Newsletter March 2007
New offsite training solution
As a further commitment to deliver exceptional customer service, we have introduced a new training solution designed to save you valuable time whilst still benefiting from the best possible training.
Offsite VNC + telephone training is split it to a number of 'bite size' instalments. Each instalment is delivered over the telephone by an experienced trainer using remote desktop technology (C.A.R.L. VNC), and is available in the form of introductory or intermediate training.
For further information about this new training option please contact our sales and training team on 0845 345 5591.
New Staff Member
Katie Harris joined the C.A.R.L. Support team on Monday 5th March to give our clients further assistant.
Tenancy Deposit Scheme
Are You Ready?
The provisions of the Housing Act 2004 have received mixed blessings from letting agents and landlords alike. Notwithstanding the confusion over the regulations covering Houses of Multiple Occupancy (your property no longer needs to be full of students to qualify as a HMO) the health hazards regulations (covered by the HHSRS) and Empty Dwelling and Management Orders, there are many other areas of this veritable minefield that could catch you unawares.
Let’s take Tenancy Deposit Protection for example, considering Section 213 Topical? Well, it’s due to become law on April 6th 2007 – the question is, are you prepared?
Yes, it’s a matter of weeks before you will have to decide where to lodge your tenant’s deposit. Will it be a custodial scheme, where the deposit is sent to the TDS, or an insurance-based scheme, where you get to keep the funds, but in an audited client account?
Either way, there are very strict rules covering disputes between landlords and tenants and any issues could be judged by arbitration. Agents will no longer be able to make a decision on how the deposit is apportioned and landlords will no longer have the right to demand funds, should the tenant disagree.
After April 6th, all Assured Shorthold Tenancies will be covered by the tenancy deposit provisions of the Act. So, what happens if you fail to comply? Well, for a start you will be unable to serve a Section 21, (although landlords will be able to seek possession under any specific grounds in Schedule 2 of the Housing Act ’88). You will also be fined a hefty sum (three times the amount of the deposit).
Clearly there are cost implications for both the agent and landlord for administering either scheme. For the agent, it’s a matter of deciding whether or not to pass those costs onto the landlord. For the landlord who uses an agent where the fees are increased, it’s a matter of deciding whether to go it alone and join a landlord’s association to benefit from it’s scheme, or to stick with it and attempt to influence an increase in rent to off-set the costs.
The impact is obvious: either the agent, landlord or tenant will foot the bill in one way or another.
Why all this legislation? It’s simple enough. It’s designed to protect tenants deposits from the unscrupulous. Whether ‘the unscrupulous’ find ways around it remains to be seen – there are already unworkable suggestions floating around the industry. But for those of us that have been involved in lettings for a while, nothing comes as a surprise. Watch this space...
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