No copy of agreement and tenant has dementia?

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I own a property which I purchased 11 years ago with an in-situ tenant who is under an old style Assured Tenancy (not an AST). Unfortunately the housing association I originally bought the house from claimed not to have a copy of the tenancy agreement and the tenant himself had lost his copy over the years (he has lived there since the early ’70s), so all we have is notifications of prior rent increases, but all parties seem to agree on this originally being an Assured Tenancy.

Anyway the rent has not been paid for the last 2 months.

It seems the sole tenant was in hospital so we gave him some leeway. Now we are informed by the tenant’s son that his father has dementia and has had to go into a residential care home and will not be returning to the property.

The son does not have power of attorney over his father’s affairs, indeed no one does. We wish to take back possession of the property, but how should we do this? The son has said he will sign a release but without power of attorney I am not sure this is legally binding.

1) Should we write to the son and ask him to get his father to sign a letter to terminate the tenancy? Not knowing the degree of dementia I am not sure this is possible.

2) As he is 2 months in arrears we could issue a Section 8 notice to evict the tenant. However this seems a bit of overkill seeing as he needs to leave himself and will probably slow down the process. Plus we do not want to cause the family additional stress.

Regarding the rent, his son says that his father is in debt to the bank and that he himself is having to pay towards his father’s care. It seems unlikely we can recover the outstanding rent and as it is an old style tenancy there is no deposit.

That said we would be prepared to forego the 2 months rent for a quick solution and return of the keys.

As an aside I assume we will not be responsible for any council tax until the tenancy agreement is terminated?

I believe this also is not currently being paid as the son seems to think they are no longer liable.

Thanks in advance for any suggestions.

Bob

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How Much Should Landlords Spend on Renovating?

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Renting Standards:

Specialist residential property solicitor Amanda Sutcliffe of Bray & Bray looks at the importance of keeping a rental property in good condition.

Research conducted by Endsleigh Insurance and TrustMark claimed that over 75% of landlords spent between £200 and £1000 on property maintenance throughout 2015.

Since then, the supply of rented homes has been significantly boosted due to a buying frenzy before the increase in stamp duty in 2016.

With more rental properties on the market than ever before, renters can be choosier about where they rent.  This has caused rents to fall in some parts of the UK. However, according to the Royal Institution of Chartered Surveyors (RICS), the result of tenants going after fewer rental properties could cause rental prices to rise faster than house prices throughout 2017, which could make tenants even more particular about which properties are worth their money.

What tenants now expect

According to research by Belvoir Property Management reported in House Beautiful, the top 3 things that tenants now expect from a rental home are:

• A clean and contemporary home
• Minimum wear and tear
• Speed at resolving maintenance issues

Improving standards

Property Academy’s 2016 Landlord Survey shows that the most common primary concern as a landlord is that the tenant does not damage their property.  However, in Shelter’s Survey of Private Landlords (2016), 21% of landlords would somewhat agree with the statement ‘I sometimes struggle to keep my properties in a good state of repair’.

In many cases, the only way that a landlord finds out about repairs that need to be carried out is when a tenant lets them know or makes a complaint.

Section 11 of the Landlord and Tenant Act 1985 sets out a landlord’s obligation to carry out basic repairs on a rented property, whether in a written tenancy agreement or through a spoken agreement with a tenant.  The types of things that a landlord is responsible for keeping in good repair include:

• The structure and exterior of a home
• Water pipes, tanks, sinks, toilets etc.
• Gas pipes, boilers, fitted fires and radiators
• Electrical wiring

Taking on the competition

Looking after the above factors will go some way to keeping existing tenants happy, but when it comes to attracting new tenants, or your first tenants for a buy to let property, setting your property apart from local competition is best done by giving tenants the best, most appealing place to call home.

First impressions count

Make it as easy as possible for anyone and everyone to see themselves living in your property.

Neutral, light colours are always appealing as they allow tenants to adopt any colour scheme they like – allowing them to personalise their space and bring any existing furniture with them where relevant.  Similarly, keep carpets clean and simple in style, but don’t go for colours that are too light or you run the risk of them easily staining and showing wear and tear.

Kitchens and bathrooms are where you’ll be judged for cleanliness the most, so if there are stains or hard-to-clean cookers, perhaps invest in a professional cleaner to give it a once over before you put the property on the market.  Similarly, spending a little bit of money on replacing old fixtures like taps and light shades will make a big difference to how contemporary your house looks.

Finally, dress your property as though you’re selling it.  If you’re selling as furnished, make sure that there are fresh or at least clean covers put on seating and take curtains down to be aired, if not washed or replaced.  If you’re selling unfurnished, then make sure that there’s nothing left lying around that doesn’t have a purpose, or which hasn’t been put there to make the property look like a nice place to live.

Something as simple as adding a vase of flowers on a table, or a hanging basket at the front of the house, shows prospective tenants that someone has taken pride in the property, which is not just appealing – it should also set a standard that they will hopefully wish to maintain themselves.

Going further than the basics

Adding features that refurbish a buy to let property but which are more expensive – such as a new kitchen or adding a conservatory –  might cost you in the short term, but according to The Royal Institute of Chartered Surveyors, in the case of adding a new kitchen, the value of a home can increase by around 4%.  By adding to the value of the house, you’re adding to its appeal, so will usually find that your property becomes preferable to those of other local landlords – and potentially justifiably more expensive in terms of rental price.   Another benefit of refurbishments to buy to let properties is that they are tax deductible.

Costs in between tenants

A lick of paint may be all that some landlords need in between tenants.  Others will need to replace carpets, repair electrics or completely overhaul a kitchen to be able to offer their rental property as a contemporary home.

Unless you have huge maintenance bills from repairs that you weren’t previously aware of, basic cosmetic changes to your property shouldn’t cost you much money and are well worth the expenditure when your property is favoured by tenants over another in the same area at the same price.

If you aim to keep around £500 aside at all times in case a tenant vacates a property and leaves it in a poor state, this should at the very least, be a good buffer to help you make the property look like a great place to live as quickly and cost effectively as possible.

See also: How to Make your Home Desirable to Tenants

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – How Much Should Landlords Spend on Renovating? | LandlordZONE.

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Least Risk? S21 or S8

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We have a tenant finding it hard to find a property to move to. A developer let them move into a new house which is now for sold STC but the wave of Landlords selling is tightening supply so they can’t find anywhere.

They have an expired S21, but now owe three months rent too. The S21 may fail due to proof of service of the ‘How to rent’ booklet and EPC or the reliance of a Completion Certificate for the new Gas Boiler & Hob rather than a Gas Safety Cert at the outset.

Deposit is all protected etc. but I am now thinking of withdrawing the S21 and issuing Section 8.

Payments were erratic for a while during the tenancy, but since the S21 was served they ‘saved up’ for a new deposit and rent in advance using the developers’ rent.

Suggestions?

Jon

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Labour commits to introducing rent controls

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In Jeremy Corbyn’s speech at the Labour party conference today in Brighton he committed the party to introducing rent controls if they got into power.

In his speech Corbyn said:”We will control rents, when the young generation’s housing costs are three times more than that of their grandparents. That is unsustainable.”

“Homes should be for the many not speculative investments for a few.”

“Rent controls exist in many cities across the world and I want our cities to have those powers too and tenants to have those protections”

No further details of how rent controls would work precisely were given in the speech. However, Andrew Gwynne, Labour’s general election co-ordinator, later said “if New York has them then London can have them.”

Gwynne indicated that rents have soared under an unregulated rental market and action is needed to bring the costs down which will be fleshed out in a Green Paper in due course.

On the availability of housing in general Corbyn went on to say: “We also need to tax undeveloped land held by developers and have the power to compulsorily purchase.

“When councils come forward with proposals for regeneration, we will put down two markers based on one simple principle – regeneration under a Labour government will be for the benefit of the local people, not private developers, not property speculators.

“First, people who live on an estate that’s redeveloped must get a home on the same site and the same terms as before. No social cleansing, no jacking up rents, no exorbitant ground rents. And second, councils will have to win a ballot of existing tenants and leaseholders before any redevelopment scheme can take place. Real regeneration, yes, but for the many not the few.”

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TDS Foundation awards £94k towards improving PRS

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The Charitable Foundation of TDS deposit protection scheme made £94,054.94 in awards in latest round of funding. It hopes to break £500k in total by the next round of funding

The TDS Charitable Foundation awarded over £94,000 to organisations to advance education on housing rights and obligations in the PRS.

Now in its ninth round of funding in four years, the Foundation’s awards were split among ten organisations and charities across England.

The Foundation was established by Tenancy Deposit Scheme (TDS) to raise standards through education in the private rented sector.

Projects being awarded funding include:
• Easton and Lawrence Hill Neighbourhood Management
• Community Links Bromley
• South Hams Citizens Advice Bureau
• Father Hudson’s Society
• Centre for Sustainable
• Firvale Community Hub
• Living Options Devon
• Newcastle City Council (Private Rented Service)
• Avon and Bristol Law Centre (ABLC)
• Ealing Equality Council

To date, it has provided over £400k in funding support for organisations across England and Wales and hopes to top the half million-pound mark in its next round of funding.

Prof. Martin Partington CBE QC, Chairman of The TDS Charitable Foundation, said: “We’re proud to support the ten initiatives receiving awards. The PRS is often difficult to navigate but the projects we’re supporting will go somewhere to make sure that both landlords and tenants across the country know their rights and responsibilities.

“The TDS Charitable Foundation goes right to the heart of the private rented market, with grants aimed directly at benefitting tenants and landlords in communities across England and Wales.

“Applications from similar organisations for our next round of funding will be close on 4 October 2017 and we’d encourage any organisation or charity that educates and informs tenants, landlords or agents to apply.”

Organisations wishing to apply for support must submit their bids by 5pm on Wednesday 4th October 2017.

Further information on the application process and criteria are available here: http://bit.ly/TDS_Char

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If not me then who?

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If I do not continue to let out homes as a result of section 24 who will provide the housing?

Are there other options for renters aside from council and social options?

I am Intrigued to know if there are any other groups, aside from private landlords in the market as I have never come across them.

Posted with a genuine interest in who else is providing rental accommodation.

Many thanks

Richard

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Welfare Reform Week – Your chance to feedback to DWP on Universal Credit

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Caridon Landlord Solutions are pleased to announce that we are partnering with Property118 to bring to our readers Welfare Reform Week.

Throughout this week we will be providing free online advice to landlord’s with tenants that are in receipt of benefit’s covering various topics from:

• Housing Benefit overpayments
• Housing Benefit Suspensions to Universal Credit direct payments
• Universal Credit delay in payments

This will give landlord’s alike the opportunity to share their issues that they have faced both past and present and receive online immediate advice from an expert.

We understand that landlords main issue at present is dealing with the major flaws with the Department of Work and Pension’s (DWP) Universal Credit System.

This is your chance to feedback via Caridon Landlord Solutions straight to the DWP.

Please use the comments section below to express your experiences and thoughts regarding Universal Credit and its effect on the Private Rental Sector.

With the information raised we will provide feedback to DWP presenting the different scenerios requesting answers.

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Borrowing request hits brick wall?

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After some advice, as have been a bit naive and hit a brick wall. I am looking to borrow more money against a property which has some equity in it, but is not due for remortgage yet.

My thinking is that I’d like to have some money available should an opportunity come up to invest and if I can’t find anything that I have additional money in case I need it as a liquidity buffer. I would invest the money in peer-to-peer to help cover the interest.

However, having applied I have been asked for the mortgage offer on a property I haven’t found yet. I’d appreciate people’s thoughts on whether I should reapply for a different use and if so what’s acceptable i.e could I say I would put the money in peer-to-peer? Or that I would spend it on property repairs?

I don’t see the point in continuing on the basis of a property investment until I find a place to buy as I’d incur survey fees etc.

However, I’d really like to hold the money rather than the bank having my equity particularly as interest rates look like they will rise.

Many thanks

Richard

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ARLA confirms landlords ‘rough ride’ is being passed on to tenants

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The Latest figures from the ARLA Propertymark report shows that in August agents reported 35% of landlords increasing rental costs to tenants. This figure has risen from 27% last year and is the highest figure since July 2015 at 37%.

This compares to only 2% of tenants who were able to achieve a rent reduction.

Demand from new tenants looking to rent per ARLA member letting agents increased to 72 per branch and the average number of properties landlords were looking to sell per branch was 3 out of an average 189 properties per branch.

ARLA Propertymark chief executive, David Cox, said: “This month’s findings paint another bleak picture for tenants. In November last year, only 16% of agents saw landlords increasing rent costs, but that figure now stands at 35%, which is likely to continue rising.

“Landlords have had a rough ride at the hands of policy changes at government level, and it’s becoming clear that these additional costs are now being passed onto tenants.”

Please see the graph below and for the full ARLA report please Click Here

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Tenant running out on utility bills

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I rented my property and once the tenant moved out she left owing nearly £700 in utility bills.

She contacted the gas company and said she was just renting a room from me and that I was responsible for the bills.

This of course wasn’t true, this has gone on for over 2 years, she has disappeared and I’m pretty sure she will do the same again as I have found out she had done the same at a property prior to renting mine.

What can I do?

Many thanks

Stuart

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