TV: Shamplina defends landlords who conduct ‘extreme tenant vetting’

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TV star Paul Shamplina has defended landlords who ask tenants to provide additional referencing information such as copies of their CV or LinkedIn profiles.

Appearing on TV this morning (watch below), he told presenters Eamon Holmes and Isabel Webster from GB News that in a highly competitive market where dozens of tenants are often competing for each rented property, landlords are entitled to “make an informed choice about which tenant is most likely to pay the rent”.

The comments followed a Guardian article over the Easter weekend that reported how some tenants face extreme vetting procedures in order to access homes to rent.

This included one tenant, who is also a member of the Renters’ Reform Alliance, who told the newspaper he had been asked to provide photos and a personal statement in addition to his tenancy application information.

One letting agent, who worked for London firm KFH, told other tenants to use any tactic to put their ‘best foot forward’ including bidding over the asking rent.

Toughest

“It’s the toughest it’s ever been in the private rental market with demand up 50%, supply dwindling by 35% and landlords leaving the sector,” said Shamplina, who is also Chief Operating Officer of the HFIS Group.

“Although this is not common practice but there are some letting agents out there asking tenants to put their best foot forward so that the landlords can make an informed decision about their ability to pay the rent.

“As I know running Landlord Action, it can take up to six or even 12 months to evict a tenant at the moment – so landlords want to minimise the chance of that happening.”

Read more: Ultimate guide to tenant referencing.

View Full Article: TV: Shamplina defends landlords who conduct ‘extreme tenant vetting’

No evidence for Diane Abbott’s claim of landlords demanding ‘pay-to-view’

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A controversial appearance by Labour MP Diane Abbott on ITV’s ‘Good Morning Britain’ led to claims that landlords are ‘charging tenants to view’ a property.

But when Ms Abbott was asked by Property118 for evidence to back up this claim

View Full Article: No evidence for Diane Abbott’s claim of landlords demanding ‘pay-to-view’

Council warns of ‘stiff HMO penalties’ as it fines landlord £23,000

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A big council in the South East of England has warned landlords who don’t licence their HMO properties that they face stiff fines for non-compliance.

This follows a fine of £22,861 for repeat rogue landlord Mohammad Safdar after he committed an offence under the Housing Act 2004 of having an unlicensed HMO at his property in Hexham Road in Reading.

The town’s borough council chose to fine Safdar in July 2022 rather than bring a prosecution, but the landlord appealed the penalty notice.

Unlawfully sub-let

He said the property had been unlawfully and unknowingly sublet by his tenants, but the council defended the appeal, including the level of financial penalty levied and disputed Mr Safdar had not let the rooms to all tenants. 

During an investigation, council officers found that former tenants of the property all confirmed they had rented their rooms from Mr Safdar and paid him the rent directly. 

Mr Safdar also had form – he had previously been issued a penalty notice for a different address, which he also claimed was unlawfully sublet, but for which he had paid.

After a hearing at a First Tier Tribunal, Safdar was unsuccessful in his appeal and must not pay the full financial penalty.

A council spokesperson says: “[We are] now reminding all landlords that properties in Reading occupied by more than one household where there are five or more occupants, require a licence from the Council. 

“Typically, this includes shared houses and bedsits. Since 2018 the requirement also includes one and two storey properties operated as HMOs.”

Read more: Complete guide to letting an HMO property.

View Full Article: Council warns of ‘stiff HMO penalties’ as it fines landlord £23,000

Landlords support Decent Homes Standard for the PRS

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There is strong support for the introduction of a minimum set of property standards for the private rented sector (PRS), research reveals.

Paragon Bank says that six in 10 landlords would support such a move – 34% ‘strongly support’

View Full Article: Landlords support Decent Homes Standard for the PRS

Migrating to managing agent from residents’ management Co?

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Hello, We are a small block of 7 flats with a mix of owner occupiers and owners who let their flat. Approx 22 years ago we set up a Ltd company and jointly purchased the freehold so that each flat owner has 1 share in the company.

View Full Article: Migrating to managing agent from residents’ management Co?

NEW: 36% of tenants would accept a rent increase from a good landlord

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New research within the private rented sector has unearthed surprising attitudes to rent increases among tenants.

Uswitch asked 2,000 renters whether they would accept an increase when renewing their rental contract and found that on average 36% would accept an increase while 50% said they would not.

The others, some 10% of those surveyed by the mortgage and insurance platform, said they would quit their home rather than face an increase in the hope of finding somewhere cheaper.

Tenants reported that they were more likely to accept an increase if they had a good relationship with their landlord with older renters more likely to accept a rent increase than younger ones.

By ‘good relationship’ tenants said they meant landlords who were good at communication, upkeep of the property, those who abided by the terms of the rental contract and who were aware of their responsibilities.

Positive values

“It is clear from our survey data that tenants place a lot of importance on the positive values that go into a successful landlord-tenant relationship,” says Uswitch spokesperson Kellie Steed (pictured).

Tenants who do not accept rent increase demands from landlords will soon have extra tools at their disposal when the Government’s Renters’ Reform Act becomes law, most likely next year.

This aims to prevent landlords in England increasing their rent more than once a year, and make it easier and quicker for tenants to challenge unjustifiable or excessive rent increases through the First Tier Tribunal system.

The most recent English housing survey found that almost 11,000 households in the private rented sector reported moving recently because their landlord put up the rent.

Read more about rent increases.

View Full Article: NEW: 36% of tenants would accept a rent increase from a good landlord

Be wary of property courses offering ‘quick routes to success’ says expert

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Leading landlord and evictions figure Paul Shamplina has warned those seeking property investment training to be “wary of courses which seem to provide easy shortcuts to success”.

His comments were made over the weekend within an investigation by The Telegraph newspaper into the ‘no money down’ property investment training sector.

As LandlordZONE has reported many times, these courses encourage investors to become rent-to-rent landlords by sub-letting properties through ‘property deals’ from superior landlords/legal owners and then renting them usually as HMOs for a profit.

What some of these courses fail to highlight is the inherent financial risk of doing this, the difficulty of sourcing deals or the increasing property licencing regulation that now covers many rented properties.

Money

“The reality is to get into property you have to have some money,” says Shamplina.

“The no-money-down dreams seldom come true. Education is absolutely imperative for investors but you can get a lot of the information for free online or at landlord events.”

The Telegraph article focusses on one such ‘no money down’ trainer, who charged one student – a nurse – £7,254 including a £3,000 course sign-up fee, nearly £600 in management fees and £3,666 to be mentored all for minimal return on the outlay.

Investors looking for trustworthy and ethical operators should turn to the PEAS or Property Educators Accreditation Scheme.

Launched in 2021 and backed by LandlordZONE, its founder Cyril Thomas said at the time: “PEAS will help future students looking for a property educator to discover ‘the good guys’ who have signed up to be ethical and transparent, and that it will strike a balance between cooperation and enforcement”.

View Full Article: Be wary of property courses offering ‘quick routes to success’ says expert

BREAKING: £17.9 billion landlord bill for EPC upgrades revealed

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Private landlords face a combined bill of £17.9 billion to upgrade their properties to a minimum EPC band C by 2025, with landlords in the capital facing the largest bill at £3.2 billion.

Knight Frank’s figures highlight the looming crunch within the private rented sector presented by the EPC upgrade requirements, funding details of which the Government in England and Wales has yet to publish following its recent consultation.

Flora Harley (pictured), Head of ESG Research at Knight Frank, points out that while 13% of renters are willing to pay a premium for a low carbon property, the average annual rent in 40% of local authorities wouldn’t cover the £9,260 required spend to bring a property up to EPC band C.

She says her new EPC upgrade cost data is based on the expenditure cap of £10,000 per property.

This is the figure over which Ministers have decided landlords can apply for an exemption because the expense would make rental properties uneconomic to upgrade.

Average cost

Despite sounding high, previous research has highlighted that the average cost of upgrading a dwelling previously rated EPC band D or below to a band C is £9,260.

Although this varies, landlords with a property in EPC rating band D, for example, typically spent £5,500 on the necessary improvements to move to band C, with this figure doubling to over £10,000 on average for properties in bands F and G.

“If legislation is passed, the additional cost pressures placed on landlords – which come on top of rising mortgage costs, changes to mortgage interest relief and the erosion of capital gains tax allowances – may lead some landlords to look to rationalise portfolios or leave the sector entirely,” says Harley.

Pinch points

This map shows the local authorities with a high proportion of PRS propeties that would need upgrading to reach an EPC band C certificate.

View Full Article: BREAKING: £17.9 billion landlord bill for EPC upgrades revealed

Council’s selective licensing scheme slammed by tribunal

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A council’s selective licensing scheme has been criticised by a First-tier Tribunal (FTT) for covering a wide area rather than focusing on areas with rogue landlords and anti-social behaviour.

The comments come in a Rent Repayment Order (RRO) decision after a case was brought by Justice for Tenants to support a claim by a tenant couple.

View Full Article: Council’s selective licensing scheme slammed by tribunal

Rent increase – tenant won’t pay?

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Hello, Today I increased the rent on a flat from £1,400 to £1,600, effective 1 June 2023, which is the tenancy anniversary date.

I advised the tenant verbally and also sent the new agreement.

The tenant has stated he won’t pay.

View Full Article: Rent increase – tenant won’t pay?