Can tenant claim disrepair when they have got kitchen in this state?

admin    Uncategorized     agents

An elderly (aged 80), long standing tenant told me on Thursday that she needs work done in her kitchen and I said I would get my builder to see what could be done.

Then I looked in the kitchen – there were dirty dishes stacked around and in the sink.

View Full Article: Can tenant claim disrepair when they have got kitchen in this state?

Guidence to strengthen the information available to fire and rescue services for new high-rise homes

admin    Uncategorized     agents

New improvements to fire safety guidance and building regulations to ensure tall buildings are made safer in England have been introduced as part of a wider package of reforms. The changes meet recommendations from Phase One of the Grenfell Tower Inquiry and will strengthen the information available to fire and rescue services.

View Full Article: Guidence to strengthen the information available to fire and rescue services for new high-rise homes

Can Council Tax be clawed back from past tenants for banding error?

admin    Uncategorized     agents

Some of my tenants have just moved and have forwarded across the Council Tax bill to confirm payments up to the end of the tenancy. However, on the paperwork, I have noticed that the Council Tax bill has been wrongly billed to band A and not band C as it should be for this property.

View Full Article: Can Council Tax be clawed back from past tenants for banding error?

LATEST: Landlords reveal candid views on letting agency service and fees

admin    Uncategorized     agents

Landlords have given their candid views on letting agents to a new poll, revealing mixed views on the levels of service, fees and charges they face.

Total Landlord Insurance says that while just over half of landlords are happy with the service provided by their agent, 42% believe their agent charges too much and 16% have had additional charges made without any forewarning. 

The survey of 1,205 UK landlords commissioned by the insurance broker, which is part of the Hamilton Fraser group, found that 57% of landlords believe the fees they are charged by their letting agent are fair, but 42% believe they charge too much.

Turning to quality, 56% rated the service provided by their letting agent as above average to excellent, while just 18% stated it was below average to poor. 

Also, two-thirds of landlords said they had never experienced a late rental payment, with the majority of those who had (33%) saying it was the fault of the tenant or another issue such as banking or technical problems.

Just 5% have had to wait for their rental income as a result of their letting agent. 

Landlords also said they were concerned about unexpected deductions from their rental income by agents, with 16% revealing they had experienced that.

The most common reason given was for maintenance work on the property carried out by the agent’s contractors, with additional management fees, a gas certificate, electrical safety checks and tenant finding fees also ranking high. 

Contentious issue

“I’m not entirely surprised by these results,” says Eddie Hooker (pictured), CEO of the Hamilton Fraser Group.

“Fees are always going to be a contentious issue, especially in the current climate, with many landlords still struggling financially from the impact of COVID on their tenants and added to this, now the cost of living crisis. Many landlords have unfortunately had to foot the bill.

“However, while some landlords may feel that the fees charged by their letting agent are too high, this survey shows that the majority do believe they pay a fair price.

“This is undoubtedly due to the perceived value they feel their agent brings and there’s no doubt that the quality of service provided is an area the industry has improved on in recent years.

“Despite this, misunderstandings do still happen and one of the most prominent complaints we receive from landlords through the Property Redress Scheme is unexpected charges made to them by their agent.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: Landlords reveal candid views on letting agency service and fees | LandlordZONE.

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BREAKING: Number of properties to rent has halved since 2019, say agents

admin    Uncategorized     agents

Shocking research has been released this morning revealing how the extraordinary extent to which the government’s assault on the private landlords has reduced stock, helping push up rents.

Propertymark says the number of properties available to rent through letting agents in March halved between 2019 and 2022.

During the same four-year period, 94% of landlords who removed their property from the rental market did so to sell it. And over half of rental properties sold in March this year did not return to the private rented market.

“Our research presents a worrying picture for private renters,” says Nathan Emerson, CEO (pictured).

“The number of properties available to rent has been diminishing with a large portion of landlords choosing to sell their properties.

Root cause

“A lack of property is the root cause for rent increases and rising figures on social housing lists.

“We know from our qualitative research that the most common reasons for landlords to choose to sell their properties and no longer provide homes are around risk, finances and viability.

“Landlords and letting agents have been the subject of extreme legislation changes as the UK Government tries to improve the sector. “However, without a middle ground, these changes are actually proving detrimental to those they are supposed to protect.

“Sadly we do not see this improving as the sector braces itself for more changes within the anticipated Renters’ Reform Bill and upcoming energy efficiency targets.”

The news has made national headlines with the BBC leading on the research within its news bulletins today, featuring LandlordZONE regular and leading Nottingham landlords Mick Roberts.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – BREAKING: Number of properties to rent has halved since 2019, say agents | LandlordZONE.

View Full Article: BREAKING: Number of properties to rent has halved since 2019, say agents

How To Use Permitted Development Rights Inline With Local Councils

admin    Uncategorized     agents

Permitted Development rights (PDR) that were first introduced in 2021 have made it very easy to convert commercial buildings to residential use but how easy is it in practice to get permitted development applications through local cancels?

Today

View Full Article: How To Use Permitted Development Rights Inline With Local Councils

Back To Office Backlash

admin    Uncategorized     agents

Interesting data shows that workers want to work from home, and the BBC Staff demand it, but productivity is slowing down!

Is anyone doing any work anymore?

In this video, Andrew Roberts and I break down what opportunity this raises for property investors in the office sector.

View Full Article: Back To Office Backlash

Legal case – can there be a reasonable excuse for not licensing an HMO?

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We’ve all heard the expression, “ignorance of the law is no excuse” and this applies without question in all areas of the law. But in some rare instances it seems the courts and tribunals are open to accepting a defence of what is termed ‘reasonable excuse’ even when the regulations have not been followed to the letter.

The defence has been pleaded in many areas of the law, including regulations in the private rented sector (PRS), in areas of the law relating to HMRC and the tax regulations, and there have been several examples used recently with the regulations relating to Covid and the ‘stay at home’ rules during lock-downs.

Being able to show that you have a ‘reasonable excuse’ has been shown in certain rare instances to be a valid defence to a criminal offence, which would otherwise would be dealt with by a court on a strict liability basis.

Many examples have been made where a landlord breaches the requirements under the Management of Houses in Multiple Occupation (England) Regulations 2006, but where it did not make any difference if the landlord did not know the rules or intend to breach them – they were penalised.

The Regulations

Acts of parliament rarely give any guidance as to what may be deemed a “reasonable excuse”, which means that lawyers may try to structure a reasonable excuse defence based on the facts of the particular case, and on what the courts – judges, magistrates and tribunals – have decided before. Nevertheless it is possible given the right circumstances to build a successful defence based on having a “reasonable excuse.”

A recent appeal in the D’Costa v D’Andrea and others (2021) case in the Upper Tribunal (Lands Chamber) proves this point. The appeal was against a previous ruling about a rent repayment order (RRO) awarded against the landlord owner and a property management company by the First-tier Tribunal.

Background to the case

In the D’Costa case the owner of a residential property was let to a property management company, FTC Property (Apartment Wharf), which in turn rented out rooms in the property as a house in multiple occupation, otherwise known as an HMO and a rent-to-rent arrangement.

The agreement between the two allowed FTC Property to dependently sublet parts of the property, which comprised five bedrooms across two storeys, together with a kitchen and two bathrooms.

The company successfully sublet all five rooms in the property and it was clear that no mandatory HMO licence was required for the property prior to 1 October 2018, as it comprised only two storeys.

The law changed after 1 October 2018 for HMOs, with five or more occupants requiring a licence when the three storeys rule was removed. The result was that some HMOs, which had previously been exempt from the licencing requirements, as in this case, now required HMO licencing.

Inspection visits

At the time of a visit from the local authority inspector in 2017, the landlord owner asked if a licence was required and was willing to apply for one. She was told via email that a licence was not required and she would be advised if this situation changed.

At a further inspection in 2019, there being no communication from the local authority in between these dates, she was told that a licence was required. She made the application the same day.

The property therefore was without a required a licence since 6 October 2018, when a fifth tenant had taken up occupation.

The tenants, who were supported by the local authority, applied to the First-tier Tribunal for a Rent Repayment Order because their property was not licensed as required. The FTT found in favour of the tenants and made out the order based on the fact that the landlord owner had committed an offence as the person ‘in control’ of the property, and the management company had also committed an offence as the ‘manager’ of the HMO.

The First Tier Tribunal ruled that a Rent Repayment Order (RRO) of £16,000 be made out against Ms D’Costa (the landlord owner) and £6,218 against FTC Property (the property manager) for failing to licence the HMO.

The landlord appealed to the Upper Tribunal.

The decision:

The Upper Tribunal found that the landlord could in this case use the defence of “reasonable excuse”, as set down by s.72(5) of the Housing Act 2004, and that the Rent Repayment Order could not be made against her.

Section 72(1) of the HA 2004 provides that ‘a person commits an offence if he is a person having control of or managing an HMO which is required to be licensed… but is not so licensed’.

The landlord argued the defence of “reasonable excuse” as the local authority representative had told her that she would be advised if a licence was required.

She could show that she had received this advice, but she did not receive any further notification. She further argued that only the management company should be liable for obtaining the HMO licence as it was in control of the occupation of the property, the landlord owner having had no control over the company’s sub-lettings.

The Upper Tribunal found in the landlord’s favour and agreed her defence of “reasonable excuse” – she had not committed the criminal offence of operating the HMO without a licence, and the RRO could not be made out against her.

In addition, the tribunal decided that given the business relationship between the parties, the property being managed by a professional property company, the landlord could reasonably have expected the company to inform her if the HMO required a licence.

Lessons to be learned from this case:

This is another case that shows some of the perils of rent-to-rent arrangements and provides a useful guide for landlords and management companies when operating HMOs.

Management companies are professionals in their field and can be expected to be aware of the rules and regulations in the day-to-day management of properties. Their responsibilities extend to knowing the HMO – Management of Houses in Multiple Occupation (England) Regulations 2006 – and they will be liable if they fail to ensure the properties they have under management are not correctly licenced, rather than the owner of the property.

Landlords it seems may be able to rely on the defence of “reasonable excuse”, in licencing matters in certain rare circumstances, particularly where they have been misinformed be officials and where, as in this case, a management company has total control over the number of occupants in the building.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Legal case – can there be a reasonable excuse for not licensing an HMO? | LandlordZONE.

View Full Article: Legal case – can there be a reasonable excuse for not licensing an HMO?

Ground source heat pumps ‘totally unrealistic’ for most rented homes – expert

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Ground source heat pump installation costs can add up to an eyewatering £35,000, according to one heating expert, and are incompatible with most homes.

Even for committed landlords who have the space and the planning permission, those with a combi boiler or a hydrogen-ready boiler won’t qualify for the £6,000 Boiler Upgrade Scheme (BUS) grant because the government deems anyone with low-carbon heating systems ineligible, according to Myles Robinson (pictured) from Boiler Central.

He explains that the immense costs can multiply if some parts of the existing heating system are incompatible with the heat pump system, such as radiators, emitters or any pipework.

“Compared to a £2,000 hydrogen-ready boiler and even £7,000 for an air source heat pump, this is clearly out of most people’s reach,” says Robinson, who adds that not every property is suitable for heat pump installation.

“It’s also not worth bothering to get planning permission for an air source heat pump that will last you less than a boiler, which you would need anyway for when it’s cold outside and the pump struggles to extract heat.

The BUS scheme launched in April, when other experts voiced fears that landlords would need longer-term funding to help them meet energy efficiency targets through a national retrofit campaign.

Through the scheme, they can get £6,000 off the cost and installation of a ground source heat pump, £5,000 for an air source heat pump, and £5,000 for a biomass boiler.

Ground work

But Robinson says there are some positives to installing a ground pump as they increase the value of a property, are extremely energy efficient and could reduce the council tax bill.

They also need little-to-no electricity to run, are far less dependent on the weather and can double as a cooling system. These pumps can last up to 25 years, compared to weather-battered air source heat pumps that only last a decade or a gas boiler’s 15-year lifespan. Unlike air-source heat pumps, they don’t generally need planning permission.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Ground source heat pumps ‘totally unrealistic’ for most rented homes – expert | LandlordZONE.

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Final Call – Consultation about how the taxation of Property Income could be simplified

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Hi, has everyone responded to this survey? >> Click here

There is not much time left. It closes on the 5th of June at 11:45 pm and I only received word about it today from Airbnb.

View Full Article: Final Call – Consultation about how the taxation of Property Income could be simplified