The new CRAR regulations were introduced in April 2014. Initially, there were some concerns amongst landlords and managing agents as to the impact the new regulations would have on their ability to collect outstanding rents.
One of the main concerns was that landlords would not be able to instruct enforcement agents to collect service charges or building insurance under the new regulations. At Roger Hannah & Co. Ltd., we have worked closely with one of the leading enforcement agents to deal with this issue and have an option that works well with any instruction for rent enforcement that does not cost the client anything in fees, which in turn has been well received.
The concerns about the 7-day notice, which now has to be served on the tenant in advance of any further action being taken, have so far been proved wrong, and with close monitoring and quick action, landlords can often achieve better results in most cases, meaning they actually receive payment within the 7-day period. There is now more information available for tenants that appeared to be weighted in their favour; however, it is actually more advantageous to landlords, as matters can be resolved more easily and with far less confrontation and ultimately less cost to both the tenant and landlord.
Now that there is more clarity in the legislation, the key thing is to take action quickly whenever a tenant defaults. With our knowledge of the new legislation and close working relationship with the enforcement agents, Roger Hannah & Co. Ltd. are able to achieve this effectively and efficiently. One of the key facilities available through the enforcement agents is their online database, meaning that we, as managing agents, can obtain an update on each case at the touch of a button, enabling us to keep our clients fully informed on progress.
For more information or advice regarding CRAR, please contact John Somerville, Director.