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  • Property-a-holics

    Landlords now required to join redress scheme

    what happens to those mystery landlords (and freehold companies who are also landlords Wink based in mysteries places overseas? 

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    I can understand landlords to be required to belong to a scheme, if they are managing property. But for those who choose to pay for a property management company to manage their  let's it seems like double bubble?  Seems a tad unfair, would of helped letting agents with the tenant fee ban, as more landlords may of just passed to an agent. Which surely is better.

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    Stephen Coles Dip RLPM

    Complete Property Management

    32 Lune Grove

    Blackpool

    FY1 5LE

    01253 291816

    07967 561210

    With the greatest of respect, over the years my experience of managing agents has been without exception disapointing, both I and my tenants are much happier with my management standards. I’m sure that there are some excellent agents out there, i just never found one.

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    The government’s new redress system, announced last week and to be implemented later this year, must be free for renters to use according to the consumer charity Citizens Advice.

    The charity says it has helped on 14,000 issues about repair and maintenance in the last 12 months - the largest single cause of complaint from private sector tenants coming to the organisation. 

    Full/source article

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    This Redress scheme will need a lot more meat on the bone and considering how slow government is, having it implemented by the end of the year seems a bit hopeful.

    My worry is that the scheme will be allowed to award compensation,  its free to tenants, so it opens up a whole host of spurious claims in a hope for compensation.

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    I've sent the following message to the two redress schemes listed on the gov website. With their permission, I will post up whatever response I receive. There doesn't seem to be a handy e-mail address to also ask the government the same questions:

    ---------------------------------------------------------------------------------

    Dear Sir or Madam,

    I want to better understand how the Property Redress Scheme will work when compulsory and have two questions:

    1) Will there be a means of redress for a manager against a bad tenant? I understand if you find against the Landlord who subsequently ignores your resolution they will be struck off the scheme, unable to legally rent their property and added to a bad landlord list. If you find that the tenant was wrong can your resolution compel them to take action and if not will they be put on a bad tenants list?

    2) 'Stuck in the middle'. Based upon a recent case, I would like to know how the following scenario would be handled by yourselves.

    A tenant complains to you that the heating & hot water has failed in their flat and the Landlord has not resolved the issue for X days. On the surface of it the landlord is  at fault however, the freeholder of said flat is the local authority who provide a district heating & hot water scheme.

    The landlord (Leaseholder) can and has provided electric heaters and pays the electricity cost but cannot resolve the lack of hot water- it is beyond the landlord's control. The landlord provides as evidence correspondence between themselves and the council heating department.

    The council/freeholder state that their system is failing because the local water company have reduced water pressure to the area and their system is unable to work correctly on the reduced pressure.

    In the above scenario, what would your resolution state?

    Are you happy for me to make public your response on property websites?

    Many thanks

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    Appreciate your efforts, but I fear that you will not get any kind of meaningful response.  It has yet to be decided if the two existing redress schemes will be involved, although it seems likely.

    The proposed changes will be discussed, reworked and revised later this year by a Redress Reform Working Group, which will include existing redress schemes as well as the government.

    At the moment, all we really know with any certainty is that mandatory redress for landlords is in the pipeline.  The detail has not been gone into as to how it will work in reality, so that is why there is no point in joining a redress scheme until we have clarification on a lot of points - some of which have been raised on this thread.

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    The main reason for this scheme is the hidden agenda to get all landlords registering so they can cross check with HMRC to make sure everyone is paying their due rental taxes. Also this will enable then to charge for registration which could include separate charges based upon the number of properties you are renting out. Just like the local council who have now cotton on to make higher charges for the more cars a householder has re residents parking permits.

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