Letting Agents Again. And Sadly - Again.

As I’ve ranted and raged previously here and elsewhere, landlords, at the behest of their representative toadies on earth – letting agents, successfully demand, inter alia: references, guarantors, years of certificated accounts from freelancers, and five years of previous addresses. And what reassurance do tenants successfully request of their all-powerful overlords? None.

This must end. We need to see landlords jumping through as many flaming hoops as those demanded of renters. Evidence of permission to let from mortgage companies, proof of timely mortgage payments being made, registration and training are all increasingly necessary.

The good news is that Wales will introduce landlord licensing (you can hear the squealing from afar) with Scotland set to follow suit. Landlords need to be regulated so that tenants can have some recourse (even against the evil clowns who would undeniably do their best to avoid being licensed.)

Tenants still complain to me about receiving no guarantee of their landlord’s integrity. Meanwhile, renters submit to numerous checks, including those new-fangled ‘affordability’ tests, which make me extremely angry, as computer protocols ignore the fact that most people go without basics to pay up where are rents rocketing (low wages inflame this problem.) Meanwhile letting agents in high demand areas encourage deluded owners to hike prices until they soar ever skywards.

This reprised diatribe was prompted by the emergence of those promising new rental websites, which allow landlords and tenants to do a deal without letting agents souring relations. Letting agents are increasingly irrelevant; indeed, they are endangered. The oncoming mass extinction event of these predators will finish off stupid fees (already illegal in Scotland) and branded smart cars. No more agents speaking in place of landlords who might have been more reasonable in person.

There’s one problem with all these sites: the references and checks are all aimed at mollifying landlords. Less consideration is given to tenants, currently not empowered to demand evidence of their landlord’s credit history, employment status, whether they actually own or are entitled to rent out the property, any history of threatening and/or abusing tenants, and if they have any CCJ’s – even those with no bearing on their ability to pay the mortgage.

Change is coming. Many letting agents will go bust, but since they’ve bought it on themselves, it’s so very hard to care. Agents have no interest in encouraging long-term occupancy, as most charge fees to both landlord and tenant with every new occupation. But soon, soon, across the land, offices will close, with agents brought down by unrestrained greed, arrogance and incompetence. Why else would they charge from a menu: for references, ‘admin’, and hundreds for credit checks costing a fiver (and which are pointless anyway.)

No: the new sites are not yet perfect, currently intended to placate and attract fretful landlords instead of reassuring and protecting vulnerable tenants. Only when landlords face the same background checks and sanctions as tenants will things be equal, and those days are upon us. Remember bookshops? Remember travel agents? Insurance brokers? Letting agents will be the latest high street casualties, their once flash offices boarded-up, deserted and forlorn. Bring it on!

Landlord Boot Camp?

Some people would turn landlords into squaddies, and have freshly shorn newbie landlords forced marched over rough, snowy terrain then vigorously barked at by sour Sgt Majors, and afterwards made to pass exams that last six hours (no break) to test whether or not they’ve learned the correct notice period for an Assured Short Term Tenancy (Accursed Short-Term Travesty).

They would then be marched repeatedly at gurkha speed shouting the requirements of good practice in rhyme like trainee US marines ‘I don’t know but I’ve been told/Two months due if flat being sold! (to a close relative…’)

Or, I’d like people working in the profession of being a landlord to go through regulated, tested, compulsory training (albeit with some shouting. If they are naughty.)

Here’s the problem: landlords have an enormous impact on the daily lives of vulnerable human beings. Buying a place and renting it out endows each and every landlord with enough power to undermine daily security, living standards and happiness. Newbies commonly know nothing, imagining that it’s like a fabulous new hobby/money-making sure-thing, not a business with implications and inherent risks; one requiring some knowledge of law (or a willingness to follow legal advice).

Anyone with enough money can become a landlord. Architects aside, much of the property industry is ruled by unregulated amateurs, with no real possibility of this changing (at least not in the current reality in which we are living.) The Private Rental Sector is gathering up most available properties and clutching them to its bosom, so small-time landlords are increasingly common.

Landlords should be trained at proper courses, maybe at night school (can’t find the time/cost? Well then you don’t get a licence and will be barred from landlording.) They will learn about needing the mortgage lender’s permission before letting a property, and will appreciate the benefits of reasonable, lawful and tolerant behaviour, such as doing timely repairs, or not waltzing breezily through the front door whenever they have the urge to say hello to/harass their tenant, or indeed at all.

They would appreciate the need for insurance, in case things go wrong/payments go awol. This would help them out, and might make the process less stressful. They would also save money on letting agents, encouraging longer tenancies thereby causing less of the dreaded voids (where you can hear tumbleweed rolling softly across the newbuild parks.) They would also learn that things can and do go awry.

They would learn which type of property is best suited to which type of tenant (better when buying and means they won’t expect families to cram into newbuild flats) and when to trust their instincts. They should also be taught about how to make a realistic profit, that is - not by cranking up weekly rents.

I would teach them how to be reasonable, how to behave, how to save themselves from loss. They would be less likely to be standing outside a court scratching their heads wondering aloud: ‘…what just happened?’ Everybody wins. Quick march…