LetSimple A lettings and property management service for landlords designed for the changing landscape of the private rental sector. TM
THE RENTERS RIGHTS BILL
The new Renters Rights Bill includes sweeping reforms that will result in a dramatic shift in the private rental landscape for both landlords and agents. This legislation brings an end to Section 21 "no-fault" evictions resulting in reduced powers to regain possession of properties. With increased restrictions on tenant evictions, landlords may face months or even years struggling to remove problematic tenants. The end of fixed-term tenancies means landlords may face even greater uncertainty with their rental income. Without the security of a fixed-term agreement, tenants can leave with minimal notice leading to potentially prolonged void periods and an unpredictable income stream. The Bill also amplifies the pressure on landlords to maintain meticulous documentation and records, as increased scrutiny and tighter regulations demand transparency at every stage of the tenancy. From tenant communications to property maintenance logs, the need for precision in record-keeping has never been higher. With local authorities being granted expanded powers to enforce compliance, councils have the authority to impose substantial fines for even minor infractions, making it essential for landlords to follow every regulation to the letter. This implies stricter oversight, with councils empowered to act swiftly and decisively against landlords who fall short. In this new regulatory landscape, experienced letting agents have never been more essential for landlords looking to navigate the complexities of the Renters Rights Bill. However, the Bill demands a significant shift from traditional letting agency services, moving away from basic tenant placement and rent collection to a much more dynamic, compliance-focused and proactive approach. With increased regulation and local authority power, letting agents must now play a central role in ensuring landlords are always one step ahead, adapting swiftly to each new requirement. Simply handling the basics is no longer enough; agents need to innovate with robust compliance frameworks, tech-enabled record-keeping, and advanced reporting systems to keep landlords protected in real-time. Adaptability and forward-thinking solutions are key. This new era calls for letting agents to be not just facilitators, but strategic partners capable of anticipating issues, mitigating risks and ensuring seamless adherence to complex regulations.
This is undoubtedly the most multi faceted piece of legislation to impact the private rental sector in the last 30 years. It is an absolute game-changer for landlords and agents alike.
LETSIMPLE
One of the ways in which Cope & Co. is adapting to this new world is our unique lettings and property management service, LetSimple . LetSimple is a fully managed lettings and property management service that adds more value for landlords as well as being cost effective and providing a more consistent cashflow. With LetSimple , landlords pays a single monthly subscription which replaces all the usual fees incurred by a landlord when letting a property.
Included
Maintenance Costs Gas Safety Certificate Cost Electrical Certificate Cost Energy Performance Certificate Cost Not included
All Advertising and Marketing Accompanied Viewings Tenant Referencing and Tenancy Setup Tenancy Deposit Registration Photographic Property Inventory Collecting Rent and Chasing Arrears Arranging Maintenance Works Periodic Property Inspections Check Out and Final Inspection Annual Rental Income Statements Tenancy Deposit Return Serving Notices (Section 8; 13 etc.) Arranging all legal certificates RENT GUARANTEE PROTECTION
An agent willing to adapt their services in response to a major piece of legislation shows that Cope & Co. are forward thinking in their approach to letting and managing properties.
Cashflow & Fees
Rent Guarantee
An Easier Life
Over the course of an average tenancy, which is currently around 26 months, it will cost the landlord significantly less than a typical fully managed service. LetSimple prevents cashflow fluctuations, especially in the first couple of months of a new tenancy when the majority of fees are deducted from the rent. In conjunction with our ‘Landlord Disaster Recovery’ policy, LetSimple creates the certainty of regular rental income.
Included in the monthly subscription is ‘Landlord Disaster Recovery’ – Ultimate Rent Protection. This superb NIL excess rent guarantee policy ensures that landlords receive their rent, even if the tenant fails to pay. It also includes legal cost cover and will pay the rent until vacant possession is obtained.
LetSimple allows landlords to sit back and relax that little bit easier knowing that LetSimple will reduce stress levels and provide a much easier lettings experience. As an independent, innovative agent, we firmly believe that the desire to adapt to this changing landscape will help landlords thrive in the private rental sector of the future.
Simon Joyce PROPERTY DIRECTOR 07977 235545
AVOID SPIRALLING FEES
Lets look at landlord fees situation under the new Renters Rights Bill. Here is a typical 6 month tenancy under the current legislation:
Month 1, the tenant moves in and all the usual up front fees are deducted from the first months rent. Setup Fees, Inventory Fees, Deposit Registration Fees, Referencing Fees, the list goes on. Then, management fees are charged monthly as the tenancy progresses and these are usually a percentage of the rent being paid. If a landlord has chosen to invest in a rent guarantee policy, then the costs for this are typically also charged on a monthly basis.
Lets assume that the tenant stays for the initial fixed term of 6 months and then moves out. A new tenant is found and the whole fee charging process starts all over again. So, under current legislation – unless an early termination is agreed with the landlord – there can only be a maximum of 2 tenancies in a year.
A service that makes letting a property much easier and gives increased protection for landlords and their properties.
However, with no fixed term tenancies under the Renters Rights Bill, the situation changes. The first tenant could decide to only stay for 3 months, the next tenant could stay for 6 months and then a third tenant moves in. All of a sudden, there are now 3 tenancies in the year – and also 3 lots of up front fees incurred by the landlord. Theoretically, there could actually be 4 tenancies in a year if the first 3 tenancies only lasted 3 months each!
LETSIMPLE FEES
So, how does LetSimple protect a landlord from potentially excessive fees? First of all, the monthly payment is on a fixed fee structure – it is not a percentage of the rent. Fees are fixed for the duration of the tenancy – if there is a rent increase during the tenancy, the fee does not change. If the tenant moves out prior to month 6, the landlords fees are protected. As there are no up front fees, the monthly payment will only be paid for the duration of the tenancy. There will be agreed, automatic fee REDUCTIONS in place after 6 and 12 months. The longer the tenancy, the lower the monthly fee.
For the first 6 months of the tenancy, the monthly payment is fixed at the agreed amount.
From month 7, the monthly payment reduces - in many cases by up to 50%
If the tenant stays beyond a year, the monthly payment reduces again and remains the same until the tenant leaves.
Fairer Fees
There will be bespoke fee structure agreed for each individual property. LetSimple is not a blanket management service simply based upon the rent being paid – it is calculated property by property for complete transparency and fairness. At Cope & Co. we believe that, in the reformed private rental sector, the monthly rent alone should not determine the fees that landlords should pay. The LetSimple Fee is based on a number of factors including; Location Condition Property Type Tenant Demographics Property Management Needs Portfolio Numbers We firmly believe that this is a much fairer and logical way of determining the fees payable. A far more realistic way of calculating landlord fees. LetSimple shows that Cope & Co. have put some serious thought into what landlords actully want from a letting agent.
ADAPTING TO FIGHT BACK
This new service has been developed as a direct response to the Renters Rights Bill. There are many, many parts to the Bill, however, we believe that the main changes that will affect landlords the most are the following: The Abolishment of Fixed Term Tenancies This essentially means that all tenancies will be periodic from day 1 and a tenant can give two months notice to end the tenancy at any point. The Abolishment of Section 21 Notices A landlord can no longer use this method to regain possession of the property by evicting the tenant. However, there will be increased grounds for repossession under section 8 as The bill has increased the mandatory threshold for eviction from 2 to 3 months’ arrears AND extended the notice period from 2 weeks to 4 weeks . A tenant could, therefore, have accrued 4 months' arrears before a landlord can submit a claim to Court. A More Evidence Based Process of Grounds for Possession All this means that documentary evidence, legal paperwork and audit trails will need to be absolutely spot on for any eviction proceedings to be valid. section 21’s will no longer exist. Revised Grounds for Rent Arrears
Rent Guarantee
A robust rent guarantee policy will be more important than ever before for landlords. Cope & Co. has a market leading policy that is INCLUDED within the LetSimple service. A few of the fantastic benefits are: NIL Excess insurance policy
100% of rent paid until vacant possession of the property Up to 6 weeks of the rent at 90% paid after vacant possession £100,000 Legal Costs Cover in order to obtain vacant possession
Given that there have not been any reforms to the overloaded Court system and that there are very substantial delays in hearing possession claims and enforcing possession orders, the benefits of this policy are vital.
Rent Guarantee is a no brainer - especially now that arrears are almost certainly going to increase. Having regular rent ensures that mortgage payments can still be paid.
Laura Clarke HEAD OF CLIENT ACCOUNTING 01332 300197
CONSEQUENCES
There are a range of new fines for both landlords and agents who flout the rules. For example, landlords and agents who market properties to rent without signing up to join the new Private Rented Sector Landlord Ombudsman will face penalties of up to £7,000 for an initial breach and £40,000 or criminal prosecution for continuing or repeated breaches. A similar leve of fines face landlords who fail to join the new Private Rented Sector Database , which will require them to register details about themselves and their properties. There are other fines within the bill including up to £7,000 for landlords and agents who ‘overtly’ discriminate against tenants who have children or who are on benefits, and also landlords or agents who are caught encouraging competitive bidding for tenancies, and also who operate properties that do not meet the new Decent Homes Standard for the sector. Councils will be able to force landlords and agents to hand over information and give officers “powers of entry to business and residential premises”. Also, for the first time, local councils will also be able to issue civil penalties against landlords who evict their tenants illegally.
OTHER BENEFITS
NO FEES for Switching Agents For landlords transferring their properties from another agent, the management takeover is FREE. We will do all the work and liaise with the other agent to ensure a smooth transfer. Transferring from a scenario where the landlord self manages one or more of the properties onto the LetSimple service may incur a one off setup fee dependant upon the current level of compliance of the property or properties. ONE MONTHS NOTICE to Terminate* There is just a one months notice fee to terminate the service after an initial six months term. We believe that this shows that we trust in this service completely. * Notice to terminate cannot be given in the first six months of the LetSimple service. One months notice may then be given from the first day of the seventh month. FEE DISCOUNTS available for Property Portfolios Every property on the LetSimple service is assessed individually to reach an agreed fee structure. The number of properties that an individual landlord has on the LetSimple service is one of the factors that determines the fees payable.
I hope the guide has given you an insightful overview of the advantages and features LetSimple brings to the table.
I would love the opportunity to dive even deeper into LetSimple with a one-on-one discovery call with you. In this session, I will walk you through the unique benefits of the service, tailored specifically to meet the needs of today’s landlords.
During the call, we’ll cover:
How LetSimple can save you money and improve your cashflow. Ways our approach minimises risk and maximises return on investment. Our support in ensuring compliance and keeping up with the latest rental regulations. Answering any specific questions you have about how LetSimple fits your goals.
This is a great opportunity to get personalised insights and explore how LetSimple can support your letting and property management needs with ease and efficiency.
Simply scan the QR Code below to book your discovery call at a time that’s convenient for you. or, if you prefer, call our LetSimple number; 01332 300112. Simon Joyce
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LetSimple not only offers fantastic value with so many things included, it also enables costs and cashflow to be managed with no unexpected fees. As easy as the name says!
Book a Call: 01332 300112
www.letsimple.co.uk
NOTES AND QUESTIONS
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