Yesterday I was at a Networking Breakfast , and was approached by a Self Managing Landlord , who works with a Company who sub-lets his property. And he has asked them about how ROPA (Regulation of Property Agents) will affect him and his team.
He said that the Company claimed that the rule would not apply to him as all his Tenancy Agreements were in the Company Name , and as he did not have any staff that there was nothing to worry about…. !!!!
Now several issues come to mind here … firstly RENT to RENT Companies ARE Agents and as a Result the Legislation WILL apply to them too.
We refer to the ROPA report July 2019 which states :
“Throughout our work, we have come across many property professionals and intermediaries operating beyond the traditional lettings, management and sales models. Some may count as property agents under existing legal definitions; others would not. We considered which of these types of agent should fall within the scope of a new regulatory regime, examining the following:
• Auctioneers of residential property who sell homes directly via auction;
• Rent-to-rent or ‘guaranteed rent’ firms, who take on a lease and then sub-let properties, offering the ultimate landlord a defined rental return regardless of occupancy or tenant behaviour;
• Property guardian providers, who find residents for unused commercial premises which they do not themselves own;
• International property agents, i.e. both UK-based agents and, in as far as is practical, agents based overseas, who provide a service to clients in this country who rent or sell overseas property or UK property to overseas buyers; and
• Online-only agents, who do not have a traditional high street presence. In all of the above cases, the agent, or their company’s activity, shares the essential characteristics of traditional lettings, management and sales: they are offering services as an intermediary to a property transaction.
Excluding any of these from the scope of regulation could create potential loopholes.
We therefore recommend that auctioneers, rent-to-rent firms, property guardian providers, international property agents and online-only agents are covered by the regulation of property agents.”
Secondly : as a landlord would you not want piece of mind that the Company/Agents filling your property with occupants. Are REGULATED, QUALIFIED , LICENSED?
Why would you work with someone unwilling to acknowledge and embrace the legislation ? Entrusting possibly your largest investment to someone who has attended a “get rich quick course” who now wants to make money on the back of your property ?
This Legislation is going to have a massive impact on the industry and Agents and Landlords should be planning for this now …. start asking the right questions of your Agent whoever they may be.
You do not want to get saddled with a Company that gets caught out or has to fold!
Worried then get in touch we can help you ask those questions and get the answers you need to protect your investment .
Or come along to our event you can register here