Introduction to Tenancy Mediation by PRS Mediation
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Julie Ford, a Property Redress Scheme (PRS) Tenancy Mediator with over 25 years’ experience of working in the private rented sector, discusses what property mediation is and its importance. Julie works as a consultant, supporting landlords and letting agents who have problem tenants, especially those with rent arrears.
What is mediation?
Most people will associate mediation with either family issues or divorce. We know mediation is very effective during the divorce process and for that reason it is often a requirement that couples go through mediation before they can apply for a divorce. However, mediation is now playing a bigger part in the private rented sector, especially now that notice periods have been extended and the court process for landlords seeking possession of their property is much longer than we were used to before the pandemic.
Mediation is simply a way of settling disputes between two parties. The two parties are helped by a trained impartial third party (the mediator) to put forward their views and come to a mutually agreeable outcome. It is then common for the outcome to be made legally binding through a signed agreement.
People choose to use mediation because it is much cheaper and quicker than going through the courts. But it also has the advantage that it often leads to longer lasting agreements, because both parties are empowered to solve their dispute to achieve a “win-win” solution.
What is mediation when it comes to property?
Rather than going through the courts to resolve issues such as rent arrears and repossessions, landlords and tenants can use mediation instead. It works in almost the same way as other areas of the law. The mediator simply helps the landlord and tenant discuss the issue and come to an agreement. This could take the form of payment plans, repossession dates and more. After the agreement is reached a document is drafted and signed by both parties to make it legally binding.
Because of the eviction ban, the courts are currently backed up with cases going all the way back to March 2020. For landlords who are owed rent or just want to get their property back, it is much quicker to do this through mediation.
PRS Tenancy Mediation uses trained mediators to ensure that there is a mutually beneficial outcome for both parties (tenant and landlord). We understand that both the landlord and the tenant are likely to be experiencing difficulties associated with financial issues. We are there to help facilitate a good outcome for both parties, but particularly to ensure the best outcome for the landlord.
Julie has recorded an informational video detailing the most important elements of this topic.
Setting up payment plans with tenants
We have had many successes in recent months, such as this one where the landlord recovered 100% of her rent arrears by using PRS tenancy mediation. We’ve been able to set up payment plans with tenants and facilitated deeds of surrender, helping landlords get their properties back without having to go through the entire court process. This saves landlords time, money and stress in preventing lost rent and court fees. This is extremely important in the current climate, with courts anticipated to buckle under pressure once the eviction ban restrictions end.
Importance of tenancy mediation
There is a huge backlog in the court system due to COVID-19, with repossessions taking at least a year to resolve and most cases entering the system now not likely to be completed until well into 2022. Mediation helps keep the property industry flowing – there will be an even greater need for end of tenancy mediation when the Section 21 process is removed as part of the Renters’ Reform Bill. From our point of view as mediators we are here to help and guide, enabling landlords to engage and communicate more effectively with their tenants and resolve issues without the need to go to court.
Next steps
If you have a tenant who is not paying the rent on time or is not paying full rent and the communication has broken down, get in touch with us. By opening up dialogue again and getting the ball rolling, we are sure we will be able to get you the outcome that you would like. Get in touch with the PRS Tenancy Mediation Service today and speak to one of our trained mediators, who will be able to guide you through the process.
©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Introduction to Tenancy Mediation by PRS Mediation | LandlordZONE.
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EXCLUSIVE: TV ‘property challenge’ reality show to offer winner £1 million
A £1 million prize is up for grabs in a new reality TV show to find the Property Graduate of 2021.
Veteran investor John Howard is hosting the programme on Sky to find his new business partner. He’ll be putting contestants through their paces along with fellow judges Helen Chorley and Fiona Talbot during a three-day process that kicks off with interviews to decide who will go through to the next stage.
This will be followed by the property challenge where candidates are given details of a property and need to explain how they would develop it and show a 30% net profit. On the final day, the remaining three candidates will be quizzed about a chosen property deal.
Lucky winner
The lucky winner will then have 12 months to come up with a development or project and Howard will provide a £1 million fund to cover all the costs involved in its development and sale, including construction costs up to a further £1 million. The winning investor will also get 50% share of the profit.
One of the UK’s most experienced property developers and investors, Howard recently launched the John Howard Joint Venture fund to support others.
He tells LandlordZONE: “I enjoy working with other people and can help them avoid making mistakes while sharing profits.”
Howard says there’s no age limit to the competition as he’s looking for ambition, drive, enthusiasm and energy – not just property experience. He’s also particularly keen that women apply too. “We’re not looking to embarrass anyone,” insists Howard.
“Even if they don’t win, people will come away from the experience with more knowledge and confidence.”
The show films during June and July and airs on channel 191 in September. To apply to take part before the 7th June deadline, visit www.propertygraduate.tv/about
©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – EXCLUSIVE: TV ‘property challenge’ reality show to offer winner £1 million | LandlordZONE.
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What you missed in The Ultimate Landlord Show this week
This week saw LandlordZONE’s Paul Shamplina join forces with Landlord Sales Agency’s David Coughlin in a packed webinar at The Ultimate Landlord Show. The two Landlord heavyweights weighed in on what’s happening to Landlords right now, how the eviction bans and court backlogs will affect us, and why so many Landlords are making the decision to sell either part or all of their portfolios.
David summed it up when he said this was “a time that is not going to come again for 7 to 8 years.” He touched on why he’s helping so many landlords right now sell, “the market is still hot, so now couldn’t be a better time to sell your portfolios. Some of us have issues with tenants, and potential tax bills to pay. Others are looking release equity out of the portfolio.” He also encouraged Landlords to think fast:
Stamp duty starts going back up from end of June to September, so if you want to make the most cash, Landlords need to be looking at selling now before it does. We work with Paul Shamplina to solve all your tenant issues. Whatever your issues is, there’s a solution to it.
We’ve already done this for so many Landlords recently, who have been coming to us with portfolios from anything between 5 to 30 properties. Some want to sell the full portfolio, whilst others want to sell off part of it to cash in. They won’t get a higher price than what properties will go for right now. Here at Landlord Sales Agency, our team of experts will do all the work for you, to solve any issue you might have to get you the best price, and fast. We’ve sold portfolios in 7 – 28 days, and the Landlords have been able to relax and enjoy retirement. There’s no one better than us to sell your portfolios, and now is the time.
You can watch a recording of the event by clicking on the link here.
Want to sell to retire? Cash in now while the market is still hot:
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©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – What you missed in The Ultimate Landlord Show this week | LandlordZONE.
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8% of Private Renters are behind on their rent
In England, the ban on most bailiff-enforced evictions comes to an end on Monday, while the notice period landlords need to give tenants will be reduced from six to four months. Citizens Advice are reporting an increasing number of private tenants are turning to them for help.
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Rogue rent-to-rent operator given banning order over housing offences
A rogue landlord and property firm have been slapped with a banning order for letting an unlicensed and unsafe home in King’s Cross, London.
Simple Properties Management Ltd received a five-year ban and the company’s director, Miguel Cabeo Cespedes, was banned for three years from letting properties and being involved with any company carrying out letting or property management work – only the fourth of its kind to be handed out in the capital.
The judgement follows a previous hearing which found them both guilty of housing offences, resulting in a £40,000 fine for the business and a £30,000 fine for Cabeo Cespedes.
Council officers carried out several visits to his Acton Street property (pictured) in May 2019 and found that its kitchen diner had been improperly partitioned to make the two-bedroom flat into a four-bedroom property that was home to five residents, as well as damaged wiring to a washing machine that was left exposed in the property’s bathroom.
Both the fire alarms and fire escapes from the property were inadequate.
Court cases
Giles Peaker, housing law expert at Anthony Gold, says Simple has been involved in previous court cases involving harassment, unlawful eviction, sham licences and spurious counter allegations.
“The track record of these set-ups is such that one has to believe that ‘London Simple Properties Lifestyle Ltd’ or similar is currently writhing its way to the surface of a fetid pool to be born, with a different sole director,” says Gold.
He explains that companies like Simple rely on a supply of properties from ‘naive, greedy, or lazy property owners and managing agents for their wholly unlawful rent-to-rent activities’.
Adds Gold: “Until property owners realise that they are quite likely to be the ones facing licensing prosecutions and rent repayment order applications, while ‘London Simple Properties Lifestyle’ vanishes with the rent unpaid and a voluntary liquidation, and stop entering these arrangements, there will always be some crook of a ‘property entrepreneur’ happy to try it on.”
©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Rogue rent-to-rent operator given banning order over housing offences | LandlordZONE.
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Landlords threaten council with Judicial Review over HMO Licensing Scheme
For once, well organised Landlords are threatening to take the council to the High Court over plans to expand a housing licensing scheme.
York Residential Landlords Association claim City of York Council’s proposals are “unlawful and irrational”.
The council’s legal team is considering a solicitor’s letter from the landlords’
The post Landlords threaten council with Judicial Review over HMO Licensing Scheme appeared first on Property118.
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Unusual tenant matching service seeks landlords’ help
An unusual start-up business aimed at tenants who are over forty years old is seeking landlords with multi-occupancy properties.
CosyQuarters.co.uk has been established by 57-year-old Maggie Byrne to help older tenants find similar people to house share with.
She tells LandlordZONE that the biggest challenged faced by those over 40 who are looking to rent – often for the first time – following a divorce or other life changing event is that most house shares are aimed at 20- and 30-somethings, and that studio flats are both expensive and unstimulating.
“It all started when my son left home and I wanted to rent his room out to someone my age but really struggled to find anyone,” she says.
Byrne began researching the market and discovered that many landlords are wary of mixing age groups within house share properties.
“Those over 40 struggle to find co-living properties to rent or people of the same age to rent with and that was what prompted me to start my business to help people with shared interests and values,” she says.
Matching service
“It’s essentially a matching service for these people so that they can have a choice about who they live with and how they live their life.”
Initially kicking off the business on Facebook with a private group for like-minded tenants interested in co-living, Byrne has now launched a website too.
Byrne attended the Start-up School for Seniors to get her idea off the ground, an organisation that offers to help older entrepreneurs prepare and launch a business in under eight weeks.
She also says that, because larger groups of people renting a property will be considered an HMO household, she’s also exploring how they could club together to buy properties together instead.
Read more about HMO licensing.
©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Unusual tenant matching service seeks landlords’ help | LandlordZONE.
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Property portal claims BTR is now ‘mainstream consumer choice’ among renters
A property portal has claimed that the build to rent (BTR) sector has reached a tipping point and that homes within this kind of development are now a ‘mainstream consumer market’ even though it still only represents less than 1% of the UK private rental market.
The claim has been made by website Love to Rent which has launched a week of promotional activity for BTR backed by the British Property Federation, the UK Apartment Association and leading providers including Allsop, Simple Life, Folio, and Fizzy Living (pictured, above).
“The key selling points of build to rent including great customer service, longer tenancies, on-site amenities and a sense of community are what set this type of living apart,” says Peter Sloane (left), Chair of Love to Rent.
Unreliable landlord
“Renting has never managed to shake off that image of a slightly unreliable private landlord, but we want to dispel those myths and show there is a different way to rent.
“The build to rent sector has been gathering momentum for years but now with over 50,000 units now occupied and record investment into the sector last year, we have reached a tipping point where it has become a mainstream consumer market.”
Commenting on behalf of the British Property Federation, Ian Fletcher says: “Renting is about people. It is about giving customers a great experience through inspiring and conscientious employees and good suppliers.
“The Build to Rent sector has happy customers. We know from customer feedback that people love their Build to Rent homes, the range of services they offer, sense of community, and great customer service. “With an ever-increasing number of homes being delivered for a variety of needs and budgets access to the Build to Rent has never been easier.”
©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Property portal claims BTR is now ‘mainstream consumer choice’ among renters | LandlordZONE.
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Do you agree? New Shelter report hightlights national ‘housing emergency’
Shelter has condemned Britain’s housing system as unaffordable, unfit, unstable and discriminatory – a situation made worse by benefit cuts and the pandemic.
The charity’s new report, Denied the Right to a Safe Home, highlights a housing emergency, reveals gross inequality in the housing system and calls on the government to build at least 90,000 good quality social homes a year.
Shelter’s survey of 13,000 people found that 23% are living in homes with significant damp, mould and condensation, or homes that they can’t keep warm in winter, while 8% report regularly cutting back on essential items, such as food and heating, to pay their housing costs.
Another 8% fear losing or being asked to leave their current home – largely driven by private renters who live in the least secure housing.
The research found that race, disability, sexuality and socio-economic status are all barriers to a safe home. Black people are 70% more likely to be impacted by the housing emergency than white people and Asian people are 50% more likely.
Disability
Shelter says 54% of people with a significant disability don’t have a safe or secure home, compared with 30% of those without a disability.
Chief executive Polly Neate (main picture) says decades of neglect have left Britain’s housing system on its knees.
“Lives are being ruined by benefit cuts, blatant discrimination and the total failure to build social homes,” says Neate.
“Shelter believes a safe home is a human right, but the pain and desperation our frontline staff see every day shows this is still a long way off.
“We are fighting for everyone impacted by the housing emergency and as we emerge from the pandemic, we want the public and politicians to do the same.”
©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Do you agree? New Shelter report hightlights national ‘housing emergency’ | LandlordZONE.
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Campaign group claims banning ‘unfair evictions’ will save councils £161m a year
Generation Rent has claimed that ending unfair evictions could reduce homelessness by nine percent and save councils £161 million a year.
By unfair evictions it means banning Section 21 ‘no fault’ evictions that follow a tenant complaining about a property or its maintenance, or when a landlord decides to sell a property in order to sell it or re-let it to new tenants at a higher price. Generation Rent says 68,430 households have faced homelessness in this way since April 2018.
Tenants can protect themselves from ‘revenge evictions’ over complaints by reporting the matter to the council both before and after a Section 21 notice is issued, but few do this.
Generation Rent says it wants revenge evictions banned and also make landlords who to sell up compensate their tenants for the cost of moving home.
Section 21 evictions are a hot political potato at the moment as landlords wait to hear when all kinds of Section 21 ‘no fault’ evictions will be banned via the government Autumn White Paper, and what they will be replaced with.
Government data
Generation Rent is basing its evictions claims on MHCLG data that shows out of 755,250 households made homeless or threatened with homelessness between April 2018 and December 2020, 140,950 had been in a private assured shorthold tenancy (19%).
Of these households, 68,430 had faced an unfair eviction – either following a complaint about disrepair or due to their landlord selling or re-letting the property (49% of private rented sector cases and 9% of the total).
Evictions specialist Paul Shamplina of Landlord Action says: “Further to these figures quoted by Generation Rent, our data from the courts shows that at the coal face the possession cases situation is not as severe as they are suggesting,” says Paul Shamplina.
“It is also up for debate what ‘unfair eviction’ means as many landlords use Section 21 notice evictions for good reasons including to remove tenants who have stopped paying their rent but who have not been affected by the pandemic.
“That is why when Section 21 is banned, there needs to be special measures put in place to ensure landlords with legitimate reasons for repossession have a way to achieve that.
“And remember that many of the landlords that the Landlord Action team speak to are often repossessing because they have had enough of the new rules and extra taxation and want to sell up.”
Generation Rent have also published a report recommending the tenancy reforms it would like to see in the White Paper ‘to end unfair evictions and give renters’ greater long-term security in their home’.
©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Campaign group claims banning ‘unfair evictions’ will save councils £161m a year | LandlordZONE.
View Full Article: Campaign group claims banning ‘unfair evictions’ will save councils £161m a year
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Recent Posts
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