At Orchards, we offer three levels of service for landlords: Let Only, Rent Collect, and Managed. Although some opt for Let Only or Rent Collect, we always encourage our Managed service. Here we explain why…

Discussing renewals, move outs, and inspections with Let Only landlords – as well as carrying out additional services – is not uncommon, largely due to the great relationships that we maintain. During these discussions, we have discovered the huge errors that some landlords are making without the crucial support from our Managed service. Errors that could cost thousands of pounds, or even jail time.

In just a single week, we met separately with four landlords who are unknowingly, and substantially, overspending, or opening themselves up to prosecution.

Landlord 1

They had not carried out a renewal or rent review since the tenant moved in five years ago. In that time, the rental value had increased by over £300 a month. By opting out of a Managed service, they had left themselves with all the day-to-day management, whilst also undercharging in rent.

Landlord 2

Their tenant had caused damage to the stone kitchen countertops, which would not be covered by fair wear and tear. The landlord would be able to claim back a large portion of the repair costs on the basis that the worktops were less than 5 years’ old and have a 30-year plus lifespan. Unfortunately for the landlord, a comprehensive inventory, such as those offered with the Managed service, had not been taken. Instead, the conditions of the house were summarised on a single page, with only whole-room photos as used in the marketing to show the condition. If the tenant disagrees and the landlord has to instruct the deposit scheme to adjudicate, burden of proof falls on the persons claiming for damages. Without clear proof that the damage did not exist to begin with, it is very unlikely that the landlord will be awarded any funds to cover this damage.

Landlord 3

They contacted us to discuss a renewal, and to add a new tenant onto the tenancy agreement. It was highlighted that EICRs needed to be in place before the 1st of April, and that a new tenant would have to have Right to Rent checks completed, which the landlord had not undertaken. We also advised that the new tenant should be referenced, providing costs for this. They replied that an EICR was completed in March 2016, that they had not done a Right to Rent check, and that they were going to pass the reference costs to the tenant. Unfortunately, the landlord was not compliant as EICRs are required every 5 years. In addition, passing charges to tenants is a direct violation of the tenant fee ban. Failing to be up to regulations on EICRs and Right to Rent checks are criminal charges, leading to possible jail time and up to £60,000 in fees. Trying to charge fees to tenants is a civil matter, but fines range from £5,000 to £30,000.

Landlord 4

They contacted us to relet a property that they manage themselves, and to visit to take pictures and advise of a marketing price. After our visit, we sent pictures of a property that had fallen into a state of disrepair. The landlord was in shock that a property could get into such a condition in under a year. Without the routine inspections included in the Managed service, it is very easy for problems to escalate as they have here, costing vast sums to put right, and leading to a rent-free period whilst work is completed.

Each of these landlords, and we are sure many more, attempted to save themselves management costs, but in turn, they have created a situation in which they are faced with dramatic costs, or potential prosecution for wrongdoing.

For properties throughout Bedfordshire and the surrounding areas, we offer a full, comprehensive management service, and free reviews of your rental – so that we can advise if you are in line with current regulations or not.

For more information on how we can help and advise you as a landlord, contact us on 01525 40 22 66 or email ampthill@orchards.co.uk.