HMO landlord hit hard by Scotland’s tough licensing regulations

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A landlord who was hauled up on minor maintenance issues has been refused an HMO licence by Glasgow City Council.

Khurshid Begum told its licensing and regulatory committee that he had sorted all the problems at his property in Grant Street, Hillhead, but councillors would still not approve the letting licence.

All HMO landlords in Scotland need a licence or risk a fine of up to £50,000, while all private landlords must apply for registration with their local authority every three years.

The country’s more draconian rules could be replicated in England if the government’s Renters Reform Bill gets the go-ahead; the White Paper proposes greater regulation of landlords in England including a register of landlords and compulsory membership of a redress scheme.

Cracked bath

Council inspectors found a cracked bath and broken cooker ignition switch at Begum’s property, while fire officer Kevin Murphy told the committee that there had been no maintenance records for the fire alarm system or emergency lighting since 2016.

He added that a self-closing door wouldn’t shut and said: “As far as we are concerned the premises remain unsatisfactory. To this day we have failed to receive any communication from the representative.”

Begum insisted that all necessary certification had been sent to the Scottish Fire & Rescue Service and that issues had been fixed, including the bathroom, while a new cooker had been fitted and there were plans to redecorate the house.

However, councillors described the situation as worrying and pointed to a number of fatalities in the cities caused by fires. Councillor David Turner said: “You have had students in there without fire checks. This is just not acceptable.”

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Hyde Park Property Meet with Mark Smith (Barrister-At-Law) – 23rd September

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We meet at our stunning new Marble Arch venue – The Hard Rock Hotel/Great Cumberland Place. As always, our gatherings serve to inform, educate and entertain – with a wealth of time for quality, relaxed networking. Our events rarely include systems based on speed and paid pitches.

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LATEST: Investors pile another £1.2m into Airbnb landlord platform

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Airbnb property management firm GuestReady’s latest crowdfunding campaign has smashed its €1 million target in 24 hours.

The Seedrs offer has been hugely over-subscribed – raising €1.5 million or £1.2 million and counting from nearly 400 investors – demonstrating the huge interest in the short-term accommodation sector and reinforcing the continued staycation holiday boom.

At the start of the year, GuestReady raised £1.3 million from a similar campaign and was the second largest Seedrs crowdfunding campaign of 2020. It also raised £4.75 million in European funding led by a Russian venture capital firm.

UK-based GuestReady manages short lets via sites such as Airbnb, Booking.com and Expedia on behalf of lanldords, offering services including guest management, property maintenance, housekeeping and listing management to help landlords maximise rental revenue.

They can then keep up-to-date with a mobile app showing revenue and ratings.

GuestReady operates in 30 cities across Europe and the Middle East with a portfolio of more than 2,500 properties and has an ambition to reach 10,000 soon.

Bookings boom

Currently in London neighbourhoods such as Mayfair and Chelsea, the company says its bookings have increased by 300% so far this year and in July were double its July 2020 booking levels.

CEO Alexander Limpert (main picture) says the fast response to its share offer is a strong vote of confidence in the company’s vision.

He adds: “There still are many investors coming in and we would like to offer them the opportunity to join us on this great journey. For now, we are officially overfunding and are still accepting more investments.

“We do not know yet for how long, and thus invite all of those who are thinking of jumping on board to not miss out on this opportunity.”

Read more about short-lets industry.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: Investors pile another £1.2m into Airbnb landlord platform | LandlordZONE.

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Tenant Fees Act barrier to renting with pets

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Propertymark is backing a Report and an Open Letter sent from a cross-party group of over 35 MPs and peers who have joined together with leading pet charities and organisations to explore how the Tenant Fees Act is impacting on renting with pets.

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Sibling landlords to pay back £22,683 to tenant trio

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A sibling landlord duo in London have been told to pay their tenants £22,683 after operating a rented property as an HMO without a licence.

The Watsons rented out the three-bedroom flat within a former commercial unit in Camberwell, South London to their three tenants for 11 months in September 2019 after taking a £2,653 deposit.

Unfortunately for the Watsons, the property is within the London Borough of Southwark’s additional licencing scheme covering HMOs with three or more unconnected people living within them using shared facilities.

But the landlords had assumed that, as many do, that local HMO regulations covered only properties with five or more tenants.

The Watson family owns the entire complex of which Flat 4 was just one being rented out, with the parents owning 40% and their daughter and son owning 30% each.

Offence committed

A Property Tribunal in central London heard the case. All parties agreed an offence had been committed, but the Watsons said their good conduct as landlords during the tenancy should lead to a reduction in the fine.

They also pointed to a dispute over the cleanliness of the flat after the tenants moved out, but admitted that due to an oversight the tenants’ deposits had not been protected or a copy of the How to Rent guide provided at the start of the tenancy.

Judge H Carr said the rent paid by the three tenants – £25,300 – should be paid minus a 10% reduction for ‘some good landlord behaviour’, or £22,683.

“In making its decision the tribunal takes into account that this was not a deliberate flouting of the law by the respondents,” said Carr.

“But it has very serious concerns that a long-standing professional landlord has failed to comply with the local authority licensing requirements.”

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UK landlords could reap rich rewards from Afghan crisis

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With private rentals and holiday homes in high demand, many due to Covid and holiday staycations, some councils are offering landlords some very attractive incentives, dubbed “golden hellos” of up to £3,500.

Some councils have been offering private landlords and second home owners “golden hellos”, according to The Times newspaper of up to £3,500, plus six weeks’ rent paid up front, for those willing to house Afghan refugees.

The lettings are done on a rent-to-rent arrangement where the council rents off the landlord owner and then sublets (or effectively provides free accommodation) to the refugee families. The council manages the rental and pays rent (guaranteed rent) whether the property is occupied or not, and undertakes to return the property in good condition.

Some landlords are wary of rent-to-rent or “guaranteed rent” arrangements due the problems and legal complexities when multiple tenancies are involved, but letting to a local authority, providing the legal documentation is properly sorted, is considered much safer than letting to unknown and untried rent-to-rent landlord.

Generous payments up front

Richmond upon Thames and Wandsworth, in southwest London, says The Times are offering incentives from £2,000 for a one-bedroom home and up to £3,500 for a four- bedroom property for a minimum tow-year contract.

Bristol city council is also offering one-off payments according to the publication of between £685 and £1,250 for a minimum of six months. The council will also furnish homes to what they claim will be “a high standard” and undertake basic maintenance and repairs.

Likewise, such is the shortage of rental accommodation at this time, Wiltshire council has offered to furnish homes and pay four months’ rent up-front and a month’s deposit.

The rent will be paid to landlords at the local housing allowance rates, which vary depending on the location, but for example, a four-bedroom property in Richmond upon Thames attracts a rental of £2,573 per month.

Luxury living

Kensington and Chelsea borough council is reported as offering to house four fortunate Afghan familes in four adjoining mews properties close to Portobello Road and its antiques market in west London. These are £1 million homes located in Britain’s richest borough which would ordinarily rent out privately for around £2,500 a month.

Local councils are anticipating difficulties finding suitable accommodation for the fleeing families as the average Afghan family is said to include seven members.

Elizabeth Campbell, the council leader at Kensington and Chelsea, told The Times:

“We must do what we can, and we must do it quickly. My hope is that others will step in and contribute over the coming weeks.”

She said that the council has already taken in around 500 migrants, including Afghans and many others who fleeing the Syrian civil war. So far many have been living in hotels for over 12 months while await their asylum claims to be processed.

Risk of exploitation

For those landlords with suitable accommodation in the right locations these deals may have great appeal as there is guaranteed rent, and little risk with a local authority backing, providing they agree suitable contracts.

One landlord from the north of England said he would be interested in the scheme but worries that some landlords with run-down accommodation would be taking advantage of the situation, earning these rewards on the cheap against more responsible landlords.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – UK landlords could reap rich rewards from Afghan crisis | LandlordZONE.

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Cleaning is the most common cause for deposit disputes

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The Tenancy Deposit Scheme (TDS) statistical briefing for 2020/21 reported on the most common reasons for tenancy deposit disputes with cleaning leading the way at 49% of the total disputes handled, up from 42% in the previous reporting year. Click here for the full report.

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