Ahead of the Curve

It is the start of 2024 with lots of activity to report on, in our latest PropOp newsletter.

Following on from the first two years, our strong performance has continued ahead of expectation, with significant increase to our portfolio, across each of our cities of operation. With additions to our team, partners and suppliers, as well as enhancements to our Edinburgh Office headquarters, we continue to move forward with our commitment to client service remaining as our priority over volume.

More info on this later.

Firstly, the temporary rent cap and eviction moratorium protections, brought in by the Cost of Living (Tenant Protection) Act 2022, comes to an end on 31st March, 2024.  That final date was built into the legislation to ensure the specific regulation in its current format could not be extended further.  The existing measures have been in place since 6th September, 2022 which saw rent restrictions, set at a maximum of 3% increases being applied to any current active lease. Subject to parliamentary approval, the Scottish Government has confirmed the process for rent adjudication will temporarily be modified for one year.  The proposal is that from 1st April, 2024 the landlord can propose an increase of any amount.  Tenants will have the right to dispute any increase they deem unfair in relation to market conditions.  In these instances, Rent Service Scotland or the First Tier Tribunal will assess each case.

As with the current position, a rent increase can only be made once a year for any tenancy in place.  A 3 month notice period must also be provided to tenants of any proposed increase.  At PropOp, our position will continue to be that we intend to set a fair level of rent for both landlords and tenants.  There should always be the opportunity to obtain consistent rent increases, whilst remaining within realistic and fair market levels.  By setting this stance, we believe there is more likelihood of encouraging and obtaining greater length of stay by tenants, in a property they see and will treat as their own.  We have seen many examples on the market with other agents/landlords setting ambitious and unsustainable rents, which simply leaves a property void for a prolonged period, or attracts consistent short tenancies, which results in constant turnarounds with additional expenditure/losses experienced.

Client Focused;

Returning to the topic of PropOp, our portfolio continues to grow month on month.  The largest source of our growth remains from dissatisfied clients moving from other agents due to service levels.  Additional to this, is with new clients entering the buy to let market either directly, or via PropOp’s Investment Service, or additionally through our investment property partner.  We also benefit from regular referrals from our existing clients and those wishing to add to their portfolio already with us.  We are always grateful for this and it remains our most satisfying source, with it being a fair testament of a currently satisfied client.

A question that has been posed over recent months from both existing clients and potentially new, is how will PropOp continue to maintain its service levels with growing volume – particularly as a company only formed in June 2021.  It is a fair question and one we understand.  When setting up the business, it was motivated by our passion to deliver a solid level of service to both landlords and tenants.  We had all previously experienced how both demographics could become ‘lost in the system’ at a high-volume driven agency, where service was not the priority.  We do not claim to have got everything right, we haven’t.  However, with our mindset always focused on our service levels, we believe our intentions are always well placed.  Our strategy is to identify, understand and make key decision’s ahead of the curve and we believe we have achieved this, to date.

Good Value;

From the end of last year, we decided to remove our HMO admin fee.  Going forward PropOp will not charge a fee for the preparation and submittal of new or renewal HMO License applications.  Whilst other agents charge for this process, we see this as a fundamental part of management and an item that should be included within the monthly management fee.  Clients who had a license go through a renewal requirement in recent months, will have already benefited from this amendment to our fee structure.  Therefore, the license fee due to the applicable council, will be the sole cost experienced by a landlord at PropOp in this regard.

Selecting the Best;

A big part of successfully staying ‘ahead of the curve’ is the people within our team.  It is an important aspect of our business that we are able to build and maintain strong relationships with our clients, it is also why one of our company values is ‘Approachable’ and why we strive to deliver consistent communication.  Thanks to our considerable joint experience in the industry, our Director Group have been able to identify and target strong performing individuals that we have enjoyed good working relationships with previously.  Our Operations Manager, Jak Florence who joined the team in January last year from Sandstone, and Property Manager, Dionne Carter who joined PropOp team in October last year from DJ Alexander, are two examples of this.  Katie McIntosh also joined PropOp from Estate Agent Lindsays in August and by doing so completed our Director Group of Emma Finnie, Ben Gettel and myself, of whom garnered our experience in the industry from the likes of Grant Property, DJ Alexander, Clouds and Tay Lettings.  It is our intention of adding to our team in the next few months.

Dionne Carter - Property Manager

Started with PropOp in October, 2023

Did you Know?

As recently included within the Landlord Accreditation Scotland newsletter, they noted the importance of a good Inventory.  “A good inventory helps avoid deposit disputes. Other than the rental agreement, the inventory is probably the most important document for any tenancy, and a robust, thorough inventory can help protect letting agents, landlords and tenants from deposit disputes. Don't underestimate the importance of this document. Taking time to create a detailed inventory is essential and will save money and time at the end of a tenancy”.

At PropOp we carry out our own inventory for each property for the start of every new tenancy.  We are aware of other agents who out-source this requirement to 3rd party suppliers.  Whilst this will result in an increased cost to the landlord, it also diminishes responsibility, awareness and accountability.  Whilst there is an inspection required for your property, you can be reassured that it will be a member of the PropOp Team that is attending and completing – whether that is an Inventory, Routine Inspection, or End of Tenancy check out.

Best Wishes,

Andrew Hutton, Company Director.

On behalf of the PropOp Director Group.