The Right to Rent and the Ostrich Letting Agent. | Discuss

Welcome to the Property Forum where we can share our knowledge & experiences together to become better at what we do.

 Forum Terms & Conditions


Page not looking right? Please CLICK HERE to RELOAD

Enlarge/Change font size here

A A A

Please consider registering
guest

sp_LogInOut Log In sp_Registration Register

Register | Lost password?
Advanced Search

— Forum Scope —





 

— Match —





— Forum Options —





Minimum search word length is 3 characters - maximum search word length is 84 characters

sp_Feed Topic RSS sp_Related Related Topics sp_TopicIcon
The Right to Rent and the Ostrich Letting Agent.
19/09/2014
11:05 am
Paul Routledge
Admin
Forum Posts: 3418
Member Since:
20/05/2011
sp_UserOfflineSmall Offline

I cannot understand the short sightedness of some in the letting business who just refuse to keep up with the times.

After weeks of talking to people around the UK about all the new laws that are affecting us and so many good letting agents that are looking after their clients to their fullest potential,  I cannot believe the conversation I have just had with a letting agent who is in the High Street, Treorchy Rhondda Cynon Taff, Wales . I was asking her if she was aware of the new legislation in wales whereby letting agents will become more accountable through accreditation for their actions and especially in referencing. She  told me she used a well-known company who gave her a good service,  so I asked her if her current referencing company does lifestyle referencing and whether they had the ability to check the documentation submitted to her for fraudulent immigration papers and especially in light of the new legislation whereby she was liable to a £3000 fine for each and every person who does not have the right to rent.

I told her she could achieve all of this only at LRS and all for the cost of £17 for a basic report and £22 for a detailed report to include everything else free. She said she was aware of all of this but she liked the company she was using as the reports looked nice and that she did not need to do immigration checks as where she was had no immigrants and that lifestyle referencing and networking with others will never really take off so it is better off not doing any of it and can I take her off as a member.

After 4 years  of watching and listening to the ever changing legislation that is bringing landlords and letting agents to be more accountable and whilst watching our membership grow and our databases swell to over 400,000 all I can say is OMG there truly is those still out there that are missing the whole show and burying their head in the sand.Surprised

……………………………………………………………..

Please don’t take my bad tenants or even an immigrant that does not have the right to rent and join LRS today free.

 

Paul Routledge CEO

19/09/2014
12:06 pm
landladyshaunasd1011
Member
Members
Forum Posts: 21
Member Since:
07/04/2014
sp_UserOfflineSmall Offline

I used Rent4Sure and paid them for a “complete” reference. Rent4sure’s version of complete was just a credit reference through experian and they only did that to try and flog me rent guarantee insurance afterwards. The tenant was a bit of a nightmare and I wouldn’t want to go through that again. I now get all my referencing done here and it’s the best. When Landlord referencing says complete they mean complete. This is for people who want the job done properly, easily and quickly. If you’re going to go with rent4sure expect a shoddy job. They don’t care whether your tenant is good or not. They just want to take you money and go. 

19/09/2014
5:37 pm
David Price
Member
Members
Forum Posts: 1671
Member Since:
12/10/2011
sp_UserOfflineSmall Offline

Paul Routledge said
. . . . she did not need to do immigration checks as where she was had no immigrants . . . .

100 references costs circa £3,000.  One illegal tenant costs circa £3,000.

10 illegal families, with landlords who do not reference properly, perhaps £60,000.  And you can be certain that it will be these landlords who pick up all the illegal tenants

20/09/2014
8:53 am
Paul Routledge
Admin
Forum Posts: 3418
Member Since:
20/05/2011
sp_UserOfflineSmall Offline

Hi David & Shauna,

I am not always in favour of naming other companies on forums as I think some just see it as sur grapes but I respect that a lot of referencing companies are letting down their agents and in turn their landlord clients because they work to the lowest common denominator to sell the insurance related products, There is no real money in a £10 reference trust me.

At LRS we look to show that you can carry out a reference in around 20 minutes and not only do the entire process to keep your landlord clients safe but to show them that you have actually done the job they have paid you.

The lady in question that I spoke to yesterday wanted the quickest route at the cheapest price and as long as it looked like she had done the job and it was evidence by a fancy report she was quite happy to let the tenant in. I see so many bad tenants get properties this way because it is as easy as shoplifting from a store with a blind security guard. The problem is the agent never pays the price the price is paid for by the landlord, community and neighbours who are subjected to a dreadful tenant and the neighbours from hell.

Hey my day did not get a lot better when another agent said he could get the reference done by one click of a button. After deciphering what he meant over several minutes I concluded that the company he used simply carried out a financial reference and then if the score was ok they offered rent guarantee, I told him that this was very unacceptable and why was he not getting the rest of the references which we can offer at LRS, lifestyle, employer, previous landlord (as given by the tenant, checking bank for affordability, identity conformation of the documentation against illegal immigrants and so on and so forth. The  reply was , we don’t have the time to do all that.

I felt like asking him what he did do for the £150 he charged his landlord for referencing, then if he did not have time to spend 20 minutes doing the job properly that his client had paid for.. I never take up the argument as I don’t think my heart would take another argument with another bigot who wants to live in the stone age, but interestingly enough after my day on the desks calling members I was very surprised at how many letting agents numbers are now disconnected.

Landlords are in short supply in the UK and they want better for less as we all do. If you are a letting agent who is reading this and is happy farming out your reference to a third party who does it to the minimum requirement to sell you RGI policies then trust me you have put blind security guards on the doors of your clients investment.

If you are not convinced then call me on 0800 9994 994 on monday morning and let me tell you why and if you are convinced then JOIN NOW and get your clients the best referencing as they deserve it.

Paul Routledge CEO
TenantReferencingUK.co.uk
Landlordreferencing.co.uk
21/09/2014
7:02 pm
rigsby
Member
Members
Forum Posts: 319
Member Since:
02/05/2013
sp_UserOfflineSmall Offline

Hi Paul. Is there any chance you could email me a copy of a sample report?

22/09/2014
10:17 am
Mary Latham
Member
Suporter
Forum Posts: 2193
Member Since:
17/05/2012
sp_UserOfflineSmall Offline

The good news about the Immigration Act 2014 is that for the first time that I can remember Letting Agents are named in the legislation as a responsible party and will be accountable for the fines if they let their landlords down.  All good Letting Agents will ensure that they cover themselves and their landlords by checking EVERY tenants immigration status because to only check those who they “suspect” will leave them wide open to legal action because of discrimination.  I am pleased that legislation has finally caught up with reality – which for many property investors means that the Letting Agent does all the work from choosing the tenant and referencing to ending the tenancy. Most legislation dates back to a time when most landlord managed their own properties but that has all changed massively since buying to let became a very big business in the UK and lots of busy people began to invest.

It is vitally important that landlords ensure that they have good written contracts with their Letting Agents which clearly state who is responsible for what – this will be the Letting Agent in the hot seat under the Immigration Act – without this written agreement the buck will stop at the landlord even if the Letting Agent has failed to check the immigration status of the tenant.  My worry is that most landlords are so hands off they will not even be aware of this until it bites them on the bum and poor Letting Agents will certainly not include these checks in their contracts with landlords in order to avoid carrying the can.  I would like to see all lwegal responsibilities sitting on the shoulders of those who carry out the process ie if a Letting Agent is paid to find a tenant and places that tenant in a landlords property any matter arising from that service is their legal responsibility – this, in my opinion is the only way for our business to move forward and to bring those Letting Agents who do the minimum  into line.

The roll out of the Immigration Act is in the West Midlands and I will be working very hard to ensure that my landlords do not get caught out and that Letting Agents in the area understand their legal responsibilities and carry them out.

Follow me on Twitter @landlordtweets

22/09/2014
1:00 pm
Paul Routledge
Admin
Forum Posts: 3418
Member Since:
20/05/2011
sp_UserOfflineSmall Offline

rigsby said
Hi Paul. Is there any chance you could email me a copy of a sample report?

Sample basic report. http://www.landlordreferencing…..t-example/

22/09/2014
8:04 pm
Katherine
Member
Members
Forum Posts: 69
Member Since:
28/11/2012
sp_UserOfflineSmall Offline

I received a phone call last week asking for a reference, they asked the following questions:

When did the tenants move in ?

Did the tenants pay the rent ?

Did the tenants look after the property ?

Unfortunately, they didn’t confirm  the tenants name. The reference they wanted was for the tenants brother and friend . I contacted the letting agent who stated he was quite happy with the service they provided. 

I shall continue to support LRS and to obtain my own verbal references.

23/09/2014
10:44 am
trafford4eva
Member
Members
Forum Posts: 13
Member Since:
01/12/2013
sp_UserOfflineSmall Offline

I recently stopped using my Letting agent when he told me he wasn’t using landlord referencing because he didn’t have the time to network and upload tenants and the rest of it. But they’re all over linkedin and facebook and twitter! So they’ll happily spend the time networking to bring in new landlords but not to make sure the landlords that already work with them are safe! No thank you! They said it was too time consuming but I’ve been doing it myself and it’s easy as ABC. Too time consuming my a*se!
There’s so many changes in the law for landlords at the moment. Licensing in Wales and areas of the UK and the Immigration Act I want to know my letting agents are taking their job seriously. I don’t want to be caught out because I’ve put my investment in the hands of the wrong people. 
Hopefully the likes of ARLA and UKALA will be on the ball enough to recommend landlord referencing and lifestyle referncing as part of best practise rather than sending it off to so called professional referencing companies that couldn’t reference for toffee!
We’re in rough waters at the moment and I’m determined not to be on a sinking ship. 

23/09/2014
5:56 pm
londonlandlord
Member
Members
Forum Posts: 208
Member Since:
29/08/2013
sp_UserOfflineSmall Offline

Trafford, It sounds a bit like the utility companies and phone companies who give you a cracking first deal and then don’t give you a good deal on renewal. I am with you mate if they don’t use LRS I don’t use them because if they cannot be bothered to reference that bit extra to keep me safe then they don’t deserve my business.   

23/09/2014
6:21 pm
rigsby
Member
Members
Forum Posts: 319
Member Since:
02/05/2013
sp_UserOfflineSmall Offline

Mary Latham said
The good news about the Immigration Act 2014 is that for the first time that I can remember Letting Agents are named in the legislation as a responsible party and will be accountable for the fines if they let their landlords down.

 

Mary my understanding is agents are only responsible if (and only if) they have made arrangements with the landlord “in writing” to take on the responsibility for checking  prospective tenants. Otherwise, the landlord will always be liable (even if they use an agent). So a agent could protect themselves by not having a written agreement specifically taking on that responsibility.

Or have I missed something? 

23/09/2014
8:17 pm
Mary Latham
Member
Suporter
Forum Posts: 2193
Member Since:
17/05/2012
sp_UserOfflineSmall Offline

You have not missed anything Rigsby that is 100% correct this is why I said

“It is vitally important that landlords ensure that they have good written contracts with their Letting Agents which clearly state who is responsible for what – this will be the Letting Agent in the hot seat under the Immigration Act – without this written agreement the buck will stop at the landlord even if the Letting Agent has failed to check the immigration status of the tenant.” 

Follow me on Twitter @landlordtweets

04/02/2015
11:54 pm
Patricia A
Member
Members
Forum Posts: 992
Member Since:
12/06/2012
sp_UserOfflineSmall Offline

rigsby said

Mary Latham said
The good news about the Immigration Act 2014 is that for the first time that I can remember Letting Agents are named in the legislation as a responsible party and will be accountable for the fines if they let their landlords down.

 

Mary my understanding is agents are only responsible if (and only if) they have made arrangements with the landlord “in writing” to take on the responsibility for checking  prospective tenants. Otherwise, the landlord will always be liable (even if they use an agent). So a agent could protect themselves by not having a written agreement specifically taking on that responsibility.

Or have I missed something? 

Oh well. I know some accidental landlords who have given their properties over to the Rent to Rent guys and haven’t a clue about this .Accidental guys just walk away leaving their property in good hands

05/02/2015
6:44 am
Paul Barrett
Guest
Guests

Mary Latham said
You have not missed anything Rigsby that is 100% correct this is why I said

“It is vitally important that landlords ensure that they have good written contracts with their Letting Agents which clearly state who is responsible for what – this will be the Letting Agent in the hot seat under the Immigration Act – without this written agreement the buck will stop at the landlord even if the Letting Agent has failed to check the immigration status of the tenant.” 

As a matter of interest is there a recommended clause template which LA are advised to use.

I would expect ARLA to have a recommendation for its members which could clearly be used by non-ARLA members

LL would wish to know the clause was legally watertight.

I would imagine that ARLA would have confirmed with a QC that the clause they use on their AST’s was so valid as NOT to be wriggled out of by LA when the inevitable fine is made against a LL who will be able to point the regulators to the LA liability.

I can see this causing many LA to just shut up shop.

They know how many illegals they have sourced tenancies for in the past.

It just wouldn’t be economically viable to use these illegals anymore such are the high levels of fines!

Mind you it doesn’t seem to stop employers knowingly employ illegal immigrants with the fines at £10000 per illegal!!

Don’t know how they afford the fines!!??

These illegals could bankrupt most small LL

I wonder if LA could use this liability for illegals attract more LL to use LA services subject to the LA being fully liable for illegals in the event of fines etc.

I guess these LA could take out insurance on their referencing going wrong and being faced with a fine which insurance would cover.

I can see LL of a nervous disposition reverting to the High St LA again!!!

I also wonder whether LL will be able to buy insurance from RGI companies to cover fines  and eviction even if they don’t take out specific RGI on the particular tenant because the tenant can’t meet the RGI criteria!

Perhaps this is something LRS might offer though I appreciate with the extremely robust LRS referencing process no illegals should slip through!!??

But still if available I would prefer to take out such illegal tenant insurance!!

Cos you never know…………………………………………………………………..even the best of us can get caught out!!

I’d willingly pay a Fiver per month for illegal tenant insurance in addition to any RGI premium!

I’m not sure what the eviction process is if you report an illegal to the HO.

Plus aren’t you essentially dobbing yourself in to be fined if it was you that did the referencing!!!!??

It is easy to see why LL will just make the pragmatic decision NOT to rent to certain tenant types.

NOBODY will ever be able to prove the reason why the LL refused them!!

Tis a shame; but due to the risks of fines etc many LL will determine that the BUSINESS risk is too much and choose NOT to rent to certain tenant types!

NO tenancy is worth it to the LL if he risks a £3000 fine per illegal tenant!!

At least NOT to the decent LL!

Clearly the old law of unintended consequences pops up again; hitting the overwhelming majority of legal tenants.

Were it ever thus!!

Forum Timezone: Europe/London

Most Users Ever Online: 755

Currently Online:
25 Guest(s)

Currently Browsing this Page:
1 Guest(s)

Top Posters:

PaulBarrett: 2895

Mary Latham: 2193

LyndonBaker: 1805

David Price: 1671

Patricia A: 992

DATA CONTROL: 970

Member Stats:

Guest Posters: 2577

Members: 6415

Moderators: 6

Admins: 1

Forum Stats:

Groups: 1

Forums: 3

Topics: 4539

Posts: 31177

Newest Members:

yogi, ttmm107b, lyndseycollin, frittons, sogolets, mazzer

Moderators: SamiiB: 453, News @ Tenant Referencing: 1606, laura: 15, Chloe: 107, lucybarr: 0, jaswhite: 20

Administrators: Paul Routledge: 3418

/* ]]> */