Capital appreciation covering the costs of running a property

admin    Uncategorized     agents

Research from GetAgent.co.uk has found that nearly half of all properties pay for themselves when it comes to the average annual cost of upkeep and the increase in capital appreciation.

GetAgent.co.uk looked at each local authority in England and the total current upkeep costs of a property on an annual basis

The post Capital appreciation covering the costs of running a property appeared first on Property118.

View Full Article: Capital appreciation covering the costs of running a property

Absent freeholder since purchase in 2011 suddenly appears?

admin    Uncategorized     agents

I own a 1st floor top flat that I purchased in 2011 for renting purposes. The property is leasehold however there is no service charge or ground rent payable. The freeholder has been absent since I purchased the property and I have no contact details.

The post Absent freeholder since purchase in 2011 suddenly appears? appeared first on Property118.

View Full Article: Absent freeholder since purchase in 2011 suddenly appears?

Record £20,000 fine for shocking rogue landlord who ignored council for TWO DECADES

admin    Uncategorized     agents

A landlord has been put on the rogue landlord database after a council’s two-decade long campaign urging him to raise standards at his two HMOs proved unsuccessful.

The Banbury landlord, who can’t be named for legal reasons, was fined £20,000 for 54 problems discovered at the properties including a collapsing ceiling, fire safety breaches, and an abandoned car, during unannounced inspections by Cherwell Council’s housing standards team.

The gardens of both HMOs were overgrown, with blocked drains and contained piles of household and construction waste; at one property a car had been left unattended for four years despite repeated requests to remove it.

Inside, a poorly designed shower was causing the windowsill to rot and ceiling below to collapse, while broken windows and defective fire doors were found at the other house.

The council says the issues were detrimental to the quality of life for both occupants and neighbours and will slap a banning order on the landlord if he reoffends.

Councillor John Donaldson (left), lead member for housing, says it’s the highest fine it has ever imposed on a landlord.

“Over the last 20 years we have tried many informal and formal ways of trying to get this individual to bring their properties up to scratch,” says Donaldson.

“The sheer number of officer hours devoted to this is a big part of why the penalties now meted out have to be this severe.

“This is a very firm warning to any other rogue landlords out there that cutting corners will end up costing them in the end.”

Since Cherwell started issuing rogue landlords with fines in 2018, it has handed out more than £43,000 in penalties. In the summer, it announced that law-abiding landlords could save up to £600 for paying to get HMO licences on time.

Read more about rogue landlords.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Record £20,000 fine for shocking rogue landlord who ignored council for TWO DECADES | LandlordZONE.

View Full Article: Record £20,000 fine for shocking rogue landlord who ignored council for TWO DECADES

Property Pioneers: Meet the landlord who’s built his own property management app

admin    Uncategorized     agents

A landlord from Beaconsfield in Hertfordshire has today launched a self-financed property management app for portfolio landlords.

Richard Jackson, who owns and manages 17 properties, has launched AlphaLetz after several years of development which followed his inability to find a smartphone app for his size of portfolio.

The 55-year old former tech company worker says today’s launch is at a important juncture for landlords, who are facing rising letting agency costs and both financial and time-management squeezes from the taxman and burgeoning regulations.

“I think Covid is helping our cause too because people are looking at new ways to do business online and are getting fed up of using Excel spreadsheets and Quickbooks or whatever to run their properties,” he tells LandlordZONE.

“Our app puts all that in one place including rent payments, financials, regulatory updates, tenancy update notifications and documentation.”

There are many smartphone apps available to landlords, but Jacksons claims his experiences as an SME landlord gives his cloud-based platform the edge.

Thick and thin

“I have been a landlord for nearly 20 years so I’ve really been through the thick and thin of it,” he says.

“During the early years it was easy to manage properties, but as the portfolio grew and especially recently as the red tape has increased, I found it more difficult to do it manually – particularly doing tax returns.”

Jackson, who has now been a professional landlord since leaving the corporate world 18 months ago, initially built a prototype for his own use and then, by word of mouth, other landlords asked to get involved. He’s now spent a year developing the app with their input.

The app has been financed initially by Jackson and a landlord friend, although several investors have now come on board to fund its launch.

The service starts at £5 a month for up to two properties, £10 for three properties and then £1 a month for each additional one including a month’s free trial – the app’s ‘sweetspot’ is landlords with approximately four or five properties.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Property Pioneers: Meet the landlord who’s built his own property management app | LandlordZONE.

View Full Article: Property Pioneers: Meet the landlord who’s built his own property management app

Legal Issues – signing an agreement as a deed

admin    Uncategorized     agents

A tenancy agreement is just like any other contract, so as soon as both tenant and landlord have signed the agreement, it becomes a legally binding contract. However, contracts can also be made orally, but proof the contract actually exists can then become an issue – the famous Samuel Goldwyn quote applies here: “A verbal contract isn’t worth the paper it’s written on”!

This article is based on English law and is not a definitive interpretation of the law, every case is different and only a court can decide; always seek expert advice before acting or not.

In practice, if proof were ever needed of the existence of an oral contract, it emanates from the actions of the parties, i.e: tenancy agreed and keys handed over, tenant moves in, rent received by landlord – contract exists.

Some contracts are required by law to be in writing. For example, contracts for the sale of land (conveyances of legal title) or to provide a guarantee, so there are two types of written contract under English law: (1) simple contracts, which can be made orally and do not need to be signed and witnessed as a deed, and (2) deeds.

Property conveyances must be in writing and signed as a deed by law, as must property leases for more than 3 years – s 52(1) of the Law of Property Act 1925. The lease agreement must make it clear that it is intended to be a deed, (2) that it is validly executed as a deed by signature and witnessed, and (3) it is delivered as a deed – served on or handed to the other party.

Most ASTs of course are for less than three years, so a simple contract either orally, or advisedly in writing, will do. They do not need a witness, though there’s no harm in having one and some would insist on it and for good reason, to prevent tenants from denying it’s their signature.

Under a simple contract each party has to provide “consideration” for it to be valid. Consideration, is the price paid by each party usually for the provision of goods or services by one party and the provision of value (usually money) by the other – landlord provides a roof over the tenant’s head, the tenant provides rent.

Agreements by deed do not require consideration in order for them to be legally binding. So, for example, an interest free loan between family members would need to be drafted in the form of a deed or it is likely to be unenforceable due to lack of consideration from one party.

In any UK jurisdiction an agreement need only be “signed as a deed and delivered” to be a deed. It simply requires those words and the signature of the person making the deed. The signature should be on the document itself in a space provided and the full name of the signatory along with a witness.

There is nothing to stop a simple contract being signed as a deed if you wish, and indeed there are some advantages as above.

Another difference between the two types of agreement is that a simple contract has a statutory limitation period (for taking legal action) of six years, whereas for deeds its twelve years.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Legal Issues – signing an agreement as a deed | LandlordZONE.

View Full Article: Legal Issues – signing an agreement as a deed

EXCLUSIVE: ‘I will answer landlord worries over Pets Bill’, MP tells LandlordZONE reader

admin    Uncategorized     agents

MP Andrew Rosindell has replied to a landlord who wrote to him outlining his worries over the proposed Dogs and Domestic Animals (Accommodation and Protection) Bill.

As we reported last Thursday, Rosindell gained cross-party support for his parliamentary bill, which will receive its second reading in January.

The Conservative MP for Romford (pictured) has now confirmed that when the full details of the Bill are published, landlords should rest easy that it will not introduce an ‘unconditional right’ to keep a pet.

Instead, it will require various checks to be completed that will ensure pet owners are responsible and that pets are well-trained.

“It also will include measures to ensure that pets are suitable for the type of accommodation,” he says.

“I am currently in the process of drafting the final bill, which I believe will address many of the issues that you have raised.”

Landlord dialogue

Rosindell has confirmed that he is in dialogue with the National Residential Landlords Associations, as well as other landlords, to discuss their concerns and ‘will do everything I can to ensure they are addressed’.

“While I understand your concerns, I do believe that we must put an end to these unconditional “no pet” clauses which have caused such pain and heartache to so many people,” he told landlord Fred Cowler.

Cowler says he is no ‘pet hater’ but, although he appreciates Rosindell’s dialogue, the Bill could promote a ‘no-win situation for all concerned’. 

“Pet requests by tenants should be judged on a case by case basis in my opinion, and I will fight for my right to choose,” he told LandlordsZONE.

“[If it does become law], I would want guarantees in place that damage and extra costs would and could be covered by the tenant.”

Read more about the Bill.
VOTE IN OUR POLL to let legislators know your views on pets.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – EXCLUSIVE: ‘I will answer landlord worries over Pets Bill’, MP tells LandlordZONE reader | LandlordZONE.

View Full Article: EXCLUSIVE: ‘I will answer landlord worries over Pets Bill’, MP tells LandlordZONE reader

Tenants with long-term arrears ‘claiming to have Covid to avoid eviction’

admin    Uncategorized     agents

Leading eviction solicitors are concerned that tenants with long-term rent arrears built up before the Covid pandemic hit are claiming to have Covid in order to delay being evicted.

Landlord Action says it is getting direct experience of what is happening on the ground with possession claims across the whole country after the stay on possession hearings was lifted late last month.

“The positive for landlords is that the courts are open and progressing cases,” says Tim Frome, the firm’s Legal Director.

“We had a Section 21 possession order through from Bromley County Court last week for a claim that was issued in June, and we also have a number of review hearings taking place this week.”

But Frome (pictured, below) says there is increasing evidence that tenants with significant rent arrears are ‘playing the system’ to delay landlords taking back their properties despite possession orders have been secured.

“We had a case this week where a tenant had not paid their rent since at least January but, when bailiffs arrived to evict them, the tenant phoned the court to say they had developed a cough and lost their sense of smell,” he says.

The magistrate then suspended the warrant and scheduled a new hearing in two weeks’ time, despite no medical evidence to back up the claim.

“The tenant’s claim may have been true, but there is a worry that tenants are beginning to abuse the court process and allege they have Covid, knowing that this means bailiffs will not enforce,” says Frome.

But Landlord Action says it has successfully completed evictions despite these challenges, including a case in central London where it applied for a High Court enforcement officer rather than a County Court bailiff to execute the eviction following a possession order, and had it granted.

“This is good news for landlords as it means evictions can be completed much quicker,” says Frome.

Follow live reports on evictions around the UK via the Twitter hashtag #CourtWatch.

Visit Landlord Action.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Tenants with long-term arrears ‘claiming to have Covid to avoid eviction’ | LandlordZONE.

View Full Article: Tenants with long-term arrears ‘claiming to have Covid to avoid eviction’

COVID: Why are landlords ‘evil’ when they evict, but no one vilifies employers when they make staff redundant?

admin    Uncategorized     agents

It’s an opinion many working in housing won’t like. But evicting tenants is part and parcel of the business of being a landlord.

It is, for want of a better word, a tool of the trade. Admittedly, emotionally, not a very nice one. But, when I decide to evict a tenant, it is wholly a business choice.

It could be because the tenant has not paid the rent, the property needs to be sold, or maybe that the property no longer makes financial sense. In all scenarios, the context is economic: Evictions are an economic choice.

This line of thinking seems to have escaped many politicians and housing charities who accuse landlords of having some sort of personal agenda.

‘Revenge evictions’ made the headlines for a bit, and then the government brought in more legislation outlawing that sort of behaviour.

The language was emotive, socially shaming, and likely due to a small number of rogue landlords who mucked it up for the vast majority following the not inconsiderable rule book.

The main problem which many people can’t get their head around is: evictions are normal. And maybe it’s unpleasant to realise they are a cost of doing business, but ignoring the reality doesn’t make this situation go away. Legislating to pretend things are otherwise is dangerous and damaging to the entire housing sector.

Economic sense

Redundancies, restructuring and letting staff go are a necessary part of running a business. And it’s sad when people lose their jobs, but it’s a fact of business. No matter what the government do, they cannot protect every job – because some jobs do not make economic sense.

“And so it is with housing. Not all properties make financial sense. Not all landlords can run a business and make it economically viable. Not all tenants will pay their rent as they are meant to. And it is unfortunate when people lose their homes through no fault of their own, but people also lose their jobs through no fault of their own.”

Miserable

These situations are miserable, but when an employer cannot make the maths stack to keep people on, the decision must be made to let go. And so it is with landlords, when the sums don’t add up – evictions must be issued. Laying people off is normal, evicting tenants is normal.

The government have introduced artificial delays to the system. The eviction ban, like much of the furlough scheme, has only kicked the can further down the road.

You cannot stop the inevitable.

People will lose jobs; people will lose homes. It’s sad and unfortunate, but unless we understand how buy-to-let works, there won’t just be tenants on the streets, but also landlords.

Any future SLS, if it is to be successful, needs to be transparent, accountable and clear about KPIs, willing to publicly share information and engage with private sector landlords.

The Secret Landlord

The Secret Landlord has been renting, refurbishing and selling properties across the UK for almost two decades. Her book, ‘Parasite? The Secret Diary of a Landlord’ is out today.

READ: Landlord compliance checklist.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – COVID: Why are landlords ‘evil’ when they evict, but no one vilifies employers when they make staff redundant? | LandlordZONE.

View Full Article: COVID: Why are landlords ‘evil’ when they evict, but no one vilifies employers when they make staff redundant?

Welsh temporary lockdown – Is moving home permitted?

admin    Uncategorized     agents

Welsh First Minister, Mark Drakeford, announced A short, sharp “firebreak” will be introduced across Wales at the end of this week to help regain control of coronavirus.

The fire-break will start at 6pm on Friday 23 October and end on Monday 9 November.

The post Welsh temporary lockdown – Is moving home permitted? appeared first on Property118.

View Full Article: Welsh temporary lockdown – Is moving home permitted?

Room rents in London remain depressed

admin    Uncategorized     agents

Although Covid-19 restrictions began to ease in Q3, the rental market in the capital still struggled to recover, with the average London room rent down 7%, from £780 in Q3 2019 to £725 in Q3 2020.

Rents in EC3/Aldgate (-34%) *

The post Room rents in London remain depressed appeared first on Property118.

View Full Article: Room rents in London remain depressed