LandlordZONE poll on rent arrears kicks off a Twitter storm

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A LandlordZONE Twitter poll asking if tenants should have their rent arrears written off by landlords has gone viral, sparking strong and even violent feeling among many radical tweeters.

The hot topic attracted nearly 2,000 votes and was evidently shared among many anti-landlord, pro-tenant groups, which meant the outcome was that a predictable 66% of respondents voted yes and only 37% disagreed.

While Twitter is no reflection of real life, many landlords came to the sector’s defence and questioned whether they should have to be responsible for supplying free housing, although the anti-landlord brigade was more outspoken.

One said: “Yes absolutely. Lots of us have lost income over the last year that isn’t going to come back. If you’re a landlord and struggling, get a proper job.”

Nationalisation call

However, the bile shown by some activists towards landlords was worrying, with one post insinuating that they should be shot and many others calling for housing to be nationalised as it was during Mao’s years in China.

One, going under the name Trotsky of the 21^st Century, said: “I answered no, because ‘landlords’ shouldn’t exist as an economic category.”

Another even started his own poll asking whether landlords should have their properties compulsorily purchased and handed to tenants, offering the sardonic option of only either ‘yes’ or ‘yes’. It managed to garner 137 votes.

Rent arrears

The more serious purpose of our poll was to highlight the looming rent arrears crisis that threatens to overwhelm the sector when the eviction ban ends.

Many charities and housing groups including the National Residential Landlords Association have called for the government to introduce tenant hardship loans for renters in England impacted by the pandemic, particularly as their counterparts in Scotland and Wales can already access them.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LandlordZONE poll on rent arrears kicks off a Twitter storm | LandlordZONE.

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Welsh Eviction Ban extended to end of June

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The Welsh government will extend the current restrictions on evictions, which are due to expire on 31 March, to the end of June 2021 although the restrictions will, as with other coronavirus restrictions, be subject to regular review during that time.

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Stolen white goods and furniture?

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The Tenant deposit protection scheme has turned down my claim for what the tenants have acknowledged being a missing brand-new fridge freezer and sofa. They reported it to the police as stolen.

The DPS has suggested I take legal advice.

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LATEST: Debenhams store’s rental conversion reveals high street ‘structural shift’

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A decision by shopping centre giant Hammerson to redevelop a former Debenhams store in Leicester into rental apartments has been heralded as a turning point for traditional high streets.

The announcement comes just five days after Hammerson posted its largest annual loss ever of £1.7 billion.

The firm’s UK and Ireland boss Mark Bourgeois says the landmark development follows huge changes to the shopping landscape as online shopping and Covid have impacted consumer behaviour.  

Hammerson has announced that it has applied to Leicester City Council for change of use permission for the former retail store at High Cross, St Peter’s Lane (pictured).

“While the structural shift in retail and changing consumer shopping habits have meant that destinations such as Highcross need to adapt their offer and mix of uses, well-connected city centre locations such as this will always be places where people want to be,” he says.

Hammerson is working with build-to-rent developer and management specialist Packaged Living, which already operates some 2,000 units across the UK to prepare its planning proposals (see main pic) and redevelop the site.

The Leicester site is to hold 300 apartments all of which will be rented out and follows a consultation with local residents which saw 80% support the new approach for the site.

This is because, it is understood, the green and also high-quality apartments will be targeted at ‘local residents’.

“We are delighted to submit this proposal for high-quality homes for local people to rent, which will support our brands at Highcross and contribute to the continued success of Leicester City Centre,” says Bourgeois (pictured).

Read more about build to rent.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: Debenhams store’s rental conversion reveals high street ‘structural shift’ | LandlordZONE.

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YOUR forum questions answered: Early termination fees and invoices

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The hugely popular LandlordZONE forum is a friendly community where landlords share their experiences, exchange tips and ask for advice. Here we answer a recent question and ask the experts at Hamilton Fraser to give their best answer!

The question:

The tenant wants to leave the rental property before the end of the tenancy and is questioning whether the early termination costs the agent is asking for are reasonable. The landlord is happy to agree to an early termination of the tenancy, providing another tenant can be found and the tenant carries on paying the rent in the meantime. The tenant intends to help find a replacement tenant themselves. Are the costs proposed by the agent for early termination reasonable?

The answer:

Suzy Hershman (pictured, below), Head of Dispute Resolution at mydeposits, part of the Hamilton Fraser family, explains:

We’ve been getting a lot of queries relating to the topic of early termination fees at mydeposits recently, highlighting that many tenants, landlords and agents don’t yet fully understand the importance of providing evidence in this type of scenario, following the implementation of the Tenant Fees Act (TFA).One of the changes the TFA introduced when it came into force in 2019, was changes to early termination fees. Although the TFA prohibited agents and landlords from charging fees to tenants, the act clearly lists early termination fees as a ‘permitted fee’ – one that can be charged to a tenant.

But, although early termination fees can be charged to a tenant, any early termination charges must be reasonable, clear and backed up by evidence of their actual costs. This is quite a significant change – before the TFA came into force, if a tenant disputed early termination fees and a case went to a mydeposits adjudicator, we would award if the tenant had simply been given a cost breakdown of the re-letting costs and any commission fees. The tenant could then choose whether to accept and move out or disagree and stay. If the tenant disputed the fees, we would have been unlikely to accept a dispute, although we might have taken a view in relation to the ‘reasonable’ test (which I’ll explain below).

The key change, following the TFA, is that agents and landlords must prove that they are out of pocket as a consequence of the tenant ending the tenancy early, by providing evidence in the form of invoices for the actual costs incurred. Before the TFA, we did not require invoices to make an award. Now, if the tenant disputes the proposed cost, the landlord or agent will only be able to charge fees if they have invoices to prove the loss.

Agents may generate their own invoices if the property is fully managed, or landlords and agents may have separate invoices for costs such as marketing the property or referencing prospective new tenants. All of this will be valuable evidence when it comes to proving reasonable costs.

We do have some discretion when making decisions, and this is where the ‘reasonable’ test comes in. This could apply to the specific question in the scenario outlined on the Forum, if the tenant is successful in finding a replacement tenant. It is likely to be unreasonable to award a claim of £750.00 for re-letting fees where a tenant has asked to leave early, disagreed with the proposed costs, and found the new tenant themselves before leaving. My view is that a landlord or agent would have difficulty proving this is their actual loss.

Likewise, with commission fees, it would be unreasonable to make an award where the evidence shows the agent has agreed to waive the outstanding commission in return for re-letting the property and fully managing it.

Although this approach adds more work for landlords and agents at the evidence gathering stage, ahead of a discussion or dispute, this more thorough way of doing things ties in with the transparency and clarity required by the Tenant Fees Act, and everyone knows where they stand, the tenant included.

At mydeposits, we’ve been getting a lot of questions recently on this topic in response to our new Early termination fees guide, which also provides more information on what you need to know about both re-letting and commission fees. You can read a more detailed article are sending out to our members on early termination fees and the importance of providing evidence and invoices here.

Join LandlordZONE’s forum here.

Hamilton Fraser supports landlords, letting agents and tenants by offering a range of solutions and thought leadership to help them navigate the private rented sector. Most recognised in the private rented sector for providing award winning landlord insurance, the Hamilton Fraser family includes Total Landlord Insurance, mydeposits, the Property Redress Scheme, Client Money Protect, Landlord Action, Ome, HF Assist and Total Landlord Mortgages.

Subscribe here for the latest landlord news and receive tips from industry experts.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – YOUR forum questions answered: Early termination fees and invoices | LandlordZONE.

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Selling a company with real estate portfolio?

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I’m a small incorporated landlord with a portfolio of 40 individual real estate units, namely garages. I am now considering liquidation of the company with an obvious route being selling the garages on an auction as individual lots.

Having a naturally inquisitive mind I’m trying to invent other options of achieving the same result.

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Are local authorities suppose to charge for giving Notices now?

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I am unfortunate to be given 2 Notices of improvement and a Prohibition notice because an enforcement officer decided to hand-deliver an Inspection Notice to my residential home. Incidentally, we were under self-isolation for none symptomatic covid -19.

The officer staked in his car until he saw my wife come out to put the rubbish in the wheely bin.

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Stamp Duty on Form 17 split?

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Quick query about stamp duty. My wife and I own 4 properties 50/50 as tenants in common. We have a partnership (not an LLP) i.e. our self-assessments show income from partnership to declare this property income.

We want to keep the ownerships as 50/50 but want to split the partnership to 80/20 so take advantage of my wife’s lower tax rate.

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Campaigners claim new security law will give police ‘free hand to help rogue landlords’

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Many landlords may not be sympathetic, but the London Renters’ Union says the Police, Crime, Sentencing and Courts Bill making its way through parliament will criminalise its protests.

The pressure group, which regularly pickets landlords and estate agents to fight for tenants’ rights, fears the bill – with its aim of beefing up police powers to crack down on protests – will affect its ability to stage actions when lockdown restrictions ease and encourage what it believes is police bias towards landlords.

The flagship crime legislation, currently being debated in the Commons, would give police forces more powers to tackle significantly disruptive ‘non-violent’ protests and in particular Extinction Rebellion-style civil disobedience.

Stop and search powers could also be expanded if plans for serious violence reduction orders get the go-ahead.

London Renters’ Union says the bill effectively criminalises protest. A spokesman explains: “Our movement has always been based on our ability to use public protest as a way of putting public pressure on landlords and estate agents.

“We also use peaceful protest as a way of stopping evictions and keeping members in their homes. Over the past year, we have seen police intervene on the side of landlords, actively facilitating illegal evictions.

Stop protest

“With increased powers to stop protest, our ability to take action to support our members is under threat.”

Instead, it’s demanding that the National Police Chiefs Council adopts a new Charter for Freedom of Assembly Rights.

This includes an end to treating direct action and civil disobedience as an excuse to shut down protests completely and an end to routine surveillance of protesters and excessive use of force and the targeting of organisers for arrest, surveillance and punishment.

The union is also encouraging supporters to sign an online petition against the new laws, which already has more than 165,000 signatures.

Read more about the Police, Crime, Sentencing and Courts Bill

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The state of the Landlord Insurance market – March 2021

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The past year has been tough on most due to COVID, however, Landlords can take heart from a very healthy insurance market that continues to compete for their let buildings and contents insurance. The cost of landlord insurance depends largely on the insurer that you speak with.

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