Tag Archives: Landlord Advice

20Aug 2010

Property Landlord advice:Teenage Tenancies

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By Mike Edwards

 

Changes to the Law

If a tenancy has been granted to a minor then to date it has probably been completed in the tenant’s name with a Guarantor’s Agreement in the background. However all this has now changed and that procedure may not be robust enough to withstand a challenge from the tenant against a section 21 notice issued while they are still under 18. This is courtesy of a recent Appeal Court decision known as The Hammersmith Case

An under age tenant had applied to the council for homelessness assistance when she was 16 and pregnant. The council provided her with temporary accommodation on an AST with standard terms and conditions. When it later received complaints from other residents about her conduct, it served notice to quit, brought a possession claim and obtained a possession order. The Court of Appeal however has allowed the tenant’s appeal and struck out the possession order.

And the result is!

This is because she was not 18 when the tenancy was granted. So the local authority was legally cast in the role of Trustee. However be warned the role would be assumed unwittingly by any Landlord unwittingly accepting the role of being the tenant’s Trustee on the tenancy until the tenant reaches 18 at which time the danger automatically falls away. In effect this decision is saying that ANY Landlord in granting an under 18 tenant an AST is in fact granting it in Trust for them as a Trustee and thus cannot serve notice to evict them as to do so beaches that Trustee status.

Therefore a Landlord cannot terminate such a tenancy or seek possession until the tenant reaches 18. A Landlord wishing to avoid such a result – but wanted to accommodate a minor – must therefore do so by providing them with non-exclusive accommodation because exclusive possession is the necessary hallmark of a tenancy. The way to provide non-exclusive accommodation is of course for the under 18 occupier to be an authorised occupier rather than a tenant.

What we should do

So what has to happen is that the proposed Guarantor actually has to take the tenancy in their name. Clearly this cannot be an AST as the property not only will not be their main or principal residence (which it has to be to be an AST) but they are not even going to be living there. So at Castle Estates we would grant a Common Law Non 88 Act tenancy to the person who was to be guarantor but now becomes the tenant and then let them give permission to nominate the minor as an authorised occupier. Such permission to occupy is not a legal interest in land so not covered by the Law of Property Act 1925..

12Aug 2010

Property Landlord advice: Problem getting your rent?

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By Samantha Knight

It is often the case that when a tenant decides not to pay their rent, the creative side of their personality can go into overdrive and what they believe to be a valid unique excuse, is just a story we as agents and landlords have heard oh so many times before.

 And today’s excuse is!

 1)    Banking Error

2)    A death in the family

3)    An illness or accident resulting in hospital treatment

 My advice is not to be afraid to challenge the reason you are given or suggest ways of helping to resolve the situation, there will be occasions where the reason is genuine, but it is only by speaking with your Tenant and through your  experience, that you will be in a position to understand what the real reason for the non-payment is!

 Remember, your tenant has signed a contract which they must honour and excuses do not give them a reason for not making that payment, much the same way as there is no excuse for you as a landlord not to deliver on your repairing obligations.

 But be careful how you proceed.

 But whilst it is the correct procedure to take a tough line on arrears, you have to be careful that you do not cross that fine line between tough arrears action and harassment.  Be sure not to leave yourself open to any such claim, as the courts take a dim view on harassment claims which could be considered as refusing to leave the property when visiting, changing the locks when the tenant is not home, continually visiting or even watching the property and of course abusive communication and physical violence – this list is not exhaustive.

 So can we help you?

 So if you do think your Tenant is not being truthful in what you are being told, how do you proceed? This is of course where Professional Letting Agents can help.

 At what cost?

 I would venture to say that our methods which have been built over years of experience are probably going to produce a scenario which will save you money against having no rent for several months whilst the problem drags on unresolved. So the advice is proceed with strength or turn to that Professional agent, who will probably not only provide a solution but also be the answer for the longer term as well!

06Aug 2010

Property Landlord Advice: The need for an Inventory

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By Mike Edwards

Because of my day to day involvement with Rental issues, there are always reminders about advice that can be given to Landlords and problems on a recent tenant find case has highlighted the need for a detailed inventory attached to a tenancy and emphasised how critical this document is.

The case in hand.

In this case and despite our best efforts in advising the Landlord not to be so short sighted, he instructed one of our offices that an inventory was not required. The tenancy involved four sharers in one property. In such tenancies an inventory is even more critical. There are now extensive problems, the deposit is protected in one of the Tenancy Deposit Protection (TDP) schemes and the question is how to retain the deposit for the damage etc.

The inevitable result.

The answer in the short term is that it cannot be retained and the tenants are highly likely to raise a dispute via the Scheme Administrator. All three schemes have been at pains to constantly emphasise the need for a quality inventory if a dispute comes before them. In fact one has gone as far as to say that without the inventory the landlord has no chance of claiming anything in terms of dilapidations and damage at the end of the tenancy – even if the tenant has stolen all the furniture from a fully furnished property!!

The cost of hindsight.

Money is probably the reason this Landlord did not want an inventory and if so then in my opinion it is folly of the highest order. Many agents include the cost of an in-house inventory in their initial Landlord fee, and those that do not will do so at an extra cost which is normally a reasonable amount.

Best advice.

In simple terms no inventory means a Landlord will struggle to make any claim against a tenant when dilapidation is an issue. Damage or missing items can be impossible to prove without not only a list, but a proper accountable system of inventory that will stand to account when challenged. As Letting Agents, we are charged to give best advice to our Landlords at all times and at all times our best advice is to ensure a robust and well prepared inventory always accompanies your Tenancy paperwork.

03Aug 2010

Property Landlord Advice: The Best Letting Agent in the world.

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By Steve Roulstone

 Property Letting has come of age in the last ten years, certainly when you consider the amount of legislation which has been introduced, from the Commonhold and Leasehold reform act of 2002, through the Housing Act of 2004 and the implications on legislation for Houses of Multiple Occupation, Tenancy Deposit Scheme, Housing Health and Safety ratings system and The Home Information Pack to name a few.

 Landlords first and foremost.

But none of this has changed what we set out to do as Letting Agents. Namely, Rent a property! But not just that, as agent of the Landlord, we look at renting property with our duty of responsibility to the Landlord, correctly, uppermost in our actions.

 Agreement from Castle Estates

Residential Lettings now requires a level of professionalism never before seen in a property agent and at Castle Estates we believe that it is right and proper that the bar has been lifted and we all seek to give increased levels of service to match what Landlords rightly seek in today’s competitive market.

 Our aim is the same.

Whether a stand alone Lettings Agent, or part of a group of National Letting Agencies Landlords expect us to both be aware, and able to advice not only on legislative changes, but also on issues surrounding rulings made as the legislation finds it way in to the courts and ‘Test Cases’ reach completion.

 Make the move together.

So at Castle Estates we promote the notion that when Letting Agency is referred to as an industry, that people see more and more that we are both professional in knowledge and outlook. So I look forward to the day that all Property Agents are striving for the title of the Best Letting Agent in the world.

30Jul 2010

Property Landlord Advice: Off Plan Purchasing – Is now the right time?

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 By Samantha Knight

A bit of a dilemma?

As somebody who now runs a Company offering both Property Management and Consultancy services, I have been heavily involved in discussions with Landlords about the manner and timing for making a purchase and in todAys climate the question of when rather than if is becoming more relevent. Timing is never an easy to decision, but in a market whereby prices are gradually creeping back up, if you select the right area, buying ‘off plan’ right now could well be the best choice you ever made.

Lets keep it simple. 

Choose your property from the site plan with the added benefit in most cases of having input in the finish of tiles, flooring, kitchen units and layouts.  Secure your price now and pay only that fixed price when the property is built and ready for hand over.  Get in early enough on a development and you may well find yourself buying a property that upon completion has £1000’s of equity already in it.  Who could ask for a better deal than that?!

A long term property investment

 The risk will always be will the market rise or wont it?, but inevitably it will whether you make your £1000’s on completion now or in the years to come.  Finding new build sites may be the hard part, but with reports from the construction industry that development is back on the rise – it’s got to be worth a look.

 Seek advise from your letting agent on where best to buy to meet the current demand of the rental market- a national agent will always be able to offer the best unbias advice on the current hot spot locations across the UK.

 

 

30Jul 2010

Landlord Rights: The Power of Ground 1 in an Assured Tenancy

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By Mike Edwards

The Problem

There is a serious misunderstanding in some local authority/housing association housing departments when tenants approach them for advice if have been served a section 8 notice not for arrears possession under Ground 1.

This would usually happen on full Assured which are of course less common than Assured Shorthold but which carry the same mandatory possession rights for Landlords. Provided of course the legal paperwork is correct!!

The Misunderstanding

The problem understandably is that the section 21 notice used to terminate an Assured Shorthold on mandatory grounds is far more commonly used and recognised. But a section 8 notice using mandatory Ground 1 (previous or future occupancy by Landlord or spouse) is equally as powerful and also compels a Judge to grant a Possession Order.

This misinformation and confusion is happening a little more frequently as more Landlords quite legitimately use ATs to avoid the rigours of the TDP regime and the uncertain outcome of dispute resolution by scheme adjudicators. If difficulty is encountered take the following steps:-

The Solution

1.         If a section 8 notice is issued to a tenant draw their attention to the two sets of bullet point
             notes. The first in the group foot of page 1 make it clear that if ground 1 is quoted in section 3
            of the notice then it is a mandatory ground and the Judge must grant an order.

2.         The first bullet point then on page 2 immediately under the date in section 5 states how much
            notice is needed – again for ground 1 it is 2 months (as with a section 21 notice)

3.         In reality there is no difference between a s8 ground 1 notice and a s21 notice. Both are
            mandatory and provided the legal paperwork is in order the Judge MUST grant an Order (as
            stated in the notices)

Many local authorities, housing associations and even some solicitors who are not Landlord and Tenant law specialist misunderstand the mandatory power of a Ground 1 section 8 notice. So it is always good advice to use a solicitor who is either recommended or advertises as a specialist in this field. One would hope this would avoid the problem, or of course you could always use Professional Management!

19Jul 2010

Property Landlord Advice: Advertise on the Web or in the Press?

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By Steve Roulstone

House or Flat to Rent?

How do you advertise on behalf of your Landlord, hopefully in a manner that keeps them happy and feeling that you are looking after their property, but does that mean we have to continue to advertise in traditional ways?

Houses to Rent or Flats to Rent?

Where do you look if you want to rent a property, my point is that so often it is a different source than where you would want to advertise if you have a property to rent! So Landlords and Tenants want to see their properties listed in different sources, Tenants will utilise the web for their search and Landlords so often want to see us present on such portals as Rightmove, but still want to see the property listed in the local papers and here is the dilemma.

Breaking News: Press turns to the Web!

Because I travel the country speaking to National Letting Agency offices, I have the opportunity to ask what local trends in the Residential Lettings market are and more and more where the income from advertising matters, local press are opening their own web sites, because we are all turning away from Paper advertising. The reason is simple, they are far too expensive even set against Rightmove charges (and I do not say that lightly!)

We only want to Rent the House or Rent the Flat, Honest!

And that is the whole point, we need to convince our Landlords that we only have their interest at heart, because if you are in an area where paper advertising still leads the way, we will still advertise in the papers. In the meantime we need to collect facts and figures to give the story behind the trends, and convince our Landlords that papers listings are no longer needed.

The answer is in your Landlord rights

But in doing the right thing our whole aim is blown apart, for it is my belief that our problem lies with where Landlords look for Agents to see who to contact and it is only in our listings of Flats to Rent and Houses to Rent that they find us, so I have just blown my own recommendation out of the water, because while Landlords still answer the question ‘Where did you find our name’ with the answer, ‘in the local paper’ the press will still get my money!!

10Jul 2010

Property Landlord Advice: When is an HMO not an HMO?

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By Steve Roulstone
 
Never! 

 There has been a lot of confusion caused by the Housing Act of 2004, where HMO property is concerned as introduced in April 2006 surrounding licensed buildings, but the changes are actually simpler than they first appear.

 To license or not to license?

 This is the real question for Landlords and the real crux behind the changes. It is also where a clear definition of what represents a House of Multiple Occupation. Conversely, it is also this area that has given rise to the biggest area of confusion amongst Landlords and the mistaken belief that if there house does not match these criteria, that HMO regulations can be ignored.

 Two families and the Council decide.

What all Landlords need to be aware of and appreciate is that any property that has more than two families living at the property (More than two families represented who are not co-habiting) as their permanent address, then as far as the Council are concerned, it is an HMO! Maybe not one that needs a license, but as far as safety is concerned and this can mean Fire doors and surrounds, Fire walls and escape windows, then the Council will in all probability order that such safety measures are installed for the safety of the Tenants.

The Council decides, or not!

And here is the next problem facing all Landlords. Not all Councils take the same view or level of safety when considering identical styles of property! Prior to its introduction I spoke to and worked with my Council, who independently of other areas, decided to take a review of all property that they believed was operating as an HMO through there register of student homes in the Town. This gave me both an insight and early approach to both the knowledge needed and ensuring my Landlords, existing and new, were well informed.

Confident letting.

 So what my advice to all Landlords is, if you are renting to more than two family units, then your local Council will definitely consider it to be a House of Multiple Occupation. Unless it requires licensing by number of stories or people residing, then you could be forced to take appropriate changes to the safety of the building as your Council sees fit, so take advice first and speak to the Council before you find out the hard way!

Steve Roulstone

30Jun 2010

Property Landlord Advice: The argument for Insurance.

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By Steve Roulstone

Landlords Legal Expenses and Rent Guarantee (LERG)Insurance is a vehicle that has been available for many years to protect Landlords from loss of rent and the cost of taking action against Tenants not fulfilling their obligations. The knowledge their income is protected has to be a serious consideration for all Landlords.

Only one way do it – the right way.

As both a Landlord and a professional Letting Agent holding LERG cover is a position I always recommend. Almost all LERG policies as a prime benefit of full management carry professional referencing as a prerequisite to being able to take the insurance so further credence is given to the Tenant wishing to rent your property when a pass is achieved. In fact, it could be said Landlords without LERG are taking unnecessary risks if, when presented with the option, the Insurance is not taken out.

Security in the System.

Yet amazingly, I have this week been advised of a situation where an agent acting on behalf of a Landlord, instead of offering referencing services to their client, simply requested ‘Referees’ from the prospective Tenant and then asked for a Guarantor, presumably because they did not like the look of the Tenant!

Renting your House or Home

I wish here to give as much credence to the ‘Agent’ as possible, but as a Landlord, I would not be happy committing the security of my property to somebody who decided themselves if the person in front of them was a good Tenant or not. We all think we can take such decisions because we have the necessary experience and after the years I have spent in this industry I would consider myself to be a good judge, but I would never put myself in the position of taking a risk with somebody else’s investment! This is simply not a good idea where referencing is concerned.

Follow the professional recommendation

If industry bodies such as ARLA recommend referencing and or simple credit checks to ensure security through agents, then surely all agents should make such arrangements to protect their clients. Sounds like I’m beating the same old drum – you bet I am!!

22Jun 2010

Property Landlord Advice: Furnished or Unfurnished, That is the dilemma!

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By Steve Roulstone

 

The Golden touch of Magnolia.

Surprisingly, or maybe not when you understand why, it is still the simple touch that gets the approval from Tenants. Unfurnished and plain walls with plain carpet in good order and no matter what you feel, Magnolia fits the bill. The first Golden Rule of rentals.

Flat or House to Rent.

The choice is still the same. Tenants need to be able to see their own Furniture and belongings in the property they wish to rent and if the walls and floors are in neutral colours, then there is an increased chance they will pick your property.

Avoid the Regulations.

There are two points about why a Landlord should avoid Furniture, firstly the whole question of what is allowed and what is not can be avoided if no soft furnishings are included and secondly, no matter what furniture is included, experience tells me that something will come under question, either the lack of what the Tenant perceives as items that should be included or the wish to be able to bring their own bed or three piece, making said item you have provided extra to requirements and leaving you with the problem of storage.

Unfurnished Home to Rent.

So maximise your options in this ever growing market and making it easier for your Tenant to choice your home, is the next best thing. To prove the point, consider this: In all of my time at Castle Estates I have always received agreement when I point out that Tenants look after their own property better than the Landlords! This is only natural and I believe we would all be the same the upside is that they will also look after the house better when populated by the Tenants furniture.

Unfurnished, not Unimpressive.

But do not forget the power of impression. Imagine yourself Cooking in the Kitchen and Bathing in the Bathroom of your property. Now if you would be happy so would your Tenant. Quality Kitchens and Bathrooms in a neutrally decorated and carpeted house will put you at the top of the property rental selection tree!