May
9

Forum Spotlight: Who should carry out post-tenancy inspection?

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One of the many benefits of being an RLA member is that landlords are able to share their experiences with each other and help each other out, on our popular Forum. This week, a landlord posted in the Forum with a question about carrying out a post-tenancy inspection. He wanted to know whether other landlords would […]

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May
9

Landlord Checks for Legionella

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Risk Assessment: Updated September 2017

Letting agents and landlords are obliged by law to carry out checks for legionnaire’s disease between tenancies, and if necessary, take action. A written risk assessment is the best way to show that this has been done.

These guidelines apply primarily to England. Other regions and jurisdictions are similar but there may be important differences. This is not a definitive interpretation of the law, every case is different and only a court can decide. If in doubt seek expert advice.

Who is responsible?

Where a property is under full management by a professional agent, then clearly the agent has responsibility for meeting these legal requirements. However, where the landlord is managing the property him or herself, then the landlord takes on that responsibility, along with all the other legal requirements for health and safety such as annual gas checks etc.

Clearly, Houses in Multiple Occupation (HMOs) pose a greater risk here and the “responsible person� the person who has the duty to manage the property is obliged to carry out a risk assessment for this risk as well as for general and fire safety under The Management of Houses in Multiple Occupation (England) Regulations 2006

However, landlords of single buy-to-let properties are also affected by this. Although an individual house our flat generally poses no greater risk for legionella than an owner occupied property, unless there are unusual circumstances, nevertheless there is still a risk which must now be addressed by all landlords and agents.

The guidance for HMOs specifies annual risk assessments and insists that landlords and agents keep records of these for at least five years.

What is Legionnaires Disease?

Legionnaires is a pneumonia like illness caused by the Legionella bacteria, which can be fatal. Legionella bacteria are widespread in rivers, lakes and water systems where the temperature of the water is such as to encourage growth of the bacteria, e.g. a hot water system. People can catch the disease by inhaling small droplets of water which may be suspended in the air and contain the bacteria. Stored and recirculated water is a particular risk.

Landlords and agents should be aware that legionella bacteria can multiply in hot or cold water systems and water storage tanks. The bacteria can be spread via showers and taps, especially if they have not been used for some time. The risk assessment must assess the risk and identify potential sources of exposure, followed by, if necessary, steps necessary to prevent or control any of the identified risks.

It is acceptable for risk assessments to be carried out by a reasonably competent person, usually the agent or landlord and it is not normally considered necessary to have a professional assessment carried out.

A risk assessment involves assessing whether conditions are right for bacteria to flourish. The greatest risk is where water is present at temperatures between 20C and 45C. Stagnant water, in tanks for example, infrequently used outlets, showers and air conditioning units, debris in water systems, and thermostatic mixing valves should checked and corrective action taken where necessary.

The other side of the coin is assessing the vulnerability of people who may be at risk. Landlords and agents need to identify this in their risk assessments.

Tenants who are older than 45 years, smokers and heavy drinkers, those suffering chronic respiratory or kidney disease, and anyone with an impaired immune system is at greater risk of infection.

Safeguards may involve disinfecting water systems, cleaning shower heads, servicing air conditioning units, removing stagnant water pools and water tanks from systems, insulating pipework, and keeping water cisterns properly covered and free of debris.

Landlords and agents should issue tenants with notices advising them about these risks and how to combat them by running water off and cleaning shower heads regularly.

When landlords and agents advise tenants to raise water temperatures to reduce the risk of legionella, there’s obviously an increased risk of burns and scalding.

It all sound very onerous on landlords or agents but these risk assessments are usually straightforward and not as difficult as they may at first seem, though specialists sometimes perhaps have other arguments.

Most small systems only need a risk assessment and no further action required, but having the evidence available that the risk assessment has in fact been carried out is important.

The Health and Safety Executive have produced two guides following an Approved Code of Practice:

1 – Legionnaires’ disease: a brief guide for duty holders – http://www.hse.gov.uk/pubns/indg458.pdf

2 – Legionaires’ disease: The control of legionella bacteria in water systems. http://www.hse.gov.uk/pubns/books/l8.htm

These documents spell out the legal requirements for landlords and managing agents. This is to help them reduce the risk of exposure to legionella bacteria from water systems in residential rental property.

Main areas of Risk which require your attention between tenancies:

  1. Thoroughly run-off the water system (all taps) especially if the property has been vacant for some time
  2. Check any water tanks for debris and make sure the tank has a good cover
  3. Check for any dead-runs of water pipe, for a example a washing machine supply or garden hose supply pipe that is no longer in use. Remove the dead run or at least drain it off
  4. Check water heaters. Drain them off and bring them up to working temperature
  5. Thoroughly clean shower heads and run them off at full temperature
  6. Service air conditioning systems regularly
  7. Check outside pools and spas for stagnant water and sprays. Have these serviced regularly.

If you have any questions about any of the issues discussed here, post your question to the LandlordZONE® Forums – these are the busiest Rental Property Forums in the UK – you will have an answer in no time at all.

For a free risk assessment template see: https://www.landlordzone.co.uk/documents

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©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Landlord Checks for Legionella | LandlordZONE.

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May
8

Mandatory Client Money Protection due next April

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The Government has confirmed that by 1st April 2019, all property agents will be required to be part of an approved Client Money Protection Scheme. The Government has published the regulations relating to Client Money Protection, including The Client Money Protection Schemes for Property Agents (Approval and Designation of Schemes) Regulations 2018 and The Client […]

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May
8

BILLBOARDS UPDATE “Just Giving” campaign raises over £4,000 in just a few days

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The Just Giving billboard campaign highlighting “Section 24 Tax Reforms” has now raised over £4,000 🙂

We think a lot more is likely to be raised once people see pictures and newspaper reports of further billboards going up in Cities such as London

The post BILLBOARDS UPDATE “Just Giving” campaign raises over £4,000 in just a few days appeared first on Property118.

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May
8

The Landlords Union “Press Liaison” Questions HMO Minimum Room Size Impact Assessment

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The Landlords Union are delighted to announce the appointment of Chris Daniel as Press Liaison – email Press@Property118.com

Chris is a retired Police Officer who is now a landlord accreditation trainer as well as being a substantial provider of rental accommodation in his own right.

The post The Landlords Union “Press Liaison” Questions HMO Minimum Room Size Impact Assessment appeared first on Property118.

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May
8

Tenant Fees Bill introduced to Parliament

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Letting Fees Ban:

The Bill that will introduce a lettings fee ban was introduced to Parliament last week by the new Secretary of State for Housing, Communities & Local Government, James Brokenshire. He published the Bill, saying that the ban will save tenants in England around £240m a year.

The Bill will also seek to cap deposits at the equivalent of six weeks’ rent, not the five weeks that had been mooted in some quarters. This is likely to become law next year.

In an impact statement published alongside the Bill, the Government estimates that the ban will cost English letting agents £157.1m in the first year of operation.

Mr Brokenshire said:

“This government is determined to build a housing market fit for the future. Tenants across the country should not be stung by unexpected costs. That’s why we’re delivering our promise to ban letting fees.�

In a statement put out by MHCLG Mr Brokenshire says:

The Tenant Fees Bill will stop letting agents from exploiting their position as intermediaries between landlords and tenants, and prevent unfair practices such as double charging for the same services.

It will also help to increase competition between agents and landlords, which could help drive lower costs overall and a higher quality of service for tenants.

Other key measures in the Bill, which reflects feedback from a recent public consultation and pre-legislative scrutiny from the Housing, Communities and Local Government Select Committee, include:

  • capping holding deposits at no more than one week’s rent. The Bill also sets out the proposed requirements on landlords and agents to return a holding deposit to a tenant
  • capping the amount that can be charged for a change to tenancy at £50 unless the landlord demonstrates that greater costs were incurred
  • creating a financial penalty with a fine of £5,000 for an initial breach of the ban with a criminal offence where a person has been fined or convicted of the same offence within the last 5 years. Financial penalties of up to £30,000 can be issued as an alternative to prosecution
  • requiring Trading Standards to enforce the ban and to make provision for tenants to be able to recover unlawfully charged fees via the First-tier Tribunal
  • prevents landlords from recovering possession of their property via the section 21 Housing Act 1988 procedure until they have repaid any unlawfully charged fees
  • enabling the appointment of a lead enforcement authority in the lettings sector
  • amending the Consumer Rights Act 2015 to specify that the letting agent transparency requirements should apply to property portals such as Rightmove and Zoopla
  • local authorities will be able to retain the money raised through financial penalties with this money reserved for future local housing enforcement

Alongside rent and deposits, agents and landlords will only be permitted to charge tenants fees associated with:

  • a change or early termination of a tenancy when requested by the tenant
  • utilities, communication services and Council Tax
  • payments arising from a default by the tenant such as replacing lost key

The new measures are subject to Parliamentary timetables and will be introduced in law next year.

The Tenant Fees Bill builds on government’s work this year to protect tenants and landlords through the introduction of new rogue landlord database, banning orders for rogue landlords and property agents as well as a new code of practice to regulate the letting and managing agents sector.

All of these proposals relate to England only. The ban on letting fees will apply to assured shorthold tenancies and licences to occupy (lodgers) in the private rented sector.

A ban on letting fees was announced at Autumn Statement 2016, it was also a commitment in the 2017 Conservative Manifesto.

The Tenant Fees Bill reflects feedback from a recent public consultation, which ran from April to June 2017 and received over 4,700 responses. 58% of respondents (93% of tenants) agreed with government’s proposed approach to ban letting fees to tenants with the exception of a holding deposit, refundable tenancy deposit and tenant default fees.

A draft Tenant Fees Bill was published by government on 1 November 2017 and underwent pre-legislative scrutiny by the Housing, Communities and Local Government Select Committee who published their report on 29 March 2018.

The Committee agreed that the Bill has the potential to save tenants in the private rented sector hundreds of pounds as well as making the market more transparent. Government has carefully considered the Select Committee’s report and accepted the majority of their recommendations. You can read the government response to the Select Committee report.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Tenant Fees Bill introduced to Parliament | LandlordZONE.

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May
7

Tenant Fees Ban – Measures affecting Landlords and Agents

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Government press release on the action to end letting fees.

New Housing Secretary Rt Hon James Brokenshire MP said: “This government is determined to build a housing market fit for the future. Tenants across the country should not be stung by unexpected costs.

The post Tenant Fees Ban – Measures affecting Landlords and Agents appeared first on Property118.

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May
4

Tenant Fee Bill – a missed opportunity to improve transparency

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Tenant Fees Ban:

THE Government’s plans to ban fees paid by tenants entering into new rented housing is a missed opportunity to make quicker and more lasting improvements in the rental market.

The Tenant Fee Bill, published today, will take months to become law and then a considerable time to implement.

The Residential Landlords Association (RLA) argues that much quicker changes could and should be made to better enforce existing regulations designed to improve transparency around letting agent fees.

Since May 2015 the law has compelled letting agents to publish details of the fees they charge. Agents breaking this law can be fined up to £5,000.

Figures published last year by the National Approved Letting Scheme found that after two years of the law coming into effect, 93 per cent of councils had failed to issue a single financial penalty to a letting agent for breaching the law. Only three penalty notices had been served across England for failure to display all relevant landlord and tenant fees.

59 per cent of councils admitted that they do not consider the displaying of fees to be a high property for the allocation of resources within Trading Standards and 45 per cent said they only undertake reactive enforcement activity.

Instead of banning letting agent fees paid to tenants, the RLA is calling for immediate action to better enforce the law as it currently stands. This includes the Government using powers it has so far failed to use to force agents to display the fees they charge in more prominent positions and specify them in much greater detail.

The Bill comes after the Office for Budget Responsibility warned that plans to ban letting fees paid by tenants could lead to rent rises as a result of fees being passed on. In 2013 Shelter concluded that if letting agents did not absorb the cost of ban fees paid by tenants, “landlords may be justified in increasing rents to reflect their additional costs�.

The RLA’s Policy Director, David Smith, commented:

“Laws without proper enforcement serve only to let tenants and good landlords down.

“Rather than pressing ahead with plans for more legislation in the sector that will take time to be considered by Parliament and enacted, Ministers could achieve a greater and earlier impact by using the powers they already have to improve the transparency of fees charged by agents.

“With warnings that the policy could lead to rent rises, there is a very real danger that whilst the cutting the upfront cost of renting, tenants will find themselves paying them through higher rents on a permanent basis.

“Instead of using scarce Parliamentary time to make changes to letting fees much of which could be done by regulation and better enforcement, the Government could do more to reform the deposit system to deal with the need for most tenants to fund two deposits, one for the property they are leaving and one for the property they are going too. This cost is much higher and a much more substantial barrier to tenant mobility than agency fees.�

The Freedom of Information data from the National Approved Letting Scheme is available here

The Office for Budget Responsibility’s Economic and Fiscal Outlook for March 2018 can be accessed here Page 94 notes, “it is possible that a ban on fees would be passed through to higher private rents. If this was the case, it could affect our housing benefit spending forecast.�

In June 2013, Shelter published a report “Letting Agencies: the price you pay�. This can be accessed here Page 17 says of the proposal: “If letting agencies do not absorb the costs they currently charge to tenants, landlords may be justified in increasing rents to reflect their additional costs.�

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Tenant Fee Bill – a missed opportunity to improve transparency | LandlordZONE.

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May
4

BLOG: Renting to family members: Councils still denying legitimate claims

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A few years ago, the RLA published an article, relating to a tribunal case I had represented in, where the landlord was a concerned aunt, who provided a tenancy to her young pregnant niece, who didn’t have the means to secure a tenancy for herself. The case highlighted the sometimes difficult task of convincing councils […]

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May
4

Client Money Protection compulsory from April 2019

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The good news is the government have finally announced that it will be a requirement for all property agents to belong to an approved Client Money Protection (CMP) scheme as of the 1st April 2019.

CMP is an insurance product that protects the rental money tenants pay their letting agents to pass onto their landlords and safeguards this if an agent attempts to use client funds fraudulently.

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