Rent guarantor necessary in this case?

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I have a 2-bed flat where the rent is £640 pcm. The tenant is part working and on UC. As she can pay 5 weeks deposit herself and RIA, the Local Authority have said they can’t help her further.

I am just waiting for her to allow me to talk to DWP direct about her claim/her to tell me how her DWP breaks down exactly (I can see she has a monthly lump sum but not sure how much is for rent)

Should I still ask for a rent guarantor?

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Exclusive: ‘I’m within my rights’ says landlord facing ground-breaking short lets test case

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A landlord in Scotland who could be the first to face court action over illegal short-lets activity has protested his innocence to LandlordZONE.

Jamal Boutoubane, who rents out a flat in Victoria Road, Glasgow, is still advertising rooms on sites including Booking.com despite receiving two council enforcement bans.

Glasgow Council has received complaints about anti-social behaviour and poor management of bookings, and neighbours say they have had to help guests who’ve been left waiting outside the building, unable to get into their rooms.

The council is also looking into neighbours’ claims that the two-bedroom flat was converted into four bedrooms without planning permission and that fire doors were replaced or removed entirely.

Boutoubane was told by the council that the flat should only be used for residential use in October 2017 and again in July 2020.

Court injunction

Council planners are said to be confident they have enough evidence to persuade a sheriff to issue a court interdict (injunction) to prevent the property being used for holiday lets, in what would be a test case.

A Glasgow City Council spokesman says: “The council is considering legal action in light of the failure to comply with the enforcement notice.”

Jamal Boutoubane tells LandlordZONE that his neighbours have been trying to sabotage the business.

“Airbnb is totally legitimate and calling the property that you rent out to suit the style and decoration is 100% allowed and temporary modifications within the interior do not require any consent,” he says.

“I live in this apartment with my brother and do not rent out regularly – I rent out two rooms which I am allowed to do.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Exclusive: ‘I’m within my rights’ says landlord facing ground-breaking short lets test case | LandlordZONE.

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Third of landlords prefer using online lettings agencies, says poll

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Online letting agents now have 35% of the private sector market, with many landlords happy to forgo trips to their local high street office to meet agents face-to-face.

Online comparison site Rentround collated data from 35,000 landlords and found that while 45% still prefer a traditional agent, 35% now opt for an online agent, while 20% use both.

Another surprising finding is that 60% of landlords choose to pay a one-off fee for finding a tenant, with 21% plumping for a fixed monthly rent, with the least preferred option being a percentage of monthly rent, which 19% of landlords choose.

Most landlords want a hands-on services from their agent, with 42% looking for full management, while 19% choose guaranteed rent.

Guaranteed rent

But Rentround says landlord searches on the site showed a 34% increase in those looking for guaranteed rent services after May, which shows this has become more in demand since the Covid-19 pandemic.

“It indicates landlords are willing to part with more of their rental income in exchange for rental security during these difficult times,” it says.

The survey found that 58% of landlords use mobiles to look for an agent and conduct their searches mainly after 3pm on weekdays, so it suggests that agents ensure websites are mobile-friendly, with more staff manning the phones in the late afternoon.

It adds: “On Rentround it’s common for landlords to choose to send their details to a number of agents to discuss fees. The quickest agent therefore has the first chance, and highest chance, to convert the lead.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Third of landlords prefer using online lettings agencies, says poll | LandlordZONE.

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Landlord leader slammed over ‘deeply offensive’ comments about student housing

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A leading Northern Ireland landlord has caused a storm after suggesting that families who live in student areas should leave if they don’t like the partying antics of their undergraduate neighbours.

Speaking on BBC Radio Ulster’s breakfast programme Robert Greer, Chair of the Landlords Association of Northern Ireland, told the station’s presenters that “young students and middle-aged people do not mix”.

Referring to the popular student area of Holyland in Belfast, he went on to say that “the handful of families who live in this area must be tolerant of student culture” but that “most of us faced with that would move somewhere else and we don’t understand why they don’t do that”.

This suggestion that non-students should consider leaving areas like Holyland (pictured, above) where university undergraduates accommodation is concentrated has caused a storm following the programme’s broadcast yesterday morning.

South Belfast MP Claire Hannah told local media that: “These comments betray a terrible attitude toward efforts to regenerate and build community cohesion in the Holyland.

“Residents have had to fight this dismissive thwarting attitude for years. The Holyland area is a mix of families, young professionals, students, asylum seekers, and new communities; it is not solely a ‘student village’.

“Many of these residents have lived here for decades and live there all year round. The suggestion that long-term residents should simply leave is offensive and deeply unhelpful.

“The Holyland area has faced challenges year on year and this has been compounded both by the dismissive attitude of landlords and by the acute issues relating to the pandemic.”

Greer told the programme that his organisation didn’t like the problems caused by students in Holyland but that low rents, which are half that of the PBSA blocks in the centre of Belfast, meant places like Holyland would always have large student populations.

Listen to the interview (1:53:30 secs)

Read more about Northern Ireland.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Landlord leader slammed over ‘deeply offensive’ comments about student housing | LandlordZONE.

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Major Industry Survey finds office life will continue…

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A major industry survey conducted by international law firm CMS took the views of senior real estate leaders, corporate office occupiers and global institutional investors. The survey reveals the likely impact of the Coronavirus pandemic on UK real estate and the priorities for the sector as it moves beyond the Covid.

In a report entitled “Real Estate Re-set: offices and purpose beyond the pandemic”, CMS reveals that despite short term concerns for offices, they are still open, and “some assets have grown in appeal to investors, with Industrial & Logistics and Healthcare the stand-out sectors.”

Offices, says the report, remain central to occupiers who replied that far from abandoning them, “a blend of home and office working will be best for productivity (45%), creativity and innovation (46%), and motivation of employees (47%).”

82% of occupiers replied that their offices “will continue to be a hub for human connection in some form and 61% saying they will refurnish offices when people return to work – floor plates won’t change, floor plans may.”

The report concludes on the whole that real estate looks resilient “with only 42% of industry leaders saying they are pessimistic about the outlook for the market, much less negative than after the Brexit vote when 64% were downbeat.”

Chris Rae, a Glasgow-based partner and real estate specialist at CMS, has said:

“There’s little doubt that Covid-19 is proving to be a game-changer for commercial property but there are also encouraging post-pandemic signs for the sector. While nearly a quarter of Scottish occupiers expect to downsize, a small majority is anticipating no change to office requirements once we are able to return to work.

“The survey also highlights concerns about the productivity of remote working. While many employees will be seeking to work from home more frequently, the office has a key role to play across most industries where the need to interact and collaborate with colleagues, clients and customers remains essential. The office will also continue to be fundamental in establishing the right culture, camaraderie, and energy to motivate people within many companies and organisations.

“Many managers say they are expecting to implement new health, safety and wellbeing measures in advance of employees returning to the office. While we can expect significant changes to how offices are used, our report suggests this will impact floor plans much more than floor plates in many commercial offices”

One other important aspect which the report brings to the fore is the increasing focus at a high-level, industry leaders, occupiers and investors – the subject of ESG (Environmental, Social and Corporate Governance). Across the piece ESG is increasingly seen as an important and fundamental element which “is having a transformative effect on the both the principles and mechanics of real estate.”

The survey took place in July 2020 on behalf of CMS and gauged and weighted the opinions of over 1,500 occupiers across the UK, Europe, North and South America, Asia Pacific, the Middle East and Africa.

Ciaran Carvalho, Partner and Head of Real Estate at CMS, said:

“Even before the pandemic, the real estate industry was embarking on a period of seismic change. The transforming environmental, political and social landscape and rapid advances in technology were changing the way we build, where we build and our relationship with where we live, work and spend our leisure time.

“The pandemic has accelerated many of these trends, while magnifying the issues and bringing into focus the opportunities the industry faces. This report is published at a critical time for real estate, with the industry at a crossroads. It is front and centre of the national agenda with the emergence from lockdown and the reopening of our offices, shops, schools, cafes, restaurants and leisure facilities.

“While the findings from our survey on the immediate prospects for some UK real estate asset classes are challenging, the resilience, innovation and commitment from our industry leaders to tackle climate change, diversity and inclusion and wellbeing is truly inspiring.

“Far from a burying the head in the sand approach and being overwhelmed by the short-term commercial reality of the ‘new world’, our pioneering companies are demonstrating a real social purpose, focusing on long-term, innovative yet pragmatic solutions to building our communities of the future.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Major Industry Survey finds office life will continue… | LandlordZONE.

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Get a move on! Property industry pledges to make house sales quicker

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Landlords have been promised better service when buying or selling property following the launch of an industry initiative.

The Home Buying and Selling Group (HBSG) forum, which is attended by representatives from estate agency, conveyancing and other industry sectors as well as government officials, is asking estate agents to ‘take the pledge’ and promise to help improve the property sales process.

This includes asking agents to keep their customers fully informed and pre-warned about the buying process which, it is hoped, will resolve the problems that can hold up a sale, reducing fall throughs, help prevent fraud and, for some, reduce the time it takes to buy and sell.

For example, this includes recommending that vendors instruct a solicitor on the day a property is marketed, as is the case when selling via an auction.

Pledge

All the major industry organisations representing those involved in property sales have signed the pledge including mortgage brokers, estate agents, legal firms, surveyors, removals companies and consumer organisations.

Trade bodies involved include Propertymark, The Law Society, Conveyancing Association, RICS and Trading Standards.

Ana Bajri, RICS Associate Director, Residential (left) says: “As more people look for new homes to suit their working or family needs, it is vital that industry works together to help people move home as quickly, safely and smoothly as possible. 

“RICS members are an integral part of the house buying process. As part of the Home Buying and Selling Group we have been working hard with other professions to help consumers by setting out a more efficient approach for home moving   

“To ensure the pledge is a success, RICS are calling on their profession to support the pledge and actively support home movers to take steps to help ease the process.”

The initiative is also backed by the Property Redress Scheme. Its Head of Redress Sean Hooker (below) says: “We fully support this pledge and the work that the HBSG has done to produce guidance for home moving in the wake of the covid19 pandemic.

“The emphasis on communication, disclosure and documentation, will enhance the experience of the consumer and along with the promises from the other property professionals, will hopefully lead to quicker sales and less transactions falling through. As a redress scheme, we believe this will lead to less complainants and enhanced professionalism in the sector.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Get a move on! Property industry pledges to make house sales quicker | LandlordZONE.

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Letting agency expelled by redress scheme following phishing attempt investigation

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The challenge faced by both landlords and tenants from phishing scams has been laid bare following the latest agent expulsion revealed today by the Property Redress Scheme.

The company is Rotherham-based lettings agency Matthew & Evans Rentals, which an investigation by the PRS revealed to have been involved in an attempt to phish tenants.

Phishing, as many landlords will be aware, is when criminals attempt to persuade people to unwittingly reveal their personal details. This data can then be used for various purposes including identity theft and credit fraud.

The PRS investigation uncovered a communication, believed to be an email, sent to prospective tenants which sought a ‘responsible person’ to rent a property for €575 a month, and asked those replying to reveal personal information.

PRS says this was a ‘red flag’ to its team along with a lack of property details oe any links to the agent’s privacy policy and contact information.

Unlawful practices

Based on this, the PRS board decided to immediately expel the company from the scheme for ‘unlawful practices and not acting according to the standards we expect from our members’.

The company appears to have disappeared – there is no trace of its office, website, or portal listings online.

Sean Hooker, Head of Redress at the PRS, says: “This is the first time we have come across such a blatant practice and we cannot condone such behaviour.

“It would be remiss of us to allow them to remain part of our scheme. This is a serious breach of professional trust by an agent and is against the law.

“We expect the highest standards of our agents who are members and while mistakes do happen, deliberate attempts to deceive and exploit people will not be tolerated.”

The Property Redress Scheme urges consumers to report suspicious behaviour to them immediately, so they can take appropriate action.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Letting agency expelled by redress scheme following phishing attempt investigation | LandlordZONE.

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LATEST: Ben Beadle tells Touchstone: “Wish the lady better and give her money back”

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Landlord leader Ben Beadle has joined the chorus of calls urging Touchstone Education to show compassion to a sick woman fighting the property training firm for a refund.

The woman paid Touchstone £13,000 but after being signed off sick for six months with complex physical and psychological problems including those caused by contracting Covid, couldn’t attend most of the courses she’d paid for.

However, Touchstone has refused to pay the money back and although boss Paul Smith insists the firm does give refunds he’s told LandlordZONE that he won’t discuss her case.

Speaking on the Property Tribes YouTube channel, Beadle, CEO of the National Residential Landlords Association says: “It seems to me that a more appropriate solution would be to wish the lady better and give her money back.”

He adds: “Whatever the rights and wrongs of somebody withdrawing from a course, sometimes as a business owner you need to step back and think ‘is it fair that I keep somebody’s money, notwithstanding the absolutely dreadful situation that the individual finds herself in?’.

“It’s an interesting indicator for others thinking of going down that line…is this a business that does the right thing despite what’s written in a contract? It doesn’t sound like it to me.”

Paul Smith contacted LandlordZONE to say that: “For the unequivocal avoidance of doubt I have never refused to give a refund to any woman let alone this anonymous woman you are reporting on.”

Watch the video

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: Ben Beadle tells Touchstone: “Wish the lady better and give her money back” | LandlordZONE.

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Winter Economy Plan leaves landlords out in the cold

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Rishi Sunak has outlined additional government support to businesses and workers impacted by coronavirus with a package of measures that will continue to protect jobs and help businesses through the uncertain months ahead as the spread of the virus is tackled.

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Will landlords benefit? Rishi Sunak reveals details of winter business support measures

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Chancellor Rishi Sunak has announced a new package of business support measures to boost the economy when the furlough scheme ends in October.

This should be good news for landlords, whose tenants are likely to be recipients of much of Sunak’s largesse in the form of continuing salaries and hopefully better job security in the coming months. The measures will also benefit larger landlords who run their portfolios as businesses and have received bounce back loans.

Jobs support

Sunak’s new job support scheme – to be launched on 1^st November for six months – aims to keep employees in work on shorter hours rather than making them redundant.

Also, employees will to work at least one-third of their normal hours and for those hours not worked, the Government and their employer will each pay one-third of their wages, so that they’ll get at least 77% of their pay. The grant will be capped at £697.92 a month.

All small and medium firms will be eligible, even if they haven’t used the furlough scheme, while larger ones can apply, but only if their turnover has fallen due to Covid.

Launching his winter economy plan, Sunak said: “We’re now nurturing recovery of the economy – the rationale must be different to what has come before. It’s fundamentally wrong to hold people in jobs that exist just in furlough – people need to be in viable jobs.”

Bounce back loans

In his statement in the Commons, he also announced a boost for businesses struggling with cashflow to give them more time and flexibility with bounce back loans under a ‘pay as you grow’ scheme. The new scheme covers both bigger CBILS loans as well as smaller ones up to £50,000. Also, the deadline to apply for both schemes is extended to the end of the year.

And there’s more. Loans can be extended from six to 10 years, halving the average monthly repayments while borrowers can make interest-free payments if needed or suspend payments for up to six months.

Sunak cut businesses some slack with their VAT tax bills too, allowing them to spread payments over 11 smaller payments with no interest to pay, while those filing self-employed income tax assessments can now extend their bill over 12 months from next January.

Industry reaction

David Alexander (pictured, below), joint managing director of apropos, says: “The Chancellor has missed a golden opportunity to provide support to individual landlords in this country at a time when many of them are experiencing severe financial hardship.

“These ‘invisible’ people, who own one or two properties and rental is often their sole source of income, make up the majority of landlords in the UK and they are facing extremely difficult times.”

“If these individuals are not supported then the risk is that they will exit the private rented sector (PRS) in large numbers which will cause enormous problems for tenants in the coming year. Supporting this vital group within the renting sector is essential and must be addressed immediately.”

Visit the HM Treasury site.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Will landlords benefit? Rishi Sunak reveals details of winter business support measures | LandlordZONE.

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