How to avoid costly disputes over Covid and residential tenancies

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The landlord and tenant relationship is a complex one at the best of times. But the Covid pandemic has made the situation a whole lot worse for landlords; they are having to tread the delicate line between staying on good terms whilst maintaining a healthy rental income cash-flow.

Going to law is never an optimal solution, it’s expensive and in the current situation is likely to be long drawn out and of uncertain outcome. Therefore if eviction proceedings can be avoided by simply reasoning and cajoling and negotiation, then so much the better.

Tenants need to understand that despite all the measures bing introduced to protect them, ultimately they are responsible for paying off any amount of accrued rent arrears, unless the landlord is prepared to waive some of this. Sometimes, from the landlord’s point of view, it is prudent to agree at lease a re-scheduling of rent payments, stretching them out over a longer period, and perhaps as an act of goodwill, even waiving some of the amount owed to encourage cooperation.

Landlords should arrange meetings with all their tenants and be proactive about how to help solve their problems. Cooperation between the parties is the key to a successful outcome in these difficult times. Maintaining that contact as the situation develops and adjusting the strategy as necessary is the only way to avoid problems building-up, and inevitably some loss of rent will be called for in many instances.

Landlords should spell out the rights and obligations to their tenants, and put this in writing so that they understand their full long-term obligations. Any agreements reached in terms of re-scheduling and waiving of arrears should always be fully documented and signed, and contemporaneous notes made of all conversations between the parties, exactly what was said and when, and any temporary arrangements made to override of the tenancy agreement.

Eviction should be a last resort and should only be embarked upon if tenants refuse to cooperate over rent arrears or where there is damage to the property or unacceptable levels of anti-social behaviour.

Not all landlords have been able to follow this advice for one reason or another. The figures show that 4,740 households were served a section 21 eviction notice between January and March 2020, a near 25% increase on the previous quarter.

In March, the government introduced legislation which suspended all new evictions by private landlords. All possession notices (either under section 8 or section 21) served between 27 March and 30 September must give six months’ notice before court possession proceedings can be started.

Currently, until 20th September, landlords are able to continue with existing proceedings or commence fresh possession proceedings providing the proper notice has been served and all the pre-action protocols complied with. But this does not mean the process will be easy or quick: it’s very likely that it will take over a year for the courts work through the huge back-log of cases and landlords cannot evict without obtaining a possession from the courts.

A new six-month minimum notice period was announced on 29 August 2020, The Coronavirus Act 2020 (Residential Tenancies: Protection from Eviction) (Amendment) (England) Regulations 2020 SI 2020/914 amended Schedule 29 to the Coronavirus Act 2020 is to extend the minimum notice period to six months and introduce a number of exceptions. The new rules will apply until 31 March 2021.

It is not yet clear whether a reactivation notice for rent arrears under Section 21 will still be in place after 20 September so the information that landlords have already provided will most likely need to be updated.

Landlords should still take all reasonable steps to resolve ongoing disputes before their case comes to court following closely the extension of stay to possession proceedings under the Civil Procedure Rules (CPR) Part 55.

Before serving notices landlords and agents should ensure that all the pre-service requirements have been complied with, otherwise the notice will be invalid and a great deal of time will be wasted. The deposit must be properly protected and all the necessary environmental protection certificates, EPC, smoke and carbon monoxide alarms, electrical equipment testing and gas safety certificates are all up-to-date and valid.

Under no circumstances should landlords attempt to evict a tenant without going through the proper legal processes, this is a criminal offence and fines are very heavy.

One alternative to the courts given that relations have broken down is to consider using the PRS mediation service to seek an agreement between the parties. This is a good way to resolve the matter amicably through an independent source. The process is relatively quick and simple, led by a resolution specialist and the sole focus of helping tenant and landlord reach a reasonable agreement.

During the course of any dispute landlords are still responsible for maintaining the building, that is the main structure and exterior of the property, plus internally all appliances supplied, gas appliances, pipes, flues, ventilation, electrical wiring, sanitary fittings (including pipes and drains) heating and hot water.

Tenants are responsible for their own appliances and furniture, and for any damage caused whilst in occupation, by them, by members of their family or their guests. Landlords are also able to claim against tenants for damage cause indirectly, for example by neglect, failing to maintain or use fittings or fixtures properly, causing condensation damage or flooding by allowing pipes to freeze up over winter.

The potential for disputes arising over the next 12 months when legal assistance for landlords is minimal at best, is high. So the aim for landlords should be to maintain open communications with tenants and to head off trouble before it becomes too serious. Show your tenants that you have their best interest at heart and that you want to help them get through this difficult period, create a lot of goodwill.

If all else fails consider appointing a mediator, an independent third party will seek to facilitate a settlement without the need for court proceedings. This can save time, money and a lot of unnecessary stress as well as being entirely confidential and can help preserve relationships.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – How to avoid costly disputes over Covid and residential tenancies | LandlordZONE.

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Watch out landlords! Convicted fraudster and Airbnb sub-letter still on the prowl

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A convicted conman is duping unsuspecting landlords into sub-letting their properties for holiday stays while refusing to pay them rent.

Robert Lee Gavin, who was behind a £40 million investment scam in the US and was found to be illegally sub-letting properties for high fees on Airbnb last year, has struck again in Edinburgh.

He was permanently blacklisted from the lettings site, however a report in the Edinburgh Evening News reveals that he and partner Matthew Gooi have continued to rent properties using the company Portcullis and Crown to shield their identity.

Until recently, the pair were renting out a four-bedroom property at 11 Marshall’s Court in the city for £3,525 for two nights, claiming to sleep up to 28 people and listed under host identity Stan.

One couple, who own a two-bedroom property at Brunswick Road, revealed that he posed as a member of staff for Portcullis and Crown, promising that their flat would be rented out to professional people through its website.

Instead the two-bedroom property was rented out on Airbnb and Booking.com to parties of 12 people for hundreds of pounds per night.

Stopped paying rent

Gavin and Gooi finally left the property in June this year, having stopped paying rent in February, leaving the couple £10,000 out of pocket for lost rent and legal fees.

Gavin declined to answer claims of unpaid rent but insisted no wrongdoing. He told the newspaper: “The company I work for uses corporate tenancies that allow for the properties to be used for corporate accommodation and short-term accommodation. The landlords are aware of this and agree to these terms and the use of the property for such purposes.”

An Airbnb spokesperson added: “We have zero tolerance for violations of our policies, and have taken action on the account, including suspending the listing, while we investigate the matter.”

Read more about Airbnb in Edinburgh.

Read the Edinburgh Evening News investigation in full.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Watch out landlords! Convicted fraudster and Airbnb sub-letter still on the prowl | LandlordZONE.

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Leading lawyer vents frustration with ever-changing UK evictions process rules

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One of the UK’s top property lawyers has questioned whether the Scottish government’s extra changes to its eviction processes are wise and suggested that they are not helpful, as landlords become increasing confused by the labyrinthine rules now governing evictions in both Scotland and England/Wales.

David Smith, who is a partner at JMW Solicitors, is referring to Nicola Sturgeon’s decision to allow tenants to be given a notice period of 28 days instead of six months when giving notice to evict on or after October 3^rd  on grounds of anti-social behaviour or criminal activity.

This is in addition to the changes announced last month.

This mirrors recent changes to notice periods in England and Wales and in all three countries authorities now ask landlords to wait six months before serving evictions notices, albeit with exceptions.

In Scotland these include allowing landlords to give 28 days’ notice instead of six months if a tenant:

• Has a relevant conviction,
• Has engaged in relevant anti-social behaviour,
• Associates in the let property with a person who has a relevant conviction or has engaged in relevant anti-social behaviour.
• Is not occupying the let property as the tenant’s home.

Smith says: “The Government has again made changes to the possession process for residential property. This was the widely expected change to the notice periods for section 8 and 21 notices.

“Is this very quick change going to be helpful or sensible or will it just add to the already high level of confusion in the sector as to what rights landlords and tenants have?

“This is the new position this week. Whether it is the position next week remains to be seen.”

The Scottish government has also amended the legislation to achieve the same exceptions for other types of tenancy including Assured and Short Assure Tenancies, Tenancies under the Rent (Scotland) Act 1984 and Scottish secure tenancies.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Leading lawyer vents frustration with ever-changing UK evictions process rules | LandlordZONE.

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BREAKING: Manchester to seek legal green light for Airbnb ban within properties on council-owned land

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Manchester is to launch an assault on its ‘problem’ short lets market which could include seeking legal advice on whether it can prevent Airbnb-style activities within council properties on a wider scale following a trial at its Brunswick regeneration project.

Its proposals are contained within its new Private Rented Sector Strategy for the next five years, which is due for approval tomorrow by its Executive.

It highlights both the huge increase in short-lets use within the city by tourists but also the growth in professional ‘whole property’ operators.

Manchester council says 75% of the 3,000-strong short-lets listings market locally is offered via Airbnb and that half are whole properties.

Anti-social

The city’s upmarket central short-lets present only minor anti-social behaviour and waste issues and are generally well managed, and it is the  short-lets in less glamorous areas that are a growing problem.

This includes a small but significant ‘HMO model’ short-term lets market focused in Moss Side and Rusholme, “where multiple guests separately rent individual rooms within a property despite clear issues with safety, quality and management in some instances”, the report says.

“This portion of the short-term lettings market has generated a growing number of problems for residents nearby linked to poor waste management practices, noise and anti-social behaviour as well as, in some instances, criminal activity which has damaged the reputation of the city.”

The council says these issues are exacerbated by the fact that in many cases entire home short-term lettings are taking family homes out of the mainstream market.

Manchester is to seek legal advice on whether it can prevent properties on council-owned land being used for short lets via restrictive covenants within leases a freehold transfers.

Read more about Airbnb.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – BREAKING: Manchester to seek legal green light for Airbnb ban within properties on council-owned land | LandlordZONE.

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Government prospectus inviting bids for the affordable housing programme launched today

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Housing Secretary Robert Jenrick has today announced that the prospectus inviting bids for the government’s investment in affordable housing and new measures to make it easier to get a foot on the property ladder are being launched this week.

The £12.2 billion overall investment in affordable housing was confirmed at Budget

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Lease Extension and Marriage Value?

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Hi All, I was hoping for a bit of advice from the community RE. Lease Extensions, I’m a landlord with three properties in my portfolio.

Can I confirm that Marriage Value is added to the price of a lease extension when the lease falls *below* 80 years?

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