Tenant has fallen down the stairs and sustained injuries?

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Hi, I’m looking for advice as one of my tenants has today messaged saying they have fallen down the stairs in my rented property. They haven’t advised how/what caused them to fall down, but here is their message

“I need to let you know

View Full Article: Tenant has fallen down the stairs and sustained injuries?

OPINION: Would periodic tenancies change everything for landlords?

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The cost of living crisis shows no signs of easing so it’s not surprising that our data has revealed that tenants are staying put for longer, unwilling to risk rent increases and uncertainty over unsecured accommodation.

But at the same time, the government wants to bring in periodic tenancies as the standard and change how tenants are evicted, as proposed within its Renters Reform White Paper.

These changes are not necessarily a bad thing. For example, If you suddenly need to regain possession of your property, or decide you want a change, a periodic tenancy speeds up this process as you don’t have to wait until the end of a fixed period.

It will also help to recruit tenants who are on the lookout for a short lease contract, who otherwise wouldn’t be available to you. 

For tenants, periodic tenancies mean that they will not have to give as much notice prior to leaving a property, given that the contract will be rolling, but this could present a number of challenges that should be considered by agents and landlords.

Shorter leases

Understandably, periodic tenancies are more likely to attract tenants looking for more transient, shorter leases.

Having a high turnover of tenants will not only cost more in terms of referencing and marketing, but it’ll also mean landlords must deal with a shorter turnaround time if a tenant decides to vacate unexpectedly, which will likely increase void periods and cost money. 

If your tenant moves out during a ‘notice to quit period, landlords may be liable for paying council tax for the property for that month.

But this can be avoided, by ensuring you have a contractual periodic tenancy agreement in place to ensure this remains the tenant’s responsibility for a given length of time. 

With periodic tenancies opening up the rental market to an expanded pool of people, reports of falsified documents and disingenuous applications are on the increase.

Fraud

Fraudsters are becoming more sneaky at using the tech readily available to them to fake documents and contracts.

Agents must both recognise this as an issue and seek to address it quickly, educating landlords on why thorough checks and due diligence are as important as ever. 

Although they come with their own set of challenges, periodic tenancies can be a good idea for all parties, offering increased flexibility and reducing the number of administrative tasks required throughout a tenancy.

The lettings landscape is mid-shift, as a combined result of the pandemic, cost of living crisis and renters reform white paper.

What this means long-term is yet to be seen, but what is certain is that landlords must be vigilant and stay ahead of the ball in order to maintain consistency. 

Simon Tillyer is a director of tenant referencing firm Vouch.

View Full Article: OPINION: Would periodic tenancies change everything for landlords?

Wales to licence ‘commercial holiday lets’ landlords to help solve renting crisis

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Welsh government leaders have revealed radical plans to licence holiday lets in a bid to get tough on the causes of long-term rental shortages.

The region is to introduce a cap on the number of second and holiday homes while bringing in measures to put more homes into common ownership.

As well as a statutory licensing scheme for holiday lets, greater powers for local authorities to charge council tax premiums and increasing taxes on second homes are planned. Local authority mortgages will also be explored.

The Welsh Government has previously confirmed that it will go ahead with tax hikes on holiday lets that do not rent out their properties for more than half the year.

Its consultation sought views on the maximum level at which local authorities can set council tax premiums on second homes and long-term empty properties and the criteria for a property to be defined as non‑domestic, self-catering accommodation.

New criteria

As a result, local authorities will be able to set council tax premiums on second homes and long-term empty properties to 300% from April 2023.

The criteria for self-catering accommodation being liable for business rates instead of council tax will also change at the same time, from 70 to 182 days.

The Welsh clampdown is being mirrored in other regions. In England, a new government study will investigate how short-term holiday lets impact housing supply across cities and coastal resorts, including looking at proposals for checks on premises, a registration ‘kitemark’ scheme with spot checks for compliance on gas safety and a self-certification scheme for hosts.

Meanwhile, new laws in Scotland will require all local authorities to set up a licensing scheme by October 2022.

View Full Article: Wales to licence ‘commercial holiday lets’ landlords to help solve renting crisis

The Right Amount Of Debt On Your Property Portfolio And Property Business

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What is the right amount of debt for a property investor?

Too little debt can be as costly as too much on your property portfolio, so maintaining your debt correctly is vital to your property business.

In this episode of The Property Tax Show

View Full Article: The Right Amount Of Debt On Your Property Portfolio And Property Business

DWP to spend £20m ejecting bad landlords from ‘exempt’ accomm sector

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Local councils in England can now apply for a share of a £20 million pot that’s been made available to drive up standards in the supported housing sector.

The government wants to hear from authorities dealing with poor quality provision or unscrupulous landlords exploiting vulnerable residents by charging high rents for poor-quality accommodation while offering almost no help.

It cites landlords providing as little support as dropping off a box of cereal but claiming £250 per week in an area where the average rent is £80.

Supported – or exempt – accommodation is non-commissioned and unregulated supported housing where tenants include ex-prisoners, addicts, rough sleepers and fleeing survivors of domestic abuse.

Landlords can apply for provider status, exempting them from local licensing regulations and housing benefit caps, meaning that councils have few powers to act over the quality and safety of homes or how tenants are treated.

Clamp down

To clamp down on the sector, the new funding programme will give councils resources to carry out inspections and enforcement activity. Alongside this, the government has introduced new minimum standards to prevent landlords from exploiting some of the most vulnerable tenants.

Local authorities will get new powers to better manage supported housing so rogue landlords can’t exploit the system, while there will be changes to Housing Benefit regulations to define care, support and supervision.

Minister for Welfare Delivery, David Rutley MP (main picture), says: “Having a settled home gives people the security to improve their lives by getting on the employment ladder or taking other steps towards financial independence.

“This, supported by changes we recently announced which will give people on benefits the choice of putting money towards a deposit, provides the chance to make progress on the pathway to home ownership.”

This programme builds on the success of £5.4 million year-long supported housing pilots in Birmingham, Blackburn with Darwen, Blackpool, Hull and Bristol.

View Full Article: DWP to spend £20m ejecting bad landlords from ‘exempt’ accomm sector

Lower EPC rating after improvements – Is there an official referee?

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I have an EPC from 2009 which rated my house as a D67 this noted that there was ‘partial double glazing ‘ and recommended that full double glazing be fitted, which would boost the rating to a C76. This was duly done.

View Full Article: Lower EPC rating after improvements – Is there an official referee?

Supported Housing Crack Down

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Unscrupulous Supported housing providers who exploit vulnerable residents by charging high rents for poor-quality accommodation and offering almost no help will be driven out of the supported housing market by a new £20 million government improvement programme launched on 2 July 2022.

View Full Article: Supported Housing Crack Down

Landlords oppose evictions, pet rights and benefits tenant reforms in White Paper

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Landlords have revealed that they oppose three of the key reforms proposed by the government in its Fairer Renting White Paper.

The research by Total Landlord Insurance among nearly 1,100 landlords shows that 60% don’t support the abolition of Section 21 evictions, 57% are against the right to allow tenants to rent with a pet unless they can reasonably refuse and 58% are also against plans to make a blanket ban on tenants renting with children or with the support of benefits illegal.

But some elements of the White Paper are supported by landlords.

Nearly two thirds of landlords are in favour of giving tenants stronger powers to cease arbitrary rent review clauses such as unjustified rent increases, while a similar proportion of landlords were in favour of doubling notice periods when rent increases are justifiably implemented.

Most surprisingly, 89% are behind the creation of a new ombudsman to deal with rental market disputes.
The proposals may also deliver the Conservative’s stated aim of chasing more landlords out of the PRS with 17% of those canvassed by the survey saying they’d reduce their portfolios if the proposals become law.

“We’ve waited with bated breath for three years to hear the detail of the Government’s proposed rental market reforms and while it’s fair to say that their latest plans are rather tenant focussed, any attempts to improve the sector are extremely welcome and should improve standards for all stakeholders regardless of what side of the tenancy agreement they stand on,” says Eddie Hooker (pictured), CEO of the Hamilton Fraser Group, which operates Total Landlord Insurance.

“Despite this, our latest gauge on landlord sentiment shows that the vast majority are in favour of greater tenant protection and a fairer, more level playing field across the rental sector.

“This has always been the case and while there are bad apples in every batch, the view that all landlords are money hungry tyrants who forsake tenant welfare to increase their rental yield simply isn’t the case.”

Read the White Paper in full.

View Full Article: Landlords oppose evictions, pet rights and benefits tenant reforms in White Paper

Put your EICR date in the diary now to avoid a shocking bill

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HMO landlords face paying thousands of pounds for electrical equipment when new regulations kick in later this year.

An amendment to BS7671 (Electrical Regs) means HMOs must have AFDDs (arc fault detection devices) in single phase AC final circuits supplying socket-outlets with rated current not exceeding 32A.

Satisfactory rating

Those landlords with an Electrical Installation Condition Report (EICR) due in the next six to nine months should consider getting it done before the law changes on 28th September, advises former electrician and Portsmouth landlord, Graham Castellano. He explains that after this time, any electrical installation condition reports on HMOs should class the absence of these devices in the consumer unit (CU) as a C2, which means it will need remedial work to get a ‘satisfactory’ rating.

Castellano says the device can sometimes be inserted directly in place of the circuit breaker in an existing unit, but if that isn’t possible, a replacement unit would be needed. Each device costs about £150 – with one needed for each socket circuit – plus the electrician’s costs for the remedial work and retest. With a new consumer unit, this could easily cost £2,000 per property.

More expense

He adds: “The AFDDs contain microprocessors, which are susceptible to damage from mains-borne spikes. This might lead to having to install surge protection devices at the consumer unit as a minimum – more expense.”

Portsmouth & District Private Landlords Association chair, Martin Silman, says it wants to see how fires caused by electrical distribution faults are split between premises with a current/valid EICR versus those without. “Our fear is that those with up-to-date and tested electrical systems are being penalised, by being forced to pay for expensive upgrades within their consumer units, to reduce risks that do not normally occur in well maintained properties,” adds Silman. “Sadly, this ‘regulation creep’ is all too common and continues to push up rents and make life harder for landlords.”

View Full Article: Put your EICR date in the diary now to avoid a shocking bill

Landlord partnership sells 29 residential rental properties for £10.6 million

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Real estate investment manager Europa Capital and joint venture partner Addington Capital have sold their Lancelot portfolio of 29 residential properties to Mountview Estates Plc for £10.6 million.

The properties comprise 17 houses and 12 flats (see photo) mainly in London and the South East, all leased on regulated, assured and life tenancies, providing a gross rent of £261,243 a year.

Project Merlin

The properties were acquired by the joint venture in October 2018 as part of the Project Merlin acquisition – a portfolio of mostly old housing stock in Greater London made up of 202 units (43 houses and 153 flats) for £55 million.

Since then, Addington Capital has been asset managing the properties with its sister property management and leasing company, AddLiving, providing property management.

Matthew Allen, principal at Addington Capital, says since acquisition it has been looking for opportunities to re-package the properties and add value.

He adds: “As a standalone regulated portfolio, Lancelot presented a relatively rare opportunity to acquire these kind of reversionary interests in bulk. The last of these statutory tenancies were created in 1989 and so there’s a dwindling supply. We ran a competitive process and Mountview, as a specialist buyer, is very familiar with the kind of stock and was a reliable counterparty.” 

Operating Partner

Addington Capital was set up in 2010 as an independent asset management and investment business and operates in the office, retail and residential sectors as an operating partner, working closely with its partners to create value through active asset management.

View Full Article: Landlord partnership sells 29 residential rental properties for £10.6 million