Crazy or inspired? Smartphone app pays landlords up to 12 months’ rent in advance

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A new mobile app that pays landlords rent upfront for up to a year aims to revolutionise renting relationships.

Using Wectory, tenants still pay monthly, but landlords can choose to receive rent for six, 10 or even 12 months in advance.

After they sign up, landlords send an invite to their tenants who make rental payments via the app – on a monthly basis – but they get the funds paid directly to their account for a 12% fee.

CEO Mikhail Balabanov says one-touch payment and automatic recurrent payments means tenants won’t forget to pay rent on time.

Low on funds

Wectory also plans to roll out a feature offering renters short-term help if they’re running low on funds, where it can step in and cover paying the rent for a week or two, charging £50 for the first week and £100 for the second.

Balabanov hopes to emulate the huge success of Klarna – the buy now and pay later style of digital payment for online shopping, he tells LandlordZONE.

“The app will help eliminate so many of the tensions that can come to exist between landlords and tenants.

“By getting a lump sum, landlords might want to make renovations to another property and, as we aim to eventually extend the offer to 24 months’ rent in advance, that could even be the first payment on a mortgage.”

Wectory will have a soft launch in early November, starting with residential landlords, with plans to expand into the commercial sector.

Find out more.

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Reminder: mandatory electrical checks come into force next April…

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The Electrical Safety Standards in the Private Rented Sector (England) Regulations came into force on 1 June 2020 and applied to new tenancies granted on or after that date, from the 1st July 2020. For existing tenancies however, the regulations did not come into force then, but from the 1^st of April next year.

With all the disruption caused during the Covid pandemic and the heavy work-load on landlords and agents involved, given the current high demand for renting, it’s likely there will be a mad rush for electrical testing and electrical remedial work, come the deadline next year. Hence the need for action now.

A Landlord Electrical Condition Report or Certificate will typically cost in the region of £100 to £230 for a flat, £150 to £300 plus for a house depending on the size and location, and that’s with everything in reasonable condition. It will normally take a qualified electrician between 2 and 3 hours to complete.

However, the older the installation the more likely it is that additional work may be required to bring the system up to standard. Only registered electricians can carry out these Electrical Installation Condition Reports (EICR) and these people are likely to be very busy coming up to the deadline.

The Electrical Safety Standards in the Private Rented Sector require that landlords meet the following strict conditions, they must:

• ensure the national standards for electrical safety are met. These are set out in the 18th edition of the ‘Wiring Regulations’, which are published as British Standard 7671.
• ensure the electrical installations in their rented properties are inspected and tested by a qualified and competent person at least every 5 years.
• obtain a report from the person conducting the inspection and test which gives the results and sets a date for the next inspection and test.
• supply a copy of this report to the existing tenant within 28 days of the inspection and test.
• supply a copy of this report to a new tenant before they occupy the premises.
• supply a copy of this report to any prospective tenant within 28 days of receiving a request for the report.
• supply the local authority with a copy of this report within 7 days of receiving a request for a copy.
• retain a copy of the report to give to the inspector and tester who will undertake the next inspection and test.

Where the report shows that remedial or further investigative work is necessary, landlords are obliged to complete this work within 28 days or a shorter period if specified in the electrical engineer’s report.

Landlords must also forward to tenants and the local authority written confirmation of completion of any necessary remedial work by means of a completion report supplied by the electrician.

These electrical checks and the documentation are just another requirement for landlords and letting agents to follow when setting up a tenancy. It is important to ensure the correct documentation is supplied to tenants and that proof of service obtained, otherwise problems will ensure should there be a need to obtain possession of the property.

Here is a simple checklist for some of the documented items which landlords / agents should supply to tenants when setting up a new Assured Shorthold Tenancy:

• Electrical Safety Certificate
• Energy Performance Certificate (EPC)
• Gas Safety Certificate
• Fire safety checks / risk assessment
• Legionella checks / risk assessment
• The current version of the government’s “How to Rent” Guide
• The Right-to-Rent checks with document copies
• Deposit Protection prescribed documentation
• A comprehensive inventory
• The tenancy agreement.

It is good practice to ensure that these documents are all attached to the letting agreement and signed for individually.

Government guidance – electrical safety checks

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Sign my petition or you can say goodbye to the PRS, says guru

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Sign my petition or risk witnessing the demise of the private rented sector, says leading property investment mentor and landlord Ranjan Bhattacharya, who’s defended his petition to allow landlords to evict tenants who are 14 days in arrears.

Bhattacharya believes critics have got the wrong end of the stick and explains: “I’m not advocating that after 14 days a tenant is automatically turfed out of their home, but that after 14 days of arrears the landlord has the right to instigate court proceedings.”

In his latest YouTube video, he says most people only take the situation seriously in the days before a deadline.

“It’s instigation of proceedings that often makes people take their head out of the sand and address the problem. It’s surprising how many disputes get resolved after you’ve made your intent and seriousness known.”

Under the current system, landlords are screening out tenants who aren’t ‘A1’ because they can’t afford to take a punt on a tenant who could fall into rent arrears, says Bhattacharya.

He reckons that lenders will also leave the market or insist on lower loan to value mortgages, putting more burden on landlords, if they continue to be faced with non-paying tenants and have no way of getting them out.

While many landlords have backed his call – the petition now has more than 6,000 signatures (it needs 100,000 signatures to be formally debated by Parliament) – others on social media insist he is simply fuelling anti-landlord rhetoric.

But he insists: “You will never be able to do anything to appease people who are ideologically opposed to your very existence.”

Adds Bhattacharya: “We’ve been pushed around by Government for too long – we need to show as landlords we have a voice.”

Sign the petition: https://petition.parliament.uk/petitions/549258
Watch the video in full.
Read a guide to evictions best practice.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Sign my petition or you can say goodbye to the PRS, says guru | LandlordZONE.

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12-month housing market expectations move deeper into negative territory

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The latest RICS Residential Survey shows the UK housing market activity remained strong in September with buyer enquiries, agreed sales and new listings all remaining strong over the month. Nevertheless, sales further ahead are expected to weaken amid the challenging macro-economic environment

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Family Subletting to unrelated couple?

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Hello, I have a property where 5 tenants are staying (not as an HMO – They are a family), each of whom has signed the contract. The contract is expiring early December 2020, they also have 2 part payments in arrears.

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3 vacant properties v 2 separate tenants not paying rent?

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Hi, I have 3 vacant residential properties -V- two tenants who are not paying their rent since February 2019. Possession for one property was granted 7 months ago in March 2020 and the tenant is still occupying the house.

I am now reluctant to rent the three other properties fearing what will happen and the financial consequences if the new tenants follow the same path and also decide not to pay their rent.

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New Northwood franchisee makes history by completing on the acquisition of Belvoir Group’s 100th independent agency

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Mahomed Imtayas of Northwood Wolverhampton has successfully acquired Millenium Properties, adding 250 managed properties to his portfolio and fast tracking his way into the history books by completing on the Belvoir Group’s 100^th acquisition of an independent agency.

“I am delighted that the Belvoir Group has been able to successfully help our franchisees to acquire 100 independent businesses since the launch of our specialist acquisition programme in 2013,” says Belvoir CEO Dorian Gonsalves. “Helping franchisees to develop their businesses through acquisition remains a strong growth strategy for Belvoir and this milestone is a superb achievement by our inhouse Acquisition Team who work so hard to research, source and assist franchisees with the funding of viable opportunities. The team have helped franchisees from across all of our brands to develop and grow their businesses, achieving a total acquisition deal value of £25 million. In addition, it should be noted that 100 independent agents from all across the country have been able to complete on an exit strategy that has enabled them to realise their assets, safe in the knowledge that the business they are selling will be operated by highly professional agents who have access to all the back-up they need from our franchise support team at Central Office.

“I am absolutely delighted for Mahomed, who I met during his training course at Central Office. I was very impressed by his enthusiasm and commitment, and also his determination to build a business that he can then pass on to future generations of his family. I am confident that Mahomed will make a great success of this business opportunity, which has enormous potential for further growth.

“Many franchisees across the Belvoir, Northwood, Newton Fallowell and Lovelle brands are actively seeking to expand their businesses through acquisition, with some already completing on multiple business transfers that have doubled the size of their portfolio overnight. I would urge any independent agent who is considering the sale of their business, no matter what size this may be, to contact a member of our Acquisition Team for a discussion about how we may be able to help them realise their ambitions. We recognise that negotiating and managing any business transfer is a complex process, but it is one that the team has worked hard to streamline over the years, to try and make the acquisition as smooth and stress free as possible for all parties.”

Speaking of his latest business venture, which comes after 20 years of running a stationery company in Malawi until returning to the UK three years ago to run a recruitment company, Mahomed says: “I am absolutely delighted to be taking on this business and to become a Northwood franchisee. Northwood has a great name, a fantastic reputation and a unique product in its Rent Guarantee Scheme.

“I have been a landlord and a tenant in the past, and I have my own rental properties both in Leicester and abroad, so I am very aware of the challenges that can be faced by everyone. The training I have received has been excellent and being part of the Northwood franchise also provides me with access to the invaluable assistance they provide, as well as all the systems and marketing and legal support. My daughter Anjum will be working with me as Office Manager, and we are also retaining two existing staff members.

“I am almost 60 years old now, but have always wanted to work in estate agency, so this is a dream come true and I wish it had happened 20 years ago! This is a great opportunity to build a business that I can pass onto future generations of my family. It is a new challenge, and one that I am looking forward to. It is also incredible to be recognised as the Belvoir Group’s 100^th Assisted Acquisition!” Northwood MD Phil Gee also welcomed Mahomed to the Group, saying: “Many congratulations to Mahomed on the acquisition of Millenium Properties, which will help to introduce Northwood to the Wolverhampton area and allow many more people to benefit from a range of unique services including our Guaranteed Rent Scheme. Northwood has been working with Mahomed for quite some time, helping him to find the right business opportunity, and we are extremely happy to welcome him to the team.”

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©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – New Northwood franchisee makes history by completing on the acquisition of Belvoir Group’s 100th independent agency | LandlordZONE.

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