Previously to provide themselves with some free time and to share their responsibility the landlords would hire agents but these agents would demand for more than they worked for. They would demand hefty commission every time there was a term renewal between the landlord and the tenant, placed by the respective agent. This problem was observed by The Office of Fair Trading and they were backed by the High Court.
Therefore on 10 July 2009 it was found that the custom of taking repeated commission was highly unethical and therefore should be stopped. The court has now issued injunctions preventing demand for such commission.
The Landlord’s Lettings handled more efficiently
If the landlords are thinking of hiring someone to help them manage their letting, they should be considering someone who is member in the ARLA (Association of Residential Letting Agents). All those who are a part of the ARLA have to follow a strict code of conduct in their professional life. Any problem that the landlord faces with his agent will also be looked into by the ARLA.
Although most ARLA members join the Property Ombudsman Service it is still advisable for the landlords to read through the contracts carefully because different agents offer different services. For example, some may only collect rents from the tenants where as some may also look into the repair and maintenance problems then again there are some who might look into all the above.
How to ensure continuous rent payment
The authorities make sure that there is a non-stop payment of rent irrespective of your tenant’s financial conditions. This no doubt has its drawbacks as the local authority for the tenant will always tell him not to evacuate unless the landlord has a court order.
Few points the landlords need to keep in mind
The meaning of judgment is that you are liable for some debt and this has been proved in the law court. When a creditor wins against you he has the rights to take your wages and pay the debt. This is a bad mark on the credit file. Lenders also look for renewal of judgment when you don’t pay the debt after 10 years. This situation although difficult can be solved.