LandlordZONE investigates: the unregulated world of rent-free ‘in exchange for’ tenancies

admin    Uncategorized     agents

Thousands of people in the UK live rent free in return for providing services and sometimes, just companionship. But the sector is unregulated and such tenancies are a huge risk for both tenant and landlord alike.

An investigation by LandlordZONE into the grey area of ‘in exchange for’ renting has revealed an unreported and unregulated sector of the private rental market.

Our research among websites such as SpareRoom and Gumtree has revealed hundreds of adverts from landlords offering a variety of non-standard tenancies in return for a range of services in lieu of rent.

While these may be a convenient arrangement for the property owners and tenants involved, many of them are outside the current tenancy laws and expose both sides to considerable risks.

The types of services requested by home owners and landlords in return for free accommodation include property management, au pair work, companionship, carer services, house cleaning, dog sitting and, in a few recent cases, sex or ‘modelling work’.

Citizens’ Advice warns anyone considering renting a room ‘in exchange for services’ from a landlord that they could be left without protection from eviction.

It also urges both landlord and ‘tenant’ to agree a clear statement of terms in writing in the event of a dispute, because sharing living accommodation with, or living in the same building as their landlord or not paying rent can leave these people unprotected

Amy Hughes, from the Expert Advice Team at Citizens Advice, told LandlordZONE: “These ‘excluded occupiers’ are only required to get ‘reasonable’ notice in the absence of a contract and that landlords don’t need a court order to evict them.”

But someone who lives in the same building as their landlord but doesn’t share living accommodation is likely to have a bit more security; these ‘occupiers with basic protection’ are entitled to at least 28 days written notice and a court order, but not the two months’ notice under the Housing Act 1988.

Statutory protection

Someone who doesn’t share any accommodation with, or live in the same building as their landlord, could still lose statutory protection if they don’t pay rent, unless they can demonstrate the tenancy was granted for the performance of services.

Says Hughes: “This may be a grey
area, for example a person providing cleaning or childcare for 15 hours a week
in return for a room is on more certain ground than a person who agrees to
provide more general ‘companionship’ without any particular identified tasks or
hours.

“It’s important to be clear about
exactly what services are required, and the extent, frequency and manner in
which it is expected these will be performed.”

Hughes points out that there is far more potential for dispute over whether sufficient ‘companionship’ has been provided than there is over whether an agreed amount of rent has been paid.”

One issues that Shelter has been campaigning on is the ‘sex for rent’ scandal in Scotland. It believes there is a vast amount of under-reporting of cases where tenants are asked by landlords for sex in exchange for rent.

And in another case of property listings being illegitimately used to abuse people looking to rent, a young woman in Whitstable this week tweeted her messages exchanged with a ‘landlord’ who offered to lower her rent in exchange for nude photos. The man told Georgia Linehan she could get £200 off her £695 monthly rent – but it transpired he had used photos of a two-bedroom house which was up for sale on Zoopla to trick her.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LandlordZONE investigates: the unregulated world of rent-free ‘in exchange for’ tenancies | LandlordZONE.

View Full Article: LandlordZONE investigates: the unregulated world of rent-free ‘in exchange for’ tenancies

Daily politics update-rents, Universal Credit guidance, deposits

admin    Uncategorized     agents

In our politics update today we take a look at new guidance for landlords on Universal Credit, research on rents and research on deposits. Renters Pay Up 18% More Each Month Than Those Who Own Their Homes Says New Research  Renters are paying up to 18% more each month than those who own their own […]

The post Daily politics update-rents, Universal Credit guidance, deposits appeared first on RLA Campaigns and News Centre.

View Full Article: Daily politics update-rents, Universal Credit guidance, deposits

Rental deposits held on behalf of tenants hit record high of £5.2 billion

admin    Uncategorized     agents

Research published today reveals the huge sums of cash tied up away from the UK economy by rental deposits held for the UK’s 4.6 million tenancies.

Landlords hold a record total of £5.2 billion in tenant deposits via the three government-approved schemes, or an average rental deposit of £1,139 for the UK’s 4.6 million tenancies.

These figures are for 2019 and have been published by alternative rental deposit service Ome.

They reveal both how quickly the private rented sector is expanding as generation rent delays or gives up on their dreams of home ownership, and rents rise.

Over the last ten years the slice of the private rental market taken by the private rental sector has increased by 16% to 20%, or approximately 3.5 million more people.

During the same period average rents have risen from £663 to £886 a month.

But this will decrease next year when the full 2019/2020 English Housing Survey figures are published, which will take into account the new cap on rental deposits of five weeks’ rent, brought in by tenant fees ban last year in England and Wales.

Ome says the huge size of the rental deposits pot dwarfs the amount of money invested in many key UK industries, underlining the amount of cash tied up in the rental sector.

For example, £5.2 billion is larger than the money invested last year individually in hotels and restaurants, clothing manufacturing and food and drink factories.

Matt Hooker, co-founder of Ome, says these comparisons “demonstrate the huge sums being held by landlords and agents and the sheer size of financial security the nation’s tenants must collectively put down when looking to rent”.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Rental deposits held on behalf of tenants hit record high of £5.2 billion | LandlordZONE.

View Full Article: Rental deposits held on behalf of tenants hit record high of £5.2 billion

Advance Payments – Kicking the can down the street

admin    Uncategorized     agents

This week, the final episode of the BBC2’s “Universal Credit: Inside the Welfare State” aired. Amid mounting criticism, DWP opened the door to BBC cameras. Among the various topics on the final episode, the problems associated with advance payments took centre stage.

The post Advance Payments – Kicking the can down the street appeared first on Property118.

View Full Article: Advance Payments – Kicking the can down the street

Shelter receives 38% of Quangocrat funding

admin    Uncategorized     agents

TaxPayers’ Alliance analysis reveals how ministers, officials and ‘Quangocrats’ are wasting taxpayers’ cash funding organisations that lobby the government. From 2017-19, organisations that lobby for changes in public policy received at least £39,584,172.

The Report shows Shelter received £15,204,000 between 2017-18 from multiple local authorities

The post Shelter receives 38% of Quangocrat funding appeared first on Property118.

View Full Article: Shelter receives 38% of Quangocrat funding

Rental deposit amounts compared to economic investment

admin    Uncategorized     agents

The latest research by rental deposit replacement scheme, Ome, has looked at the total sum used as rental deposits and how this compares to the levels of investment pumped into the economy, both at the top line and in various sectors.  

The post Rental deposit amounts compared to economic investment appeared first on Property118.

View Full Article: Rental deposit amounts compared to economic investment

REFERENCING update: Ombudsman ruling backs landlord over ‘reckless’ tenant checks by agency

admin    Uncategorized     agents

Adjudication published today finds in favour of landlord after it cost her nearly £5,000 to evict a tenant whom her lettings agency had inadequately referenced.

An important ruling has underlined how the financial consequences of inadequate tenant referencing are the responsibility of a letting agent and not their client landlord.

The Property Ombudsman (TPO) has today expelled Reading firm Concept Lettings Ltd – trading as Concept Sales & Lettings – from its scheme after it failed to repay an award of £4,704 to one of its landlords.

TPO says the dispute arose when the landlord, who has not been named, asked the company to secure a tenant for her property on a find-only basis.

After moving in, the tenant then stopped paying the rent and refused to leave the property, costing the landlord considerable sums in proven financial loss including unpaid rent, court costs and legal expenses.

After the landlord referred the matter to the ombudsman, it was discovered that the agency had failed to reference the tenant properly and that the ensuing costs were ‘entirely avoidable’, the adjudication says.

Reckless

TPO says the inadequate way in which the tenant and their guarantor were referenced was ‘reckless’.

“There was simply not enough information to determine whether the tenant or the guarantor could afford to pay the rent and the results of the referencing provider’s credit score checks could not reasonably be relied on as the reports lacked sufficient detail,” says TPO.

It also reveals that the landlord was not made aware of the significant risks involved when she accepted the tenant’s rental application and had not been told the full facts.

TPO awarded the landlord £4,704 in compensation but the agency failed to pay her the money and has now been expelled and can no longer trade legally or advertise on any of the property portals.

The filing of its accounts at Companies House are two months overdue, its website is offline and its premises have been taken over by another lettings agency.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – REFERENCING update: Ombudsman ruling backs landlord over ‘reckless’ tenant checks by agency | LandlordZONE.

View Full Article: REFERENCING update: Ombudsman ruling backs landlord over ‘reckless’ tenant checks by agency

Scottish council hikes HMO licensing charges ten-fold for student landlord

admin    Uncategorized     agents

In a worrying development Fife Council has moved its charges from a flat-based fee structure to take into account the number of occupants, increasing its licensing charges from £54,000 to £512,000 for St Andrews University.

Landlords who fear some councils are seeking
to make money from HMO licencing fees should take note from Fife council, which
has hiked its charges for licensing properties to one landlord nearly ten-fold.

Fife Council has recently moved from a
flat-based fee structure for licenses to take into account the number of
occupants in an HMO.

Its new policy includes increasing the fees
charges to St Andrews University from £54,000 every three years to £512,000.

The Student Union says 85% of this fee increase stems from the council’s decision to treat each individual flat, rather than each block, in university student halls’ David Russell Apartments (pictured) as a separate HMO.

Students fear it could lead to them being
priced out of university accommodation and moving into private housing.

The university currently
holds 332 HMO licences, with the council charging a fee for each individual
licence, which should cover administration, visits for inspections and any
other costs.

Last year, it rejected proposals to increase the number
of HMO licenses in St Andrews, in a bid to encourage the university to build
more affordable student accommodation.

Vania Kennedy, housing service manager, told Fife Today: “Fife Council’s fees are in line with those charged by other councils with a high number of HMOs.

“The costs of HMO licensing
represent a small percentage of the income that HMO owners will receive through
rents and there should be no need to pass on the increase in HMO fees to
occupants through rent increases. This is entirely at the discretion of
individual HMO owners.”

No one at Fife Council was available for
comment.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Scottish council hikes HMO licensing charges ten-fold for student landlord | LandlordZONE.

View Full Article: Scottish council hikes HMO licensing charges ten-fold for student landlord

Rapid eviction of tenants – Q&A

admin    Uncategorized     agents

Following on from the webinar we held on the 20th November 2019, we have compiled some further questions that were asked by attendees. The webinar was presented by Matt Carter here at The Sheriffs Office and Yezdan Isset from Bolt Burdon solicitors.

The post Rapid eviction of tenants – Q&A appeared first on Property118.

View Full Article: Rapid eviction of tenants – Q&A

Tenant handed in notice but wants rent refund?

admin    Uncategorized     agents

My live in tenants break clause occurs on the 21st of march 2020, he served 1 month notice 5 days early on the 16th Feb (in writing), stating that he wants to move out on the 16th of March. Although slightly disappointed

The post Tenant handed in notice but wants rent refund? appeared first on Property118.

View Full Article: Tenant handed in notice but wants rent refund?