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  • Property-a-holics

    Rent 2 Rent and deal sourcing to be regulated



    It has been announced this week that estate and lettings agents will be subjected to further regulation including licensing and having to adhere to codes of practice.

    However, hidden in the small print of the ROPA working group proposals to government published today, is revealed a much wider scope of regulation than just high street sales and lettings agents.

    The policing of estate agents in the UK proposed by the final ROPA report published today by the government reveals that many non-traditional property players are to be regulated.

    The Regulation of Property Agents (ROPA) working group says that it came across many property professionals and intermediaries operating beyond traditional sales, property management and lettings 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,” says the report, which was chaired by Lord Best.

    NON TRADITIONAL MODELS

    Those ‘non-traditional’ models are to include auctioneers, rent-to-rent firms, property guardian providers, international property agents and online-only and hybrid agents.

    “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,” the report says.

    “Excluding any of these from the scope of regulation could create potential loopholes.”

    The report is the result of nine months of deliberations and seven meetings and will set out recommendations for the compulsory regulation of the industry.

    It includes a new licencing regime for agents, a new regulator to police a code of practice for the industry and a requirement that both sales and letting agents must have a minimum qualification in order to work.

    Also, all agents regardless of track record or experience will have to be qualified to work in what are to be called ‘reserved’ functions.

    Full/source story 

    Property Tribes has always maintained (and had it confirmed by the redress schemes) that Rent to Renters and deal sourcers (including R2R and SA) are acting in the capacity of property managers/lettings agents or estate agents and now this is confirmed by this new report.

    This is very good news for our sector as unregulated areas traditionally attract contrepreneurs.

    It will be bad news for the "get rich quick" industry as it will put up barriers to entry for unqualified/unregulated people to undertake these activities and there will be a cost associated with becoming regulated, which will also act as a deterrent.


    REGULATION OF PROPERTY AGENTS WORKING GROUP - Final Report ow.ly/JrU430p9z06

    SEE ALSO  -         Illegal HMO created by Rent to Renter - HELP!

    UP NEXT -             Deal sourcer compliance

    DON'T MISS -        Are all property education courses a scam?

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    I have just received a mailshot from yet another graduate of a rent 2 rent course.  Swift Property Limited of Sutton Coldfield near Birmingham.  The location may suggest they are yet another pair of graduates from the local rent to rent guru,  who is well known on this site and apparently lives in a castle.

    The letter starts with my name missing and hopes I am well.  It asks me about my HMO property in Wolverhampton and then goes on to explain that they are investing heavily in Newbury and the surrounding areas. 

    Indeed,  they are passionate about Newbury's private rented sector.  The last time I looked Newbury was about 120 miles from Wolverhampton.  As usual they offer the full monty of bullshyte


    Guranteed rent 365 days of the year for 3 to 7 years. 

    Day to day maintenance

    Free comprehensive property management

    No fees or hidden costs  and return of the property in better condition at the end of the term.


    So enthused was I by this wonderful offer, that I logged onto their website https://www.swiftpropertylimited.co.uk and found two meaningless pages of vagueness. 

    There is no mention of a redress scheme or of any professional landlord's association.

    A quick search on Companies House reveals incorporation dated April 2018, and a notice of compulsory strike off dated 9th July 2019.  

    https://beta.companieshouse.gov.uk/compa...ng-history

    I shall immediately sign up and retire to the beach for the next five years, safe in the knowledge that my HMO in Newbury,  sorry Wolverhampton, is being professionally managed by this dynamic duo. I look forward to receiving my rental income every month, and selling the newly refurbished property in question in five years' time.

    I mean, what could possibly go wrong?

    Meanwhile back on planet earth,  I have just received a text from a tenant to say that their freezer is not working and six people's food has defrosted all over the conservatory floor.   That's the afternoon taken care of.



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    The freezer is now out on the patio on a 24 hour defrost.  The food contents are in the bin.  It looks like one of the tenants left the door opem,  and the freezer unit has frozen into one block of ice. No doubt the passion of the rent 2 renters would necessitate them driving from Sutton Coldfield to Newbury on a Saturday afternoon to sort this out.

    Just being serious for a minute. It really is time to call time  on the Rent 2 Rent bollocks.  Not only because it is doomed to end in disaster for the landlord,  but also to stop the gurus peddling this nonsense as the latest "how to be a property millionaire in a year without using any of your own money"

    I must have received around 20 offers from these poor duped fools in the last six months.

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