We are now receiving enquiries in their droves about lettings over the Olympic period from 27th July to 12th August or realistically from 20th July to 19th August. The Paralympic games start on 29th August until 9th September and so at the very best, the requirement will run from 20th July to 16th September. Interestingly, 90% of these enquiries are coming from landlords which tells a story in itself. At the moment there is very limited demand from tenants. Most prospective tenants will have booked their tickets and their flights/transport arrangements and you would have thought their accommodation too which is why the majority of the best hotels are fully occupied.

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The major drawback is the void period running up to the let and more importantly, following the let. If long term investors jump on this Olympic bandwagon and launch their properties back on to the market in September, there is a strong risk that there will be a sudden surge in supply of properties available without the demand. We are already noticing a reduction in demand levels. I believe that the lettings market plateaued in October 2011 and in some areas is now marginally dropping. The reason for this change in market conditions is that the City is not employing its normal influx of expats and it is these tenants who underpin the lettings market.

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These Olympic landlords will also need to apply for planning permission to let their property for less than 90 days. Without it, they are breaking the law and could be fined up to £20,000. The future sale of the property could also be affected as any enforcement notice will be registered as a legal charge and this may deter future buyers. A short let may also invalidate some insurance policies. If the rent is under £1923 per week, it will become an AST (Assured Shorthold Tenancy) and therefore a Section 21 Notice must be served. If the tenant refuses to leave, they may be able to stay for six months until Court proceedings can be initiated.

The final major risk is the wear and tear element. How can you be sure that the tenant will treat your property as their home during this short period? No deposit will cover the replacement value of furniture and fixtures and fittings, let alone any replacement of carpets or redecorations. All references on tenants should be checked carefully.

Read the full post here.

For those of you that follow the weekly Accidental Landlord column in Homes & Property but didn’t get the chance to grab the paper yesterday.

By the end of the week she’s ready to hire a letting agent. Yes, it was that bad…

Accidental landlord Victoria leaves the renewal of the Gas Safety Certificate for the last day and when the engineer fails to show up on time she seriously considers hiring an agent to manage her properties.

At another property the landlord faced a furniture delivery problem. The bed that was ordered for the date of the beginning of the tenancy was not delivered. Luckily the tenant was understanding and stayed at her friend’s place till the bed arrived. The landlord lost two days’ rent.

Read the whole story here.

Comments:

Tenants should not trust the landlord to have everything under control, they do occasionally make mistakes like the rest of us, humans. Unless your landlord is a professional property manager, do double-check as your own safety is at stake here. By law you are entitled to have a copy of the Gas Safety Certificate (if you have gas at the property) and this has to be renewed once a year.

Who has not had a problem with furniture delivery?! Remember though – if you decide not to stay at the flat until it has been prepared as per agreement, you shouldn’t have to pay rent for this period.

Do you think Victoria should hire someone to manage her properties or will it get easier for her in time?

Read Accidental Landlord’s blog.
Follow Victoria on Twitter: VicWhitlock.

Estate agent Marsh & Parsons has just published autumn issue of the London Portrait magazine.

London Portrait, Issue 4, Autumn 2010

The magazine features offers from all their 14 offices across London and there are some articles that we thought would be an interesting read for the renters:

- Rental prices rise with property in short supply;
- Corporate applicants on the increase as confidence in London’s economy grows;
- Nothing beats Barnes;
- Capital ideas… (tips on design);
- A Rake’s Progress (tips for the garden);
- Top 10 tips for landlords.

Read it now!

ARLA released a special statement today, saying that as the demand for housing in the Private Rented Sector is likely to soar due to the credit crunch, they are warning agents and landlords not to take advantage by cutting corners.

ARLA pointed out that both the law and best practice has moved on a long way since the early nineties when the last housing crisis produced soaring rental demand, cowboy agents and rogue landlords. They are worried that some landlords may try to cut corners and not comply with legislation covering safety and the protection of tenancy deposits. There could be an upsurge in lettings agencies opening for business, without being members of the professional bodies, having the right qualifications and providing clients money protection.

Read the full press release here.

So much for London becoming a renters market …

Article found via The Rat & Mouse.

ARLA‘s president Robert Jordan said at their annual conference that licensing of all lettings agents would be the solution to bad practice in the rental market. Especially now that the flat house sales will encourage insufficiently qualified agents to go into lettings as a survival mechanism:

“This is a very great worry, because if agents are not already involved and qualified they could be a risk to the market. Unqualified agents, together with amateur landlords, are responsible for the majority of problems in the private rented sector. The missing link is that government should bite the bullet and license all lettings agents and landlords.”

Via PR Newswire Foto from the conference brochure (pdf)