Have tenants or their pets damaged your property? Tell Ministers about it here

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A campaign has been launched to find out the true cost of damage caused to rental properties by tenants including their pets and children.

Organised by AdvoCATS founder Jennifer Berezai but supported jointly by LandlordZONE, the National Residential Landlords Association and Propertymark, the campaign is asking buy-to-let investors and letting agents across the UK to complete a short survey to help inform policy-making in Whitehall.

Bereza (pictured)i, who has been lobbying key players within the PRS says she has been told ministers are aware of her organisation’s effort to provide a true picture of damage caused to properties during tenancies across the UK.

The purpose of the research is to provide accurate data of the type of damage caused in rental accommodation by adults, children and pets, as well as the cost to landlords and method of recovery. 

The results will be presented to Eddie Hughes, the Minister for Rough Sleeping & Housing, at the Department for Levelling Up Housing & Communities by AdvoCATS later this Spring, to further enhance their Heads for Tails’ report and proposals to amend the Tenant Fees Act 2019 and making renting with pets easier for both parties, thus avoiding the devastating impact of “no pets” clauses.

Berezai says: “We know that fear and cost of pet damage is one of the main barriers to landlords accepting pets, and this survey will give a better understanding of the reality of those fears, and how they compare to other causes and costs of damage.

“These questions haven’t been asked before, and the answers will give us a unique insight into landlords’ experiences.”

Chris Norris, Policy Director for the NRLA, adds: “We understand the importance that pets have for many renters, especially those wanting companionship.

“However, the system at present does not allow the true heightened risk of pets to be reflected in deposits.
“We encourage landlords to complete this survey as we work to ensure there is sufficient confidence to rent to tenants with pets.”

Take the survey, which is just 12 questions, here.

Timothy Douglas, Head of Policy and Campaigns at Propertymark says: “Many renters are pet owners, but due to the Tenants Fees Act which caps security deposits, letting agents and their landlords are no longer able to fully mitigate the additional risks associated when letting their property to tenants with pets.

“We hope that the responses collected from this survey will strengthen our calls for changes to current rules and that the UK Government will explore options that incentivise landlords to rent to more people with pets.”

AdvoCATS was set up in 2018 to offer a free support and advice service to both landlords and tenants, and assist pet owners who experience difficulty finding rental accommodation. Its approach is also endorsed by 35 organisations including most recently, the Pet Food Manufacturers Association, Proptech-PR and ProtectaPet.

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HMO landlords warned not to over-charge ‘all inclusive’ tenants as energy bills soar

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Following energy regulated Ofgem’s decision to raise the price cap by nearly £700 a year per household, HMO landlords have been warned to observe the ‘maximum resale value’ and not offset their higher energy bills by charging their tenants extra.

Student house shares, professional HMOs and dedicated build-to-rent properties that form part of a larger development often offer all-inclusive tenancies.

The warning came after Labour MP Steve McCabe asked the government to clarify whether it had assessed the potential capacity of a landlord or letting agent to increase a tenant’s utility bill mid-way through an assured shorthold tenancy contract.

Housing Minister Eddie Hughes replied that where the landlord was responsible for paying the energy supplier and billed the tenant separately to rent, they could only charge for the ‘maximum resale price’ which includes the energy the tenant has used, the tenant’s share of the standing charge, and the VAT owed.

Landlords and agents who offer ‘all inclusive’ rent deals are deemed to energy resellers and are governed by Ofgem rules.

Its guidance states that if the reseller (landlord) underestimates the cost of energy supplied, “he is obviously entitled to recover the amount undercharged from the customer”.

Civil proceedings

But it warns that anyone who charges more than the maximum resale price may face civil proceedings for the recovery of the amount overcharged and might also have to pay interest.

Some HMO landlords are doubtless considering increasing rent to recoup the added expense.

Read more: The complete guide to running an HMO property.

While HMOs have traditionally generated higher returns than standard properties (between July and September last year, individual flats achieved average yields of 5.9%, according to consultancy BVA BDRC, while HMO yields were a fifth higher, at 7.2%) rising interest rates have now started to erode margins.

Many HMO landlords have already received higher energy bills because of the move towards working from home, which has driven up home energy use.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – HMO landlords warned not to over-charge ‘all inclusive’ tenants as energy bills soar | LandlordZONE.

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LATEST: Official Boiler Upgrade Scheme launches today – but is it enough?

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The government’s Boiler Upgrade Scheme launches today amid fears that landlords will need longer-term funding to help them meet energy efficiency targets.

Grants to encourage property owners in England and Wales to install low carbon heating systems such as heat pumps are now on offer, allowing landlords to claim £5,000 towards the cost of an air source heat pump, £6,000 for a ground source heat pump, or £5,000 for a biomass boiler if the house is in a rural location and not connected to the gas grid.

An installer will apply for the grant on their behalf and the value is then taken off the price paid.

Landlords can still apply under the three-year scheme if they have received separate funding for energy efficiency upgrades such as insulation, doors or windows.

Anyone applying must have a valid Energy Performance Certificate, typically issued in the last 10 years.

However, Propertymark believes a national retrofitting programme backed up by longer-term funding is what’s needed now.

Timothy Douglas (pictured), head of policy and campaigns, says pockets of funding are starting to emerge, but that they are just a “drop in the ocean”.

“The property sector needs a national retrofitting programme that’s linked to realistic and achievable targets and dedicated, long-term grants that take into account the age, condition, and size of properties,” adds Douglas.

“Unless landlords and homeowners are given sustained financial incentives, it is unlikely any real progress will be made in helping them to cut carbon emissions and reduce energy bills.”

The government has proposed that new rental properties will require an EPC rating of C or above by 2025, followed by all tenancies from 2028. Along with the new grants, it also introduced a 0% VAT rate on selected energy efficiency materials in the recent Budget.

Find out more about how to apply.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: Official Boiler Upgrade Scheme launches today – but is it enough? | LandlordZONE.

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‘Do proper checks on guaranteed rent firms before you sign up’ landlords warned

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An established guaranteed rent provider has advised landlords to carry out a credit check and due diligence on companies in the sector before signing up – just as they would a prospective tenant – to protect themselves from potential problems. 

Wendy Clarke (main picture), boss of Harlow-based The Rent Guarantee Company (TRGC), acknowledges that while her firm offers a risk-free solution to landlords, the sector is largely unregulated.

“We are aware of a company offering guaranteed rent on a promise, when a simple Companies House search shows they only made £6,000,” she tells LandlordZONE.

“That’s less than six months’ rent for just one landlord. When they fail, it gives the whole guaranteed rent market a bad name.”

She believes that knowledge of the minimum standards, processes and systems, along with a good level of business knowledge, is not something that can be learnt from a weekend property training course.

“These are people who have entrusted their investment, often their pension or income top-up vehicle, so you need to have ethics and a sense of responsibility and consider how what we do benefits everyone,” explains Wendy.

TRGC is guaranteed by the government contracts it has negotiated, and always leaves 12 months’ rent in its business account so it has the ability to serve the correct notice to landlords and run to the end of term.

Temporary accommodation

Wendy is proud of its track record; operating since 2014 when she first used her own properties along with some from family and friends, it now covers Essex, Hertfordshire and Golders Green, supplying the temporary accommodation market by housing tenants waiting for a council house.

The average contract is three years; if a landlord needs their property back, they just give two months’ notice.

TRGC caters for portfolio landlords, those who have had nightmare tenants causing eviction headaches or regular late payments, and the landlords who own properties that aren’t in a condition to let, where it offers complete house and garden clearance, and full refurbishments.

Adds Wendy: “At the last house we took on, we removed two tonnes of rubbish and had it available again within three days so the landlord only had a weekend with no income.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – ‘Do proper checks on guaranteed rent firms before you sign up’ landlords warned | LandlordZONE.

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Letting to a company who won’t vacate?

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Hi, We own an apartment which has been rented to a Portuguese company for four years, with no problems. The company’s business is in arranging accommodation for its clients.

However, the lease period expired on 25th March 2022

View Full Article: Letting to a company who won’t vacate?

Get Out While You Can

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Over the last week, an influx of Property118 landlords rushed to contact the team at Landlord Sales Agency – a company known for being experts in property portfolio exit strategies. The question wasn’t so much whether now was the time to sell our portfolios

View Full Article: Get Out While You Can