Letting agents and landlords are being urged to review their compliance procedures in the wake of a crackdown on poor property management.
No Letting Go says that property professionals can ensure the safety of tenants and reduce the chances of being fined for non-compliance by conducting regular inspections and compiling reports.
According to the major provider of inventory services, it has become clear that local authorities and Trading Standards are taking a strict approach to enforcement of compliance obligations in the private rental sector.
For example, a letting agency in Bristol was hit with a £330,000 fine in March for poor management of a range of flats across the city.
In January last year, 100 local councils were awarded an additional £4m in funding to increase rental sector enforcement, and this looks set to grow, No Letting Go reports.
Nick Lyons, founder and CEO of No Letting Go, commented: “Enforcement of legislation and regulations is rising and there is a lot at stake for property professionals. Agents need to protect their businesses, but also help their landlords stay on the right side of the law.
“Compliance has become an integral part of the property management process and property professionals need to ensure all rental properties are safe, in a habitable condition and meeting the rising number of sector regulations.”
Lyons insists that rental property inspections, carried out every three to six months, followed by comprehensive mid-term reports can help to ensure properties remain compliant throughout a tenancy.
An inspection and subsequent report can assess and highlight any problems within a rental property, providing an opportunity to fix issues before they escalate.
Lyons continued: “Tenants generally report serious issues, but often fail to report minor issues until it’s too late.
“That’s why it’s crucial that agents and landlords carry out regular inspections. What’s more, evidence of inspections through mid-term reports can be invaluable if tenants are not looking after the property and further action is needed, or if the local authority is considering taking enforcement action.”
Lyons says a good mid-term report will include photographs and notes on the overall condition of the property and its contents, as well as checks on who is living there, any maintenance work that needs doing and for smoking and pets within the property.
He added: “During the national lockdown, we have carried out virtual property visits, where a physical visit has not been possible, to ensure properties are in good condition. However, as lockdown measures continue to ease, visiting the property in person – in a Covid-compliant manner – is hugely valuable for letting agents and landlords.
“It’s also important to consider how mid-term reports are recorded. Having no audit trail could lead to problems further down the line, while storing reports online provides a quick and easy way to monitor activity and recall details of past inspections if required.”
Comments (4)
Well said. I agree four visits a year is unnecessary, it doesn’t breach ‘quite enjoyment’, although any more than that would almost certainly be stepping over the line.
However, in many cases, one visit per year is no longer sufficient. Most properties which are subject to a licence will require 2 visits as a condition of the licence, failing to conduct them without a ‘reasonable excuse’ will land you with a fine. If you manage properties with sharers which fall into the category of three plus people forming two or more households, you have a ‘small HMO’. It may need a selective or an additional licence, but if not there are still rules on how you must manage it. You need to ensure managing agent details are on display in the property, fire exits are free from obstruction and fire doors are not propped open. It can easily be argued that one visit per year is not enough to check these and keep your tenant safe. Equally important for our own protection is checking the occupancy. If the tenants have moved in a partner, this could be enough to push the property in to a category which requires a licence or breaches the max occupancy stated on an existing licence.
I agree with your comment on Permissive waste, but tenants are more adept at arguing they are not property experts and therefore didn’t recognise the issue as needing to be reported. Ameliorating waste is far more scary!
1. Local authorities only govern the recommended number of visit on Licensed properties.
2. The right to quiet enjoyment is subjective and dependent on each individual tenant. If a tenant refuses access, you cannot walk in (even with 24+ hours notice) unless it is for emergency purposes.
3. Your comments are more along the lines of a council licensing officer / Trading Standards than a property manager. It’s not an easy job by any means and management requires a lot of knowledge as well as CPD (apologies, your comment made it sound like easy to do (Which is only the case if you manage 1 HMO, not a hundred)).
4. The claim that they are not property experts and don’t know to report issues holds little to no value.
5. Ameliorating waste is rare in PRS (and not at all scary…).
When will MP’s be brave enough to apply the same rules and regulations to the Public sector?
A piece from an inventory company asking property professional to order more inventories. Inventories are integral to property management and while they’re not legally required, they’re strongly recommended (especially if you ever want to make deductions to a deposit).
“Lyons insists that rental property inspections, carried out every three to six months” – PRS doesn’t need it that often, otherwise it could be seen to infringe on the tenants right to quiet enjoyment (social sector I can accept). For PRS a visit once a year is sufficient and only if the tenant is amicable.
“Tenants generally report serious issues, but often fail to report minor issues until it’s too late” – Permissive waste.
If the property is to a compliant standard before it is let, then there is nothing to worry about. Its the properties that weren’t compliant that are the problem.