Deposit Cap will be charter for rent cheats claims RLA

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Rental Deposits:

Plans to cap security deposits for private rented housing to six weeks rent risk creating a charter for rent cheats warns the country’s leading landlord body.

Research by the Residential Landlords Association’s (RLA) has found that 40 per cent of private landlords have faced tenants not paying their final month’s rent in the past three years.

The new cap is proposed in the Government’s Draft Tenant Fees Bill and the RLA is calling for this to be increased to eight weeks to cover the costs if the final month’s rent is not paid and to ensure there are sufficient extra funds to deal with any major problems some tenants leave behind.

The RLA is also warning that the Bill risks becoming a missed opportunity to improve the position of tenants. It is calling for proposals to enable tenants to transfer deposits from one home to another rather than having to raise fresh funds each time they move as they wait for their last deposit to be paid back.

It also wants the tenancy deposit process to be brought into the 21st Century by enabling papers confirming that deposits have been protected to be sent to tenants electronically which currently cannot happen.

The Office for Budget Responsibility has again warned that plans to ban letting fees paid by tenants could lead to rent rises as a result of fees being passed on.

Commenting, David Smith, the Policy Director for the RLA said:

“Ministers need to address the problem of tenants failing to pay rent every bit as strongly as rogue landlords. It is not unreasonable that landlords should have the security to know that funds are available to cover the unacceptable practice of those tenants who do not pay their rent at the end of the tenancy and, in some case, leave the property in an unacceptable state.

“In a quest for quick popularity, the Government’s plans risk becoming a missed opportunity for fundamental reforms to improve tenants’ ability to access rented housing.”

The research findings are contained within a report by the Residential Landlord Association’s (RLA) research exchange, PEARL. Almost 3,300 landlords responded to its questions.

The Residential Landlords Association: The home for landlords

• The RLA represents the interests of landlords in the private rented sector across England and Wales. We’re home to over 50,000 landlords nationwide, with a combined portfolio of over a quarter of a million properties.
• RLA PEARL’s report, The Impact of Taxation Reform on Private Landlords, is available here – Page 23 notes: “The next question asked landlords whether they had ever experienced their tenants not paying their final month’s rent in the past three years. The majority of landlords responded that they had not experienced this (60%), however, at 40% of landlords who have experienced this, this is still a significant issue.”
• The Office for Budget Responsibility’s Economic and Fiscal Outlook for March 2018 can be accessed here – Page 94 notes, “it is possible that a ban on fees would be passed through to higher private rents. If this was the case, it could affect our housing benefit spending forecast.”
• The RLA’s written evidence to the Housing, Communities and Local Government Select Committee inquiry into the Draft Tenant Fees’ Bill can be accessed here

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Conveyancing Service

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Buy, Sell or Remortgage with our online conveyancing service

We understand that purchasing or selling a property can be one of life’s most stressful experiences.

That’s why we promise to make sure your home move is as quick

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Stoke-On-Trent petition to reject Selective Licensing

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North Staffs Landlord Association (NSLA) have started a 38 Degrees petition “We urge Stoke-On-Trent City Council to reject Selective Licensing.”

The NSLA have reported that: “Every rental property in the designated streets will have to have a licence

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Unfair practice by Council re hazards in house?

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I have a buy to let property where the tenant asked the Council to assess the house using the Housing Health and Safety Rating System (HHSRS). She had not raised, with me, any concerns about the condition of the house beforehand.

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The Great Pet Debate

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Pets in Lets:

It’s the age-old debate between landlords and tenants. Should a landlord allow a tenant to rent their property if they have a pet? If we look at the ‘No pets allowed’ plastered over every advert and a resolute mantra from lettings agents, it’s clear that most landlords do not allow pets in their buy-to-let. But perhaps it’s time to reconsider this stance, with a few conditions of course.

Dogs Trust conducted research and found that 78% of pet owners had difficulties finding a rental property that would accept their furry friend. Plus, 1 in 3 property owners could not find anywhere that would accept their pet. It’s also reported that tenants with pets take up to 7 times longer to find a rental property that is willing to accept them. There are good reasons as to why a landlord would be hesitant to accept a pet:

• Damage to property such as ripped carpets, shredded curtains and scratched wooden floors
• Pets, particularly dogs, could cause a disturbance to neighbours with late night barking
• It may affect tenants in the future if they are allergic to animals
• It may cost more to clean the property once the tenants have left
• Flea infestation, which is expensive to remedy
• For a fully furnished let, cats and dogs are likely to damage furniture from chewing and scratching

This list is hard to ignore and may give many landlords the resolution to continue rejecting tenants with pets. However, the Dogs Trust research also found that 47% of landlords didn’t give any reason for not allowing a tenant to keep a pet. Perhaps the ‘No pets’ mantra has simply been reinforced in the industry without real thought to individual circumstances.

A naughty 14% of tenants keep pets in a property, without asking for their landlord’s consent, so perhaps a reasonable agreement, such as a higher deposit or a guarantee the property will be professionally cleaned, would be a better approach?

The private rental sector now accounts for 21% of the housing market, more than 5 million, households. And this figure is only set to increase as house prices rise faster than wages. And from Upad’s research, 40% tenants have been renting for 4 or more years – showing that longer term renting is here to stay. With that in mind, should the no pets rule be relaxed, to allow tenants to settle into a rented home just a property owner would be able to?

What, you may be asking, are the advantages to letting to tenants with pets?

• Pet owners are likely to stay longer at a property, considering the difficulties they face finding a suitable rental
• They may be more likely to look after the property well, to prove that their pet won’t cause any problems
• Landlords could charge a higher rent. A Upad tenant survey found that 24% of pet owners would be willing to pay that extra rent
• The property may let faster, avoiding dreaded void periods, with so many pet owners struggling to find a rented a property to accept them.

You may not be convinced, and we don’t blame you. It’s important to consider the potential damage caused by pets and protect your investment. If you do decide to accept pets, make sure to ask for a higher deposit to cover any damage caused and carry out regular inspections to make sure the property is looked after.

You could also ask for vet records, to ensure the pet is up-to-date with vaccines and flea treatment. We’d recommend asking the tenant to agree to pay for a professional clean at the end of the tenancy, and this will avoid any deposit disputes over cleaning.

But always ensure you have a detailed, professional inventory check-in and check-out to show any changes in the property condition. If your “no pets” resolve may be softening, LetwithPets offers fantastic advice on protecting your investment if you do decide to allow pets – they offer free information on pet clauses, pet references and pet deposits.

This article has been supplied to LandlordZONE® by online letting agents Upad

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