Landlord’s ‘curry smell’ letting ban unlawful

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Landlord Discrimination:

One of Britain’s biggest buy-to-let landlords, Fergus Wilson, is in trouble yet again after setting out his letting criteria earlier this year. This time Wilson was in court yesterday for banning “coloured” tenants from renting his homes because of their “curry smell”.

The controversial millionaire landlord, reputedly worth £180m, that’s according to The Times Rich list, are doing the image of responsible landlords no good whatsoever with their antics, and their old fashioned views – they simply don’t seem to want to conform to legal convention, said one industry expert.

Fergus and his wife Judith bought nearly 1,000 homes in Ashford and Maidstone in Kent, but have recently been in the process of offloading them to foreign investors.

On the 1st January 2017 they introduced their so call Letting Criteria:

“Like any business we are consistently fine tuning to best advantage,” said Mr Wilson.

The following are not acceptable:

1)      Tenants with children under 18. A child over 18 can be a co-tenant

2)      Only tenants with a Rent Guarantee

3)      No single mums or single fathers

4)      No tenants on Housing Benefit

5)      No low income workers

6)      No single adults

7)      No Zero hours workers

8)      No plumbers

9)      No battered wives

10)   No smokers

11)   No tenants with pets

Although his criteria does not include the banning of Indian and Pakistani tenants “because of the curry smell” his actions in this have brought Wilson into conflict with The Equality and Human Rights Commission (EHRC), who applied for an injunction to prevent MR Wilson discriminating in this way.

Yesterday an injunction against the policy was granted at Maidstone County Court.

The Equality and Human Rights Commission (EHRC), which brought the action, said his remarks were unlawful.

The proceedings against Wilson began after he sent an email to his lettings agency, asking them to ban “coloured” people from renting his homes, a communication which was subsequently leaked to The Sun newspaper.

In court, Mr Wilson argued that his decision not to rent to people was made on economic grounds and not based on the colour of people’s skin. He described his remarks in the e-mail as “banter”.

Wilson insisted in court that he was not racist, and already has a number of non-white tenants in properties.

However, Judge Richard Polden rejected Mr Wilson’s assertion that he had been joking, saying:

“I find that this policy clearly amounts to discrimination. I find that the policy is unlawful.”

The injunction granted to EHRC orders that Mr Wilson cannot apply his lettings policy when it involves stopping Indian or Pakistani people renting his properties.

Following the proceedings Mr Wilson said the case was “political correctness gone mad” and that it could have a devastating effect on the lettings industry.

Wilson reportedly said that a property he had bought from an Indian couple cost him £12,000 to put right because the curry smell was a “massive problem”.

In the past, Mr Wilson had evicted all 200 of his housing benefit tenants. He said that they we unreliable and that he would rather have “migrants as tenants than people on benefits”.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Landlord’s ‘curry smell’ letting ban unlawful | LandlordZONE.

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Can anyone share their experience of similar projects

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Hi, I recently purchased (Aug ‘17) a property in Blackpool which has historically been converted into 5 self contained apartments.

The property is currently 80% Tenanted, however it is dated and would benefit from a complete refurbishment including some works to the roof.

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Splitting and refinancing?

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We own a free hold block of 11 flats in Birmingham area.

When we bought the property it was derelict. Since then we have done the work and now all 11 flats are tenanted and generating rentals with limited vacancy for past 2 years.

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Cleaning is still the biggest cause of deposit disputes

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Tenancy Deposit Disputes:

An analysis of deposit claims by agent’s professional body, ARLA Propertymark, shows that cleaning is by far the biggest cause of disputes between landlords and tenants, when tenants are leaving.

Tenancy deposits are taken from tenants to protect the landlord when damage is done, which goes beyond normal and acceptable wear and tear. It’s an important psychological lever that motivates tenants to return a property in good condition: will I get my deposit back when I leave?, is normally enough of a motivator to clean up and look after the property. Not it seems for some tenants!

Some tenants just don’t play the game, even to the point of cancelling the last month’s rent, leaving the landlord to claim against the deposit for the rent, and leaving them to whistle for their money, leaving nothing in reserve to cover for items like professional cleaning.

By far the majority of tenants get their full deposit back, but there are cases where a landlord needs to keep all or a part of the deposit for genuine damage or cleaning etc. The ARLA Propertymark study asked its agent members to give them the most common reasons why tenants don’t get their deposits back.

Cleaning Comes Top

The results of the study are interesting: almost nine out of ten letting agents said the main reason tenants don’t get their deposits back is because of cleaning issues. Basically they leave the property dirty. This leaves the landlord either to do a lot of hard and often distasteful work themselves (remember landlords cannot claim for work they do themselves) or employ a professional cleaner to do the work for them, in which case they have an invoice for charges they can use to claim against the deposit.

Most tenancies are professionally cleaned at the start, so while tenants can clean for themselves, landlords often expect a professional level of cleanliness, as was clearly documented in the inventory at the start of the agreement.  What is clean to a tenant is not always so to the landlord, and this is where the disputes start.

To avoid dispute losses a good quality check-in and check-out inventory report is vital as evidence in any dispute, and these reports (ideally prepared by an independent inventory company) should include good photos at the start and end of the tenancy.

Lack of maintenance

General basic house maintenance is the second main reason for disputes, in particular garden maintenance which is usually specified in the agreement. Tenants are under a contractual obligation to do this work and if they fail to do it they will lose out, but only if the landlord has enough paper evidence to win a claim.

The onus is always on the landlord, or the agent on their behalf, to prove their case and this means having good solid paper based evidence – the adjudicator (if the landlord decides to go to arbitration as opposed to a County Court) decides who gets what on this evidence and there is no appeal.

Damage to Contents

Hanging pictures on walls, although desirable to brighten up a plain room, often leaves holes and shaded areas on the walls which involves repairs and redecoration for landlords. Pictures should only be hung with agreement with a landlord, otherwise it’s an issues that causes disputes.

Unpaid rent

Deposits should be held until all rent is paid up to the day of leaving, and any overpaid rent should be returned to the tenant. To ensure that rent arrears can be claimed against the deposit the letting agreement should clearly state all the reasons why a deposit can be retained, usually for:

• Cleaning
• Basic maintenance
• Damage
• Rent arrears
• Keys and locks
• Storing tenants’ left belongings

Sally Lawson, President, ARLA Propertymark offers advice to tenants:

“When you’re leaving a property you’ve been renting, the general rule is to leave it as you found it. Make sure you haven’t left any personal belongings behind, and that the property is clean and tidy for the next tenants. You should flag any damaged items to your letting agent or landlord during the agreement, so that when you leave, it doesn’t come as a shock.

“This will also help you develop a good relationship with them, which will be useful for any reasonable negotiations about the deposit.

“Finally, you should always take photos of the property at the start and at the end of your contract, so that if you need to dispute any of the deposit deductions, you can evidence your points.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Cleaning is still the biggest cause of deposit disputes | LandlordZONE.

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Council desperation U-turning Government attacks on Landlords!

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Golden Welcome cash payment to landlords

Central Government is doing all it can to deter private landlords from providing housing to people on benefits and now Local Councils are desperate enough to do this:

Monmouthshire Lettings Service Scheme will offer landlords a cash payment of up to £1,200 just for joining

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What do you do if tenants leave you to clean up?

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Cleaning Services:

Most residential landlords have been in the painful situation of a tenant leaving their property in a poor condition.

Despite clear rules in most rental contracts, a minority of poorly-behaved tenants cause huge amounts of problems for the owners of their homes. This is particularly difficult when the owner has worked hard to purchase their property and renovate it to a high standard.

To avoid these problems when renting out your property, it is important to communicate with your tenant and provide sensible advice. This process should start as soon as you hand over the keys.

Regular rental property maintenance

In your early conversations with your tenant, you should mention:

• That not venting bathrooms and kitchens causes mould growth
• That not hoovering the carpets or soft furnishings on a regular basis ruins them
• Mention the jobs you expect to be done on a regular basis, whether this is maintaining the garden areas or cleaning the carpets
• Indicate your expectations for the condition of the property when they leave

You may also want to share useful tips for looking after your property – and therefore the tenant’s deposit.

For example, regular vacuum cleaning will prolong the lives of carpets and soft furnishings. And carpet spillages are not best dealt through the use of products like Vanish. This may work on synthetic carpets, but generally, it is best if a professional can deal with carpet damage.

To make sure these things are done, you are within your rights to ask for regular inspections of your property. As long as you give at least 24 hours’ notice, you can reasonably do these as often as you wish. Quarterly, or even monthly, visits are not hugely unusual. You will, however, need to balance the urge for these visits with your tenants’ rights to peace and quiet.

Information to give rental tenants

To keep things moving smoothly in a tenancy, it’s sensible to also give your tenants a laminated list of contact numbers, just in case anything happens. These could be numbers to use if you’re not available or just useful information. Think about things like a plumber’s number or a local taxi company.

The other information that you need to share is about how to manage the moving out process. This way there is a clear expectation for your tenants to understand from the beginning of the tenancy. This could be:

• Details of a good end of tenancy cleaning company
• Details of a professional carpet cleaning company

Local estate agents can also be a good source for recommendations for these types of services. They use them on a regular basis.

The general advice you should give for example is that cheap end of tenancy cleaning London companies may not always deliver a great service for the price they charge. And this may mean tenants end up paying anyway thanks to avoidable deductions from their deposit.

What’s really needed, for the benefit of the tenant and the landlord, is a really thorough, high-quality cleaning service. After working with the majority of the top estate agents and property management companies, we at Cleaner Cleaner have seen it all.

If all of your tenants could maintain our standards, you’d never have a problem at all.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – What do you do if tenants leave you to clean up? | LandlordZONE.

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Annual house prices increase 4.5% and continue affordability concerns

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The Halifax Price Index figures for the last quarter August to October show the price of an average house is now a record high of £225,826.

House prices in the last quarter were 4.5% higher than in the same three months last year.

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Labour Councils Teach Us How To Invest In Commercial Property !

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Two Labour Councils made investment purchases of commercial property. (Strange when councils are meant to tax us for the provision of local essential services, not for running a property investment business!)

The councils have purchased these properties using offshore companies in Luxembourg and saved £12bn in SDLT.

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Can I deduct my time as an expense if I perform emergency repairs?

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My tenants arrived back from hols to find water pouring in through a leaking roof vent down via a 9inch pipe connected to an en suite extractor fan.

I couldn’t get a local trades person to attend despite spending a full morning of calling.

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Personal to Limited Company

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We are the process of change from personal to limited for our property portfolio. Do all of the properties need to be transferred to one company or can they be transferred to two companies as long as they are all transferred.

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