EPC Commercial Confusion?

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I am in the process of renewing a lease with a commercial tenant for the next 6 years., The EPC conducted in Feb 2017 is an F (carried out by the previous owner just before we bought the property –

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Spike in Welsh landlords quitting as rent reforms begin to bite, say agents

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Many experts claim most landlords shrug off attempts to make renting riskier or more bureaucratic if it’s still a moneymaking exercise, but the Welsh government’s recent efforts to complicate its PRS seem to be digging deeper.

Latest figures from trade body Propertymark show that its Welsh letting agency members report five landlords per branch withdrawing from the market, more than twice the national average and far higher than any other region.

The trade body says the most likely cause of this is the Welsh government’s plans to extend notice periods, along with other restrictive measures, within its Renting Homes (Wales) Act due to be implemented later this year.

This includes an already-in-place six-month notice requirement for a landlord to end a contract where the tenant is not at fault and a minimum ‘security of tenure’ of one year from the date of moving in.

Surveys

Also, this is the first time that Propertymark has begun to report the number of landlords leaving the sector. Its surveys in recent years have made little or no mention of this, so it is significant that it is now a key metric in the latest one.

The trend is already having repercussions for tenants. Letting agents report that while landlords are exiting the market, tenant demand for properties remains high and in Wales, they saw 313 applicants per branch, a trend mirrored across the UK.

“With several changes on the horizon from the implementation of the Renting Homes (Wales) Act, landlords will be faced with further regulatory pressure,” says Propertymark boss Nathan Emerson (pictured).

“Coupled with the extremely high demand within the sales market in areas across Wales, these could well be contributing to the number of landlords exiting the sector.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Spike in Welsh landlords quitting as rent reforms begin to bite, say agents | LandlordZONE.

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UPDATE: Ministers delay Right to Rent changes deadline for landlords

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The government has delayed changing Right to Rent rules until 30^th September to give landlords more time to prepare for the digital system.

Temporary adjusted checks were due to end on 5^th April, but it says that deferring the date ensured landlords will have sufficient time to, “develop commercial relationships with identity service providers, make the necessary changes to their pre-tenancy checking processes and carry out responsible on-boarding of their chosen provider”.

It will also allow landlords and letting agents to put measures in place to enable face-to-face document checks if they did not want to adopt digital checks for British and Irish citizens with a valid passport, or Irish passport card.

Video calls

Checks can still be carried out over video calls and tenants can send scanned documents or a photo of documents for checks using email or a mobile app, rather than sending originals.

Landlords should use the Home Office Landlord Checking Service if a prospective or existing tenant cannot provide any of the accepted documents.

When carrying out a temporary adjusted check, landlords must ask the tenant to submit a scanned copy or a photo of their original documents and arrange a video call with them.

Listen to an advice podcast about Right to Rent by Paul Shamplina.

They should ask them to hold up the original documents to the camera to check against the digital copy of the documents, record the date and mark it as ‘adjusted check undertaken on [insert date] due to COVID-19’.

If the tenant has a current Biometric Residence Permit or Biometric Residence Card or has been granted status under the EU Settlement Scheme or the points-based immigration system, landlords can use the online Right to Rent service while doing a video call. From 6th April, all biometric card holders will evidence their right to rent using the Home Office online service only.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – UPDATE: Ministers delay Right to Rent changes deadline for landlords | LandlordZONE.

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LATEST: Scottland to fine landlords £25,000 if they evict tenants illegally

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Proposals to fine Scottish landlords up to £25,000 for illegally evicting tenants only vilifies the sector and risks driving out investors, a leading lettings agency boss has warned.

David Alexander, CEO of DJ Alexander Scotland, says the government’s ‘New deal for Tenants’ consultation paper suggests removing the current process for calculating damages for an unlawful eviction and instead, fining landlords up to 36 months’ rent if there is an unlawful eviction, which they calculate as 36 times the average Scottish rent of £693, working out at £24,948. In Edinburgh, this could be nearer £40,000.

The current mechanism for estimating damages requires a surveyor’s valuation which often results in a nil valuation.

The Scottish Government proposes that, as only a small number of cases have ever been brought, reform would help to simplify the process for a tenant to challenge an unlawful eviction, increasing access to justice.

“This would in turn deter landlords from carrying out an illegal eviction as the risk of challenge and penalty will be higher,” says Alexander.

Read more about evictions.

He says the intention seems to be to vilify and attack landlords and property investors and put all rights in favour of tenants.

Alexander, who runs leading Scots firm DJ Alexander, adds: “The majority of those involved in the private rented sector only evict as a last resort and would never consciously initiate an unlawful eviction, yet this paper seems to imply that this is a daily event and standard practice for landlords and agents.”

He believes the government’s plans run the risk of frightening many landlords and investors out of the market into property south of the border or out of the sector altogether.

“If this is the intention of the Scottish government then that is fine, they must do what they think is appropriate and explain afterwards where they will place the 700,000-plus tenants that currently live in the PRS in Scotland,” he adds.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: Scottland to fine landlords £25,000 if they evict tenants illegally | LandlordZONE.

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LANDLORDS: Could spending time in your garden make you happier?

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British workers spend a worrylingly short amount of time outside each day, risking their mental health and wellbeing, according to new research from plants firm Ambius.

Setting up an outdoor living space is an excellent idea when you have just a limited time to appreciate the beauty of sunlight.

Even a tiny outdoor area can enhance your general health in addition to increasing the resale value of your property. Unplugging, sitting outside, and soaking in the beauty and scents of nature is beneficial to one’s health.

You might be amazed at how many aspects of your health can benefit from outdoor dining, relaxing on your deck, or hosting a big party outdoors.

In this article, we will explore the benefits of outdoor living to mental health while pointing out some companies contributing to the landscaping industry. 

Boost your mood

It has been shown that spending quality time outdoors can boost your mood.

Taking a moment to smell the roses has been scientifically proven to be a good idea.

Shinrin-yoku, or “forest bathing,” is a Japanese ritual in which you quietly devote moments to interact with nature via the whole of your senses.

Forest bathing has a substantial favourable impact on psychological health, particularly for people with melancholic traits, according to a 2019 study of working class people with and without depressive moods.

Set aside two hours to disengage, simmer down, and absorb the views, textures, scents, flavours, and sensations of your own garden.

Healthier sleep

Spending quality time outside can assist you get a great night ‘s sleep.

Europeans invest a great deal of time gazing at screens, whether it’s on tv, laptops, ipads, or cellular phones.

These devices frequently generate blue light, the very same blue light that inhibits secretion of melatonin and disrupts your sleep cycle.

Switching off the lights and listening to the sizzle of an outdoor fireplace or pit (minus your smartphone!) can help to bring down blood pressure and get your body ready for rest.

Improve relationships

Spending more time with family and friends outside can help to deepen bonds.

Healthy relationships are built on communication and engagement.

Fortunately, something as easy as investing time in your deck or near the fireplace can enrich your relationships.

Spending quality time outdoors with your family improves mental skills, allowing you to concentrate and connect more effectively.

Instead of sitting in front of the TV to eat meals, head to your deck or nearby park for a surprise picnic.

Improve skills

Investing time outdoors, according to a University of California, Berkeley study, can result in an improvement in social competence, which is defined as “voluntary behaviours meant to assist or improve another person or person.”

Your willingness to serve others can be encouraged by the wonderful feelings evoked by nature’s sensory experiences.

When you’re in a bad mood, spend some time on your own lawn growing or caring for roses, shrubs, or veggies.

Boost work productivity

Spending quality time outside has been shown to alleviate mental tiredness, promote creativity, and even boost cognitive and emotional well-being has been shown in experiments.

Even the most dedicated employees can become burned out, but investing plenty of time outdoors can help alleviate some of the underlying causes that they can control.

If you sit at a desk, focus on getting outdoors at least three times a week for breakfast and dinner.

Best Landscape Companies for Outdoor Living

Sun Leisure

Sun Leisure is a UK supplier of high-quality weatherproof pop-up gazebos and tents that are easy to set up, dismantle and don’t break the bank.

For more than two decades, they have been delivering instant tents, pop-up gazebos, easy-up pavilions, and other products to the expo, recreational, racing, and hospitality industries in the UK and Europe.

Their pop-up gazebos and canopies are available in a wide range of sizes and shapes, making them perfect for a wide range of purposes, from gardening to full-time commercial use.

Ultra Decking 

Ultradecking boards have been professionally crafted to make your deck resistant to moisture, sunshine, rain, humidity, cold, and salinity.

Years after others have bloated, collapsed, splintered, and distorted under the harsh forces of nature, your board will maintain its brilliance, elegance, and structural integrity.  And, unlike other decking competitors, our capped composite decking preserves its colour over time.

Ultra Decking (UK), a composite decking manufacturer, uses high-quality, non-traditional materials to create products that are unmatched in terms of durability and weather resistance.

ProFresco

ProFresco creates stunning outdoor spaces that are precisely built around your lifestyle.

Every outdoor kitchen, garden gazebo, and vegetated space is custom-made to match your property and its surroundings.

Their goal is to provide you with the unbridled delight of outdoor recreation, with convenience, luxury, and flawless style, by collaborating with homeowners, engineers, manufacturers, and architects.

Their innovative design, high-end manufacturing excellence, and intelligent landscaping create environments you’ll appreciate all year long.

Royale Stones

Since its inception in 2012, Royale Stones have provided paving solutions to countless satisfied customers across the United Kingdom.

They are a family-owned business that values excellent customer service and understands the need for craftsmanship, especially when it comes to a terrace or sidewalk that will last for decades. 

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LANDLORDS: Could spending time in your garden make you happier? | LandlordZONE.

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RogueTenantRegister.co.uk – feasibility?

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Why has no one started a rogue tenant register? I am ready to….

I have done extensive research on the idea as a multi landlord myself, and the only possible problem I come across is adding a tenant to such a register without a conviction may be legally questionable.

View Full Article: RogueTenantRegister.co.uk – feasibility?

EPC upgrades are landlords’ biggest challenge not rental reforms, trade body chief tells podcast

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Landlords should be worrying more about the upcoming energy efficiency targets than proposed rental reforms, the National Residential Landlords Association chief executive has warned.

Speaking on a Hamilton Fraser property podcast, Ben Beadle said the impact of paying for retrofit work as well as having to temporarily re-house tenants, or not being able to do the necessary work, could be hugely significant for both individuals and the sector.

The government has proposed that private rented properties will need to meet EPC band C for new tenancies by 2025 and for existing tenancies by 2028, with a cap of £10,000.

However, Beadle said that as most landlords’ annual net income was £4,500, it would mean giving up two years’ worth of revenue. “Landlords are willing to play their part, but the £10,000 cap is too high. There also has to be recognition that for a 1900 Victorian terraced house, sticking in a heat pump may not be the most elegant solution.”

Significant factor

He added that while landlords would adapt to changes in the Renters Reform Bill, the new energy rules could prove to be a very significant factor in their decision whether to remain in the market, and the government – inadvertently or deliberately – reducing supply of the PRS.

“If you need to do retrofit around a tenant, landlords will be availing of Section 21 before it’s phased out with one eye on that, as retrofitting with people in situ is a monumental pain in the bum,” said Beadle, who added that it wasn’t certain what would happen if a landlord couldn’t make the necessary changes.

“Are you prevented from letting the property out? If you evict the tenant, no investor landlord will want to buy it if they know they can’t rent it out.”

Beadle said any replacement for the Green Homes Grant needed to be locally focused. “A national list of registers doesn’t work well; a new grant scheme could operate on a local basis, perhaps through the local authority where a landlord could get their own estimates.”

Listen to the podcast during which Beadle is joined by Hamilton Fraser CEO Eddie Hooker and Landlord Action’s Paul Shamplina.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – EPC upgrades are landlords’ biggest challenge not rental reforms, trade body chief tells podcast | LandlordZONE.

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Troubling case highlights why landlords should be wary of sub-letting tenants

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A sub-letting tenant who housed vulnerable immigrants in an unsafe, unlicensed HMO has been hit with two Rent Repayment Orders totalling nearly £15,000.

Sonia Nascimento, a cleaner from Portugal who claimed to speak no English, paid her landlord £2,050 per month then went to Brazil, leaving her son to find tenants and pay the rent on the property in St Paul’s Avenue, Willesden.

Mayara Cacciatore, who is Brazilian, moved in during November 2018, lived with her husband and new baby and was given £40 off the £203 a week rent to clean.

Germano Poli, an Italian, and his wife moved in during August 2020, paying £183 per week. Four couples lived in each of the HMO’s rooms, sharing a kitchen, bathroom and single toilet.

A First Tier Property Tribunal heard from Mr Poli that the lock on the front door was broken and how he had bought his own oven, which he kept in the kitchen.

Read more: How landlords can protect themselves from sub-letting scams.

Ms Cacciatore described how tenants had to fix problems themselves; when the shower head broke, she mended it with a plastic bag and when the boiler broke down she met ‘Ephraim’, the landlord, who was surprised that Nascimento was letting out the rooms.

During an inspection, Brent Council found the tenants were not given tenancy agreements, their deposits weren’t paid into a rent deposit scheme, they had not been given the How to Rent checklist, Energy Performance Certificate, or gas safety certificate.

There were also no smoke alarms in any of the bedrooms, no fire blanket and inadequate handrails/bannisters. Nascimento admitted five housing offences and was fined £800 for each one at an earlier court hearing.

The tribunal ordered her to pay Mr Poli, £4,392 and Ms Cacciatore, £10,556 at the hearing, which employed three translators. The judge said: “This application has highlighted the difficulties in bringing applications for RROs, faced by vulnerable tenants who do not have English as their first language.”

Read the Tribunal report in full.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Troubling case highlights why landlords should be wary of sub-letting tenants | LandlordZONE.

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Thousands of landlords affected by sale of struggling digital lettings agency

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Thousands of landlords whose properties are managed by a leading online letting platform are to see their property management firm change hands after Howsy revealed it is to be acquired by a major high street lettings agency.

Launched in 2016 originally as No Agent but later changing to Howsy, the platform proved popular with landlords seeking a fixed-price property management fee.

It raised millions from investors of all sizes including, most recently, £800,000 raised last year and £1.4 million in government funding the year before.

But the company’s push to break even and make a profit was based, many commentators have claimed, on economies of scale that were hard to achieve and consequently, it recently turned to investor loans to keep on track. Nevertheless, most recently it announced it had achieved over 7,000 properties under management.

Howsy will continue as a going concern under its new owner with all employees retained. The purchase will be approved within two weeks.

30p a share

Shareholders, from small crowdfunders to large institutional investors, will be the main losers in the deal which will see them receive ‘at most’ 30p per share.

In a letter to shareholders sent yesterday, founder and CEO Calum Brennan has thanked them for their ‘support and belief in our mission’.

“But I am writing to you today to inform you that Howsy, its directors and its majority shareholders have agreed for the group to be acquired by a leading estate agency chain,” he says.

“This has not been an easy process or decision, but the Board believes that this acquisition is in the best interest of the business as a whole.

“This acquisition became the number one route for the board to pursue due to the speed at which the buyer could move.”

Letting agency figure Asaf Navot, founder of HomeMade, says: “Howsy tried to make a difference in an industry requiring a modern approach for customers.

“Our thoughts are with the customers and staff affected by it and we’re here to support anyone impacted by the latest news.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Thousands of landlords affected by sale of struggling digital lettings agency | LandlordZONE.

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NRLA slams Ministers for ‘lazy’ belief that ‘tycoon’ landlords can afford cladding costs

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The National Residential Landlords Association (NRLA) has slammed the government for making “lazy and false assumptions” about individual landlords being property tycoons when addressing the cladding scandal.

It follows comments made by Housing Secretary Michael Gove who told the Levelling Up, Housing and Communities Select Committee that he did not want to support those who already had “significant means” to pay for remedial action themselves.

He reiterated that private landlords who rent out more than one leasehold property will not be covered by the government’s commitment that no leaseholder should have to pay to replace dangerous cladding. However, Gove admitted the government’s plans are not perfect.

His comments mean that while multi-millionaires owning and living in a single luxury penthouse would be covered by the government’s plans, landlords renting out more than one property for a pension would not be, according to the NRLA.

It says that, according to the government’s own data, 94% of private landlords rent property as an individual, with 44% becoming a landlord to contribute to their pension.

NRLA chief executive Ben Beadle believes Michael Gove’s previous comments about ending the scandal of leaseholders paying to remove dangerous cladding now ring hollow. “This is not about who does and does not have the means to pay,” says Beadle.

Fairness

“It is about fairness. No leaseholder, irrespective of how many properties they own, should be expected to foot the bill for dangerous and illegal cladding installed by someone else.”

He adds: “The government needs to wake up to an injustice of its own making and make amends now.”

Conservative Peer Lord Naseby has tabled an amendment to the Building Safety Bill to ensure that all leaseholders are treated equally, irrespective of how many properties they own.

In addition, a parliamentary motion tabled by Conservative MP Sir Peter Bottomley, which calls for buy-to-let landlords and owner-occupier leaseholders to be treated the same, has secured cross-party support including from Labour, Liberal Democrat and Green MPs.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – NRLA slams Ministers for ‘lazy’ belief that ‘tycoon’ landlords can afford cladding costs | LandlordZONE.

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