How to evict persistent late payer

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I have a tenant who is late with their rent every month and only pays after a lot of calls/emails/text etc. I told him last time was his last warning and he promised to set up a direct debit.

Well one month was fine

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Conservatives plan Landlord Redress Schemes

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Under pressure to do more for tenants, the Conservatives have said they will introduce redress schemes for landlords, similar to those introduced for letting agents.

The announcement was made at the Conservative Party Conference last week, alongside other plans to regulate letting agents and bring in incentives for landlords to offer their tenants longer term tenancies.

A compulsory scheme will mean that all buy-to-let (BTL) landlords will be forced to register with an ombudsman scheme which the Government claim will resolve tenancy disputes more effectively than relying totally on the present county courts based system.

The government is claiming that by having landlords compulsorily join an ombudsman scheme, tenants will be given more power to challenge what they consider to be unreasonable treatment from a landlord.

Speaking at the Conservative Party Conference last week, Communities Secretary Sajid Javid said Government would:

“insist that all landlords are part of a redress scheme… For too long, tenants have felt unable to resolve the issues they’ve faced, be it insecure tenure, unfair letting agents’ fees or poor treatment by their landlord with little means of redress. We’re going to change that”.

The announcement was short on detail, so at this stage it’s not clear whether the new scheme will simply extend the scope of existing ones for agents, or will involve the launch of a completely new one. Currently, there exists no ombudsman scheme for private landlords but there are a number of voluntary redress schemes, codes of conduct and dispute resolution systems available. More detail about the new landlords’ scheme is likely to be forthcoming in November’s Budget speech.

Private landlords can opt-in to the Housing Ombudsman Service (HOS) scheme, which is primarily for the social housing sector, though few currently do so. It has been reported that in the social sector last year the HOS closed 15,877 cases, the majority of which concerned assured tenants with concerns about repairs to their property – in fact it is on record that the social sector have a worse record on complains than does the private rented sector.

Currently, the Property Ombudsman (TPO) handles complaints by tenants and landlords against sales and lettings agents, where it has been reported that the TPO dealt with 1,997 disputes in 2016, 56% of which were lettings related – 45% of these from landlords and 51% from tenants – resulting in a total of £786,572 being paid out by agents as redress.

Both the National Landlords Association (NLA) and the Residential Landlords Association (RLA) operate voluntary redress schemes insisting members follow a code of conduct against which their performance is judged, though they cannot legally impose fines, only a ban on membership.

Though these new regulations will have to await the passing of new legislation, which could take a little while, it seems that with the growth of private renting landlords are coming in for a considerable amount of attention from government recently, with measures it would seem both to slow down the growth of buy-to-let and to regulate the sector more intensely:

• Buy-to-let landlords and anyone buying a second home (even if they buy a new home before they have sold their own) must pay a 3% surcharge on top of normal stamp duty bands.
• From April 2017 to 2020 mortgage interest relief will be removed altogether, replaced by a 20% tax credit on the interest amount.
• Wear and tear allowance will switch from an option to take a flat rate of 10% on annual rental income, to only the landlords’ actual expenditure when replacing household items.
• Portfolio landlords lending restrictions were introduced in September, so buy-to-let landlords with 4 or more mortgaged properties now face much tougher lending restrictions on new borrowing.
• New regulations concerning disrepair and section 21 evictions mean that landlords need to be much more diligent in the way they produce a serve documents on their tenants if they are to avoid problems later.
• The government is pressing on with its plans to ban letting agents charging fees to tenants in England. This means landlords will end up paying the agent more to cover the costs for agent administration, documents and referencing.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Conservatives plan Landlord Redress Schemes | LandlordZONE.

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Base rate speculation causes fixed rates to rise

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Moneyfacts UK Mortgage Trends Treasury Report data, not yet published, highlights that as SWAP rates have seen a steep increase due to base rate speculation, the average two-year fixed rate mortgage is also starting to rise.

Charlotte Nelson

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Trade body sets international agenda for invasive weed control event

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Leading experts from across Europe will be sharing best practice at the annual International Invasive Weed Conference, organised by the Property Care Association.

A key event for a wide range of professions looking for the latest insight into invasive non-native weeds.  The event ‘Management, Understanding and a Look to the Future’ takes place at the Møller Centre, University of Cambridge, on 23 November.

Focusing around three key themes – the management and understanding of invasive weeds, as well as a look to the future – the conference sets out to provide a comprehensive picture of the current and future issues relating to invasive weed control.

The day features a unique mix of discussion and insight from academia and different sectors including ecology, utilities and transport, as well as governmental and public bodies.

The meeting will address traditional invasive weeds such as Japanese knotweed and also investigate a new generation of non-native species which are becoming of increasing significance across the public and private sector, including aquatic plants.

It will draw on the experiences of academia, including Dr Ken Thompson of the University of Sheffield, Dr Maria do Rosario Fernandes of the University of Lisbon and Dr Uwe Starfinger, Julius Kühn Institute, Germany.

Philip Santo FRICS, of Philip Santo & Co, will provide an update on legal issues from a surveying perspective, while representatives from organisations including the Environment Agency, Defra, Monsanto, CABI, South West Water and Network Rail will also take part as guest speakers and as panellists for the question and answer session.

Professor Max Wade, chairman of the PCA’s Invasive Weed Control Group, said: “The impacts of invasive plants are wide-ranging, posing risks to the environment, water industry and transport infrastructure, and even public health.

“They are growing in number and the legislation surrounding their control is becoming more complicated.

“In line with their far reaching impact, the conference has been developed to provide industry-leading insight which covers a broad subject area, and is of appeal to a wide-ranging audience.”

The full conference programme can be viewed at www.property-care.org/conferences/invasive-weed-conference-2017/

This online area also includes a link to a video giving a flavour of the event, filmed at last year’s conference.

A further video regarding the challenges for landowners in tackling invasive weeds is also available to view at https://www.youtube.com/watch?v=YuHzVzgyV_E

Noted for its training and technical expertise, the PCA incorporates the British Wood Preserving and Damp-proofing Association (BWPDA), which has been in formation for more than 85 years.

The trade body represents the UK’s flood protection sector as well as the structural repair, structural waterproofing, wood preservation, damp-proofing and invasive weed control industries.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Trade body sets international agenda for invasive weed control event | LandlordZONE.

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Airbnb paid HMRC £188,000 for last year’s UK tax return

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Although Airbnb collected more than £675 million in rental payments last year their total payment to HMRC for corporation tax was £188,000.

The commissions earned by Airbnb are booked through it’s subsidiary in Ireland, but they also have two British subsidiaries.

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Freeholders plans to extort more profit from property owners

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In 2012 I bought a flat in Manchester as an investment and I have rented out the flat for the last five years however I recently received a letter from the management company stating they were introducing a new annual charge of £126 to “Provide a notice and registration fee upon granting of a shorthold tenancy”.

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Can I enforce safety checks on commercial tenant?

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We have one commercial lease (office building) wherein our tenants have denied their responsibility to carry out annual Gas Safe checks and Electrical Installation Condition checks.

Do we have any recourse against them apart from invoking forfeiture of the lease for breach of covenants?

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5 per cent of rentals don’t meet energy standards

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A new study carried out by AXA insurance has found that around one in 20 rental properties in the UK do not yet meet minimum energy standards, though landlords are making significant progress towards meeting the required standards, AXA found.

As a general rule, an Energy Performance Certificate (EPC) is required every time a home is put up for sale or for rent. So, a landlord needs one to show potential tenants the property’s energy rating, and a seller must have one to show to potential buyers.

There are a few exceptions, for example a lodger landlord won’t need one for a room that’s being rented out and listed buildings may also be exempt as they can’t have some upgrades like double glazing.

The requirement for an EPC has been the law since 2008 (2009 in Scotland), meaning that if your home has been let or sold since then it should have one. They remain valid for 10 years.

There’s a national register of EPCs, unless you’ve opted out, where you can take a look at your property’s previous certificates, as well as viewing similar properties in the neighbourhood for a comparison of energy efficiencies.

From April 2018 all rental properties must have and EPC rating of E or above, therefore the 5 per cent of properties, a significant number, (around 200,000 households) currently with ratings of F and G, will be illegal next year, if they have not been improved by then.

Poor energy performance (an energy rating of F and G) will not only cost tenants more money to run their heating, it often leads to insufficient heating in the home which in turn leads to condensation and black mould growth, a serious health hazard. AXA estimates that tenants in an A rated property would pay an average of £61 per month on energy, compared to bands F to G which would cost around double that at £112.

However, the private rental sector (PRS) in the UK is experiencing significant energy efficiency improvements, with landlords taking measures to gradually bring their inefficient properties up to standard,. AXA estimates the number of F and G rated rental properties has halved since 2015. However, it would seem from this study that there is a significant number at around the 200,000 mark still failing to meet the minimum standards.

AXA estimates that with this level of below-standard housing, poorly insulated and with inefficient heating systems, tenants occupying these homes will be over-paying on their energy bills in total by around £13 million per month.

Gareth Howell, managing director of AXA Direct has said:

“Our study has found that landlords are making significant investments into improving the energy efficiency of their properties and this is part of a bigger trend.

“When we look at our surveys of tenants and landlords over the past five years, we see progress across the board on security, maintenance and numbers with proper tenancy agreements in place.”

Mr Howell thinks that many of the landlords insured with AXA are accidental landlords who typically own just one or two properties.

“They are, by and large, professionalising and investing more seriously in their tenants’ comfort and the future health of their rental properties. Pockets of failure exist in this market, but it is not the story for the vast majority,” Mr Howell said.

Minimum EPC Rating for Rental Properties after 2018

Get an EPC – LandlordZONE Directory

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Landlords Portfolio Insurance

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I’m a landlord with 5 properties – 4 in joint ownership and 1 in Ltd co.

I have been lazy recently and not really bothered to look at insurance renewals and just called up my broker on receiving a renewal letter

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Selective Licensing – are there any benefits for landlords?

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Landlord Licensing:

Some local authorities are introducing landlord licencing in selected areas while others are doing this across the board, across the whole borough, town or city.

Mention licensing in most landlords’ company and it either strikes the fear of God in them, or else a simmering sense of resentment that their local authority is simply taking hard earned money away from them, using these schemes as an excuse to raise money for their cash strapped council.

Well, in a sense these schemes do generate a considerable amount of cash for councils’ coffers, but this money should by law be ring fenced and only used for the purpose intended: to raise standards in the private rented sector (PRS) concerned, to tackle anti-social behaviour, and to run an effective scheme. Landlords should be prepared to hold councils to account for this.

The average cost to landlords is around £600 per five years per single-let rental, or £120 per property per year. HMOs will be higher depending upon the number of occupants but average around £1000 per HMO property for the five years.

However, if the scheme is run properly by the local authority, the benefits to landlords can outweigh these costs. Responsible landlords should welcome any scheme which tackles the rogues, those landlords operating below the radar, flouting the law, and getting away with not paying their fair share of taxes.

A good well run scheme will enforce minimum standards across the board, through regular property audit and compliance inspections, and having landlords comply with certain documentation.

Licensable properties are inspected to ensure that the licence conditions are met:

• health, safety and welfare of the community are protected
• landlords maintain their property and correct any deficiencies that may exist
• reduce anti-social behaviour
• prevent neighbourhood blight and conditions that can result from lack of care
• ensure that minimum housing standards are met
• educate landlords and tenants of acceptable private rented standards

The result is the maintenance of proper rental standards over time and a general improvement where conditions in the locality are currently below standard, thus maintaining or enhancing the rental and sale value of landlords’ properties.

The scheme may mean that landlords are required to be more diligent in the way they manage their rentals, where local government regulations have to be adhered to, but ultimately, this will not only lead to a better Private Rented Sector; it enhances the reputation of private landlords both locally and nationally.

All sounds good in theory, but how it works in practice depends on the effort and resources a local authority is prepared to apply, and how well private landlords comply. Any such scheme works best when landlords and local authorities are prepared to work together to improve a community for the benefit of everyone in the area.

Local authorities might typically require landlords to provide, in addition to inspection audits from time to time, the following:

• Details of any properties that the proposed licence holder holds licences for both inside and outside the area.
• For properties with multiple households, the size and number of habitable rooms
• Tenancy or licence agreements, on request
• Tenant references or evidence of these, on request
• A basic fire risk assessment for the property
• A valid Gas Safe Certificate – when applicable
• An Electrical Safety Certificate from an accredited body – e.g. NICEIC Certification
• Energy Performance Certificate (EPC)​

This is all information which a landlord should be producing in any case to comply with the latest AST regulations, with the addition of the current version of the government’s “How to Rent Guide”, supplied to tenants.

For documents see: https://www.landlordzone.co.uk/documents

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Selective Licensing – are there any benefits for landlords? | LandlordZONE.

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