Ben Reeve Lewis discusses the different types of agent in his area
I have it on reliable authority that the private rented sector in the borough in which I work has doubled over the past 10 years.
This has led to an increase in letting agencies servicing the industry, ranging from slick and professional to ones up alley ways with shop signs painted onto a plastic banner, sending the message “We have no idea how long we will be able to get away with it, so lets see”.
Compiling a list
With the introduction of compulsory membership of agent redress schemes being introduced late last year I decided to compile an excel spreadsheet of all of our agents so we can work our way around the ones who haven’t signed up.
Before I began populating the list I did a rough survey among colleagues and asked how many they reckon there are now. Answers ranged from 30, through 50, to 75.
Well the list is currently at 129 and I still haven’t finished and that is just companies, it doesn’t count shops where one company may have several branches.
Junior problems at the top end
At the top end of the market are the major high street chains and the local big wigs who have been around for eons.
As a TRO you tend not to get complaints concerning these guys but you do get the odd one and usually the problem is a junior member of staff who has exercised initiative they don’t yet have the experience to back up, in a mistaken attempt to impress their boss.
Effectively writing cheques that their boldness can’t cash.
The maverick behaviour is also driven by ignorance, the offending agents are young and too often think they know more than they do or that they are cocky enough to get away with it.
“I’ve done my ARLA’s” as one arrogant young sod said to me, as if this made him Andrew Arden QC”.
A swift phone call to the boss usually sorts that out.
Letting themselves in
As a tenant I always let out an exasperated sigh when I report a repair to my high street chain agent and get a letter telling me a date and time for the works with the cheery sentence “Don’t worry if you cant be there, we’ll just let ourselves in with the management keys”.
No you wont because I’ve changed the locks darling!
The miid range mixed bag
Then there are the mid-range operators and independents. These are very much a mixed bag.
Some can be excellent and pull in loyal customers because of their personal approach and flexibility. The best ones are run by experienced old stagers, often from the chains who decided to go solo.
However this is also where we start to get complaints of shady practices, occasionally bordering on criminal but more often than not just blagging it a bit until they get their knuckles rapped.
From an outsiders view it often seems that income is the god while service takes second place and you often spot these because you get as many complaints from landlords as you do from tenants.
Lack of focus on service = poor busienss
I’ve often thought that this lack of focus on service is a poor business model as they seem to have a high turnover of properties if the conversations I have with landlords are anything to go by.
“Yeah I used to use them” being the most common phrase.
And then there is the criminal end of it.
The criminal end
People entering the market with the sole intention of working the system to maximise income and totally disregard the laws.
I tend to think of these types not as criminal letting agents but as criminals who at that time just happen to be in the letting agency business because that’s where its all happening.
If strong legislation is brought in to regulate the industry then these people will move off into drug dealing or gun running, which is where they are more usually at home.
As a TRO you can spot these guys simply because the bulk of people coming through the door saying they have had no hot water for 3 months, been illegally evicted, had the agents let themselves in when they are watching TV always stem back to the same companies.
Often before they even finish telling you their woes you can interrupt them and say “Its so and so isn’t it?” to the astonished reply “How did you know?”
Guaranteed rent agents
One Johnny come lately onto the market is the ‘Guaranteed rent agent’, driven by the fierce competitiveness of the market at the moment as each vies to offer the most attractive package for landlords – and what works better than a guaranteed rent?
The main complaint that TROs get embroiled in with these firms, is how they ensure that the housing benefit is paid directly to them in order to ensure they have the necessary financial backing to actually guarantee the rent to the landlord.
A variety of dirty tricks is used including claiming that the tenant hasn’t been paying their rent, so the time strapped housing benefit officer just ticks the box saying rent direct to payee regardless of any protests from the tenant.
Also the time honoured scam of telling tenants that the tenancy comes with the caveat that they must badger housing benefit to pay them directly or they cant rent the home.
Letting agent as landlord
The other thing we see is that the agent puts their name down as the landlord on the tenancy agreement and happily pursuing possession proceedings on that business.
But when a repair becomes due, they say they only have a management contract with the owner and cite Section 11 of the Landlord & Tenant Act 1985 and say the repairs are the responsibility of the landlord and merely pass it on, thus conveniently having their cake and eating it.
The holding property scam
Another depressingly regular scam is telling tenants that they can hold a property for £100.
The prospective tenant pays up, usually with their sole budgeting loan from the DWP (you only get one). The next day the agent tells them the landlord has decided not to go ahead and to come in and get their money back.
When they turn up a £40 admin fee has been deducted.
Note that none of the above refers to the morality of agents charging fees to tenants or having a transparent fee table, its just the basic day to day grind of real life stuff.
Uniting landlords and tenants …
In an atmosphere of mutual hostility that seems endemic between landlords and tenants I often think that the only thing that unites them is their mistrust of letting agents.
Even the best letting agents often suffer from a generally accepted poor reputation when it comes to honesty and fair dealing and have done for a very long time, even if often in jest.
My favourites are the independents who focus on service and treat landlords and tenant both with equal respect.
My old letting agents were exactly like that, we stayed friends with one of them but they got bought out by a larger company and 9 months in there wasn’t a single original member of staff left. All had moved on because they didn’t like the ‘Money above all’ ethos.
“Also the time honoured scam of telling tenants that the tenancy comes with the caveat that they must badger housing benefit to pay them directly or they cant rent the home.”
I don’t think it is a scam in itself Ben.
It is a big advantage HB tenants can use to secure a tenancy;
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/226282/a4-2011.pdf
From 1 April we are widening this discretion by amending Regulation 96(3A)
so that LAs can make payment direct to the landlord where they consider
that it will assist the customer in securing or retaining a tenancy.
Of course it’s a scam if it’s used to shortlist tenants. Simply don’t mention your HB claim (if you have one) to anyone if at all possible. Most agents won’t give you a look-in anyway, cos they’re happily discriminating on these grounds while it’s still legal. .
Yeah I know it sounds allusive HB and it is because I have in mind three companies I’ve been dealing with who are still under investigation and have in the past few years resorted to a range of underhand tactics.
Sorry if this sounds like a get out but I really cant be specific at this point in time. Suffice to say they go beyond the bounds of law.
Sorry, meant to add, that the new regulation should help tenants and landlords alike and hopefully prevent scam practices.
RR,
I let to HB tenants but not to any type of tenant who isn’t 100% straight with me.
This landlord felt the same;
http://www.landlordzone.co.uk/news/landlord-gets-tenant-jailed-for-fraud
The persistence of a Cornish landlord led this week to his tenant being jailed for fraud for two years.
..Normally the police prefer to avoid landlord-tenant disputes arguing these are civil matters, but the landlord’s persistence that this was out and out fraud paid off.
“People always said to me that the police are not interested as it’s a civil case.
“That’s not correct. If a landlord can show that the application form is false and they fail to pay rent then they are deceiving the landlord out of what rightly is their’s. Hence Fraud Act CFO into play.”
HB This neds a careful analysis here as a couple of facotrs are being thrown together.
The article reads “If a landlord can show that the application form is false and they fail to pay rent then they are deceiving the landlord”
This second element isnt what the Fraud Act says or indeed covers.
For sure making false statements is covered, as the article accurately quotes from the fraud Act itself
“The serious Fraud Office (SFO) define fraud as:
“Abuse of position, or false representation, or prejudicing someone’s rights for personal gain’.
Put simply, fraud is an act of deception intended for personal gain or to cause a loss to another party.
The general criminal offence of fraud can include:
– deception whereby someone knowingly makes false representation
– or they fail to disclose information
– or they abuse a position.”
But it doesnt make it a fraudulent offence to not pay the rent. Both the landlord and you are lumping two things together there.
I would agree that ti is a criminal offence to falsely represent in order to entice another person to act a certain way but non payment of rent isnt covered by the legislation.
Hi Ben
You won’t mind then when the agent changes the locks back and charges you – as your tenancy agreement will say you cannot change the locks (without consent and/or giving a copy of the new key to the agent/Landlord then?
Thanks
Even if it says that. It doesnt give the LL or LA rights to change the locks. They would require a court order to enforce the tenancy agreement clause. Which may well not be successful, given the only way theyd know it was changed was by trying the locks without notice
I dont mind at all I/O I can stretch to £7 for a Yale lock. After 25 years of changing locks to protect tenants from harassment I’ve become quite a dab hand at that particular form of DIY.
If my agents complain then the obvious answer would be “How do you know?…presumably you were trying to let yourself in when I wasnt there? in which case, why?”
If entrance is blocked because of an emergency, and I’m talking fire or flood type emergencies, then I will happily pay the cost.
At the end of the tenancy I just slide the old Yale back into place.
Remember Section 1 Law of Property Act 1925….a tenancy is a form of ownership
CORRECTION: Ben’s tenancy agreement MIGHT say that.
Yes. If you change the locks, do change them back on your exit day. Assuming you have a deposit to negotiate. Or it’s the letting agent’s “labour charge” that they will seek to sting you with. And do make sure you never give letting agents a forwarding address. In fact, just avoid letting agents… I’ve yet to find one who is “100 % straight with me”.
With all the nightmarish cases of disrepair we often read about, and the apparent pressure to act of “retaliatory evictions”, I find it surprising that a TRO would suggest that tenants should make access for repairs difficult.
Romain, you’ve gone and labelled an empowered tenant (and one who simply seeks to be in – when people walk around their home) as a “difficult” one. A classic and extremely tiresome error. Access and keys has been discussed on Tessa’s blog many times now. Pls keep up :)
Romain I dont understand what strange connections you made there.
I do not nor ever would, either professionally or personally urge or even suggest that a tenant makes access for repairs difficult for the landlord.
If my agent tells me the gas safe check is to be carried out on Wednesday at 10am then I take time off of work and I am there to let them in on Wednesday at 10am.
in fact on a few occasions having taken time off I have been let down by the landlord’s contractors and wasted my precious annual leave but there you go….it would have happened had I been the owner.
My point is that I am there to let them into MY home, I dont want them in My home when I am not there.
I’d feel the same Ben, if it was a permanent thing.
But I wouldn’t object to a trusted reputable tradesman having one-off access rather than wasting my annual leave.
What about a small external combination key safe? Costs £20, put the keys in when required and change the combination after each visit.
I’m in a tenant’s flat at the moment with a plumber as it happens, he’s out at work. Plenty of time to sit around thinking up daft solutions!
“What about a small external combination key safe? Costs £20, put the keys in when required and change the combination after each visit.”
Sorry mate, maybe its the lateness of the hour but youve lost me there
What about just accepting the fact that it’s someone else’s home and it is their prerogative to decline access if they cannot be present. You know, instead of banging on about it like you have some power to trip on.
And them key safe things aren’t liked by insurance co.s. Radio 4 You and Yours covered it – if you can find it again.
“You’ve lost me there”
It’s a bit like leaving a key under the doormat but a lot more secure. I’ve got one myself, holiday homes use them a lot.
See the link below.
Securely mount one of them outside your flat.
You put your flat keys inside when there are repairs needed.
You inform the combination to the trusted reputable tradesman, toddle of to work and don’t lose any precious annual holiday.
Change the combination on return from work for next time. Thus keeping control over allowing who enters your home;
http://www.screwfix.com/p/master-lock-5-key-combination-key-safe/77908?kpid=77908&cm_mmc=Google-_-Product%20Listing%20Ads-_-Sales%20Tracking-_-sales%20tracking%20url&kpid=77908&cm_mmc=Google-_-Shopping%20-%20Security-_-Shopping%20-%20Security&gclid=CP7_n5uu2MMCFSXItAodOVoAxQ
Ah I see. But HB, you’re missing my point, which is that I dont want people in my home if I’m not there, however reputable they may be and regardless of whether or not they used management keys or collected mine from a small safe.
I’m happy to take the time off.
I am beginning to notice that whenever the twin subjects of landlords rights of entry and tenancy as a form of ownership, there is an explosion in the amount of outraged comments underneath the article.
Accordingly I will be mentioning it every week on Newsround to increase my profile on Twitter ha-ha
Fair enough Ben, just a suggestion.
That’s not a landlord-tenant thing though, it’s a personal thing.
I’m happy with people in my home when I’m not there.
Access to my rental properties is never a problem cos I make all tenants sign a blank form allowing access at anytime before giving them a tenancy. :)
“Access to my rental properties is never a problem cos I make all tenants sign a blank form allowing access at anytime before giving them a tenancy. :)”
That wouldnt stand up in court mate, nor change the advice I would give as a TRO. You cant contract yourself out of a statutory provision.
I know Ben, I was trying to increase your twitter feed.
Like 99% of tenants, all mine are reasonable people and I don’t get problems with access.
Ha ha. A nice line from HB there demonstrating wonderfully just how “reputable” so many letting agents are. (not).
Assuming he’s not actually joking.
A desperate tenant might sign your form aswell; just to get the tenancy. There you are power-tripping and exploiting them in the name of “business” I imagine you also call yourself a “professional”.
Disreputable folk like yourself deserve and provoke ‘difficult’ tenants. Shame that no professional membership or regulation prevents it STILL. I’ve kept your comment and “framed it” for posterity.
It was a joke. Stop getting your nickers in a twist.
RR,
I’m not a member of the letting agents redress scheme either.
But then I’m not a letting agent, never have been, never will be.
I’ve not had a ‘difficult’ tenant for ages either. You might be surprised at how easy some of them are to spot.
I think the article pretty much sums up parts of the industry, although the really dodgy criminal types are rare in my experience.
“Even the best letting agents often suffer from a generally accepted poor reputation when it comes to honesty and fair dealing and have done for a very long time, even if often in jest.”
The same goes for many other service sector industries that are a necessity rather than a luxury – telecoms, insurance, consultancy, banks, garages, IFAs, solicitors, tax advisors, estate agents etc.
I don’t think it is always about honesty and fair dealing either, but rather people just resent paying money for intangible services where the value is not always easily apparent.
“The same goes for many other service sector industries that are a necessity rather than a luxury – telecoms, insurance, consultancy, banks, garages, IFAs, solicitors, tax advisors, estate agents etc.”
I’m sure nobody will object if I add councils to that list Jamie? :)
If only you cd spell “knickers” Jamie. Suffice to say, when that’s all you have…
Letting agent or landlord HB: i’m just pleased I gave you a hair to split. Without that, whatever wd you change the subject with.