Renters rights bill update

This is currently in the House of Lords having passed the first and second reading and presently in the committee stage. After this it will go to report stage and the third reading. 

The proposed timeline is still this year and somewhere between May and October.

Part of the bill is anticipated to include no longer being able to take rent in advance and guarantors’ obligations to be capped to six months rent arrears. This will be of concern to many landlords and will have a negative impact on those tenants who do not pass referencing in the normal way. However, there are insurance companies (and I anticipate there to be more choice in the next couple of years) that will guarantor a tenant, where one is required with a cost around one week’s rent per annum (non-refundable).

Are you documenting carbon monoxide?

The Smoke and Carbon Monoxide Alarm (Amendment Regulations 2022) made a significant update to landlord obligations, requiring landlords to repair or replace both smoke and carbon monoxide alarms. This regulation strengthens tenant safety, but can have implications for landlords.

A landlord in Wales trying to evict his tenants, found his case thrown out of court as he was unable to provide proof that there was a carbon monoxide alarm fitted at the property. This was missing from the inventory and subsequent property visits.

This case also emphasises that it’s not just about installing the alarms; landlords need to maintain proper documentation for proof. The absence of this can create significant legal challenges, as shown in this instance.

How do you send your paperwork to your tenants?

A landlord served a Section 21 notice on his tenants. The tenants informed him they would not be moving out so he went to a solicitor to prepare the court paperwork. The solicitor advised his paperwork was not in order and would have to re-issue the Section 21 notice again. 

This was due to the paperwork not being issued in the correct way and the tenants not authorising to receive legal documentation via email.

This is when you absolutely need to have full confidence in yourself as a private landlord or your agent. Far too many times, I see landlords who think they are saving pounds by either going to the cheapest agent or doing it themselves, to lose thousands of pounds later down the road.

Rent arrears

Rent arrears are becoming a significant issue across England, with a notable rise in claims, particularly after the pandemic. The increase in rent prices post-Covid likely put a strain on many tenants’ ability to keep up with payments, and now that the rental prices have plateaued, it could be a sign that people are struggling to catch up.

The rise in claims by deposit schemes suggests landlords might be more frequently dealing with unpaid rent. This trend could be partly due to the ongoing economic challenges that many people are facing, including inflation and wage stagnation, which affect their ability to pay higher rents.

IN THE COURTS

HMO’s

Councils are targeting unlicensed HMO’s across the country. In the latest crackdown, a landlord and the managing agent were both fined for breaking the rules. The landlord was fined £10,000 and the agent £17,500.

Letting agent found guilty

A letting agent from Newport has been found guilty and awaiting sentencing for defrauding his landlords of over £80,000. Landlords reported not being paid any rent for nearly a year. It was also found that the agent was not protecting deposits, with landlords having to pay the tenants back out of their own pocket.

AN OFFER OF ADVICE

It’s clear that the lettings industry is undergoing significant changes, and staying ahead of the curve is becoming more difficult for landlords managing properties on their own. The proposed reforms, alongside the growing complexity of legal requirements, make it increasingly important for landlords to seek expert advice and services.

A single fine from the council or legal mishap can end up being far more expensive than the ongoing costs of engaging a professional agent. A good agent doesn’t just manage the day-to-day responsibilities; they also help landlords navigate the ever-changing regulations, ensuring they stay compliant and avoid costly errors.

The team at Move On are committed to continuous learning and monitoring industry updates shows the value of professional property management. For landlords, that peace of mind and expertise can be incredibly valuable.

Sharon

 

CONTACT

T. 01202 711169

420 Poole Rd, Branksome, Poole BH12 1DF

www.moveonsalesandlettings.co.uk