Issue 102

Issue 102

IMPORTANT lessons to learn from poorly drafted leases

£4.50 Issue 102 / 2019 The Magazine For Apartment Living Build To Rent Special edition

Top tips on how to spot a good property management company PLUS

contents ISSUE 102

news 5 ARMA celebrates achievements with awards Five hundred property professionals celebrated exceptional achievement at an awards event 7 Fire experts ‘warned of risks’ at blaze flats Experts had already warned of fire risks at a London block before a blaze destroyed 10 flats 9 Landlords reminded on new laws banning tenant fees From 1st June, it became illegal for landlords to impose fees for services 11 Appointments Latest appointments in the industry

inresidence 17 Communication conundrum It is essential that agents provide clear answers in a timely manner 18 Lessons to be learned Ground rent investors and enfranchising flat owners need to be sure that leases are not defective

22 Build-to-rent management v block management Apartments being built for renting accounts for just 1% of all those constructed in the UK 23 How to build community spirit It is vital that build-to-rent developers design schemes that promote a strong sense of community, argues Paul Staley 25 How green is build-to-rent? it’s time for the BTR sector to consider the environment, insists Richard Berridge 27 How to attract and retain top talent There’s a need to ensure that people see the sector as a rewarding career path 29 Return on experience! When it comes to the build-to-rent sector the focus must

infocus

inbox

12 Calls for minimum levels of

property management training ARMA release White Paper

20 Resident’s concerns and

always be on the customer

Call of the month! Readers ask the experts

14 Property

Management Knowledge Exchange A review of the IRPM Seminar 2019

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ISSUE 102

@newsontheblock News on the Block

News on the Block is the leading independent magazine providing help and advice to flat owners, landlords, managing agents and their professional advisors. www.newsontheblock.com SMS US: 0786 002 1858

FORMORE INFORMATION www.newsontheblock.com

ild to Rent

intheknow

inpractice 35 Don’t turn a blind eye! Licence to inventories? One smart technology platform is ready to make property managers’ and tenants’ lives easier 31 Just the job for growing sector? This could be the best time to consider a career in it even if it’s a challenge 33 Getting the full picture about alter protects everyone’s interests and ignoring it can be a big mistakes, warns Bill Pryke management company Peter Bigge outlines some of the qualities you need to look for before choosing a PMC 37 How to spot a good property

39 Upcoming events in the industry There’s a packed calendar of events in the next fewmonths

directory

40 Help at hand A selection of companies offering help to leaseholders

recruiting property people

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ISSUE 102

DILLONS

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So you can be sure with Dillons managing your block your’re in safe hands.

For full details of our property management service please contact us.

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news

Landlords reminded on new laws banning tenant fees

A n apartment in Notting Hill is causing a stir after being put on the market for just £22,536! The flat in Westbourne Park Road is likely to attract huge interest because it’s also attractively decorated. The selling agent also claims it has a massive rental opportunity. Average prices in the area in the past 12 months was more than £1,108,202! But the catch is that the apartment has only five years left on the lease – and there’s no option to purchase at the end of the term. The listing on Zoopla explains: “Tenants may choose to self occupy this apartment although GPS would advise that this property is set up for and used as serviced accommodation. “The figures provided are potential returns and we offer no guarantees.” Legal advice would normally be to avoid properties with less than 80 years on the least at the very minimum. Notting Hill flat for sale for just £22K!

L andlords and letting agents have been urged to adhere to strict new laws that ban them from charging tenants fees. From 1st June, it is illegal to impose fees for services including viewings, credit checks, references and setting up a tenancy. The changes follow the introduction of the Tenant Act, which also restricts security deposits to the equivalent of five weeks’ rent for properties where rent is less than £50,000 a year. For those over the threshold, the

chefs, housekeepers, massage therapists and dive masters. Rates for Airbnb Luxe properties will average around $2,000 per night, compared to $150 for “Plus” listings, the existing name for smarter rentals. “This is that next level that was necessary so we can fulfil our ‘anyone belongs anywhere’ model,” said Nick Guezen, Airbnb’s director of portfolio strategy. Airbnb has seen a 60% increase in the past year in bookings that cost $1,000 or more a night. He added that tenants who had signed tenancies before 1st June could still face certain charges. letting agents, landlords and renters are aware of how this regulatory change will affect them. It must be highlighted that tenants will still face some upfront fees. “For instance, they still will be expected to pay the first month’s rent and a deposit and there can be charges for lost key replacements and if rent is outstanding for over 14 days.”

deposit is capped at six weeks. Meanwhile, tenants are being warned that the new laws allow letting agents to impose a penalty charge limited to 3 per cent above the Bank of England’s base rate if rent is outstanding Paul Barnes, lettings specialist and director of Loveitts, said the changes were a “seismic shift for the industry” and added that his company had spent months preparing for them. He said: “It is essential that for more than 14 days. This currently stands at 0.75%.

Airbnb launches upmarket service

O nline accommodation platform Airbnb has launched a new service that specialises in lavish places to stay. Airbnb Luxe features more than 2,000 upmarket rental properties worldwide. The portfolio includes beachfront villas in the Caribbean, French châteaux and historic Tuscan

homes, as well as grand apartments in US and European cities. The most expensive Airbnb ever listed is Nukutepipi, a private island in French Polynesia that sleeps up to 52 and comes with staff including

6m packages milestone for Concierge HV

I n July 2019 Dwellant’s Concierge HV has reached yet another milestone of six million packages processed since it’s launch! Concierge HV (HV stands for High Volume) is the most extensively used

management for front desk teams. It is fast and simple to use and makes the front desk a paperless GDPR friendly place. The lucky resident received a bottle of champagne, and the concierge team a basket of cookies!

solution for package, key and visitor

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news

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ISSUE 102

news

Fire experts ‘warned of risks’ at blaze flats

Housing association

A not-for-profit housing association has become one of the first in the UK to partner with a software provider that helps tenants report repair issues. Co-op Homes has introduced Fixflo to help streamline and improve its service to customers. The software currently copes with more than 100,000 repairs a month for private housing management companies. Neil Tryner, managing director of Co-op Homes, said: “We’re delighted to be partnering with Fixflo. Continuously improving the experience our customers have of our service is at the heart of all we do.” partners with software firm you. It makes you feel a failure, that you can’t do anything. I couldn’t even be in that flat any more because it depressed me so much. “I’m struggling, I’m on antidepressants, I’m going to a therapist, everything’s just drowning me. “It came to a point where I did want to commit suicide and my anxiety went completely off the rails.”

E xperts had already warned of fire risks at a block of flats where a blaze broke out and destroyed 20 flats and damaged 10 others. Samual Garside House, in Barking, east London, was badly damaged by the fire on 9 June – almost two years to the day of the Grenfell Tower disaster. Residents at the six-storey block in De Pass Gardens claim the fire alarm and sprinkler system hadn’t worked properly for months. Fifteen fire engines and about 100 firefighters attended the blaze, which tore through wooden balconies. The Guardian newspaper reported that it had seen an independent fire risk assessment of the block, built by Bellway L easeholders who have had issues with their lease in the past feel so anxious about their future that some have considered taking their own life. A survey by the National Leasehold Campaign revealed that 72% of people who have had problems are “very worried and anxious” about their future. A total of 17% said they had had suicidal thoughts as a result of their fears, M ore than one third of landlords want the government to introduce fast-track housing tribunals if Section 21 “no fault” evictions are abolished. At the moment, a landlord can evict a tenant without good reason at short notice once their fix-term tenancy period ends. But the government says it wants to abolish the “no fault” Section 21 evictions to “protect

believed to have been started by a barbecue. But residents say fire safety concerns had been raised. Sonia Sahata and her husband, Rav were in their top-floor flat with their two children when a neighbour alerted them to the fire.  Mrs Sahata said: “When we got out I looked back and our flat was already on fire. There was no alarm and the sprinklers did not work.” Mr Sahata said that he had raised concerns about a faulty control board that was supposed to operate the fire alarms on several occasions.  A spokesperson for Bellway said: “We are taking the matter very seriously and working with all parties to help in establishing the cause of the fire.” freeholder should legally have consulted the leaseholders. But the freeholder went to a tribunal to request that the consultation be scrapped because building was in such a state. Lisa’s mortgage provider covered the cost, but her monthly mortgage bill was hiked by £600 a month, which she couldn’t afford and her home was repossessed. She said: “It absolutely drains guaranteed way to cover their costs, while 7% wanted to be able to submit evidence online. Meanwhile, 84% said they felt the maximum time from serving notice to taking possession should be no longer than eight weeks. The National Landlords Association said its members were forced to use Section 21 notices because they had “no confidence” in the courts to settle

Homes, which was carried out in January. It warned that the wooden structures may not be fire-resistant and could “accelerate fire spread … and this will put residents and visitors at risk of smoke inhalation and burn injuries”. Pete Mason, chairman of Barking Reach Residents’ Association, told reporters he had been assured by Bellway Homes that the external wood had been treated so that it would not catch fire for 30 minutes after a fire started. “There is a tremendous amount of wood used on the buildings but I don’t think they took my concerns seriously,” he said. Bellway had reportedly carried out some remedial fire safety work just weeks before the fire, which is the study of 1,150 people found. One resident explained to the BBC that she felt unable to do anything when her freeholder served 21 residents in her block with a £100,000 invoice for major works. But the work spiralled to £600,000, which left each leaseholder with a bill of almost £50,000 each. Lisa – not her real name – told the Victoria Derbyshire that the renters from unethical” landlords. It announced plans to consult on new legislation in April. A total of 39% of 200 landlords surveyed in a report for Paragon’s PRS Trends Report said they wanted fast-track housing tribunals to replace the “no fault” evictions. Almost a quarter of respondents (24%) called for a shorter court process. Some 15% would like a

Leaseholders’ anxious about their future

Landlords call for fast-track tribunals

possession claims.

John Heron, director of mortgages at Paragon, said: “Some of the main concerns for landlords around a move to the Section 8 eviction process relate to the efficacy of the existing court process. “What we see here is widespread support for a fast- track housing tribunal that can deliver a fair and timely solution for both landlords and tenants.”

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news

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KL0195-1804

news

Property portal reveals ambitious plans

A portal that allows estate agents to list their properties for free has announced ambitious plans to target 90 per cent of the market. More than 740 independent agencies across the UK already use the free-to-list Residential People platform, which launched in February. As well as free listings, the portal offers agents

we have had from agents and if this continues, we are confident we will be able to create a lot of value for them in terms of lead generation. “We are now looking to gain support from potential partners in the industry that can see the value in what we are trying to achieve. We are free now and will always be. Come what may, this is our unique selling point.”

an optional state-of-the- art marketing suite to help them market their properties and drive traffic to their own websites. The platform’s bosses said they launched the portal to “radically disrupt the property market status quo”. Residential People co-director Christopher May added: “We are really pleased with the support

Uni offers first for planners A London university has become the UK’s first to offer a full, level 7 chartered town planner apprenticeship. Successful apprentices at London South Bank University will gain a Royal Town Planning Institute accredited qualification and become Chartered Member of the Royal Town Planning Institute (MRTPI). Professor Craig Barker, Dean of LSBU’s School of Law and Social Sciences, said: “We are very proud to be able to build on this heritage now, with our new Chartered Town Planner apprenticeship scheme. “There are currently five providers listed with the RTPI at the moment, but LSBU is the only one to offer the full five-year route, taking on people with ‘A levels’ or experience but no formal qualifications, all the way from level 4 to level 7.”

ARMA celebrates achievements with awards

ACE Awards that took place at Tobacco Dock in London’s east end. A total of 18 winners were announced at the event in July and ARMA’s chief executive Dr Nigel Glen said all those awarded were a real credit to the industry. He added: “I know what a hard job the judges had in deciding who should go home with a trophy from so many outstanding finalists. The winning firms and team members are setting the standard for companies that wish to be recognised for achieving excellence and best practice in their field.” Those attending the glittering ceremony also helped raise £3,476 for Dementia UK, which is ARMA’s charity partner for the year. Dementia UK regional fundraising executive said: “We’d like to take this opportunity to say a huge thank you to ARMA for choosing to support us at their fantastic awards ceremony this year.”

F ive hundred property of the UK’s leading residential managing agents, their suppliers professionals celebrated exceptional achievement

and the work of their people at a glittering awards ceremony. They gathered at the annual ARMA (the Association of Residential Managing Agents)

I spy a historic address at former MI6 HQ!

F ancy owning a little bit of history? Then you can with an apartment in the former headquarters of MI6. Once the nerve centre of the Secret Intelligence Service, the building – then called Century

A two-bedroom apartment boasts two bathrooms, a large private double terrace, an underground parking space and 24-hour concierge. It is on the market for £815,000 with Fyfe McDade.

Road is now a popular residential address. Residents enjoy being right next to the Bakerloo line at Lambeth North Station, as well as a short walk from Waterloo tube and train stations.

House – was regularly visited by real-life 007s at the heart of the UK’s espionage operations. Converted into plush apartments more than 15 years ago and named the Perspective Building, 100 Westminster Bridge

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ISSUE 102

A B B A T T P E R M A N E N T

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appointments

NewMD is ready to Loveitts challenges!

A n estate agents has appointed a new managing director to steer it through the ever-evolving challenges of property market. Warwickshire-based Loveitts has welcomed John Pugh to the helm of the 175-year-old company. John, a chartered surveyor who has been with the firm for 20 years, said that

marketplace we are unique.” John is taking over from Peter Rosier, who has been at Loveitts for 45 years and has had a key role in the

while tradition was valued, the company was forward thinking. He added: “Nowhere is this more evident than in the big push towards new homes — a thriving market in which Loveitts is already making its mark. We recently appointed Laura Wilson as the firm’s area new homes manager. In the Coventry, Nuneaton and Leamington

firm’s success. Peter, who was recently made a Freemen of

the City of Coventry, will remain as a director to the firm.

It’s three big cheers for consultancy firm

P roperty consultancy Pennycuick Collins has three reasons to be cheerful! The award-winning company has announced the promotion of two of its staff, while another has achieved one of the highest accolades in property management. Chartered building surveyor David Baker has been promoted to associate director. David, who joined the Birmingham- based consultancy 15 years ago, oversees major works and maintenance work for longstanding clients. Neil Randle has been appointed senior property manager in the residential and

lettings and management team. Meanwhile, head of the residential service charge team, Lyndsey Cannon-Leach, has been named a Fellow of the Institute of Residential Property Management (IRPM). The discretionary category professionals who have made a significant contribution to the development of the sector over and above that made to their own business.  Lyndsey said: “This year is turning out to be our most successful on record. These promotions reflect the commitment of David and Neil in delivering outstanding client service and are thoroughly deserved. “To achieve a Fellowship of the IPRM is the icing on the cake, in a week which also saw Pennycuick Collins awarded the Regional Managing Agency of the Year at the West Midlands Insider awards.” is the highest grade of membership awarded to

Staff changes boost property management firm

A new recruit and a staff promotion have boosted a property management firm’s team. PM Legal Services has welcomed senior litigator Jonathan Cass, who has 13 years of experience working in property litigation for commercial and residential properties. He said: “I’m delighted to have joined PM Legal as they are known industry leaders and I’m very excited to be able to further my knowledge in residential property as a part of this team.” His appointment was made as the Yorkshire-based company announced the promotion of solicitor Asia Munir to associate. The decision is in recognition of Asia’s development of her specialism

in residential property at PM Legal Services. Partner Cassandra Zanelli said: “I’m so pleased with the recent growth we’ve had at PM Legal, and I’m so happy to welcome Jonathan to the team, as his experience and knowledge will be extremely beneficial. “We’re also extremely proud of Asia for her achievement, as she has been with PM Legal since April 2018 and she’s been promoted in recognition for all of her hard work and efforts in her first year with us.” Meanwhile, teammembers Jennifer Knibbs and Ruby Zaman have recently

passed their associate examwith the Institute of Residential Property Management (IRPM). Principle continues rapid growth in first year

A new property assistant has joined the after its launch last year. Daniel Lannon joins the company after Principle, which was set up by Brett Williams, won several new contracts. Daniel previously worked in the retail sector after graduating from Aberystwyth University with a 2:1 honours degree in 2015. Customer services manager Michelle Cox said: customer services department at Principle Estate Management as it continues to grow

“It’s fantastic background to have retail experience for what is a customer service role here at Principle, plus Daniel’s good IT skills also made him the ideal candidate.” Ian Smallman, director at Principle, added: “Principle has grown so rapidly that recruitment is now an ongoing item on our monthly agenda. “We’re confident that Daniel is going to play his part in ensuring we continue to provide the outstanding customer service that we have become really well known for.”

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infocusopinion

Calls for minimum property management B usinesses and individuals who are It also outlines the current market and reports that the latest government

housebuilding sector as this represents a long- standing failing to achieve required growth levels. However, the political will is behind reform, witnessed by the significant ramping up of personnel in the Ministry of Housing, Communities and Local Government. As an industry we welcome this direction as it can only serve to improve standards across the sector and level the playing field between those ARMA agents that subscribe to a consumer charter and standards. Leashold reform Apart from regulation there are two main areas to look at under leasehold reform that will affect MA’s, namely ground rents and commonhold. An MA’s role in ground rents is usually restricted to the collection and payment to the landlord of the ground rents. However, the larger implication of the abolition will be the impact upon the landlord community. Why would a landlord stay connected to the building without an income stream? As a result, developers are unlikely to find landlords to manage the buildings and will move towards the RMC type of arrangement to offload the responsibility for the development. The overhaul of leasehold to potentially transfer the ownership of a property to the residents themselves. This can be achieved in various means but for the sake White Paper outlines sector contributes £500m to UK economy

responsible for apartment blocks should undergo a minimum level of education on property law, health and safety and fire training. That is the view of the Association of Residential Managing Agents (ARMA) in a wide-ranging White Paper released by the organisation in June, which reveals that the sector contributes £500m to the UK economy. The extensive report – An Overview of the Residential Block Property Management Sector in England and Wales – outlines that ARMA believes all right to manage (RTM) and residential management company (RMC) board directors and landlords should undergo training. It says: “This should be online so that those people with day jobs can fit it into their schedule. It should be free and provided by a body such as LEASE (Leasehold Advisory Service).” The report also • Outlines the need for more transparency between managing agents and leaseholders to prove how most make little or no profit from leases. • Welcomes discussions for regulation to improve standards across the sector • Warns that leasehold reform could mean difficulty in finding landlords • States that commonhold is not a silver bullet and has its drawbacks ARMA chief executive, Dr Nigel Glen, said: “We’ve compiled the report as a valuable reference tool to help interested parties – either those working directly in the sector or those involved in research – find out more and demystify the sector. “The report contains a rich vein of >Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48

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