Airbnb management company active in 8 cities

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Press release from Pass the Keys:

Pass the Keys, a fast-growing property tech start-up, completed their second round of funding led by London-based VC, Talis Capital. The funding will support further platform improvements and expand the service offering to more cities in the UK and internationally. The company closed its seed round back in October 2016, also led by Talis Capital.

Founders, Alexander Lyakhotskiy and Zoe Vu, developed Pass the Keys in London Business School’s incubator program and focused on leveraging technology to provide a unique service to Airbnb hosts and help them with hassle-free rentals. Pass the Keys currently operates in eight cities across the UK – London, Edinburgh, Manchester, Brighton, Bath, Bristol, Cambridge, and Oxford – expanding at a pace of one new city a month and is the fastest growing Airbnb Management Company in the world and now covers more UK cities than any other provider.

CEO Alexander Lyakhotskiy commented: “Property is one of the biggest assets for any family and, through our technology solution, we give property owners the ability to maximise their investments hassle-free. Our key differentiators are our revenue management system, but also our focus on security via rigorous guest vetting and photo checks.”

Vasile Foca, co-founder and Managing Partner of Talis Capital, said: “It has been great to see Pass the Keys capitalise on what continues to be a growing sector in property tech. The company has already become the largest Airbnb property manager in the UK as it offers its services in 8 cities. The focus on strategy and automation of various processes, particularly the onboarding of clients, cleaners, and vendors, have allowed the Pass the Keys to become a leading multi-city, multi-platform property manager in the UK. We very much look forward to working with them in their growth to attain this traction internationally.”

Alexander Lyakhotskiy added: “ We are very confident about the future of the sharing economy in the UK and worldwide, and we are grateful for the continued support from Talis Capital. This new funding will allow us to improve our service further, as well as continue our ambitious growth plans. By the end of 2017, we aim to offer our service in all major cities in the UK and start our global expansion from 2018.”

Editors Note:

We have called Pass the Keys to ask how the process works to check if it is the owner of the property who is going to list the accomodation on Airbnb. This is obviously of concern to Landlords due to the risks associated with subletting.

Pass the Keys have confirmed that when an initial enquiry is made that the potential customer is called directly and asked if they own the property along with other questions such as when was the property last refurbed, boiler make, maintenance etc. that would be more difficult potentially for a tenant to answer.

There is also a clause in the Pass the Keys contract confirming the customer must have the right to rent the property. Although land registry searches or documented proofs are not required due to the practicalities of the numbers.

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Belvoir steps up acquisition programme

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Belvoir has reported on the completion of 12 franchisee-led acquisitions in 2017, and confirms that further acquisitions are in the pipeline.

Dorian Gonsalves, CEO of Belvoir says: “Business development via our Assisted Acquisitions Programme has been a major growth strategy for the Belvoir Group throughout 2017.

“Earlier this year we embarked on a series of Acquisition Roadshows to provide our franchisees – including those from our recently acquired networks – with the information they needed to help them make informed decisions. Of the twelve acquisitions, six were secured by Belvoir franchisees, five by Northwood franchisees, and a further one by a Newton Fallowell franchisee.

“Our Acquisition Team, led by Martin Bunney, Belvoir’s Head of Franchise Recruitment, Property and Acquisitions, provides fantastic support to franchisees throughout the entire process. This support includes sourcing potential acquisitions and matching them to interested franchisees, checking compliance, assisting with terms, finding the funding, negotiating the deal, and ultimately helping to deliver the outcomes that allow our franchisees to take full advantage of their market position. Our franchise support team continues to assist franchisees after the acquisition completes, as and when this support is required.

“These acquisitions have added a further 1,310 properties to the Group’s collective portfolio, and Belvoir now manages a grand total of 57,637 managed properties.

“I can confirm that further acquisition deals and opportunities are in the pipeline and I would encourage any independent agents who are considering their exit strategy to contact Belvoir ‘s Acquisition Team for a confidential discussion about what mutually beneficial opportunities may be available.”

Clayton and Nina Foston of Belvoir Nuneaton and Hinckley recently completed on the acquisition of Easy Lets and Sales in Hinckley, Leicestershire. Speaking of the acquisition, Clayton said:

“We would like to express our sincere gratitude to Dorian, Martin and all at Belvoir for their support with our acquisition. This exciting venture will add a further 300 fully managed properties to our existing portfolio of in excess of 450, making us the most significant agent in the area.

“We are now on the look out for a new site that will be “fit for the next decade, and we are delighted that Graham Phipps, who was the former owner of Easy Lets and Sales has joined our team as sales manager, bringing with him significant experience in this area.

“We were helped with the process every step of the way, and Belvoir’s contacts and suggestions were essential to the success of the acquisition. We urge others within the network to be brave in these challenging times and never to believe that something is unattainable so long as you use the resources that Belvoir makes available to us all.

To find your nearest Belvoir office please visit www.belvoir.co.uk. To contact Martin Bunney, telephone 01476 570000 or email franchising@belvoir.co.uk

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Property Partnership Between Spouses

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I have read with interest the articles on forming a property partnership as a way of allocating profit to a partner on a lower tax band. I have also purchased and read the “Guide to Forming a Property Partnership” which was very helpful and I think this would suit us. My husband and I jointly own and rent out 2 properties in Scotland. He works and pays tax at the higher rate whereas I am not employed. When we come to fill in our tax forms we have to pay a large amount of tax on my husbands share of the income.

Since we live in Scotland it does not seem possible to use a Deed of Trust to move most of the ownership into my name. It seems that here we have to do normal conveyancing and that involves mortgages so is not really an option for us.

The partnership option does look like a way forward. I looked at the form SA400 and there are a couple of questions that I would like advice on.

1. “What is the nature of the business”. What would other users suggest I put in here to have the best likelihood of it being accepted as a business by HMRC? I was thinking of putting “Property rental including management, maintenance and tenant sourcing”. Does anyone have any better suggestions?

2. What date do I put in the “When did the business commence” box? According to the form it looks like the earliest date I can enter is 6th April 2016, as it says I have to register by 5th October in the business’s second tax year or there could be a penalty. We have been doing the work for 4 years. Would this be the best date to put in?

Also, while reading about this on various sites I read somewhere that partnerships between married couples still have to allocate the profit either 50-50 or in the actual ownership share whereas non-married partnerships can allocate profits as they wish. Is this correct? If it is then the partnership would not help us.

I am hoping that there are others out there who have already taken this step and can provide some insight for me.

Thanks

Angela

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Consumer Law and why you should be worried about it

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This is the 7th post in my 2017 Legal Update series.

The Consumer Legislation – does it apply to YOU?

When I mention ‘Consumer law’ to most landlords they just look at me blankly. “What’s consumer law got to do with me?” one landlord asked at a training workshop earlier this year. Maybe she speaks for you too?

Landlords tend to think of themselves as investors. However, what you have to realise is that to the authorities (Government and Local Councils), and also your tenants – you are running a service business for consumers.

In fact, the service you are providing is for one of the most basic human needs – shelter. Of course, consumer protection laws are going to apply to you!

Letting agents too – most of your customers will not be ‘professional’ landlords. The consumer legislation will apply to you as well.

Consumer rights and fairness

What sort of things are we talking about?

The main act is the Consumer Rights Act 2015 along with various regulations that provide protection to consumers. Such as the Consumer Protection from Unfair Trading Regulations 2008.

Central to these is the concept of ‘fairness’. This is that businesses should be straight with consumers and not mislead them, that contracts should be even handed and not stacked in the business’s favour, and that businesses should actually do what they contracted to do.

So, if you are a landlord, this means that

• Your tenancy agreements should be clear and fair,
• Your advertising must not be misleading (e.g. if a property is described as ‘quiet’ it should not be on the school run), and
• That if you promise, before the tenancy agreement is signed, to do any repair or improvement work to the property – you should actually do it.

If you are an agent, this means that

• You must do the work you contracted to do (such as regular inspections of the property)
• You should ensure that the deposit is properly protected and the prescribed information served and also
• You are not entitled to receive commission in perpetuity without actually doing any work, simply because the tenant has stayed on in the property (sorry).

If these standards are not kept then there are consequences – which could prove expensive.

Tenants, for example, can ‘unwind’ their tenancy (i.e. end it) if they have been induced to enter into it by an unfair practice (such as misleading information about the property), provided they give notice within 90 days.

If they give notice within 30 days they can also reclaim all money paid.

Paperwork and procedures

It is important also that you follow all the proper procedures.

If you trade through a limited company – is your company name, number, place of registration and registered office address on all your stationery including your emails?

If you are an agent, in many cases you will reach agreement with your landlord outside your office, for example after visiting the property.  If so, are you providing your landlords with details of their 14-day cancellation rights?

If not, your landlords may be entitled to cancel their contract with you at any time up until either you provide the cancellation information or after one year. AND if they do this, you will have to refund any fees paid.

These cancellation rights come under the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013.

A warning to landlords

For you to be able to take advantage of these rights vis a vis your letting agent – you must be trading in person.  If you run your properties through a limited company, you will be treated as a business and not a consumer.

This is something you should take into account if you are considering setting up a company for your properties for tax purposes.

Further information:

In this blog series, I can only touch on things lightly.

Therefore, as part of this Legal Update initiative I am also making available our Conference Course at a special discount for Property118 readers.  The Conference Course is particularly valuable as it contains all the talks from our 2017 Landlord Law Conference (plus a few from earlier Conferences). One of the 2017 talks is on consumer law.

You will find more information about the Conference Course here.  The discount voucher is pp118cc30 – apply this on the checkout page and it will reduce the payment by 30%.  Note however that the coupon will expire after 16th September.

There is also a section on consumer law on my Landlord Law membership site and members can ask me ‘quick questions’ in the members forum area.

You can find out more about Landlord Law here

Next time I will be looking at the right to rent rules.

Tessa Shepperson is a specialist landlord & tenant lawyer and runs the popular Landlord Law online information service.

To see all the articles in my series please Click Here

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More & More Regulations but little by way of Enforcement…

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Letting Laws:

There are over 145 legal rules and regulation affecting the residential lettings sector, but so many of them cause confusion or are not enforced. That’s one conclusion of a report produced for the Tenancy Deposit Scheme (TDS) by property expert Kate Faulkner.

TDS & Kate Faulkner are calling for stronger enforcement and streamlining of the legislation affecting landlords in the private rental sector (PRS) throughout the UK.

Ms Faulkner who is the founder of propertychecklists.co.uk and the consultancy firm Designs on Property Ltd., is urging the Government to look into reforms in the sector: a rationalisation of the myriad rules and regulations in the sector which she says is creating confusion among landlords, rental agencies, tenants and enforcement bodies.

The report sets out the laws and regulations applying across the United Kingdom highlighting some huge differences in the various regimes, leading to more and more confusion as devolution has taken hold. For example, a typical English landlord must comply with around 150 rules and regulations, even more if they let property to housing benefit tenants. In Scotland, Northern Ireland and increasingly Wales, many of the rules are different.

Kate Faulkner thinks that in order to deliver safe properties complying with the law there needs to be a properly funded campaign to raise awareness of the existence of the rules and regulations and much better enforcement.

Kate Faulkner says:

“There are 4.4 million rental properties in England alone so reforming the market would help millions of people. Legislation should be streamlined and funding should be put in place to support enforcement,”

“Legislation varies dramatically across the UK, with different rules for England, Scotland, Wales and Northern Ireland. Landlords are typically over 55, and employed full-time, so often struggle to keep up with what constantly changing legislation they need to be aware of, and what bodies are responsible for enforcing them.

“Trading Standards, the Home Office, the Competition and Markets Authority, and local councils all enforce elements of private rental policy, and there is no single point of guidance for landlords and agencies to make sense of where jurisdictions begin and end.

“As well as a disparity between enforcement bodies, there are geographical differences from county to county. In London alone, there is a huge difference in rates of rogue landlord prosecutions; according to the most recent figures available, Newham prosecuted 359, while Lambeth and Hammersmith each only managed nine.

“Local authorities, however, are not necessarily to blame. The issue needs to be tackled on a national level to ensure uniformity in enforcing laws designed to protect both tenants and landlords.

“Law-abiding agents and landlords are jumping through not inconsiderable hoops, and forking out to meet regulations, while the cowboys know enforcement is lax, and are cutting corners and costs.”

The Tenancy Deposit Scheme is owned and run by several of the key bodies in the PRS: ARLA Propertymark, NAEA Propertymark, Royal Institute of Chartered Surveyors (RICS) and the Residential Landlords Association (RLA). The TDS Charitable Foundation is funded by the Tenancy Deposit Scheme and aims to promote better standards in the PRS.

Read the full report here

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TDS backs Zero Deposit

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Tenancy deposit protection and dispute resolution company The Dispute Service (TDS) today (Monday September 4) announces a long-term strategic partnership with Zero Deposit, a new company which aims to help tenants by replacing the traditional tenancy deposit with an affordable insurance policy.

TDS has entered into an exclusive contract to provide dispute resolution services to Zero Deposit, run by former ZPG chief commercial officer Jon Notley, when it plans to commence trading later in 2017.

TDS, as one of the UK’s leading providers of deposit protection, is the longest-serving and most experienced provider of adjudication services in tenancy deposit disputes. As part of its strategic partnership with Zero Deposit, the Hemel Hempstead based company has made an investment in the new business and takes a seat on the board.

Deposit replacement insurance products involve tenants buying an insurance policy in lieu of a deposit which guarantees to landlords any approved losses incurred as a result of action by the tenant up to a specified value. Tenants remain fully responsible for any damage or outstanding rent payments at the end of the tenancy, but the landlord is protected in case these debts are not honoured by the tenant, with Zero Deposit paying the landlord within 48 hours of the disputed claim being accepted or confirmed by TDS.

Steve Harriott, Group Chief Executive of The Dispute Service, said: “While deposit protection is the core of TDS’s business through our insured and custodial schemes we recognise the merits of a different kind of scheme where no deposit is taken and one that addresses the affordability/mobility issues that may arise with deposits.

“Whatever option tenants, landlords and agents choose, we are determined to ensure that claims can be assessed with impartiality and professionalism. Our experience of dispute resolution and the robust procedures that we follow make us well placed to support this new direction in tenant deposit replacement.

“We chose to partner with Zero Deposit as it is a credible scheme with a number of agents already committed as launch partners. It has raised a significant sum of money in start-up capital and has the backing of Munich Re as the insurer.

“We feel that Zero Deposit’s ethos mirrors our own: their approach is open and transparent for tenants and provides assurance to landlords that they will be able to claim for any losses”

Jon Notley, CEO of Zero Deposit, said: “To have TDS with us as a launch partner is an incredibly important development. The TDS team have unparalleled experience of deposit protection and dispute resolution and their knowledge of the intricacies of the private rental sector gives us a significant edge on our competitors.

“With a company as trusted and respected as TDS providing our adjudication services, tenants, landlords and agents using our new product can be assured that any end of tenancy disputes can be dealt with professionally and fairly.”

The announcement of this strategic partnership with TDS follows the news that Zero Deposit had entered an exclusive, global insurance partnership with Munich Re, agreed a long term promotional deal with Zoopla and had received the financial backing of leading investors including Jamjar, the venture fund set up by the founders of innocent drinks, and Grenville Turner.

Along with a highly-experienced management team, and with further partnership announcements planned in the coming weeks, we believe Zero Deposit is well placed to lead the deposit replacement market following its planned launch later in 2017.

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