Payment of rent

image

The payment of rent on time from a tenant to a landlord is the golden rule in the rental industry. It is the most basic of expectations that rent will be paid on an agreed date. It may not be possible to keep a 100% record, but tenants should make every effort to pay on time and to save for emergency situations so the rent can still be paid. A simple way to ensure with relative certainty that it will be paid is to set up a standing order. With standing orders, money is transferred directly from the tenant’s bank account to the landlord’s, which removes the hassle of a manual payment.

Missing the payment date

Paying on time is a common courtesy, which should be enough of a reason to do so, but sometimes tenants need a little push. So if the rent does not arrive on its due date, a phone call may be enough if it is a genuine mistake, but if not, a landlord must notify the tenant in writing followed by the relevant action in your region. I would recommend seeking professional assistance at this stage is needed. 

Outsourcing the management of your property

One of the benefits of renting a property through a letting agent is that they take over the responsibility of managing the payment of rent. Now whilst there is a fee for a full management service and rent collection, it is well worth it as they take over the stress. This can be a very stressful and time-consuming task and if not done so correctly it can result in being very costly. Time spent chasing tenants could be used much more effectively and as a result many leave it to the professionals.

Late payment penalties

There are ways to discourage late payments which both landlords and agents can make use of. The obvious one is having a fee for late payments,  many leases which have a financial penalty clause for late payment of rent. Another option is to charge a slightly higher rent but give discounts for on time or early payments.

By Andreas Riha

Tenancy Board

image

The PRTB in Ireland is also known as the “Tenancy Board”

Private Residential Tenancies Board (PRTB)

To avail of the PRTB dispute resolution service, tenancies must be registered with the PRTB. Disputes regarding deposits, lease terms, ending tenancies, rent arrears, market rents, complaints by neighbours, breaches of statutory obligations and any other matters related to the tenancy are covered by the service.

To get the process started, a dispute application form (available from prtb.ie) must be filled out and sent in. This costs €25 per dispute. After this, the landlord and tenants will be called for either mediation or adjudication. In mediation, a mediator discusses each side and facilitates each party reaching an understanding that both agree with. This is often more preferable than having a third party decide on the outcome. If the parties don’t want to use a mediator then an adjudicator is appointed, who examines the case in detail and decide on a resolution. This resolution may be binding.

Tenancy Tribunal

If the parties are not happy with the adjudicator’s decision, it can be appealed to a Tenancy Tribunal within 21 days. In some circumstances the Tenancy board may refer a dispute directly to the tribunal. The tribunal consists of three people with relevant knowledge and experience. While not entirely formal, basic court rules apply. Both parties can make their case and call upon witnesses if they feel it is necessary. The tribunal’s resolution comes in the form of a determination order of the PRTB and is binding, unless either party wishes to appeal it to the High Court within 21 days. 

Dispute over the Condition of Property

Disputes of this kind occur the most frequently out of all disputes. Generally they take the form of a landlord withholding a deposit to cover the cost of any repairs that have to be made to return the property to the condition it was in at the beginning of the tenancy. Tenants will often argue that they are leaving it as it was, and any damages were already there before they moved in. Taking the dispute to the PRTB can be a lengthy and costly process, so it’s better to prevent the dispute from occurring in the first place. How is this done? Quite simply really, take an inventory.

An inventory is a log of the property, the contents and the condition of them. They reduce the occurrence of disputes and can speed up the resolution process and reduce costs if a dispute does arise. If the inventory taken just before the start of a tenancy is comprehensive enough, there shouldn’t be a problem in spotting damages or anything that goes beyond normal wear and tear. A landlord can choose to do it themselves or hire a professional inventory clerk. To do it themselves, a landlord will need the following: 

  • Patience. A proper inventory takes time to complete
  • A clear and methodical process is needed to ensure everything is noted correctly and can be easily checked. For example: take one room at a time, noting the main items first and their condition. Be sure to note if there’s currently any damage or if an item is brand new. Then list the smaller items e.g. pictures and their condition
  • Be detailed and realistic in your descriptions e.g. say one brown leather two seater sofa with scuff marks on the left back leg, instead of one sofa 
  • Take photographs (preferably with a digital camera) of the rooms as a whole from multiple angles as well as of individual items
  • After the inventory is complete, walk around the property with the tenant and agree the descriptions, ensuring that the tenant checks and signs the inventory list. Sign it yourself, keep the master list and hand over a copy. 
  • If any changes are made e.g. new curtains, an amendment should be made to the inventory. 
  • While this option is cheaper, it does involve the risk of bias. 

For the professional inventory clerk option: 

  • Dedicated inventory companies haven’t taken much of a foothold in Ireland as yet although there are some companies who provide this service. 
  • These companies take over the landlord’s role by doing a full inventory, walking around with the tenant and reaching an agreement and at the end of the tenancy they’ll carry out a full analysis of the original report and compare it to the current condition. 
  • They also carry out inspections throughout the tenancy and adjust the inventory when needed. This keeps things up to date to prevent disputes at the end of the tenancy. 
  • As they are trained for the job you can expect the final report to be well structured and very detailed with possibly more observations, more so than if it was just an ordinary landlord conducting it. 
  • Also, a third party will more likely be impartial so the bias pitfall is easily avoided and better judgement calls relating to wear and tear can be made. 
  • A letting agent will do close enough to the same job as a professional inventory clerk. If your letting agent uses Rentview they will have the ability to share a full picture condition property inventory report directly into your email or through your Rentview account.

The decision of which option to choose is a matter of preference. Landlords who have the time, patience and ability to be methodical, concise and realistic will probably do it themselves but those who live a distance from the property or who just don’t want to go through the hassle of it all will probably choose the dedicated service. Or if the landlord is confident that the letting agent will do a good enough job then that will suffice. 

To find out more about the Rentview Inventory app contact 

image

Twitter: Rentview_

Email: info@rentview.com

Facebook: Rentview

Property management:Retaining tenants in the longterm

       2012 is Well under way how can Agencies work towards a successful year?

Hello and welcome to the weekly Rentview property blog, today I am going to look at the top priorities of company CEO’s and analyse or discuss these in relation to the lettings and management industry in Ireland. The idea for the blog came about after reading through a great report published by Oracle that I received from a lecturer in Strategic Information Systems for Business this week and it highlights some great areas in which managers and company CEO’s are looking to address and improve. The report is titled ‘The Best Defense Is a good offence’ and it immediately stood out to me as the lettings industry has become quite competitive recently with the fall in attractiveness of the market and influx of people renting.

So what were the top needs and business improvement goals identified by the CEO’s interviewed by Oracle? See the table below!

       image

Today I would like to briefly look at the top ranking priority on the list and over the coming weeks I will look to analyse and discuss the other top improvements that agencies may be able to make in accordance with those ranked here. If there is any that stand out, let me know in the comments!

Attracting and Retaining new customer? 

A pretty obvious answer that we could have expected from managers and a goal any agency will have a major focus on, attracting tenant brings in the demand we can utilise for securing landlords properties and once we attract the landlord this can lead to long term income for an agency is they are retained successfully through management services. Today’s blog will solely focus on the tenant as the customer and next week we can look at the landlord as the customer for a better analysis or discussion. 

There is obvious ways in attracting tenants to your agency with Daft.ie being the hotbed in which they browse the thousands of properties in Ireland but my opinion is that a lot of letting agents do not put enough focus on the retention of a tenant. Check out this recent theoretical model on customer service relationships , the majority of the points are relevant for Letting Agents. 

                         image

Above-Building a relationship as a PM with your tenant can lead to retention.

If we view the tenant as a long term asset to the company like many other industries it can eliminate a lot of re-occurring issues such as minor disputes over often avoidable issues and the significant time spent in re-letting your properties at the end of lease terms if a tenant is lost. Ultimately an agency should aspire to provide such a high level of service to its tenants that they act as advocates for that agency and create a positive word of mouth marketing channel that really doesn’t exist with a lot of agencies in the Irish market yet.

You want the tenant to be so satisfied with the level of management received they wont go looking on Daft for new properties as the end of lease approaches, and if they are in a position where they need a new or improved property they contact you the agency!  That’s all for this one, don’t forgot to comment with your opinions and share the content if you enjoyed the blog. You can follow me at @cormac_rentview and for information on Rentview check out the main site.

rent management software

Students and renting: Getting the Inventory Right

Today I wanted to get a quick blog done on the importance of Inventories for students in rented accommodation. The points obviously apply to all renters but its important the message gets out to first time renters who are sometimes not educated on the matter before they find accomadation. There is a few key areas I wanted to discuss and if there is other important issues please drop a comment at the end.

       

Checking your list of Inventory with the actual contents in the property

Once you find your property and are set to move in often the landlord or agent will provide you with a list of contents for the inventory which you are to sign. At first glance to yourself this is just a simple process sign it and move in but there are a few things you have to do first.The last rented accommodation I had provided me with a list of the various contents from sofas,dining chairs,curtains,hoovers and more. After signing the lease and the inventory list we noticed several items were missing from our list. Whether the landlord purposely did this or simply didn’t know which is probably the case its irrelevant as you are now liable for that missing inventory unless you inform your landlord or property manager of the mistakes. So always verify exactly everything Thats on your list.

When signing the inventory list/report you may not think in the long term but there is two key issues which often not being addressed with this document, picture evidence and condition. Once you have verified your inventory and made any amendments you have to check the condition of your contents and communicate your findings to the landlord or property manager(do this via e-mail or it will mean nothing). In an ideal world every agent would do a thorough report that captures all this vital information but in reality it often isn’t the case. So you have checked the contents and everyone is clear on  whats in the house, now the important part

                    

This is the sticky point with inventories its all well and good knowing the contents or inventories but at the end of the day the most likely disagreement or dispute you may find yourself in is condition of the property and its contents.Ultimately this is what will protect landlords and renters against one and other in any potential disputes at the end of a tenancy. Simply writing down the condition of something is good but not sufficient as evidence of the condition so we need pictures! Taking a photo though has its drawbacks as often cameras wont have dates on them so make sure to send these images again via e-mail and ensure the landlord is aware or agrees with the condition.


Thats all for today and thanks for reading, dont forgot to follow me on twitter @cormac_rentview and search Rentview on Facebook! for more information on inventory reporting and the application Rentview offers to letting agents you can click the link here: http://rentview.tumblr.com/post/11140727179/rentview-inventory

Rental property – Fake landlord scam

image

Following on from the cheque cashing scam its important to remember that not only the agent / landlord who is the potential target in property rental scams. Through out my career within the lettings industry I have spoken to numerous tenants who have experienced such a scam. The fake landlord scam is where tenants hand over a deposit and possible rent upfront to a fake landlord. This scam normally happens as follows.

A home hunter responds to an ad normally on a free advertising website but could also be on a property portal, local paper etc. The home hunter arrives to view the property which is priced below the norm in a well sought after area. The tenant very much interested and in assuming they are getting a bargain is convinced to hand over a deposit. So what is wrong here you ask? Well this landlord is doing this to every set of tenant who has called to view the place. The landlord could do this for the whole day in 30 minute intervals or even a couple of days. The first time anyone is made suspicious is when the phone number the tenant contacted the landlord on is no longer reachable. Here is the story of a particular case in Dublin of such incidence.

In some cases the brazen fake landlord will also arrange to meet, sign a lease, hand over keys and collect the rent in advance perhaps in a hotel lobby or coffee shop. When the home hunter arrives with lease and key in hand at the dream property the key does not work. There might even be a queue of new tenants looking to see if their key works. Here is such a case where once again the con man was caught

So as you can see just because someone has possession of a property it does not mean they are the owner or acting on the owners behalf. It is ever so important to know who you are handing the deposit over to. Bank draft & cheques are always the best way to give a deposit as they are traceable. Under some genuine circumstances a property may require something to hold it for a night. Perhaps until you can get a draft and if you are placing a cash deposit it should be only a token amount to show you are serious. I would say nothing more than €50, this should be  ok for one evening. Most if not all professional agents and landlords will be fine with this and if they are not it might be better to walk away.

The above incidents happen to a very, very, very small percentage of rental properties. But it can happen and it is always better to be safe then sorry.

Other blogs which may interest you are The Rental Property Scam & Property Rental scam cheque cashing

by Andreas Riha

Property rental scam – Check cashing scam

image

Having recently read Mashables Top 10 Scams of the year I noticed that the “Check Cashing Scam” was up with the best of them. For any letting agent or in some cases landlords advertising a property to rent you have more than likely received a request to partake in this scam unknowingly. 

The check cashing scam is normally done through email. It normally would start by receiving a detailed email from a person claiming not to be in the country at the moment and that they would like to take your property. Sounds great right? Wrong..

Normally the person has not the ability to make or take a call because of coverage in the area or work commitments. Instead they would like to send you on a cheque or bank draft to cover the rent & deposit as this property is definitely for them…. and they know this by the couple of photo’s!!

The scam kicks in when they ask you to forward on the surplus of monies from the cheque / draft as this was company expenses and it could only be made out in one cheque. What ever story will be given it normally goes hand in hand with the lengthy previous emails to sound very genuine. Stop trying to convince yourself that this person is genuine..

Where people have gotten caught out in the past is forwarding the surplus of funds via Western Union and in some cases bank wire. By the time the bank informs you the cheque / draft has not cleared the tenant is long gone and no longer contactable with your money. Samples of such letters can be found here http://www.daft.ie/safety-online

Normally if its too good to be true well then it probably is. Tenants want to view a property or have someone view it on their behalf prior to putting any monies down especially if they are committing to a medium term lease.  

If you are contacted by somebody requesting such a transaction my advice would be to ignore the email. 

Another blog post which you might be interested in is-

The rental property scam

by Andreas Riha

IT Solutions in the Lettings Industry

        image

Some of the best nuggets of information I can share with you this week comes from an interesting talk I attended from Derek McCullagh the head of operations and technology in AIB and Karl Howley the chairman of itsmf.ie on Monday 5th of March in DIT. The topic discussed was the importance of adapting IT solutions for organisations in Ireland today. For those who haven’t heard of irSMF.ie, like me before Monday morning I’ve taken this quote from there company site which describes what they do best:

 

to be the premier community for leadership in IT service Management In Ireland ’

 

Now this applies to most companies in different industries but I will refer to the lettings and management side of things for the purpose of the blog. So let’s start with the roles service management plays in helping business’s do things:

Faster 

More Reliable

More Efficient 

More Cost effectively

This is the one slide from their presentation on IT services management that stuck with me most and I will explain its importance under each heading below or lettings agent and estate agent owners below.

1. From an agencies perspective imagine you can receive a rent and click one button to do the following

  • inform the landlord rent is received
  • inform the tenant rent is received and send them a receipt
  • update their schedule of  online accounts

You’re cutting out a lot of work for yourself by having a system which can perform such tasks and ensure you only have to do the basics of property management while the IT system performs the rest for you.

                       Efficiency in Organisations

2. Letting a property and managing one involves a lot of paper work and reliance on sufficient management of documents and tenant/landlord information. If you’re faced with an issue from a tenant or a landlord in the office and you can’t draw on the information of them straight away it relfects poorly on you and your organisation. 

Imagine turning that 5 or 10 minutes spent looking for their file whether its references or lease terms into five clicks on your desktop where you have all the information necessary to deal with the problem at hand!

3 and 4 Are closely linked and some of the more appealing points to organisational managers, how can you carry out the core processes of your business more efficiently and for a lower cost. By adapting a service solution into the lettings and management of properties its hard not to save money and be more efficient.

          image

Using the simple example in lettings of taking a property in from a landlord for letting I will explain the benefits of using IT systems. Lets say the property is new on the market and proving very popular what is the process of letting the property:

  • You take 5-10 calls in the first day you ad is live on daft and be jotting down the tenant information and appointment times as you take the calls
  • You then may refer back to the landlord on potential viewings or tenants 
  • Once you show the property your faced with the dilemma of who to pick and acquiring all the necessary documents such as work and landlord references

Think of logging this information online into a management system for letting agents and then sharing access with your property owner so as they know you’re working your hardest to secure someone for the property. Once you meet the clients you can tell them upload any relevant information onto your data system and now the landlord can see themselves the potential tenants you have. You can communicate through your system at speed and no cost such as phone charges and the process is a whole lot easier now!

You may also be interested in-

Why letting agents must use a smart phone

by Rentview

Condensation in a rental property

image
According to the good folk over at springcleaningtips.com, a household breathing can contribute 1.2 litres of water vapour in the air.
Showering contributes roughly 1 litre.
Cooking and using a kettle obviously varies depending on which method and how often it’s used but can be as high as 3 litres.
Washing and drying clothes can add an enormous 5.5 litres of moisture into the air. With that amount of added water in the air, it’s easy to see how condensation can build up quite fast.
image
So as you can see just going about your normal day to day activities in a property contributes greatly to condensation. Many tenants may feel that ventilating a property is like throwing money out of the window with regards to heating costs and as a result do not ventilate correctly.
So the next time you see Mould before treating make sure everyone knows what caused the condensation in your rental home.
 
Other blogs of interest may be Wear and tear of a rental property