Rise in possession of homes - No easy answer they say!! | Discuss

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Rise in possession of homes - No easy answer they say!!
30/07/2013
8:38 am
Paul Routledge
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Following several articles over the past week about which association Landlords should use (see below) and what support they give their members, I was exasperated when I received the RLA’s magazine – The residential Property Investor and within it was an article titled. ”I can’t afford to pay the rent”.

The reason for my exasperation was the way with which they address the problems in such a reactive way and offer no mention of joining a network of landlords like landlordreferencing.co.uk to be proactive in stopping landlords taking bad tenants in the first place.

The article is a superb piece of journalism which outlines that the private rented sector accounts for around 17% of households in the UK and that is expected to rise to around 23% by 2020. The article raises the point that in the first quarter of this year severe rent arrears  – which constitute those more than two months behind with the rent rose by a staggering 4,000 to 94,000, the fourth highest figure on record.

With these rises in arrears the number of claims for possession by landlords is up by 12% with some 42,500 claims for possession under the accelerated claims procedure issued in the first quarter of 2013.

Statistic show that out of the 34 of 172 UK courts there is a 20% rise in possession claims and considering that most landlords do not even bother taking tenants to court and many tenants just leave without notice the problem is substantially larger than what surveys suggest.

The article constantly refers to companies like landlord action who can help landlords with evictions and refer to ways with which a landlord with a troublesome tenant can evict them but apart from a line reference properly never really address the real issue on how to not take them from another landlord in the first place.

The article goes on to outline a case of a tenant called Antony Alexander who was exposed on BBC’s Inside Out Programme Where he cost 6 landlords one after the other at total in excess of £143,000 in unpaid rent in 7 years and yet they do not say the way to stop the 7th landlord or any other landlord taking him was to join http://www.landlordreferencing.co.uk.

I don’t wish to sound like scoured child because the article does not mention landlord referencing but the only services the article does mention are ones that help landlords in trouble rather than help them from getting into trouble in the first place. Surely prevention has to be better than cure.

With the ever growing problems with rent arrears we need to be proactive in sending a message to tenants who are intent on not meeting their commitments and that is if you don’t pay the rent then you don’t get a home with another landlord. So don’t prioritize your mobile phone bill and don’t prioritize your booze, fags and social life over your rent because if you do you won’t be renting again.

The worst thing for me is the article says “There is no simple answer” and of course we know there is and that it is for all landlords and letting agents to join landlordreferencing.co.uk

 

Related articles;

What is the difference between the RLA & NLA

Thank you to the NLA for helping us to help landlords

30/07/2013
10:57 am
Alfie Bruce
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Paul mate,

If these associations know about LRS and they do not tell their members and allow there members to take the likes of that Antony fellow then the way I see it they are negligent in their duty of care towards all of their members. LRS should be manadatory for all landlords to register and cross check their tenants together.Yell

30/07/2013
11:02 am
Tracey
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Ridiculous! It’s like they want us to keep taking bad tenants to keep the wheels of solicitors and the like turning… .. .

30/07/2013
11:07 am
Paul Routledge
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Hi Bruce, Tracey,

 

I must admit it does frustrate me because I might be taking theirs Frown

30/07/2013
11:58 am
William Keunen_RLA
Greater Manchester
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Hi Bruce, Tracey,

 

I must admit it does frustrate me because I might be taking theirs Frown

Hi Paul, good to know RPI gets some high-level readership!

In response to your review of the article just a few thoughts.

First and foremost, Paul Shamplina is a guest writer for the magazine, and will have been given a topic to write on that he is comfortable and knowledgeable.

Importantly, RLA trainers also stress the importance on ‘background’ checks of tenants; most prominently at our ‘Small Claims Court’ course.

Instances such as getting tenants existing landlords to testify; visiting current living arrangements; and taking into account personal circumstances are all ‘suggested’ (read: repeated! Over and over!).

In this respect, we agree totally that doing checks on your tenants is the best way to assure you are taking on the type of person you want.

From my interpretation of the article, Paul Shamplina is talking about a tenant that has gone into arrears. Like I have mentioned previously, background checks are important, but they cannot provide for every circumstance. Even the best tenants can be made redundant or experience difficulties and Mr Shamplina is discussing what to do if/when arrears occur.

We endeavour to ensure that RLA members, and non-members alike, are aware of services that may provide a safety net for landlords, and pg18 across from Shamplina’s article will hopefully push landlords towards more thorough checks.

I hope all of this makes sense!
Kind regards,

William.

Visit the news hub for PRS and RLA oriented news items

RLA-Logo-hi-res-correct-colour.4.jpg

Happy to answer any questions...Let me know!

30/07/2013
12:48 pm
Paul Routledge
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Hi William,

Thank you for your reply it has cleared up some confusion for me. I shall call Paul and ask him why he forgot his old mate Paul Routledge when writing the article. We did a seminar together some time back and he sat at one end of the debate and I at the other and I said I am the Paul that stops them getting in and him down there is the Paul that gets them out if they do.Laugh

I do hope as with the NLA we can see more of our UK associations interacting on these forums and getting all of our members to interact together in passing information and knowledge to better the PRS.

In these difficult times it is paramount that landlords are seen to step up to the mark and show others and especially their tenants they are professional’s within a professional industry and that we can provide good homes if they abide by their contracts, but if they choose not to then the consequences can be that they will struggle to get a better home.

Many people will think that may be harsh for someone who has lost their job but I believe that this country has made provisions within the benefit system to pay for housing for everyone in hard times and it is those who choose to spend that money on alternative things that fall by the wayside.

It cannot be the private landlord’s task to house the nation free of charge because the previous government messed up and in the same way it is not the banks task to give all bankrupts a line of credit for them to maintain a good lifestyle.

When landlords join landlordreferencing.co.uk they are sending a clear message to their tenants and that is “I am a good landlord but if you do not pay the rent or damage my property I can and will be able to stop you getting a home with 20,000 other members”. This message is a deterrent and since I started this company my voids across 113 properties is now at 2% across the board.

I believe that every landlord should be offered that option to join us and have the same void value as me and I am sure you do to

30/07/2013
12:59 pm
zipster31
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William, thank you for responding to the post, am glad to see the RLA responding to this issue and am sure you will have plenty of opportunity to engage with LRS’s enthusiastic members. To cut to the chase, I have to say that out of all the checks that can be made on a tenant, the most important reference for me is an LRS one. A tenant with an LRS history tells me everything and more about a tenant. It tells me how well a tenant does or does not pay their rent, and often most importantly of all, how a tenant who runs into financial difficulty, whatever the reason, deals with it. Some of my best tenants would not get credit for a packet of coconut mushrooms in the corner shop, but they payment histories are outstanding. When they have run into difficulty with their rent, they have informed me immediately and together we have always been able to come to an agreement. I have only just recently had a tenant who is some 3 months in arrears due to redundancy – I have always had total faith in him as a person and his efforts to find another job, – just a few weeks ago he found a new job with a leading company in his profession and has already begun paying his arrears. Now this tenant is more valuable to me than a tenant with a 100% payment history – because I know what this person will do when they run into financial difficulty. And am sure, if he eventually moves on, a future landlord will be quite happy to accommodate him with his LRS reference from myself. Now that reference tells you more about the tenant than any other reference will. Landlords and tenants registered with LRS will enhance and maintain the health of the PRS more than anything else.  

30/07/2013
1:22 pm
Paul Routledge
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Zip,

The real point is that when a landlord uploads this type of tenant onto the system when he does move on and has paid his debts it gives him the best reference ever if his previous landlord has uploaded him to say “He fell into arrears but worked hard to get out of them” a superstar and that in turn will get him a better home and probably at a better rate.

30/07/2013
3:33 pm
@martincoashford
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@Paul_Rout : Rise in possession of homes – No easy answer they say ?! ?!

 

times are hard for everyone?

 

via twitter

30/07/2013
4:24 pm
Heritage Estate Agents
North Somerset/Bristol
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The trouble is Paul, there is the old saying of you can lead a horse to water etc.  Its a big shame.  I do pass the word to other letting agents and landlords that I know, and I hope some of them do listen, but I cant force them to do it!  I know a few have signed up as they have told me.

However, we shall continue to spread the word, dont worry.

Cathy

http://www.heritage4homes.co.uk

30/07/2013
8:12 pm
PaulBarrett
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Int

William Keunen_RLA said

Hi Bruce, Tracey,

 

I must admit it does frustrate me because I might be taking theirs Frown

Hi Paul, good to know RPI gets some high-level readership!

In response to your review of the article just a few thoughts.

First and foremost, Paul Shamplina is a guest writer for the magazine, and will have been given a topic to write on that he is comfortable and knowledgeable.

Importantly, RLA trainers also stress the importance on ‘background’ checks of tenants; most prominently at our ‘Small Claims Court’ course.

Instances such as getting tenants existing landlords to testify; visiting current living arrangements; and taking into account personal circumstances are all ‘suggested’ (read: repeated! Over and over!).

In this respect, we agree totally that doing checks on your tenants is the best way to assure you are taking on the type of person you want.

From my interpretation of the article, Paul Shamplina is talking about a tenant that has gone into arrears. Like I have mentioned previously, background checks are important, but they cannot provide for every circumstance. Even the best tenants can be made redundant or experience difficulties and Mr Shamplina is discussing what to do if/when arrears occur.

We endeavour to ensure that RLA members, and non-members alike, are aware of services that may provide a safety net for landlords, and pg18 across from Shamplina’s article will hopefully push landlords towards more thorough checks.

I hope all of this makes sense!
Kind regards,

William.

Interesting you mention doing checks and that also anyone can be made redundant.

So what DD and what product do you think a LL could obtain to protect himself from a non-rent paying tenant in addition to doing all the other checks!!!

You don’t seem to have mentioned it!

Why NOT; when it is such a cheap and readily available product!?

The first DD check one should do is pay £10 and do a RGI check.

If the answer is no then the LL may of course continue with a a full range of DD checks; in the knowledge that the tenant FAILED a RGI check and consequently the LL would be unable to obtain RENT GUARANTEE INSURANCE!!!

There many effective and affordable RGI policies; why don’t you offer them at the standard price of about £100 for a year policy.

I can refer you to a broker who will offer a white label RGI product where ALL that is needed to qualify for a RGI policy is to pass a certified RGI check the broker carries out.

There is NO need for any extra checking; though of course it would be wise to carry out additional checks; after all you don’t want to be continually submitting RGI claims!

Why do you not mention this simple and highly effective product as the principal instrument to protect against non-rent paying tenants!!!!

Do you NOT offer a branded RGI product of your own at £100 per policy per year!?

If not; why not!?

You could even link up with LRS and offer it’s referencing products including RGI.

AS Paul R states PREVENTION is better than cure.

More discussion needed on prevention; and then hopefully we won’t have to bother too much with the CURE!!?

30/07/2013
8:22 pm
PaulBarrett
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zipster31 said
William, thank you for responding to the post, am glad to see the RLA responding to this issue and am sure you will have plenty of opportunity to engage with LRS’s enthusiastic members. To cut to the chase, I have to say that out of all the checks that can be made on a tenant, the most important reference for me is an LRS one. A tenant with an LRS history tells me everything and more about a tenant. It tells me how well a tenant does or does not pay their rent, and often most importantly of all, how a tenant who runs into financial difficulty, whatever the reason, deals with it. Some of my best tenants would not get credit for a packet of coconut mushrooms in the corner shop, but they payment histories are outstanding. When they have run into difficulty with their rent, they have informed me immediately and together we have always been able to come to an agreement. I have only just recently had a tenant who is some 3 months in arrears due to redundancy – I have always had total faith in him as a person and his efforts to find another job, – just a few weeks ago he found a new job with a leading company in his profession and has already begun paying his arrears. Now this tenant is more valuable to me than a tenant with a 100% payment history – because I know what this person will do when they run into financial difficulty. And am sure, if he eventually moves on, a future landlord will be quite happy to accommodate him with his LRS reference from myself. Now that reference tells you more about the tenant than any other reference will. Landlords and tenants registered with LRS will enhance and maintain the health of the PRS more than anything else.  

 

 

Zipster;

I do query your faith in your tenant.

You MUST presumably be aware that HB is paid for the FIRST 13 weeks of any HB claim for the same amount as the rent is you charge if sacked or made redundant.

So your tenant should have paid you full rent for 13 weeks; courtesy of the council HB dept.

So if your tenant found work after 3 months he should not have suffered any arrears!!!

For me 13 weeks equals 3 months and 1 week.

So why was he in arrears!!?

I think you’ve been had by this tenant!

30/07/2013
11:21 pm
zipster31
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Paul, my tenant has never and would never claim housing benefit. There is no need. He has had temporary work in between his old and new job and made payments at those times. There is always work out there for those that are willing and have a positive attitude. His not claiming whilst temporarily unemployed is fine by me. He has his pride and knew he would soon find full time work. And he has. How can he have “had me over”?, he is clearing his arrears, has worked very willingly for myself whilst out of work, took every temporary job he was offered whilst unemployed, and actively sought work the whole time he was unemployed. I tried helping out HB tenants in the past, even though I didn’t have too. Never again. I don’t accept HB tenants and never will. It just doesn’t sit right with me. 

31/07/2013
9:31 am
@martincoashford
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Paul_Rout: With these rises in arrears the number of claims for possession by landlords is up by 12% …

 

bedroom tax certainly helped raise the number.

 

via twitter

31/07/2013
12:12 pm
Paul Routledge
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MartinCo,

I agree the weight of all austerity measures are biting hard everywhere, The problem is that we should never have let things get to where they are now in the first place. I am of the opinion that we never miss something we never had and if the Labour government had not showered the benefit claimants with gift after gift on borrowed money or turn our National Health Service into the International Health Service we would not need any of these cuts now.

We may be seeing difficult times but I think we are at the bottom and starting to rise and just hope that those who can work but don’t are made too and those that cannot because of disability or miss-fortune receive enough help to maintain their dignity in meeting their commitments in the future. 

31/07/2013
1:57 pm
PaulBarrett
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zipster31 said
Paul, my tenant has never and would never claim housing benefit. There is no need. He has had temporary work in between his old and new job and made payments at those times. There is always work out there for those that are willing and have a positive attitude. His not claiming whilst temporarily unemployed is fine by me. He has his pride and knew he would soon find full time work. And he has. How can he have “had me over”?, he is clearing his arrears, has worked very willingly for myself whilst out of work, took every temporary job he was offered whilst unemployed, and actively sought work the whole time he was unemployed. I tried helping out HB tenants in the past, even though I didn’t have too. Never again. I don’t accept HB tenants and never will. It just doesn’t sit right with me. 

Zip;

I admire your faith in your tenant.

I would have insisted he apply for HB as well as him seeking work.

I don’t care what a person may do to try to find work I would want that person paying me rent by whatever means.

I am NOT concerned at all about a tenant’s pride, i want the rent from wherever.

If this means the tenant feels demeaned to apply for HB to pay me; tough!

I would inform the tenant they either apply for their benefit entitlement or I would boot them out.

You may have spare money to cover mortgage payments I don’t.

If a tenant is qualifies for HB then I require that tenant to apply for it. period!!

I have NO pride at all when it concerns my receiving rent; I don’t care how I get it or where it comes from as long as I get it.

 

 

31/07/2013
3:38 pm
zipster31
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Paul Routledge said
MartinCo,

I agree the weight of all austerity measures are biting hard everywhere, The problem is that we should never have let things get to where they are now in the first place. I am of the opinion that we never miss something we never had and if the Labour government had not showered the benefit claimants with gift after gift on borrowed money or turn our National Health Service into the International Health Service we would not need any of these cuts now.

We may be seeing difficult times but I think we are at the bottom and starting to rise and just hope that those who can work but don’t are made too and those that cannot because of disability or miss-fortune receive enough help to maintain their dignity in meeting their commitments in the future. 

I couldn’t agree more. Ramping up welfare payments over the years has purely been to win votes. I think the tipping point has now come. If the interest rates go up, the Uk will go bust. We have borrowed that much (nearly the same as Japan), when interest rates increase we won’t be able to pay it back. We’ll end up like Greece – no choice but to cut the welfare budget cut by 40%. The government are very good at moving the goal posts – another reason why my business model was not built around HB payments.

31/07/2013
3:48 pm
PaulBarrett
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zipster31 said

Paul Routledge said
MartinCo,

I agree the weight of all austerity measures are biting hard everywhere, The problem is that we should never have let things get to where they are now in the first place. I am of the opinion that we never miss something we never had and if the Labour government had not showered the benefit claimants with gift after gift on borrowed money or turn our National Health Service into the International Health Service we would not need any of these cuts now.

We may be seeing difficult times but I think we are at the bottom and starting to rise and just hope that those who can work but don’t are made too and those that cannot because of disability or miss-fortune receive enough help to maintain their dignity in meeting their commitments in the future. 

I couldn’t agree more. Ramping up welfare payments over the years has purely been to win votes. I think the tipping point has now come. If the interest rates go up, the Uk will go bust. We have borrowed that much (nearly the same as Japan), when interest rates increase we won’t be able to pay it back. We’ll end up like Greece – no choice but to cut the welfare budget cut by 40%. The government are very good at moving the goal posts – another reason why my business model was not built around HB payments.

 

 

Interesting your determination to NOT take on HB tenants; I have made the same determination.

However have you noticed it being more difficult to source non-HB tenants?

If you can’t source sufficient non-HB tenants will you be forced to take on HB tenants!?

I don’t take HB tenants because they can’t afford my rents.

If it was HB tenants or no tenants what would you do.

I think it will be increasingly difficult to source suitable tenants who don’t receive HB.

I suppose working HB tenants might be better than non-working ones.

But I think as things get worse with reduced availability of benefits LL will struggle to find non-HB tenants.

31/07/2013
4:42 pm
zipster31
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Paul, I do not find it hard at all, as it is, I nearly always have a waiting list and often have to pass on tenants to a couple of decent landlords I know. I could certainly house a lot more tenants than I have properties. A lot of my tenants are recommended to me from previous tenants.

If it was HB or nothing, I would sell up immediately and invest elsewhere. I think the risk involved with HB tenants does not make financial sense or provide adequate reward. Or any emotional rewards for that matter either, only severe stress and bad feelings. I like to enjoy what I do.

As for my tenant we were discussing earlier, I think I have managed the situation quite well and too both our advantages. By knowing his character reasonably well and respecting his outlook on not claiming and finding work, not only is he repaying his outstanding rent, but he is also earning me extra income by working on other properties I manage. This will continue for some time too come, as he appreciates the way I have helped him. I guess I just have my own way of dealing with people. I find nearly all the working tenants I have and have had are of very similar positive attitude. I get on very well with all my tenants and really do care about all of them.  

31/07/2013
5:25 pm
zEPHYoRUS
Guest
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We tend to interpret, to colour reality in terms of that we experience,

The company, the stories we meet and keep, and how they effects us and our ilk kith and kin.

 

If Money Takers Collectors such as Amazon Google Starbucks, and 100s of others Utilities included,

Contributed their fair  enormous share, into the Nations Tax Coffers–

There’d be ingredients enough to bake bigger cakes,– to reduce unemployment, —to raise minimum wages.

However such Business’s aren’t at all Human,– if they were they’d be classified “Psycho or Socio Paths”.

 

They do indeed play a big part in the nations blood flow, and how our brains work.

 

It is too Easy, Instinctive to blame the “Woes of our Country” on the stones in Our shoes.

It gives some temporary relief, satisfaction, club membership, but really no more than that.

meanwhile 

Innocents are Scapegoated while most of the Guilty

Remain invisible, and continue as before with solicitors covering their 

Self Righteous, Smug aaaahs say

Bottom line Profits hid safely away from eyes of Parliamentary Committees,

Margaret Hodge and the likes of You and Me.

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