This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
Scotland should be used as a model for lettings across the
rest of the UK, according to a letting agent based north of the border.
DJ Alexander Ltd, one of the largest family-run property
management businesses in Scotland, believes that the Government’s upcoming ban on lettings
fees is good for business, and will strengthen the relationships between
landlords and tenants.
The firm insists that charging tenants administration fees
is both unnecessary and bad for business.
DJ Alexander Ltd, headed up by brothers David and John
Alexander, argues that the lettings experience in the Scottish private rental
sector should be the model for the rest of the UK.
David Alexander, the Joint Managing Director of Apropos by DJ Alexander
Ltd, says: “In
many ways, Scotland has led the way in improving the rights of tenants, and
changing the relationship between landlord and tenant. Too often, this
relationship has been confrontational and divisive, with each side pitted
against the other. Rather than resolve any disputes or problems, the attitudes
and the regulations seem to be established to dispose of any complaint by a
tenant, rather than address it.
Tenants Fees Bill simply rights a flawed piece of legislation that allowed
unwarranted and unfair charges to develop under the camouflage of
administration expenses, often with little or no explanation of what these were
for or why they were being applied. With many letting agents operating a business
model where such charges account for a quarter to a third of income, it is
clear that they were not motivated to end these charges, reduce their levels,
or to have them examined in too much detail.”
Alexander believes that the ban on fees will result in higher charges for
landlords, which will concern many investors.
explains what happened in Scotland: “When these charges were ended in 2012, and
they were never as substantial a part of the Scottish market as they have been
in England and Wales, there were doom-mongers who predicted the end of the
lettings market. But this did not happen; the market adapted, landlords were
charged more, but the best agents and the best landlords adapted and realised
that this was fairer for the tenant, and, in the long-term, created a better
relationship between the two.
the ending of the no faults ground for eviction notices and introducing much
greater security of tenure for tenants was feared by some in the property
market as a sign of them losing control. On the contrary, it gives agents,
landlords and tenants the opportunity to develop a relationship built on trust,
on fairness and on developing a long-term relationship to their mutual
agree that Scotland’s lettings model would work across the rest of the UK?
Em is the Content Marketing Manager for Just Landlords, with over five years of experience writing for insurance and property websites. Together with the knowledge and expertise of the Just Landlords underwriting team, Em aims to provide those in the property industry with helpful resources.
When she’s not at her computer researching and writing property and insurance guides, you’ll find her exploring the British countryside, searching for geocaches.
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