It’s time to regulate rent-to-rent and kick out the ‘bad eggs’ says NRLA leader

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NRLA boss Ben Beadle has advised would-be investors to avoid ‘too good to be true’ rent-to-rent schemes and called for greater scrutiny and regulation of the sector.

Speaking at the recent Property Investor Show, Beadle warned them not to believe all the rhetoric.

“Whenever there’s a big problem it normally links back to rent-to-rent done badly,” he said.

“If it’s too good to be true it’s probably best to do something else…as it invariably ends in tears and out of pocket.”

Two high profile cases have made headlines in the last month alone. Sam Eustace, boss of guaranteed rent business Kingsman Property Ltd, was handed an 11-year ban for scamming £6.7 million from investors, while high-profile property investor Ben Brand, who was hailed as a rent-to-rent success story, put his company StayBC Ltd into liquidation, owing creditors nearly £1.5 million.

Unsolicited letters

Property Tribes’ Vanessa Warwick said that letters received by landlords looking for customers would almost certainly be from someone fresh off a course with no experience, who was promising to guarantee rent.

She added: “If you check them on Companies House you will almost certainly find their company was set up in the last few months.”

Warwick pointed out that the Advertising Standards Authority had just ruled that sending unsolicited letters to property owners is illegal if the landlords being targeted have opted out of direct mail.

Outrageous

Beadle also objected to rent-to-rent operators using HMO licence lists to target landlords.  

He explained: “It’s an outrageous breach of what the list is there for. HMO schemes are there to raise standards, not to give people a quick route to a customer base.

“I worry about landlord registration – we need to make sure that we’ve got robust control over that data.”

Watch the interview in full.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – It’s time to regulate rent-to-rent and kick out the ‘bad eggs’ says NRLA leader | LandlordZONE.

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HMO market values still holding up despite regulation headwinds

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Market analysis from Octane Capital, has revealed that the current market value of Houses in Multiple Occupation (HMOs) currently sits above wider market values, suggesting that new licensing laws have had a limited impact on the appetite for the often perceived trickier path to building a buy-to-let portfolio.

View Full Article: HMO market values still holding up despite regulation headwinds

Yet another property scam artist is exposed!

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Sam Eustace, 36, from Sutton in south London has been disqualified as a director for 11 years for operating a Ponzi style property scheme.

Kingsman Property Ltd offered property owners a guaranteed rent by taking over their properties and managing them in a rent to rent operation. In addition, Eustace’s company offered investors a 30% return for investing their capital in rental houses for multiple occupancy (HMOs).

The company, set up in October 2015 originally trading as Samuel James Ltd, but changed its name to Kingsman Property Ltd in May 2017. The business took at least £6.7 million from unsuspecting investors before going into liquidation in August 2019.

An Insolvency Service investigation found that between October 2016 and March 2019, Kingsman Property paid out over £3 million to investors, but this was funded by money received from new investors rather than any actual return on investment, a classic Ponzi scheme.

Kingsman Property states on its Facebook page that it is “led by a successful entrepreneur who combines his love of property with financial acumen…who is honest and trustworthy.”

The company accounts showed the business was in fact insolvent as early as June 2017, with debts totalling nearly £700,000. Its deficit grew exponentially, and it owed nearly £5 million when it eventually went into liquidation.

Eustace himself received dividends from the company between November 2017 and June 2019 amounting to nearly £400,000.

Eustace admitted causing Kingsman Property to trade with a lack of commercial probity, including offering false representations to investors as to the return they could get. His ban as a company director runs from 24 March 2022 and lasts for 11 years. This prevents him from directly, or indirectly, becoming involved in the promotion, formation or management of a company, without the permission of the court.

Pension cash

Since it became possible to drawn down cash from personal pension pots there’s been a dramatic increase in these types of financing investment frauds, and property has featured prominently in these schemes. Fraudsters like Eustace promise high returns with low risk but more often than not pension savers who invest are left with nothing.

Once the investor’s hard earned money is gone, it’s almost impossible to get it back and once savers realise they’ve been scammed, it can have devastating effects; many have lost their their life savings and some have lost their lives as a result.

Seminar trainers and scammers

Property is an ideal vehicle for these types of scammers as it is generally seen by the public as a safe investment. It is also attractive to those younger investors who seek a route to financial and lifestyle freedom through the many property training seminars available, many of which are touting outlandish claims.

With interest rates hovering around the 1% mark or less for some time now, and inflation tipped to reach 8%, those who want to see a better return on their money, or are in need of income in these straightened times, might be tempted to go along with exaggerated promises.

But the well worn phrase – if it seems to good to be true, it probably is – is advice well worth taking onboard.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Yet another property scam artist is exposed! | LandlordZONE.

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Landlord speaks for the first time about ‘frightening’ campaign by ACORN

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Sheffield landlord Zobia Rafique, who has won a £100,000 settlement from tenants union ACORN following a months-long campaign of harassment, has spoken for the first time about her ordeal.

What was initially a low-level disagreement with a tenant, Aya Hoez, over the return of a £300 deposit, turned nasty after Acorn got involved.

Rafique and her business Century One Estates were forced to issue legal proceedings against ACORN and Ms Hoez. 
Mrs Rafique and Century One Estates settled their claim against ACORN.  She was forced to obtain an injunction and other orders against Ms Hoez.

Century One Estates in Sheffield is a local business that has served the Sheffield community for 12 years and specialises in renting rooms across the city.

Rafique reveals: “The last two years have been unbearable and frightening. I’m relieved and pleased the case has been resolved in my favour and now the harassment will stop.

“I also wanted to prevent this from happening to other business owners.”

Harrassment

A spokesman for JMW Solicitors, who represented her in court, said: “We are delighted to have successfully acted for Mrs Rafique in this case and to have brought it to a close in her favour and century One’s favour.

“Unfortunately, despite being in the wrong in their allegations against Mrs Rafique, the tenant and Acorn embarked upon a campaign of harassment against her.

“Clearly, there is a place for legal and legitimate campaigning, but the tenant’s and Acorn’s conduct seriously crossed the line.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Landlord speaks for the first time about ‘frightening’ campaign by ACORN | LandlordZONE.

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BREAKING: Landlord wins £100k after harassment by tenants union ACORN

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A landlord has won £100,000 in damages from tenants’ union ACORN for organising a campaign of harassment against her.

Zobia Rafique sued for harassment, defamation and breach of data rights after a low-level disagreement with tenant Aya Hoez over the return of a £300 deposit escalated when the group got involved.

Members, blogged and posted abusive statements on social media, threatened Rafique using a loud hailer and held a public meeting about her outside Sheffield town hall.

Neighbours received leaflets describing her as a ‘dodgy landlord’ and the group also delivered a demand letter to her house where they filmed her and sang Christmas carols.

In 2021, JMW Solicitors, which represented the landlord, said the campaign went on for four months, and involved “noisy demonstrations involving scores of people as well as highly defamatory and incorrect posts on social media”.

The dispute started when Rafique, who rents rooms across Sheffield through her business, Century One Estates, reportedly refused to return a £300 deposit to Hoez who had signed up for a room but then changed her mind.

The Deposit Protection Service ruled in Rafique’s favour but ACORN continued to target her.

She told the Sheffield Star: “The last two years have been unbearable and frightening. I’m relieved and pleased the case has been resolved in my favour and now the harassment will stop. I also wanted to prevent this from happening to other business owners.”

A spokesman for JMW Solicitors added: “Clearly, there is a place for legal and legitimate campaigning, but the tenant’s and ACORN’s conduct seriously crossed the line.”

As part of the settlement, ACORN paid just under £100,000 in costs and damages to the landlord and her business, as well as issuing two written apologies and agreeing not to repeat the conduct.

Head organiser for the group, Nick Ballard (pictured), vowed to continue fighting for tenants’ rights. “ACORN remains committed to its mission of winning justice for and protecting its members and advancing the cause of low-income people and communities across the country,” he said. “Nothing will deter us from this.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – BREAKING: Landlord wins £100k after harassment by tenants union ACORN | LandlordZONE.

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UPDATE: New Right to Rent rules go live today in England

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Landlords in England checking new tenants under Right to Rent rules face changes to the regime today including revised lists of accepted documents from today onwards.

The government has also initiated its digital identity-checking service scheme, which enables commercial providers to verify a UK or Irish tenant’s identity documents digitally, for a fee.

This new system will run in parallel with the ‘adjusted checks’ video-call based verification system that the government introduced during Covid and the government’s existing online checking service.

Adjusted checks will run until the end of September.

As before, these adjusted checks allow scanned document sent digitally to be accepted, or verification via video call either using the Home Office’s online checking service video facility (for tenants with a Biometric Residence Permit or Biometric Residence Card or who has been granted status under the EU Settlement Scheme or the points-based immigration system) or other types of video calls such as Zoom, Whatsapp or Teams for other kinds of tenants.

After 30th September when the adjusted checks ends, landlords will have three choices. These are:

• Do a manual check, face to face of the tenant’s identity of Right to Rent documents.
• Use Identity Document Validation Technology (IDVT) via the services of an Identity Service Provider (IDSP) such as Yoti/Post Office to check the identity of a British or Irish citizen.
• Use the Home Office online Right to Rent checking service.

On the ground, most local landlords who deal with their own properties will complete manual checks of British or Irish nationals to check and make copies of their passports.

The IDVT checks are for landlords whose UK or Irish prospective tenants have not arrived in the UK to take up their tenancy or who cannot do face-to-face meetings. The Home Office’s online service is primarily for the growing number of people issued with eVisas.

Timothy Douglas (pictured), Head of Policy and Campaigns at Propertymark, says landlords and agents can continue to use specified hard copy documents for UK and Irish nationals or BJ5SSK nationals (nationals of Australia, Canada, Japan, New Zealand, Singapore, South Korea, and the USA) but if IDSP is offered, they must not discriminate against applicants that would prefer to provide hard copy documents checked either online to 30 September 2022, or in person.#

Documents list

Landlords will also have to update their paperwork to reflect the shortened list of acceptable documents.

Under the new rules, hard copy forms of biometric cards and permits along with frontier workers permits (seasonal workers) will not be accepted from 6 April.

To read the full and updated Code of Practice, visit the Home Office website.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – UPDATE: New Right to Rent rules go live today in England | LandlordZONE.

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New Right to Rent Code of Practice

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The Home Office has issued guidance for landlords, and letting agents on the introduction of new Right to Rent immigration checks coming into force today 6th April 2022. Click here

From 6 April 2022, landlords can use Identity Document Validation Technology (IDVT) via the services of an IDSP to complete the digital identity verification element of Right to Rent checks for British and Irish citizens who hold a valid passport.

View Full Article: New Right to Rent Code of Practice

TOMORROW NIGHT: Do you know how to find Below Market Value property?

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Do you think it’s possible to find discounted (Below Market Value) properties in this booming property market?

Other investors are finding discounted deals in a booming market, which proves that it is possible.  Even if it’s not always easy to do.

View Full Article: TOMORROW NIGHT: Do you know how to find Below Market Value property?