyards Property Management’s position within the industry puts it in good stead for such a demand. Not only do the combined years of experience and proactive approach aid them in obtaining such properties, but the staff have such extensive expertise and knowledge that they are able to give these families a wealth of facts and advice about the city and what it has to offer family life.

Such properties are being rented out at such a rate that Penyards are in fact finding themselves in short supply! If you have a quality family home in the Winchester area that you perhaps have been considering letting out please get in touch with Penyards Property Management for a free rental appraisal - a professional family is waiting for your home!

OMBUDSMAN PLEAS “MORE PROTECTION FOR LANDLORDS”
by Judith Davis
Penyards Property Management, Winchester

In their annual recent report, Christopher Hamer, The Property Ombudsman (TPO) has called for more agents to commit to setting high standards of service to customers and the control of client monies. To emphasise this need he recently addressed the ARLA conference and appeared on BBC Breakfast time.

The number of lettings offices voluntarily covered by the Lettings Code of Practice set by the TPO has reached around 8000 but there is great concern that the agents who do not sign up and adhere to the standards of the TPO Code of Practice will continue to operate to standards which are to both landlords and tenants detriment.

From this summer the Lettings code of Practice will include requirements for lettings agencies to hold a separately designated client account to protect client funds. Currently there is no necessity for them to join an Ombudsman scheme and this is inconsistent with the current requirements on Sales Agents. There also needs to be an obligation that client monies are protected by client money insurance, so in the event that an agent’s business fails, the clients would still receive the money owed to them. Again, there is no requirement for unregulated letting agents to hold this type of protection for their clients, and many do not. “An agent who uses client money because they are operating on the edge of viability and needs to bolster the business, or more worrying still is using the money for personal enjoyment, is entirely unacceptable and against the law”, says Christopher Hamer – however, this happens and many agents doing behaving this way fail every year – owing their clients many thousands of pounds. The Association of Residential Lettings Agents (ARLA) has also lobbied time and again for the Licensing of all Letting Agents to bring greater protection for landlords and tenants against rogue activities.

Currently Landlords who are considering letting their homes and Tenants who are looking to rent would be well advised to work with an agent who is either a member of the TPO or ARLA, or ideally both, so that they can enjoy the peace of mind that their money will be secure, and the standard of service they will receive will be to the highest standard. The current rental market is particularly strong and Penyards Property Management who are members of both trade bodies, welcome enquiries from potential Landlords and Tenants.

SPRING HAS SPRUNG!
by Judith Davis, Partner,
Penyards Lettings & Property Management, Winchester  

Spring has most definitely sprung in the lettings market. On 1st February, after a very slow start to the year, there was an instant turnaround as the rental market leapt into spring with enthusiasm and vigour.  People decided to get on with their lives and move home regardless of what the gloomy economy has to offer. As a result Penyards Property Management has let more properties this February than in the last 21 years.

The reasons for the new tenancies are as varied as ever -

Professional families moving from London or overseas, choosing Winchester and surrounds for the easy commute to London and the large choice of excellent primary and senior schools, both private and state. These tenants wish to move at Half Term or Easter to ensure the family is settled ready for the new term.

Professionals who need to relocate with their work for companies such as IBM and B&Q usually using Relocation Agents to assist them.  They often move with a quick turnaround of one to two weeks – and need smart comfortable and contemporary properties prepared to a high standard.

“Double renters” are a new breed of tenants – people who cannot sell and are letting their homes as a lucrative alternative and then renting another property allowing them to down or upsize to better suit their current needs.

Second, third or fourth time renters who are now in their mid thirties and still cannot get on the property ladder or choose not to … are moving from one rental property straight into another.

The demand for rental properties is therefore on the increase again and as a result prices are set to increase and there is a potential shortage of houses to rent.  If you have a good quality property in the city or rural Hampshire that you are considering letting, call Penyards Property Management for a no-obligation, free rental appraisal and advice on how to prepare your property for let.

PASSIONATE PEOPLE AT PENYARDS PROPERTY MANAGEMENT

Penyards Property Management are delighted to step into their 21st year by announcing two new additions to the team. Neil Sadler and Lisa Bartlett are passionate about property and are keen to get integrated and help move the company forward into what is set to be a promising year.

Neil joins as a further Negotiator to add to the team. He brings 12 years’ experience in the property industry and is keen to make his mark on the already thriving company. Lisa arrives as the company’s new receptionist. With previous experience in the service industry, Lisa is thrilled with the new challenges her career at Penyards will present.

Further to welcoming the two new arrivals, Penyards are also pleased to announce the promotion of Kirsty Reed to Negotiator. Kirsty has worked for the company for over three years and is eager to take on the challenge. The knowledge and experience she has gained from the company thus far will enable her to make the most of her new exciting role and further develop her skills.

Neil and Lisa’s arrival to the company of highly trained and passionate staff in the central Winchester office brings the total number to a dynamic team of 14, promising exciting developments for the coming months. Along with letting and managing a high volume of sought after properties in the Hampshire area, Penyards also prides itself on providing its landlords and tenants with outstanding service, and with two new additions this service can only continue to thrive.

Penyards are thrilled about the prospects of these new developments within the company and are confident that past success in letting a high number of quality properties in Hampshire will continue long into 2011.

If you would like a free rental appraisal or advice on the minefield of legalities which now cover the lettings industry please call Penyards Property Management on 01962 860303

ABOUT TURN FOR THE LETTINGS MARKET!!
by Judith Davis, Partner,
Penyards Lettings & Property Management, Winchester  

What a difference a few weeks make in this unstable property market. Earlier in 2010 there was a shortage of rental properties as landlords took advantage of rising sales prices and tried their luck at selling. Now whilst some vendors have been successful at pulling off a good deal, many are finding they are not achieving the price they had hoped for and are returning to the rental market.  

Currently there is not only a good supply of property for rent but the number of prospective tenants is also increasing.  The demand is from two sources: Firstly, the would-be first time buyers (who still cannot achieve a foothold on the property ladder). Ten years ago they were in their mid to late twenties and are now in their mid to late thirties and with a higher budget, looking for one and two bedroom properties in the £600-£1200pcm price range. Secondly there are the families who are looking for good value properties with 3 and 4 bedrooms in the £1300-£1800 pcm range.  Rentals over £2000pcm still happen but  are taking longer to achieve as some economists predict  a “double dip” with people tightening their belts and behaving more cautiously again – if they can get a good quality 4/5 bedroom house for £1800, why pay £2500-£4000pcm?  

The age old story remains true – when there is economic uncertainty people sell up and bed down in a rental property, watching and waiting to see which way the economy will turn … many believe that house prices will now continue to fall, meaning that tenants will sit tight awaiting the market to “bottom out” before they poke out their noses and make an offer to buy.  This is truly good news for landlords.

For further advice on the rental market please write or call Judith Davis, Partner, Penyards Property Management, 23 Southgate Street, Winchester SO23 9EB  judithdavis@penyards.co.uk  01962 860303

PROBITY AND PROTECTION FOR RENTAL PROPERTY
by Judith Davis, Partner,
Penyards Lettings & Property Management, Winchester

There is no government regulation of letting agents.  There is absolutely nothing to stop anybody starting a lettings business – moreover, there is nothing to stop the use of tenant’s deposits and landlord’s rents washing around in one bank account with the owner of the lettings company using this money to pay their staff, buy their cars, go on holiday or even support their own property portfolio! It happens all the time! Not a problem in a rising market, however, doomed in a falling one!  Tenants will lose deposits and landlords their rent – people employed in the lettings industry all know of companies that have fallen foul in this way.

Tenants and landlords can protect themselves from rogue practice by ensuring they choose an agent who is a member of ARLA (the Association of Residential Letting Agents) – the only professional self regulating body to be solely concerned with lettings. ARLA leads the industry in setting and regulating the highest standards, and demands certain levels of professionalism and commitment to customer service from its membership.  All ARLA members have to work within a robust Code of Practice which covers all the key components of letting and managing a property.  These include compliance with such issues as handling and accounting of client monies and ensuring that they are maintained in a separate account and not used for running the business.

ARLA also runs comprehensive training courses and insists that each lettings office has at least one staff member who is suitably qualified in the industry.

The property portal PropertyLive.co.uk will only advertise properties available for rent through ARLA members – this ensures that tenants choosing properties on this site are fully protected from a legal and safety point of view, along with their deposits. Tenants are becoming increasingly aware of the issues of renting their home through a disreputable agent and are seeking out ways to protect themselves, their families and their deposits!

Penyards Property Management has been a member of ARLA for 15 years and has found the strong protection offered to their clients through the membership is the solid foundation on which the success of the business rests.

For further advice on ARLA and the rental market, or for any queries on the law of lettings, property management and block management, please write or call Judith Davis, Partner, Penyards Property Management, 23 Southgate Street, Winchester SO23 9EB  judithdavis@penyards.co.uk  01962 860303

ROSE ROAD ASSOCIATION TRIATHALON

On the 3rd July 2010, some very motivated and fit members of the Penyards Property Management team took part in the Rose Road Association Triathlon!

The Rose Road Association (www.roseroad.org.uk) has been working with children, young people and their families from across Hampshire and the surrounding counties since 1952. The children who attend Rose Road have multiple and complex health needs but we believe in valuing individuals, celebrating achievement and respecting choices of young people with disabilities.

The morning went extremely well, weather conditions were great and there was a competitive but friendly atmosphere with teams from other companies.  The Penyards Team did brilliantly, all completing each section of the triathlon in style!

Thanks go to the Rose Road Association charity for their organisation of this fundraising event, those who took part (Alan Davis, Deborah Cluett and Tristan Cluett of Penyards and Neil Wilson, Rose Road Association) and, of course, our supporters !!

FAMILY FORTUNES!

Lady Luck is looking after Landlords again as the demand for rental properties of all sizes soars into summer.  As always Penyards Property Management are finding that families wish to relocate to the city centre and rural parts of Hampshire from London and elsewhere in the UK and overseas.  Sometimes this is due to a company relocation or a house sale, however, there is always high demand from professional families who wish to move out of central London and sample life in the counties and yet have the ability to commute from a mainline station to the capital. Amongst the many attractions to Winchester and the surrounds are the excellent standard of the schools, both private and state. Also in high demand are villages such as West Tytherley, Compton, Sparsholt, Easton, Hursley and the New Forest.

Within days of being instructed Penyards Property Management last week let several large houses in and around Winchester.  They are therefore anticipating high demand for the two imposing family houses upon which they have most recently been instructed:  The Lodge in Sparsholt at £3000pcm  offers substantial and flexible accommodation, 4 bedrooms, 4 reception rooms, 3 bathrooms and a  large playroom/bedroom 5/office over double garage, whilst Canterton House at £3,950pcm, a beautiful Victorian family home fronting directly onto the New Forest (yet only half an hour from Winchester and five minutes from the M27)  offers six bedrooms, stunning views, mature gardens of approximately 1 acre including woods and fruit cages.  Both impressive houses have a kitchen with an Aga, an outdoor swimming pool, parking for several cars and inclusive gardening.

If you have a family house you would like to let out during July or August  in Winchester or within half an hours drive of the city please call Penyards Property Management on 01962 860303 or see www.penyards.co.uk to arrange a rental appraisal.

DRUGS DEBAUCHERY AND DEVIOUS DEALINGS!

Having spent a most worthwhile day at the Guild of Letting and Management Seminar at the Emirates Stadium last week, I have reaffirmed my belief that being forewarned is being forearmed. Two of the Guest Speakers stood out from the others – speaking on Debt Management and Criminality in the Private Rented Sector.

It is astounding just how many landlords do not take the time and effort required to vet a prospective tenant to ensure that they will be able to not only pay their rent and look after their property, but that they will not enter into any illegal business during their tenancy.

It is too late once a professional fraudster has moved into the property who knows how to play the system – it can take many months to evict a tenant who has occupation and pays no more than the first month’s rent!

In depth references should be obtained and as identity fraud is on the increase ID should be checked carefully. Equipment for the forgery of documents can easily be purchased on the internet these days and foreign passports are the most commonly forged document. A council tax bill is a good proof of address as long as this is checked on the electoral roll for validity. A previous landlord’s reference is a particularly strong component especially if the previous landlord is spoken to.

Employer’s references should be authenticated – it is a well known fact that professional rogue tenants steal headed paper and write their own glowing references! Original copies of at least three months bank balances should also be seen confirming the income quoted by employers, and to show the previous rent or mortgage payments going out.

Cash should never be allowed as a method of payment. This could be the first indicator that a prospective tenant could be involved in such offences as a cannabis factory, DVD forgery or even a brothel!! – all of which are on the increase and always in rental properties! Any prospective tenant who is not that interested in the property and yet is very eager to move in should be vetted carefully – it may be they don’t care which property they have as long as they get it without being scrutinized and carry out their illegal business there unnoticed. When carrying out property inspections, Property Managers should ensure that there is no equipment which could be used for the manufacture of pirate DVDs or even bombs!

The Police advise that not only are small seedy flats and houses used for all the above illegalities, but also much larger and luxurious properties where landlords are complacent and do not bother carrying out property visits from one tenancy to the next.

I do not wish to be alarmist – however, with the Recession and the credit crunch making life tough, there is growing pressure for those who are criminal minded to seek ways to live rent free or find premises to carry out illegal business at the expense of their oblivious landlord. Ensure you reference adequately and this is not you!

For further advice on Property Management or any queries on the law of lettings and block management please write to Judith Davis, Partner, Penyards Property Management, 23 Southgate Street Winchester SO23 9EB, email judithdavis@penyards.co.uk or call 01962 860303

PROFILE OF A PROPERTY MANAGER
by Judith Davis, Partner,
Penyards Lettings & Property Management, Winchester

Everybody knows that a Letting Agent lets property but not many know what goes on
behind the scenes in the hectic and challenging life of the Property Manager!

Once a property has been let, if it is fully managed, the true work of the Lettings and Property Management company is just beginning.

Usually by the start of the tenancy the Property Manager has visited the property, met the landlord and acquainted themselves with the house and any idiosyncrasies that may exist – from where the oil tank is situated and how to work the water softener to details of the gardener and how to clean the marble bathroom and polish the oak floor. Notes are made and added to the “bible” of detailed information already supplied by the landlord. This will become the reference point while the property is under management.
Once the tenancy has started the Property Manager advises the utilities and Council Tax Office of the new occupiers, transfers the services into their name and settles the final accounts on behalf of the landlords.

The Property Manager will also arrange annual gas and electrical safety inspections; visit the property regularly to ensure it is being looked after by the tenant and to check for maintenance issues; report defects to the landlord; arrange works (anything from swimming pool drainage and window replacements to full decoration/refurbishment of the property).

At the end of the tenancy the dilapidations will be negotiated with the tenant and landlord, guided by the strict legislation of the Tenancy Deposit Scheme enforceable since April 2007. Necessary repairs and cleaning or gardening will be arranged and the balance of the deposit will be returned to the tenant less any costs for damages.

The Property Manager’s job is a daily challenge which requires diplomacy, accuracy, attention to detail, excellent time management and good negotiation techniques – it is a tough job demanding a high level of training but very rewarding when done well!

For further advice on Property Management or any queries on the law of lettings and block management please write to Judith Davis, Partner, Penyards Property Management, 23 Southgate Street Winchester SO23 9EB, email judithdavis@penyards.co.uk or call 01962 860303

DEMAND OUTSTRIPS SUPPLY!!
by Judith Davis
Penyards Property Management

In the last part of 2009 and the first 8 weeks of 2010 the surge of power has shifted from tenant to landlord as the number of properties available for rent has dropped by about 50%. The reluctant landlord – who in late 2008 and early 2009 could not sell and was forced to let – has been replaced by the growing band of reluctant tenants. These include house hunters who have successfully sold their property but are unable to find somewhere to purchase due to the shortage of property available to sell, divorcees and the “priced-out” first time buyers. The reduction in available properties has also been fuelled by the number of investment landlords who are taking the opportunity to sell in a rising market.

Earlier this year ARLA – the Association of Residential Letting Agents - reported that
during the last quarter of 2009 41 per cent of its members had more tenants than
properties, up from 24 per cent in the previous quarter and 10 per cent in February 2009;
54 per cent of its members said that these tenants were being forced to rent rather than buy.

Some agents are reporting close to 100% increase on prospective tenants registering for a property to rent in January 2010, putting tremendous pressure in certain areas of the market. Some properties have more than one tenant wishing to proceed and this shortage of properties to rent is pushing the prices up. In the Winchester area rents in the £500pcm to £1800pcm are increasing between 5% and 10%, however the properties at £1800pcm and above are remaining static - for now.

Over the last 10 years the private rental sector has been growing steadily and accounts for 14% of the population. It looks like this increase will continue quite dramatically throughout 2010 as long as the supply is present.

Over the last six months at contract renewal rents have remained static or in some cases have even reduced. With the shortage of rental properties available this will be set to reverse dramatically and it is anticipated that rents will increase in line with the Retail Price Index at renewal.

It goes without saying that now would be an ideal time to put a property on the rental market. If you are thinking of renting please call Penyards Property Management for no obligation advice on the legalities, preparation of your property and a free rental appraisal.

For further advice please call Judith Davis, Partner, Penyards Property Management, 23 Southgate Street Winchester SO23 9EB Judith.davis@penyards.co.uk 01962 860303

UNPRECEDENTED DEMAND FOR JANUARY! 
by Judith Davis
Penyards Property Management, Winchester

As predicted in late Autumn 2009 the rental market in 2010 has started with a bang and not
a whimper! There has been unprecedented demand in all areas of the market across Hampshire with Penyards Property Management letting at least one property every day of the New Year.  As a result there is an immediate shortage of property available to rent.  The greatest increase in demand is from the “renting family” - the “would-be” first time buyers whose age has now increased from mid twenty to mid thirty and they still cannot afford the deposit to allow them to become home owners.  These people now have children and whilst they initially rented one and two bedroom flats they are now moving up into three bedroom houses.  Therefore the demand is high for this size property particularly in the price range from £1100pcm to £1800pcm. There is also increased demand from vendors who have succeeded in achieving a sale on their property.  They are selling at what they feel is a good price, moving into a rental property and waiting for prices to fall when they will be in a good position to pounce on a potential bargain. What type of properties are these tenants looking for? Older Victorian properties or the modern estate-type houses?  If the houses have been updated with contemporary bathrooms and kitchens then the more unusual period property is always appealing, as long as it has the convenience of private or off street parking and easy access to public transport.  Alternatively brand new contemporary properties appeal particularly with large open plan kitchens and living areas suitable for modern day living. Every available property should be presented well, with clean lines, neutral decor, good quality carpets and curtains and finishing touches.  It has been proven time and again that the property which is neutrally decorated will let much more quickly than its multi coloured competitor. The garden should also be well pruned with grass cut and borders neat and dug over. If you have a property which you are considering letting and would like free advice on preparation and the current letting legislation, all with no obligation, then please give Penyards Property Management a call.

For advice on the rental market and any queries on the law of lettings, property management and block management  please write or call  Judith Davis, Partner, Penyards Property Management, 23 Southgate Street Winchester SO23 9EB  judithdavis@penyards.co.uk  01962 860303  

 EXPERIENCE COUNTS!    

Twenty years ago Penyards Property Management opened its doors to the lettings market across Hampshire and has grown consistently ever since.  Over the winter of 1989/1990 Judith Davis and the owners of Penyards Estate Agents could see there was a growing need in the Recession of the early 1990s, just as there is now, for vendors who could not sell but needed to move on.  The answer was to enter the newly developing private rented sector, thus enabling unsuccessful vendors from other areas to also move. It was as if a light was switched on and all could see their way forwards - the housing market was freed up!  This was reinforced by new legislation covering lettings in the form of the Housing Act 1988 which gave greater protection to landlords who had previously lived in fear of “sitting tenants”.  The new laws meant that repossession of their property was made simple and there was now no difference legally between letting a furnished and unfurnished home.           Since the spring of 1990 Penyards Property Management has grown to a company letting and managing hundreds of quality individual and period properties throughout Hampshire.  It consists of a Winchester based team of 14 highly trained lettings experts with clients ranging from IBM and Vodaphone to B & Q and the MOD.  They pride themselves on being members of the Association of Residential Letting Agents which gives their clients total financial protection.   For the past two decades Penyards Property Management has worked with the many Housing Act updates and the new legislation covering furniture, gas, electricity, multiple occupation, health and safety and tenants deposits to enable them to provide a wealth of experience and information to guide new landlords through the venture of lettings.  If you are thinking of letting your home in the New Year and would like free advice on the laws of lettings, how to prepare your home and a rental  valuation please call  either Katherine Treseder Griffin (Lettings Manager),  Judith Davis (Partner), or Carolyn Sigward (Negotiator) pictured from left to right above.  

For advice on the rental market and any queries on the law of lettings, property management and block management  please write or call  Judith Davis, Partner, Penyards Property Management, 23 Southgate Street Winchester SO23 9EB  judithdavis@penyards.co.uk  01962 860303    

IS YOUR BLOCK LEGAL?

by Alan Davis, Partner,
Penyards Lettings & Property Management, Winchester

With the huge increase in new blocks of flats and housing estates comes the question of how the communal areas of these developments will be managed.  Will the gardens be maintained to an acceptable standard?  Will the stairways be kept clean and safe? 
Who will change the light bulbs in the hallways?  Who will ensure that the parking areas do not become a “free for all”? Who will organise and run the residents meetings, collect the ground rents and report to Companies House?   It is a strange concept that whilst the owners of a flat own the flat they do not own the land on which the building stands!  Nor do they own the flat indefinitely - there will come a time when the ownership of the flat will revert to the owner of the land, the Freeholder.   Most newly built blocks of flats/developments have a resident owned company which has responsibility for the management of the building structure and its common parts. Many of those companies
sub-contract the  day to day management to a Property Management company who organises the services and handles the legal and safety-related issues which arise, together with the accounting and service charges which are levied on the leaseholders.   Penyards Property Management has been managing blocks of flats around the city and Hampshire for 15 years and has in-depth experience in this field. Alan Davis, the Partner heading the Block Management Department comments, “This part of our business requires different skills to our Residential Letting and Property Management activity.  It is surprising how many residents running their own block management are not aware of the dangers and illegal situation they put themselves in by not taking professional advice.”   As every block of flats/development is unique, so is the service offered; tailored to meet the needs of the building and its occupants, with a management plan in place to ensure that exactly the right services are arranged for each building. Those plans include regular inspections of the site, arranging insurance, safety checks and organisation and management of resident meetings and AGMs.  

 For further advice on Block Management or any other queries on the law of lettings and Property Management  please write to Alan Davis, Partner, Penyards Property Management, 23 Southgate Street Winchester SO23 9EB, email alan.davis@penyards.co.uk or call    01962 860303    

RIDING HIGH ON THE STORM OF RECESSION!!

By Judith Davis, Partner,
Penyards Lettings & Property Management, Winchester

The team at Penyards Property Management have ridden high on the storm of the 2009 recession and feel that a period of calm is nigh!

Early in 2009 the lettings market was difficult – nobody was moving unless they had to for reasons such as job changes, divorce etc.  Nobody was selling and therefore were not moving into rented property either.  Everywhere was quiet on the housing front.  However, as we moved into the third quarter of the year the market has picked up dramatically for two reasons.  One - workforce mobility. Companies have begun to recruit and move staff again and due to continued uncertainty these new employees are renting rather than buying, so they have flexibility if their job does not work out. Two – the kickstart of the house sales market. In certain pockets there is a shortage of properties to buy – therefore in these areas houses are selling quickly at possibly inflated prices. These vendors are jumping out into rental properties and waiting, yet again, to see what happens next to house prices.  Will they continue to rise or will they flatten off?

Whatever the reasons, the rental market has become buoyant again, albeit with rents generally lower than they were twelve months ago.  The price fall has been particularly noticeable at the top end of the market where rents have dropped between 10% and 20%, while the lower end has seen a 5% to 10% reduction.   For landlords with tracker mortgages there is no problem at all, however, it is a bitter taste for those on higher fixed interest rates. Only the landlords who are sensible and reduce their rent quickly will survive with no void periods. 
The rental industry is moving towards 2010 with an air of positivity and eager anticipation as at last the housing market is once more upwardly mobile.

For advice on the rental market and any other queries on the law of lettings please call  Judith Davis, Partner, Penyards Property Management, 23 Southgate Street Winchester SO23 9EB judith.davis@penyards.co.uk 01962 860303  

LICENSING LIKELY FOR ALL LANDLORDS!

By Judith Davis, Partner,
Penyards Lettings & Property Management, Winchester

In future licensing will not only be for landlords of public houses, but also those of houses that are let. The Government is to insist that anyone who lets property (or even takes in a lodger) is to have a licence. This proposal is part of an initiative to “clean up” and raise the standards in the lettings industry.

This move has been met positively by tenants .. they feel that whilst they can be interrogated about their income, credit history and employment, a landlord who may be behind with their mortgage repayments and about to be repossessed can keep this information to himself. Whilst regulated agents will normally have a clause in their tenancy agreement confirming the landlord has authority from their lender, private landlords will not necessarily include this clause.

In spite of a current oversupply of rental property in most parts of England, still some landlords have not cut their prices or improved their product. Potential tenants at all levels still have horror stories of properties offered with squalid kitchens and bathrooms and filthy carpets. Unfortunately many landlords do not see themselves as professional business people. Licensing is designed to put an end to this. It is short sighted for these landlords not to realise that if they present their income stream properly – well decorated and finished in neutral colours - they will achieve not only a higher rental but protect their capital investment for the future.

The demand for rental homes is set to increase, particularly with young professionals being forced to delay purchasing a home due to loan shortage and unemployment fears. Now house prices are lower it is a good time for investment landlords to buy and supply this higher demand. Landlords should be aware that with licensing on the cards, they need to be professional, take advice from a regulated letting agent and get it right from the start. Penyards Property Management can not only advise on setting the correct price – imperative in this fluctuating market - but also the current minefield of ever-increasing legalities governing lettings and how to prepare property to ensure maximum rental is achieved.

There are no short cuts to maximising rental income .. it can end in tears if the new laws that have been introduced by the government over the last few years are not adhered to. Licensing is planned to eradicate amateur landlords and ensure that both landlords and tenants benefit – landlords by achieving higher longer term protected rentals and tenants with the comfort of a safe well presented home.

For advice on the rental market and any other queries on the law of lettings please call Judith Davis, Partner, Penyards Property Management, 23 Southgate Street Winchester SO23 9EB judithdavis@penyards.co.uk  01962 860303

PENYARDS PROPERTY MANAGEMENT ARE FUNNY FOR MONEY AND RAISE £640 ON THE STREETS OF WINCHESTER! - March 2009

For the 4th time Penyards Property Management have donned their red wigs, noses and fun clothes and stopped the traffic on Southgate Street, told jokes to the drivers, sold them cakes and purloined money for the fantastic cause that is Comic Relief!!

They are thrilled that their efforts early on the morning of Friday 13th March - Red Nose Day - raised so much money for people who are less well off than themselves.

Not only did they tell the jokes on Southgate Street, but set them giggling in the local businesses, at the station and even on the buses!!

It seems that in spite of there being a recession there are still some very generous people out there!!

THE ACCIDENTAL LANDLORD!
By Judith Davis, Partner,
Penyards Lettings & Property Management, Winchester

An eruption of To Let boards throughout the country has arisen as a result of the phenomenon of the Accidental Landlord. This is yet another reaction to the downturn in the sales market – family house owners who need to move due to a job relocation or similar but cannot find a purchaser. They can reluctantly reduce the price over and over again or instead let their home thus becoming landlords by accident! These landlords often choose in turn to rent another property in their new location – thus increasing the current upwardly spiralling rental market.

Rental prices until recently have increased steadily in line with the cost of living – however with the surge in supply it has become a tenants market and with an increased choice of property they are driving hard bargains to secure their new home, resulting in price reductions in certain pockets of the market. The larger family properties are being hit particularly cruelly by this downturn in rents while the one and two bedroom properties – being rented by those who would have been first time buyers given the chance – are holding their rental value. Already in London and some areas of the UK rents have fallen on average by as much as 10%.

What happens next remains to be seen – some Accidental Landlords who are struggling with a rental income not covering their “buy-to-let” mortgage may eventually decide to reduce their sales price and sell, possibly to other Accidental Landlord purchasers and so a new spiral will commence. Some tenants, on the other hand will be so attracted by the new-found bohemian lifestyle that they remain committed tenants, possibly forever. They can adapt their lifestyle and home readily to their good or bad fortunes within a few weeks and have plenty of capital to spend on life experiences – holidays – schooling – hobbies etc – not so easy when you have to sell and buy a home which can take many months and even then fall through!

These new and the existing landlords need to be realistic about how much rent they can charge – they will be competing with the growing number of landlords in the same position – ask too much and the property will lie empty.

One thing is certain – what the Accidental Landlord does next is of great importance to the economy as they will shape the future of the housing market.

For further advice on the rental market or any other queries on the law of lettings, property management and block management can be answered by writing to Judith Davis, Partner, Penyards Property Management, 23 Southgate Street Winchester SO23 9EB Or emailing judithdavis@penyards.co.uk or calling 01962 860303

HOW TO CHOOSE AN AGENT!
By Judith Davis, Partner,
Penyards Lettings & Property Management, Winchester

As the lettings market is growing at an alarming rate so is the proliferation of letting agents and private landlords, some of them not as qualified or experienced as others. If you are thinking of letting or renting a property it is therefore increasingly difficult to tell the “wheat from the chaff” to ensure, amongst other things, that either your largest investment, your home, or your dilapidations deposit is protected. So how does one go about choosing an agent who comes up to expectations and more!?

Many people are not aware that the lettings industry is not regulated by the Government and there is nothing to stop anybody with little or no knowledge setting up a lettings business. There is, however, the Tenancy Deposit Scheme which is a legal requirement but it is terrifying how many private landlords are still not registering their deposits and are therefore breaking the law. Tenants with private landlords should therefore beware!

Choose an agent who is regulated by one of the trade bodies such as ARLA or RICS. This will ensure that if the Agent “goes under” the tenants’ deposits and landlords’ rents will be securely bonded. A regulated Agent has to pass stringent tests and requirements, to include having their accounts audited and their staff trained in the minefield of legalities such as Gas, Electrical and Fire Regulations.

Experience of the agent is paramount – knowledge of the market and the years of building relationships with Relocation Agents and local companies cannot be acquired overnight. At Penyards Property Management we have over 20 years experience in the local market and the company is still managed and owned by the same Partners.

An adequate number of staff per property is essential, there is nothing worse than having a Property Manager away on holiday leaving the office so short staffed that there is nobody available to do a viewing or deal with a blocked drain!!

A presence on the main property portals such as Primelocation and Rightmove together with their own website and a dominant weekly advertisement in local papers is essential; how will the properties be properly seen otherwise?

For managed properties it is imperative to have 24 Hour Maintenance Cover to ensure that if a tenant has an emergency issue such as a cooker breakdown on Christmas Eve or a burst pipe pouring water through a ceiling then there is always somebody who can deal with it immediately. A call at 9:00am the next working day is of little help in those situations.

Finally if the decision is still difficult - ask around .. there is nothing like a personal referral from somebody you trust !

For advice on the rental market and any other queries on the law of lettings, property management and block management please write or call Judith Davis, Partner, Penyards Property Management, 23 Southgate Street Winchester SO23 9EB judithdavis@penyards.co.uk 01962 860303  

BUILDING BLOCKS FOR LEASEHOLD LIVING - 22nd August 2008
By Alan Davis, Partner,
Penyards Lettings & Property Management, Winchester

With the ever increasing number of flats being built around the city, more and more people are living in leasehold property and learning the trials and tribulations of living in shared buildings. Some unexpected concepts arise: for example one does not own a flat, but own an agreement to occupy the flat for a certain period of time.

Almost all recently built blocks of flats have a resident owned company which has responsibility for the management of the building structure and its common parts; most of those companies sub-contract the actual day to day management to a Property Management company who organise the services required, and handle the legal and safety related issues which arise, together with the accounting and service charges which are levied on the leaseholders.

Penyards Property Management has been managing blocks of flats around the city and Hampshire for 12 years and has in depth experience in this field. Alan Davis, the Partner in the firm heading this department of the business comments, “This part of our business requires different skills to our Residential Letting and Property Management activity, requiring much additional training particularly in relation to the complex legal relationships that can exist between the leaseholder, freeholder, management company and their managing agent.”

As every block of flats is unique, so is the service offered; tailored to meet the needs of the building and its occupants, with a management plan in place to ensure that exactly the right services are arranged for each building. Those plans include regular inspections of the site, to ensure that it is in good order, and that the services are operating correctly. The negotiation and implementation of the insurances which protect the building and its owners is part of the service, along with the organisation and management of the meetings and Annual General Meetings that are required.

If the building in which you live requires professional management, contact Alan Davis at Penyards for further advice and assistance.

For further advice on Property Management or any other queries on the law of lettings and block management please write to Alan Davis, Partner, Penyards Property Management, 23 Southgate Street Winchester SO23 9EB, email alandavis@penyards.co.uk or call 01962 860303

RISING RENTALS REAP REWARDS!!  - 19th June 2008
By Judith Davis, Partner,
Penyards Lettings and Property Management, Winchester

With doom and gloom in the sales market and the prospect of more to follow - what is happening to the rental market?

From January to May 2008 there was a steady supply of properties coming for rental albeit slightly down on the previous years.

Applicant tenants during this period were, however, in shorter supply.

People were only moving if they had to and the rest were just watching and waiting. Vendors were giving it one last go and leaving their houses on the market until the end of May ie after Easter and the two May Bank Holidays. Nothing changed for them, however, and as a result, since the beginning of June, the rental market has been booming! We have doubled the number of properties available throughout Hampshire to around 50. On average we are valuing 15 new properties per week and most of these are houses that are not selling!

In addition the supply of prospective tenants has risen threefold, followed by a dramatic increase in those making a quick decision to take a rental property. The demand is there for all types of accommodation from one bedroom flats at around £500 per month to the larger family houses for £3000+ per month.

In opposition to the sales market and as predicted, the rental market is most certainly on the up! Those few people who have managed to sell are moving into a flexible rental home and bedding down – eager to see just how far house prices will fall! With the prospect of a further 0.75% mortgage interest rise by the end of 2008 and borrowings more difficult to obtain, the fall will no doubt continue well into 2009. Some are predicting for many years.

The last time this drop in prices and rise in interest rates hit hard was at the end of the 1980s when disheartened vendors began for the first time to move over to the rental market. However, at that time the phrase “sitting tenant” was still very common – only with the introduction of The Housing Act 1988 and 2004 was greater protection afforded to landlords. Since then legislation has included the mandatory introduction of Gas Safety Certificates, Electrical Safety guidelines, Furnishings and Fire Regulations, Houses in Multiple Occupation, Housing Health and Safety Rating System, Tenancy Deposit Schemes to name a few - giving increased comfort and peace of mind for all concerned. In fact there has never been a better time to be a tenant or landlord! Unlike the late 1980s –the rental market is offering a safe alternative enabling people to move even if they cannot sell or buy a home.

A DAY IN THE LIFE OF A PROPERTY MANAGER! - 12th May 2008
By Judith Davis, Partner,
Penyards Lettings & Property Management, Winchester

Everybody knows what a Lettings Agent does but not many know what goes on behind the scenes in the hectic and challenging life of a Property Manager!

Once a property is let, if it is fully managed, the real work of the Lettings and Property Management company is only just beginning!

Usually by the start of the tenancy the Property Manager has visited the property, met the landlord and acquainted themselves with the house and any idiosyncrasies that may exist – from where the oil tank is situated and how to work the water softener to details of the gardener to how to clean the marble bathroom. Notes are made and added to the “bible” of detailed information already supplied by the landlord on forms provided by the lettings company. This will be the reference point while the property is managed.

Once the tenant has moved in the Manager advises the utilities and Council Tax Office of the new occupiers, transfers the services into their name and settles the final accounts on behalf of the landlords.

The Property Manager will also: Arrange annual gas and electrical inspections; visit the property every three months to ascertain it is being looked after by the tenant and to check for maintenance issues; report defects to the landlord; arrange works (this can be anything from boiler repairs to window replacement to full decoration/refurbishment to the property) and authorise payment of invoices.

At the end of the tenancy the Manager will negotiate the dilapidations to the property with the tenant and landlord, guided by the strict legislation of the Tenancy Deposit Scheme enforceable since April 2007. Necessary repairs and cleaning or gardening will be arranged and the balance of the deposit will be returned to the tenant less any costs for damages.

The Property Manager’s job is a daily challenge which requires diplomacy, accuracy, attention to detail, excellent time management and good negotiation techniques – it is a tough job demanding a high level of training but very rewarding when done well!

TENANCY DEPOSIT SCHEME … HOW SAFE IS YOUR DEPOSIT!! - 28th March 2008
By Judith Davis, Partner,
Penyards Lettings and Property Management, Winchester

On April 6th 2007 there was yet another massive leap forward in the world of lettings! The Tenancy Deposit Scheme came into force – and about time!!

Gone are the days that an unsuspecting tenant loses his deposit to a rogue agent or landlord who decides the rental property needs upgrading at the ex-tenants cost. Gone are the days that the student landlord unilaterally decides to replace carpets and redecorate the student house because he has £1000 plus deposit in his hands, burning a hole in his pocket and he knows the students wont expect to get their deposit back anyway! Gone are the days where an agent says to the ex-tenant “Im sorry there is nothing I can do as I act as landlord’s agent and therefore am duty bound to do what he asks”!!

The Tenancy Deposit Scheme (TDS) is the result of decades of campaigning by trade bodies such as the Association of Residential Letting Agents to provide yet another safety mechanism for landlords and tenants by ensuring the deposit held for damages at a rental property is used in a just and fair manner either by the landlord or the agent.

The result is that within 10 days of a tenancy starting the deposit MUST not only be registered with an approved “deposit scheme” (there are three Schemes) but a certificate provided by the scheme MUST be provided to the tenant. If this is not done severe penalties may ensue: the landlord will be required to pay three times the deposit to the tenant as a fine AND until the deposit is registered the landlord will not be able to repossess the property!! This penalty is rigorous and extreme – and it needed to be to protect the innocent.

Unfortunately not all landlords are aware of this new law and lack of knowledge will be no defence.

A detailed and timely process for the return of deposit after the end of the tenancy must now be followed and any disputed deposit amounts can be forwarded to an adjudication service for a decision to be made by a third party.

The above process indicates the paramount importance of stringent and detailed paperwork as the result of the claim by the landlord will depend on this.

As can be seen from the above unless a landlord or tenant has good experience of the law of lettings and involved procedures they would be wise to let or rent through an agent who is regulated by a lettings trade body and therefore can advise and act on preordained guidelines. These new rules and regulations protect a tenant’s income and a landlord’s property – however if the guidelines are not followed everybody can lose out – and not just pennies but large sums of money can be lost.