Free service starts promising to save landlords energy costs during voids

admin    Uncategorized     agents

A void energy solution and switching service for ‘end of tenancy’ promises to trim pounds from landlords’ bills.

Empty rental properties incur a range of standing charges that average between 10p and 80p per day for electricity and from 5p to 60p per day for gas, averaging out to £77 annually for electricity and £82 for gas, according to Muuvo.

To address this, the utility technology platform ensures the unit price and standing charge are correct and don’t exceed the current government price cap when a tenant vacates.

It says installing smart meters also prompts agents to add meter readings to all new and vacating tenancies (fully managed), avoiding excessive payments using an estimate based on past energy consumption.

Tenancy process

The platform can switch over to a preferred supplier as part of the end of tenancy process, meaning that it happens well before any new tenant’s check-in.

Energy switches used to take four or five weeks to complete and often clashed with new tenants setting up their own energy accounts – now it can be handled in just a few days.

As part of its void energy solution, Muuvo is the main point of contact with the void energy partner to assess and sense-check bills before they are sent to letting agents. It can then check that the name on the invoice, correspondence address, meter readings and dates are all correct.

The platform is free to use and provides access to all existing supplier data to provide comparisons and speedy upfront provision of relevant information to help set up new tenancies.

Read more news about voids.

View Full Article: Free service starts promising to save landlords energy costs during voids

Scottish legislation is driving landlords out

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Legislation by the Scottish government is pushing landlords out of the sector, a leading industry body claims.

According to research by Propertymark, 93% of landlords in Scotland have expressed a desire to withdraw property from the PRS because of temporary legislation introduced by the Scottish government.

View Full Article: Scottish legislation is driving landlords out

Block managers under fire over ‘large commissions’ paid to them by insurance firms

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Companies selling multi-occupancy insurance will have to act in leaseholders’ best interests under new proposals from the Financial Conduct Authority (FCA).

It is demanding new rights and protections to improve the transparency of the multi-occupancy leasehold buildings insurance market.

Under the plans, leaseholders would be defined as customers of buildings insurance and firms would not be allowed to recommend a policy based on commission or remuneration levels.

 Insurers and brokers would also need to provide more information about insurance policies to leaseholders, including detail of any commission paid.

An FCA review found average per policy insurance broker commission rose by 46% between 2019 and 2022.

There were also “significant shortcomings” by some brokers in applying fair value rules to their remuneration practices – and the impact on those paying the costs of multi-occupancy buildings insurance.

It reports that leasehold buildings insurance premiums have risen significantly since the Grenfell tragedy, with leaseholders facing much higher costs.

Large commissions

Sheldon Mills, FCA executive director of consumers and competition, says: “Our review revealed large commissions paid by some brokers to freeholders and third parties, like managing agents, with little evidence of any value added to justify these payments.

“We are taking action against these practices, and we won’t hesitate to take further action if brokers don’t comply with our rules.”

Andrew Bulmer, chief executive of The Property Institute, welcomes the focus on tighter regulation, fairness and transparency.

He tells LandlordZONE: “We remain firm in our position that leaseholder distress caused by an increase in insurance premiums, a lack of transparency and information, and suspicions for the potential unmanaged conflicts of interest, highlighted by the FCA, must be resolved to bring transparency and fairness to millions of leaseholders.”

Read more about multi-occupancy insurance.

View Full Article: Block managers under fire over ‘large commissions’ paid to them by insurance firms

BREAKING: Government considers harsher penalties for ‘sex for rent’ landlords

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A new law to crack down on predatory landlords who exploit vulnerable people for sex in return for free or discounted rent is being considered, Home Secretary Suella Braverman (main picture) has announced.

Her department is seeking the views of victims, the police and charities as part of a call for evidence launching today to better understand the scale and nature of the ‘sex for rent’ exchange in the UK.

‘Sex for rent’ arrangements are already illegal under the Sexual Offences Act, and landlords can already be prosecuted for attempting to engage the practice.

The consultation will look at whether these laws go far enough, or if new measures are needed to tackle the issue and better protect vulnerable people from harm.

The practice has been in and out of the headlines in recent years, including the high profile case of Christopher Cox who, in May 2022, was found guilty of the crime and jailed for 12 months.

Exploited

“It’s wholly unacceptable that vulnerable people, and particularly young women, are being exploited in ‘sex for rent’ arrangements,” says Braverman.

“This is an abuse of power which puts people in desperate situations and has no place in our country.

“The launch of this public call for evidence brings us closer to ending this deeply harmful trend and better protecting victims.

“And it is another example of how this government will not stop in our efforts to bring more sexual and domestic abusers to justice.

According to research by polling firm YouGov, carried out on behalf of the housing charity Shelter, nearly 1 in 50 women in England have been propositioned for ‘sex for rent’ in the last five years.

Read the consultation in full.

View Full Article: BREAKING: Government considers harsher penalties for ‘sex for rent’ landlords

EXCLUSIVE: Jersey landlord leader slams rent controls and ‘open’ tenancies plan

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Jersey has launched a consultation into sweeping reforms including rent controls and open-ended tenancies, prompting fears that they could force more private landlords to quit the sector.

The island’s government aims to increase protections for both tenants and landlords under the new residential tenancy law which promises more security of tenure and protection against revenge evictions, increased minimum notice periods for tenancies and a limit on the amount and frequency of rent increases during tenancies.

A new housing tribunal would also be set up to consider a wide range of residential tenancy issues.

Rent controls would require all tenancies to specify terms for rent increases, introduce limits to the amount and frequency of rent increases and specify a minimum notice period of eight weeks.

The States is also considering adopting a more nuanced approach such as averaging annual RPI changes to specifically help during times of high inflation.

Jersey Landlords Association has been fighting creeping regulation for the last few years. 

“The impact of rent controls and open-ended tenancies will be that landlords will be less likely to invest in their properties, which will result in less tenant choice,” chairman Guy Morris (pictured) tells LandlordZONE.

“We believe that the majority of Jersey landlords have already done their best not to increase rents by anywhere near the Retail Price Index.”

He says that any while this piece of legislation would be hard to stomach, introducing it with landlord licensing and changes requiring landlords to ensure buildings are more carbon-neutral all at once could tip people over the edge.

“I think that if all these proposals go ahead, there will be more people leaving the sector, particularly accidental landlords,” adds Morris, “and that only makes the current supply problem even more challenging, especially as our planning committee has knocked back a series of new housing developments recently and our government is set to introduce a new tax on profits generated by the sale of re-zoned land for development.”

The eight-week public consultation ends on 9th June.

View Full Article: EXCLUSIVE: Jersey landlord leader slams rent controls and ‘open’ tenancies plan

Landlords see a massive increase in fraudulent tenancy applications

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There’s never been a tougher time for the private rented sector (PRS) with demand soaring and stock dwindling tenants are struggling with finding a place to live.

This leaves tenants battling it out for properties but some face extreme vetting procedures to access homes to rent.

View Full Article: Landlords see a massive increase in fraudulent tenancy applications

How can I get my rent arrears?

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Hello, I have obtained an eviction order giving my tenants 14 days to leave. I do not expect them to do so, so will need the bailiffs. They are £8,100 in rent arrears.

How can I get my money?

View Full Article: How can I get my rent arrears?

Mandatory five-year electrical checks are required

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There are heavy fines for those landlords who fail to have their rental properties tested by a qualified electrician before letting, and for existing tenancies, or if they fail to comply with any of the important recommendations made in a test report. The landlord will ordinarily have 28 days to make good any reported defects or needed improvements, unless the issue is dangerous, in which case it may be recommended the remedy is made sooner.

This article is
based on English law and is not a definitive statement or
interpretation of the law; rules change and every case is different –
ultimately only a court can decide. Other jurisdictions are similar
but there are important differences. Always seek expert advice before
making or not making decisions.

Local authorities have the power to issue a fine of up to £30,000 and where necessary may carry out any recommended remedial work itself and charge the landlord for this work.

The electrical safety regulations bring electrical testing in-line with the gas safety check regime in England and Wales and the electrical regulations already operative in licensed Houses in Multiple Occupation (HMOs), as well as the electrical testing regulations in operation in Scotland.

Not all tenancies are affected by the regulations, excluded ones include:

• social
  landlords
• resident
  landlords, where the tenant lives in the same building.
• Landlords with
  lodgers
• long leaseholds
  and tenancies in excess of seven years or more.

• student
  lettings in halls, hostels, refugee care homes, hospitals or
  hospices.

Included in the checks are all electrical wiring and all fixed electrical installations. The checks must be carried out by a competent person, usually a qualified electrician, who will produce an Electrical Installation Condition Report (EICR)a report which must be shown to tenants on entry to the property, or in the case of existing tenants, up to 28 days following the 5-yearly checks.

What the regulations require

Landlords of privately rented accommodation must:

• Ensure national standards for electrical safety are met. These are set out in the 18th edition of the ‘Wiring Regulations’, which are published as British Standard 7671.
• Ensure the electrical installations in their rented properties are inspected and tested by a qualified and competent person at an interval of at least every 5 years.
• Obtain a report from the person conducting the inspection and test which gives the results and sets a date for the next inspection and test.
• Supply a copy of this report to the existing tenant within 28 days of the inspection and test.
• Supply a copy of this report to a new tenant before they occupy the premises.
• Supply a copy of this report to any prospective tenant within 28 days of receiving a request for the report.
• Supply the local authority with a copy of this report within 7 days of receiving a request for a copy.
• Retain a copy of the report to give to the inspector and tester who will undertake the next inspection and test.
• Where the report shows that remedial or further investigative work is necessary, complete this work within 28 days or any shorter period if specified as necessary in the report.
• Supply written confirmation of the completion of the remedial works from the electrician to the tenant and the local authority within 28 days of completion of the works.

New checks and a new report will need to be produced on or before the fifth anniversary of the previous checks, unless the landlord makes changes to the electrical wiring or installations in the rental, in which case earlier checks will be needed.

As with gas safety checks, landlords will need to produce and supply to tenants the correct documents, including the electrician’s report prior to any lettings, otherwise they may be unable to peruse a possession claim if the need arises and the landlord’s insurance may be invalid. Similarly, agents will refuse to let properties lacking the correct documentation.

Landlords need to plan ahead to balance their cash flows in case remedial action is needed to bring electrical systems up to current standards, with the potential cost involved.

Most landlords will appreciate the importance of having their wiring and installations, just as their gas systems, safe and free from defects. Most will be brought up to modern safety standards relatively inexpensively.

These new regulations replace the previously existing regulations for houses in multiple occupation (HMO) to have the electrical installations tested.

Should tenants refuse landlords access for inspections and any required remedial work, as with gas checks, the landlord could be considered to have breached this duty, even where the landlord has tried repeatedly to have the work done. It is important therefore to keep the local authority informed if this is the case, preferably in writing.

View Full Article: Mandatory five-year electrical checks are required

Council makes extraordinary request asking landlords to pay for student mess

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Durham city’s parish council has taken the unusual step of asking student landlords to make a voluntary donation towards the cost of cleaning up street waste and discarded furniture.

It will ask for a contribution of £52 towards its precept from student landlords to match the amount paid by ratepayers.

More than 4,340 properties are registered as student properties in the city and therefore exempt from paying council tax; the authority reports that these exemptions cost it £8.7 million in lost council tax revenue.

The move comes after mounds of discarded waste and furniture were dumped in the streets when students left their homes last year.

Chairman, councillor Alan Doig, says: “This parish council has the responsibility of helping to maintain our beautiful parish on behalf of every resident, student and non-student alike.

“This is why we are asking all student landlords to share with us a shared commitment to maintain the attractiveness of our environment by making a contribution to our precept, so helping us deliver these vital projects for our community.”#

Landlord support

The plans are also supported by student landlord and fellow parish councillor, Helen Weston (pictured), who adds: “As a fellow student property owner myself, I fully endorse the work of the parish council to safeguard the residents of this city and to ensure that the city is kept clean and enjoyable for all.”

The money raised will be invested in projects such as paying for more neighbourhood wardens, according to The Chronicle.

The council will write to all landlords later this month with the request and will publish the contributions made to highlight good landlords.

View Full Article: Council makes extraordinary request asking landlords to pay for student mess

More landlords moving to limited companies as list tops 60,000

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The number of VAT and/or PAYE enterprises operating in the UK’s residential and commercial rental sectors climbed 2% in the past year, despite the government’s best efforts to deter investment.

Analysis of government data by debt advisory firm Sirius Property Finance reveals that there are now 60,000 businesses in the sector, representing five-year growth of 12%.

London continues to be the rental investment capital with 12,160 rental businesses, accounting for one fifth of the UK total, while the South East (13%) and North West (10%) are also among the most prominent regional markets.

Sirius reports that the North East is home to the lowest proportion of buy-to-let enterprises, accounting for just 2%. In the past 12 months, Wales has seen the biggest increase in businesses (3%), while the North West leads the way in terms of five-year growth at 15%. 

Tax and CGT

Head of corporate partnerships, Kimberley Gates, says the UK’s buy-to-let sector continues to grow despite recent changes to capital gains and tax allowance rules. 

She explains that although demand for rental homes remains profitable, many landlords have decided to set up their own businesses in order to further improve profitability, which is driving the increasing number of companies operating in the sector.

“It would be bold to predict anything other than continued growth in the buy-to-let ecosystem over the coming months and years,” adds Gates, “especially in densely populated urban areas, because as long as home ownership continues to be so incredibly expensive, rental demand will always be strong.”

View Full Article: More landlords moving to limited companies as list tops 60,000