Paws for thought? Pet-friendly model tenancy will cause problems, says leading inventory firm

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Proposals to include more inclusive wording within updated model tenancy agreement will create more disputes with renters, it is claimed.

Landlords face more
disputes with pet-owning tenants following the Government’s plans to remove
restrictions on well-behaved pets from the model tenancy agreement.

Inventory services
provider No Letting Go warns it could cause confusion and put landlords’
properties at risk from unnecessary damage.

Bans on
well-behaved pets will disappear after housing
secretary Robert Jenrick said earlier
this year that he wanted to ensure more landlords were catering for responsible
pet owners.

Total bans on
renters with pets would only be implemented where there is a good reason, such
as a property being too small or having no outside space.

However, Nick
Lyons, CEO and Founder of No Letting Go, says problems could arise due to subjective
animal behaviour.

“If tenants are
able to argue that their pets are ‘well-behaved’, it may be harder for a
landlord to successfully make deductions from a security deposit where damage
is caused,” he says.

Lyons believes grey
areas over liability could cause financial problems for landlords. “We’re also
wondering what would happen to a deposit and the liability for damage if pets
were introduced during a tenancy,” he adds.

Well
behaved

The
Residential Landlords Association agrees that it will be difficult for
landlords to know whether pets are well behaved.

It has
already warned the Government that capping deposits would make it harder for
tenants with pets to access rented housing and believes there
should be an opportunity to increase them to reflect this heightened
risk. 

Policy
manager John Stewart, has told LandordZone: “What happens in properties where a
tenant wants a pet, but another one is allergic to it? And will new grounds for
possessing properties be introduced to deal with irresponsible pet owners?”

A
revised model tenancy agreement will be published by the Government later this
year.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Paws for thought? Pet-friendly model tenancy will cause problems, says leading inventory firm | LandlordZONE.

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Call of the Week: Rent arrears

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This week we were able to assist a member with a query about a tenant who had not paid the rent in more than two months. The tenant is a long standing tenant of the landlord but has started to have big problems with paying rent due to a change in their circumstances. They have now missed […]

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Is this what to expect when England’s housing court goes ahead?

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As the government prepares to introduce a housing court, LandLordZone looks at the existing Scottish system to see what the future holds.

The government’s plans to
introduce a dedicated housing court in England will have huge implications for millions
of landlords who, if it takes inspiration from the Scottish system as expected,
will have to attend hearings in person to thrash out disputes and evictions.

Scotland’s government has
invested heavily in its Housing and Property Chamber tribunal system which
offers swift and transparent justice – decisions are often published the next
day highlighting poor behaviour by tenants and landlords alike.

And its most recent case,
published earlier today, is a case in point.

Deposit dispute

Tenant Romy King
took her landlord Lotta Brown to the tribunal after her £700 deposit was not lodged
correctly with an approved deposit protection provider, she had claimed.

King provided the judges
with email proof from all three schemes that they had not received proof of her
deposit’s protection within the 30-day window – or at all, in fact.

King had moved in during
September last year but, after experiencing difficulties with the property’s
heating, gave notice and the two parties then become embroiled in discussions over
a gas bill and when the rent for the notice period would be paid.

During this time, it became
clear that the deposit had not been lodged with a scheme, leaving it
unprotected for 12 days.
Brown accepted this but contested many of the details of when and how the discussions
between the two parties took place.

Although the Tribunal could
have fined Brown three times the monthly rent (£2,100), because of the
circumstances including the early departure of King from the property, this was
dropped to £50.

‘No excuse’

There should be no excuse
for landlords or their agents not protecting the tenant’s deposit as the
legislation has been around for a number of years now,” says David Gibb of
MyDeposits Scotland.

“The new Private Residential
Tenancy (PRT) agreement also details the requirement to place the deposit into
a scheme within 30 working days of the start date.

“If the PRT is being brought
to end prior to the 30 working days deadline, the landlord should return the
deposit in full to the tenant, or place into a scheme if they wish to make a
claim against the deposit.”

Eviction delays

Whilst these kinds of cases
are dealt with fairly swiftly by the FTT, landlord and agents in Scotland are
still concerned that eviction actions are taking too long.

A recent FOI request by agent
Aberdein Considine
confirmed the average time for an
eviction case is 141 days.

“As the landlord or agent is unable to raise the action until the tenant has been in rent arrears for three months, these time-frames can leave landlords facing a significant period without receiving rental income,” adds Gibb.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Is this what to expect when England’s housing court goes ahead? | LandlordZONE.

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Buying Freehold of shared garden

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Hi, we own the ground floor flat in a two flat Victorian house. We have a 900+ year lease.

The upstairs flat is let out and the property freehold belongs to the landlord.

We would like to buy the freehold of the garden or exclusive use by licence or contract if this possibility exists.

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The signs are there, or they were – should for-sale & to-let boards be banned?

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To-Let:

The banning of two
many unsightly boards on houses has long been a bone of contention
between local authorities and agents and landlords. All other signs
on building are subject to planning permission in one form or
another, so that the local authority has some control over the
appearance of the neighbourhood.

However, letting and sale boards are of a temporary nature, or should be, and have been tolerated by most councils. But with the proliferation of lettings over recent years means that boards contribute to a more permanent and unsightly scene in may neighbourhoods, triggering complaints from residents.

Camden Council’s
latest announcement that it is planning to ban all “To-Let”
boards from rented houses in the borough has brought the issue to the
fore once again.

Several other
authorities have been making noises along the same lines including
north east towns like Durham, Newcastle. Lincoln has now joined
Brighton and Hove which has an actual ban in place, and has had for
many years now.

Another problem is
that some boards are being left up virtually permanently, even after
the property is let, and some councils are resorting to set fines if
they are not removed after the property is no longer on the market.

Boards are perhaps
the least expensive way to market a property, whether for sale or to
let, attracting interest from people in the immediate locality; there
are other local methods including the local newspapers, but these
days it is more common to rely on the Internet.

Most people today start property searches online, so the need for a board is diminishing, councils are arguing. Lincoln’s planning boss is reported as saying that “a ban on ‘to-let’ signs in five areas of Lincoln should not have a negative effect on landlords.”

The council’s
planning manager, Kieron Manning has said:

“In recent years,
the council has witnessed a significant increase in the number of
complaints about the proliferation of ‘to-let’ boards in certain
parts of the city.

“Any letting sign
should be a temporary feature but, when signs are left up too long in
areas containing high numbers of rental properties, they can begin to
dominate the street scene.

“We became aware
that some signs were staying almost all-year-round and this was
beginning to have a negative effect on the look and feel of our
streets, so we decided to take pro-active action to solve the
problem.

“We are very
pleased that government has listened and agreed to allow us to
implement the ban.

“We don’t
expect this to have a negative impact on the city’s rental market
as searches are now mostly done online, and people who are interested
in moving to these particular areas will be able to find homes to
rent very easily on the internet.

The Residential
Landlords Association (RLA) has reported that the bans or proposed
bans are having a mixed reception among landlords.

Some have said that
“to let” boards are outdated anyway and they don’t use them;
they are “harking back to the days when putting a sign in a window
was the only method of attracting tenants” and with the Internet
they are rendered them obsolete.

Other landlords,
according to the RLA, have said this is “just another example of
‘landlord-bashing’ and that to-let signs are still an important
tool when it comes to marketing a property.”

Labour-controlled
Camden council claims it has received over 1,000 complaints about
for-sale and to-let boards over the past five years.

It has now applied
to the Department for Housing, Communities and Local Government for
permission to ban the boards unless planning permission is sought and
granted.

The council’s
planning committee chair, Danny Beales, has said:

“It’s clear that
from our consultation that an overwhelming majority of residents
support the change. The boards are cluttering our streets, often left
for months on end, effectively free advertising.”

A statement issued by Camden says:

“Estate agent
boards continue to be one of the most common complaints made to
Camden’s Planning Enforcement Team. Across the borough there are
examples of estate agents disregarding the regulations, displaying
numerous boards per building and keeping them up for long periods
despite properties being sold or let.

“Estate Agent
boards are seen by many as outdated eyesores, which merely add
unnecessary clutter to our streets and take up valuable council
resources as we seek to secure their removal.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – The signs are there, or they were – should for-sale & to-let boards be banned? | LandlordZONE.

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Latest: Has the tenant fees ban been the disaster for landlords it was predicted to be?

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Rental market data covering before and after the fees ban shows small reductions in yields which, it is claimed, have been kept to a minimum by landlords putting rents up.

Many
landlords and industry associations predicted last year that the tenant fees
ban might be the ‘final nail in the coffin’ for the private rental market
because it would push up costs and reduce yields.

Landlords
must now pay for referencing and many other moving in, property management and
check-out costs that used to be charged to tenants but that, in England since
June 1^st and in Wales since September 1^st, must now be
paid for by the landlord.

Despite
this, data published today by lettings platform Howsy reveals that these extra expenses
for landlords have only marginally dented yields in England while in some areas
they have increased.

The
average yield for a buy-to-let property prior to the tenant fees ban was 4.08%,
down from 4.21%, with only the North East seeing a significant reduction of
0.25%.

“The resilient nature and
diverse landscape of the UK rental sector means there are plenty of pockets
that have actually seen yields improve and while this growth may only be
marginal at present, it is a very positive sign given the short time scale,”
says Howsy founder Calum Brennan.

“As with all investments, the
buy-to-let sector is all about knowing the market and picking the right options
and if you do, bricks and mortar remain a very sound one.”

The fees ban has also failed to cut the costs of
renting for tenants; while the legislation was said to save tenants on average
£70 a year in fees across the life of a tenancy and £300 each time they moved,
letting agents’ association ARLA Propertymark recently revealed that 64% of
tenants experienced rent hikes during the traditional busy month of August,
when tenants are most likely to move home.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Latest: Has the tenant fees ban been the disaster for landlords it was predicted to be? | LandlordZONE.

View Full Article: Latest: Has the tenant fees ban been the disaster for landlords it was predicted to be?

Notorious landlord faces final financial reckoning under Proceeds of Crime Act

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Ferrari-driving Mark Fortune appears in court after he admitted both making threats against a tenant and various rental frauds.

A notorious rogue landlord is waiting to discover whether he
faces prosecution under the Proceeds of Crime Act.

Prosecutors are pursuing Mark Fortune, 51, in a bid to seize
assets which could total millions of pounds.

The confiscation case was launched shortly after Fortune was
sentenced over a host of charges at Edinburgh Sherriff Court in September 2016.
However, his complex financial affairs have caused years of legal wrangling.

At the time, Fortune admitted offences including making threats
of violence against Alvaro Espinosa in 2013 in the city’s Bruntsfield while
demanding he pay rent.

He also pleaded guilty to a number of frauds where prospective
tenants responded to his Gumtree adverts for properties to rent, paying him
deposits for accommodation which never materialised. In 2017, Ferrari-driving
Fortune admitted owning 70 flats.

Solicitor Gillian Law,
representing Fortune, who appeared in the dock, said the defence was engaging a
specialist accountant to study evidence. The next hearing has been set for March.

It’s not known exactly how much
prosecutors hope to seize from Fortune. A Crown Office spokeswoman told
LandlordZone that the figure could not be disclosed as it was a live
investigation and subject to change.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Notorious landlord faces final financial reckoning under Proceeds of Crime Act | LandlordZONE.

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Landlords speak: Brexit is still a big worry for over half of you, our poll reveals

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Results are in from the latest LandlordZone poll of our readers and forum users to find gauge your attitudes to the year ahead.

Despite estate agents heralding a ‘Boris
bounce’ in the housing market, landlords believe our EU exit will make their
lives harder.

A poll of
Landlord Zone subscribers revealed that they fear Brexit could hurt supply and
demand.

We posed the
question: ‘Now that the dust has settled, do you think Brexit will have a
positive or negative impact on landlords in the UK?’

A majority –
57.9% – said it would have a negative impact, while only 42.1% believed it
would have a positive effect.

With
depressed house prices and more landlords quitting (according to the latest
ARLA Propertymark survey), the sector is coming to terms with tax relief cuts
and the Tenant Fees ban.

Many
landlords are also reluctant to expand their portfolio. However, in an uncertain
property market, fewer sellers could direct many people into the private rental
sector, while the ‘Boris bounce’ has put a spring in the step of estate agents
nationwide.

That’s the view of Paul Shamplina, founder of
Landlord Action, who believes the Conservatives’ win will spark strong demand
for rental properties and growing rents.

“During the run-up to the election, landlords
were hugely worried about Labour or the Lib Dems getting in,” he says. “All I
was hearing was doom and gloom and that they were planning to exit the market,
so landlords breathed a sigh of relief at the election result.”

But he adds: “The
only problem Brexit might bring is if there are fewer EU tenants to generate
demand. We also await the result of the Court of Appeal case on Right to Rent
to find out whether the government pulls the scheme.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Landlords speak: Brexit is still a big worry for over half of you, our poll reveals | LandlordZONE.

View Full Article: Landlords speak: Brexit is still a big worry for over half of you, our poll reveals

The Big Question: Should ‘to let’ boards be banned?

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Camden Council is one of the latest in a long line of local authorities planning to ban all ‘to let’ boards from rented homes. The council is following in the footsteps of those in Newcastle, Lincoln and Durham to impose the bans, which have been in place in some towns and cities, including historic areas […]

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Landlords contribute £3.61bn annually into local economies

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Aldermore’s new buy to let research2, surveying 1,000 UK-based landlords, highlights the important contribution landlords make to their local economy with eight in ten (81%) turning to a local tradesperson when their property requires work or renovation. Landlords spent on average £1,443 in the last 12 months on services such as plumbers

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