This months theme is on ‘checking and referencing’ but it is not just the landlords who need to be careful.
Tenants also need to take care.
Frauds and scams
There are a number of fraudsters out to get you.
For example is the person who shows you the property really the landlord? They could be someone just out to get your rent and deposit from you after which they will fade away into the sunset. Students are often targeted in this way.
Then sometimes the property itself is non existent. The prospective tenant, usually someone coming from abroad or who is unable to view the property, will be asked to pay the deposit up front and will then arrive to find it does not exist.
Be particularly careful also if you are asked to send money via the ‘Western Union’ service as this is often used in scams. One of these is where you are asked to wire money to a friend or relative to prove that you can pay the rent. After which the ‘landlord’ intercepts the money and disappears.
It is difficult sometimes to spot these situations. If you are a student, you will be safer if you just rent properties recommended by your student accommodation office. Otherwise, doing a search on the internet will often help – Ben did a post here with some guidance on this.
Other reasons to check your landlord
Other than the scams above, probably the worst problem is if you move in, only to find that your landlords has failed to pay the mortgage and that you are about to be evicted by the mortgage company.
In the past unfortunate tenants have been ordered to leave within 24 hours. Now you have the right to apply to the Court for two months to allow you to find somewhere else to live. However you will not want to be put in this position at all.
It may be a difficult one to avoid however. Even if you use a reputable letting agent, they are sometimes taken by surprise by this as they usually do not check this out before taking a property on.
There is a company on the internet with a service called Check Your Landlord but this only covers the United States. We need something similar over here.
Then you will want to avoid landlords who fail to do repairs properly and who generally offer a poor service.
Again, the internet is your friend here – a search against the landlord’s name may bring up information posted by previous tenants.
See also if the landlord is registered with the National Landlords Association (or indeed any landlord association) as this is a good sign – the NLA have some guidance for tenants on their site which is worth looking at.
There is also a huge amount of advice for tenants on the Shelter website.
The website How to Check a Landlord Reference has some helpful guidance specifically on this topic but again it is aimed at Americans.
And finally
Entering into a tenancy agreement is an important financial commitment so you need to take care.
It is not something you can just walk away from, as your landlord, until he re-lets the property, will have the right to sue you for the rent, on a month by month basis, for the rest of the fixed term.
Do as many checks as you can and at the very least search against the landlord’s name in Google.
Although in the current housing crisis many tenants may not have a lot of choice over where they rent.
But that is another issue.
Tessa,
The Mortgage Repossessions (Protection of Tenants etc) Act allowing 2 months stay of eviction only applies to tenancies that aren’t binding on mortgagees. i.e an accidental landlord letting without consent to let.
If there is a Buy to let mortgage or the landlord has consent to let then the tenancy is binding on the mortgagee. i.e if it is a 12 month AST, then the mortgagee can’t seek possession for 12 months.
Prospective tenants should ask if there is any mortgage on the property, if it is a BTL mortgage or if the landlord has consent to let.
Verify the information (and proof of ownership) on land registry for £3;
https://www.gov.uk/search-property-information-land-registry
Just writing to the owners address as shown on the land registry asking for confirmation that XXX is acting on their behalf can stop 95% of the cons.
But be aware that the land registry can take a long time to be updated after a sale, so if the landlord had just brought the property, you will need to check with their solicitor after checking with the law society that the solicitor is real.
Also take a copy of the landlords ID!
And NEVER pay cash (or westen union, or PayPal) for rent or the deposit, always pay into the landlords or agents bank account; the police can trace bank accounts, so fraudsters like cash.
@Ian and HB it is really heartening to hear your support for tenant checking of landlords but I wonder if all landlords would share your open-ness?
I wonder if a tenant became too discerning, would it damage their chances of getting a home?
@Ben, they way I see it.
Option one tenants becomes more discerning.
Option two I get destroyed by yet more badly defined regulations that still have no effect on the bad landlords.
I take option one any day….
If a tenant wants a home, they need to change themselves into a person that a good landlord wishes to rent to. Likewise if I want good tenants, I need to provide a property (and service) that is of the level they rightly expect.
As I explained to the builders that saw how the tenants left my most recent property, “bad properties get the tenants they deserve!”.
The issue with these cons, is that a good tenant is often in, and then loses all trust in all landlords.
“Bad properties get the tenants they deserve” sounds like it should be a motto for a landlord association ha-ha.
Having become heartily sick of negotiating between angry tenants and landlords in countless black holes of Calcutta over the years I am of the opinion that the worst landlords and the worst tenants have a way of finding each other.
Doesnt mean that there arent cases that dont adhere to my cosmic principle but it’s as common as the Pareto Principle of 80/20.
The properties with the worst conditions tend to be the cheapest and so attract the poorest and most desperate tenants.
Landlords of those properties tend to think that because people are desperate that it is acceptable to push them around as a kind of inevitable ‘Tax’ on their desperation which they must expect and so people in this position move from rogue landlord to rogue landlord, because poverty traps them in that third circle of hell.
For a while now I have been trying to get a family out of a house with no heating and a violent landlord. We have arranged an interest free loan for deposit and rent in advance.
They found somewhere they could afford to rent and were enthusiastic about finally getting of their hell hole. Trouble is I checked the address on land registry and it is another landlord on our rogue list.
Frying pans and fires spring to mind.
Regulation and enforcement is the only answer in deterring rogues from getting into the business and raising property standards and the 29 council enforcement powers we currently have in place are entirely inadequate, as is the level of staffing following incessant cuts and attacks on local authority budgets.
It wouldn’t bother me Ben, I welcome and encourage it (but I do get your point).
If a tenant approaches it in a friendly and chatty manner, I don’t think it would put off decent landlords, only the bad ones.
Besides which, basic common sense checks such as land registry don’t require a landlords permission or knowledge. Nor does knocking on doors and chatting up the neighbours.
(I’ve spoken to hundreds of neighbours when buying properties, never once had a bad reaction.)
But we’re preaching to the converted here, anyone bothering to go as far as reading Tessa’s article is very unlikely to become a victim.
I met a guy a couple fo weeks ago who runs a speed dating event for landlords and tenants to chat and get a feeling for each other.
What are your thoughts on that?
“Regulation and enforcement is the only answer”
Maybe, more regulation and enforcement (specifically targeted) is required but that is just cure rather than prevention.
It is certainly not the only answer.
Even if you could get rid of all rogue landlords (chopping the Hydra’s head?), good landlords won’t suddenly step in to take their place.
Sure, discourage rogue landlords but there needs to be equal or greater measures to encourage good landlords. Otherwise the spiral will continue, good landlords leaving that end of the market and increasingly nastier rogues filling the void.
Speed dating? Might work for high end of the market.
I’m more of a worn out old hooker.
Ben,
Re speed dating event for landlords and tenants…
I don’t see the point for single lets as I don’t care if I like my tenants. However for someone looking to take in a lodger great, likewise for a HMO let on a group AST, when the current tenants are looking to replace someone.
I don’t see it working for HMOs on per room AST, as what matters is what the current tenants thinks about the person, not if the landlord has hobbies on common.
“Regulation and enforcement is the only answer”….
The only new regulations I would like to see are.
a) A way for you to search the land registry to find all properties owned by a given landlord. (Plus any laws needed to make the above work)
b) A requirement that anyone managing a property, must provide there details to the land registry. (So you can find all proprieties manged by a problem agent.)
c) A way that landlords, agents, and employee of agents can be disqualified when convicted, like a person can be banned from keeping dogs.
And LOTs more resources for enforcement of the current laws. Once ALL local councils have proved that they are effectively using their current powers, maybe then more powers should be discussed.
Haha HBW you old tart!!!!!!!!!
Ian option a) already exists. Its a PN1 check but trouble is its not available to the public.
Option b) would be handy but there are probably easier, more accessible ways than land reg. To be honest the main problems we get is dodgy agents being dishonest about whether they are managing or merely letting when you try and ascertain liabilities for different things
Option c) I give my full support to. Like points on a licence. I think this is how it going to operating in Wales
Strange….
Then way does my local housing enforcement team not go after the know bad landlord, they seem to just responds to complaints.
If they just always inspected 3 other properties a landlord owned, when they found an important problem with 1, it could have a great effect.
Its the difference between a reactive and a proactive service Ian.
I work in a proactive one. If we get a regular landlord causing problems we do a PN1 check, find out which other properties he owns and start checking the lot.
Target the rogues and leave the rest alone.
The main barrier to this is staff cuts however and consequent doubling up of duties.
Most councils these days are like Moscow department stores c1984. Everything in the shop window but nothing in the shop