By Admin DSS/DWP Tenants 0 Comments

How to Find DSS/DWP Tenants

Many landlords insist on ‘no DSS’, however people in receipt of housing benefit can make good tenants. Besides, why keep a property empty waiting for a suitable tenant when there are lots of people on benefits looking for housing? This article will look at how you can find tenants in receipt of housing benefit.

First, a note on terminology – the term DSS is derived from the former Department of Health and Social Security, which dealt with benefits. They are now dealt with by the Department for Work and Pensions (DWP), however the label ‘DSS’ for tenants on housing benefit has remained in common parlance, so will be used in this article for consistency.UK DSS and DWP Tenants Find

Why choose a DSS Tenant?

Landlords often dismiss DSS tenants as they are considered risky both financially and in terms of caring for the property. Another reason is the complexity of the housing benefit system and the potential this creates for payment delays.

However, there are some significant reasons to consider DSS tenants. A lack of social housing and the effects of the ‘bedroom tax’ have created a high demand for private sector housing from DSS tenants. And as already mentioned, few landlords are willing to take them on, so competition is low. This means that you are able to cherry pick the best candidates if you are willing to open up your properties to DSS tenants.

Also, DSS tenants are often more practical and less picky in their property requirements, so there’s no need for a high-finish interior – as long as everything is working and presentable, this will probably be enough. However it is important you maintain the property to an acceptable standard, as a poorly maintained house is unlikely to attract the best tenants even when you are targeting DSS tenants.

And of course, while DSS tenants have a bad reputation, in most cases they are good people who have fallen on hard times – which, in the current climate, can happen to anyone. Single parents, ex-military and people approaching retirement age are particularly good options when it comes to finding a decent tenant.

How do I find DSS Tenants?

To find suitable tenants on housing benefit, it’s worth contacting the housing or benefits office of the local council as they may be able to put you in touch with potential tenants.

Another option is online advertising – you can advertise for free on Gumtree, which is particularly popular with DSS tenants, or pay a small fee to an online estate agent to have your property listed on Rightmove and Zoopla. There are also specific websites for DSS rentals, such as Lets Help You and DSS Move. Make sure your advert is clear that you accept DSS applicants, and state the rental price in DSS terms – for instance, “£475 per calendar month or 2-bedroom rate for housing benefit.”

When you get some interest (and this shouldn’t take long), vet your potential tenants to find the best candidate. As mentioned before, more mature tenants are a good option. Bear in mind that if a tenant is likely to be flitting between housing benefit and short periods of work this could end up with delays in housing benefit payments as they reapply, so although it seems counter-intuitive, long-term benefits claimants are probably a safer investment. Consider asking for a small signing fee or a guarantor – this gives you extra security and also helps you to find the most serious and organised candidates.

Once you have found the right tenant, you should carry out thorough background checks, obtain references and make sure that your tenancy agreement is sound. It would also be wise to get rent insurance to protect yourself in case of future problems.

N.B. Some buy-to-let mortgages include conditions which forbid you from renting your property to DSS tenants, so before you do any of the above make sure you’ve read the fine print and that your mortgage provider is happy to proceed.

While perhaps a less obviously desirable source of potential tenants, DSS tenants can prove to be reliable and conscientious – and with such high demand, you can be as choosy as you like to find the best match for you and your property.

By Admin Tenant Credit Check 0 Comments

Free Tenant Credit Check Services for Landlords

If you are using a letting agent to find a tenant for your property, the agent will almost definitely run a Tenant Credit Check on your prospective tenants to ensure that they are financially sound. This is a step that landlords not using letting agents often miss out of the process of filling a property, but it is still an important one. While not the only way of ascertaining the suitability of a prospective tenant – references and copies of payslips/bank statements are also useful and important – a credit check is a good indicator of their financial stability.Free Tenant Credit Check Services

There are plenty of services online which provide Tenant Credit Checks. These vary in price and some are more comprehensive than others, but you may decide it is worth paying a bit of money for peace of mind. However, if you want to avoid costs completely, there are a limited number of websites which provide free credit checks.

Rentify:

Rentify is an online letting agent, but also has a number of tools for landlords wanting to deal with their own letting and management. One of these tools is a free Tenant Credit Check service, which includes name verification, date of birth, Electoral Register check, salary, bankruptcies, County Court Judgements and credit score. They do also offer a more comprehensive report at £49.99 if you want more than just the basics.

Lettingref:

Lettingref provides a referencing service for landlords and also provides Tenant Credit Checks. Lettingref offer one free credit check when signing up, however charges apply for any future checks.

PIMS (Property Information Made Simple):

PIMS is a comprehensive website offering information, documents and tools for landlords and letting agents. They offer free Tenant Credit Checks including confirmation of previous addresses, date of birth, County Court Judgements, Individual Voluntary Arrangements, debt collection activity and credit score.

However, there is a catch – this service is for members only, and even then it is limited to 5 checks per year for landlords or 10 checks per year for letting agents. Membership to the website costs from £79.95 per year or £29.95 per quarter and provides several other benefits such as helplines, free documents, Professional Indemnity cover, exclusive discounts and more. It may not, strictly speaking, be free but if you’re likely to use some or all of the other benefits extensively you may decide it is worth the cost.

When using an online Tenant Credit Check service, make sure you check what information you need. Many have forms to gather the required data, but as a minimum you can expect to need the tenant’s full name, current address, previous addresses and an authorisation to perform the credit check.

Also, check with the company you are using to find out what can be regarded as a low risk credit score. According to the PIMS website, their credit scores range from 400 to 650 with anything below 530 being regarded as risky, however different companies have different ranges and thresholds so if you change the service you use, check for variations in credit scores.

By Admin Deposit Protection 2 Comments

Tenancy Deposit Protection Schemes: What, Where, Who is Responsible?

Since 6 April 2007, if you rent out a property under an Assured Shorthold Tenancy you are obliged to place your tenants’ deposit in a Tenancy Deposit Protection (TDP) Scheme. This article will explain what a TDP Scheme is, where you can find one, what your obligations are and who is responsible for the deposit if you are using a letting agent.Tenancy Deposit Protection

What is a TDP Scheme, and where can I find one?

Simply put, a TDP Scheme is a government-backed company which either protects or holds your tenants’ deposits and ensures they are returned at the end of the tenancy, unless you are in a dispute with the tenant. There are different types of scheme: a Custodial Scheme is one where you pay the deposit to the company and they will hold it until the tenancy comes to an end, while with an Insured Scheme you retain the deposit and pay a fee for it to be protected.

There are currently three TDP Schemes backed by government: Deposit Protection Service, MyDeposit and Tenancy Deposit Scheme. These Schemes also offer a dispute resolution service in the event of a disagreement over how much of the deposit is to be returned.

What are my obligations?

You must protect your tenants’ deposit within 30 days of the start of the tenancy. If you are given a ‘holding’ deposit you do not need to start protecting it until after the tenancy has officially started. Within those 30 days, you must also supply your tenants with the following information:

  • The address of the property;
  • The amount of their deposit;
  • How the deposit is protected, including the name and contact details of the TDP scheme and their dispute resolution service;
  • Your name and contact details, or those of your letting agent where applicable;
  • The name and contact details of the third party who paid the deposit, if applicable;
  • Reasons why you may keep some or all of the deposit, e.g. in the event of damage repaired at your cost;
  • How to get their deposit back at the end of the tenancy, and what to do in the event of a dispute over how much is to be paid back; and
  • What to do if they are unable to contact you at the end of the tenancy.

I’m using a letting agent – who is responsible for protecting and returning the deposit?

According to guidance on the MyDeposit website, even if you choose to instruct a letting agent to protect your tenants’ deposit you are still ultimately responsible for the protection and return of the deposit. Therefore if your letting agent ceases trading, becomes insolvent or acts fraudulently you will be liable for the return of the deposit. This doesn’t necessarily mean you should avoid using a letting agent for this purpose, but that you should be careful to use a reputable agent and make sure that they use a segregated bank account to keep the deposit secure. You should also ensure that your agent passes on all required information to your tenants.

For further information on TDP Schemes, the Gov.uk website has a short guide for landlords.

By Admin Tenancy Agreement 0 Comments

How To Renew A Tenancy Agreement?

When it comes to renewing a tenancy agreement, there are some important aspects that you need to consider. If you are a tenant or landlord, it is important that you know your rights as well as what you need to do when the tenancy contract comes to an end.
In England, according to Housing Act 1988, if a landlord (or estate agency) does not renew the tenant agreement contract before its end date, then the terms and conditions previously signed off by both parties will still apply.

This means that the expired tenancy agreement will continue to be used as a reference for the roles and responsibilities for tenants and landlords. This mechanism is known as a “rolling basis contract” and it can just be used after the initial contract expires. It works as if your contract is being renewed every time you pay your rent (which can be weekly or monthly). Renew A Tenancy Agreement

There are advantages and disadvantages by following this route. The main advantage for both sides (landlord and tenant) is that they do not need to sign anything or do any new paperwork. From a landlord perspective, this “do nothing” attitude, based on Housing Act 1988, can actually save some money with state agents who may want to intermediate the deal.

The downside to it is that, if the landlords receive a leaving notice from their tenants, then the landlords will need to put the property back on the rental market and negotiate rates with different estate agents. As a consequence, the landlord may lose months or weeks of rent until finding new tenants (and of course, face new fees from estate agencies on advertising, following paperwork checks when a potential tenant appears).

From a tenant’s point of view, the advantage of “do nothing” when it comes to renewing the contract benefits them as they will be on a rolling contract instead of a signed contract for a specific period of time. This means that they can give their landlords leaving notice at any time. Normally, tenants will seek not to renew their contract as they do not want to tie up themselves into a new agreement.

So how to renew a tenancy agreement if that is what you want?

First of all, you will need to give your tenant a new agreement. If you want to increase the rent this is the best moment to do so (remember that with a rolling contract you as a landlord will have to negotiate a rent increase directly with the tenant, who has the right to disagree).

Also, if you are looking at renewing the tenancy agreement make sure that if there are terms that you want to change (such as no pets, no smoking, or no subletting, etc.), make sure they are in. You can demand that your tenants need insurance to landlords belonging and you can impose responsibilities and penalties to your tenants, such as late payments, cleanliness of the place, etc.

One thing that is important to remember is that if you are renewing a tenancy agreement, make sure you have an estate agency behind it as they will be the witness in case you have a bad tenant and need to take them to court for eviction. You should not make amendments on separate papers. You need to make sure that everything that is agreed verbally is in the agreement.
Once the new tenancy agreement is written and everyone is happy with it, then both parties involved should sign (so there is no room for argument).

You need to remember that letting agencies usually require a fee to process new agreements. It is worth paying that fee as they are specialists. Renewing the tenancy agreement for a fixed-term gives landlords and tenants the security for coming months, from a landlord perspective the security of income, and for a tenant the security of a place to live (as a landlord cannot evict a tenant until the contract lease, unless rent is not paid).

As you can see, there are more advantages for tenants and landlords when they both agree to renew the tenancy agreement.

By Admin Property Management Company 0 Comments

How To Make A Complaint Against A Letting And Estate Agent

Your options for complaining if you are not happy with the overall conduct of the letting agent you have used in order to find a private rented home. In order to launch your complaint, your first step should be to raise the issue with the letting agent yourself, directly. There are certain procedures for the letting agents and estate agents that you have to follow. You have to check the website of the agent or ask for their office details. They must at all times tell you about the complaints of the procedure if you request. What you need to do is set your case out clearly in writing and provide the details of times and dates wherever they are relevant.Letting And Estate Agent

You should try to send a written complaint if the letting agent does not appear to have the complaints procedure. The letting agent will investigate, ask questions or will request you to send copies of the documents and then go on inspecting your house.

You must always register your complaint with the letting agent first. Try to make a clear and precise report and explain exactly the problem. The best letting agents will try their best to resolve the problem in house. They will also have a set procedure in place that will be handled by the senior management.

Letting Your Landlord Know About The Letting Agency

If you do not want to follow a formal complaints process, you should try to contact your landlord rather than complain about the letting agent’s poor service. It might be try that the landlord might not be well aware of how the agent is looking after the things. The name of the landlord and their address should be on the tenancy agreement or it should be included in the correspondence or documents. You should ask the letting agent for the details if you are not aware of the address and name of the landlord. The letting agent must at all times tell you if you ask.

If your landlord is a company, the letting agent should tell you the addresses and names of the secretary and directors.

It is very common with certain agents that they do not fully respond in a prompt manner to your complaints or problems that you have with enjoying your tenancy at the property. If there is an actual problem, you have to first let your letting agent know. You can keep a log and details of all the communications. It is much better to have the formal complaints n writing and if you live close to the agency the letting agent can hand deliver the letter. You can even contact the head office of the franchise. You can find the number of on tenancy agreement. However if that is not true then you can deal with the head office address and contact their telephone number again.

There are different types of complaints that you can make to your letting agent. The property ombudsman will not consider all types of complaints and will only take your case on board if you have exhausted the estate agent’s internal complaints procedure.

The complaints that can be considered include the following:

A breach of the estate agent’s legal obligations to you
Poor service or incompetence
Failure to follow proper procedures
Maladministration
Unfair treatment
Discourtesy

Other important tips include:

First you must know your agent:

Managing Agent:
This person acts as the manager of communal facilities of a residential block, share of freehold or usually leasehold on behalf of the freeholder.

Letting Agents:
Arranges the renting property on behalf of the owner of the property usually chosen by and paid for by the owner of the property and markets it to its possible clients.

Estate Agents:
Sell property that is usually chosen by or paid for by marketing it to the potential buyers or sellers of the property.

You can also try to complain directly to the agent. As always, you should try to speak to the agent first directly by raising any concerns as you might have them with them in the first instance. You should always try to give the agent a chance to put the things right before they escalate your complaint. Moreover, if you are happy with the way the agent is dealing with your complaint, you should try to make a formal complaint and try to go through the internal complaints of the procedure.

You must also ensure that the letting agent belongs to a recognized professional body. The first thing you have to do is to check before using a letting agent is whether they belong to any professional organization such as the Association of Residential Letting Agents, Property Ombudsman and so on.

The current approved redress schemes are:

It is important to note that anyone can set themselves up as a letting agent. Even people who have been banned from practicing as an estate agent. A person or qualified letting agent who is part of the professional body will have to keep up with your minimum standards of membership and will also require the members to keep up to date with the best practices. A lot of rogue agents might display the logos of these organization on the website and they might also claim to be the members of a specific organization even when they aren’t.

You must also try to use a letting agent who has access to the redress scheme or has signed up for it. The scheme gives a clear route for landlords and tenants to pursue complaints with a 3rd party if they are not receiving the service which they are expecting from the letting agent.

These are the things that you must note before complaining to a letting agent. Moreover, to choose a letting agent, you must make sure that these people have written testimonials about the services which you are using. Testimonials are a guaranteed way of finding out about the letting agent.