Posts with tag: Deregulation Act

Is it getting harder to evict rogue tenants?

Published On: December 16, 2016 at 10:00 am

Author:

Categories: Landlord News

Tags: ,,,,

A property boss had warned that small administrative errors could see landlords stuck with nightmare tenants.

The majority of landlords and letting agents use Section 21 of the Housing Act 1998 to end tenancies in the event of damage to a property or other grounds.

Powerless

However, Ajay Jagota, director of sales and lettings firm KIS, feels that changes in the law-amended in the Deregulation Act 2015, could see property owners powerless to evict rogue tenants.

It is feared that possession claims are unlikely to fall should agents not put tenants’ deposits in authorised deposit schemes, within 30 days.

In addition, Jagota notes the importance of providing tenants with the prescribed information relating to their deposit within this allotted time-frame.

Mr Jagota noted: ‘I know people tend to start playing the world’s smallest violin when they hear about problems being faced by landlords, but these rules could see someone’s much-loved family home or pension jeopardised by tiny administrative errors.’[1]

‘Changes in the legal and taxation system mean that if you have any sort of investment in property, protecting that assets is a priority-not something you can do on the hoof,’ he continued.[1]

Is it getting harder to evict rogue tenants?

Is it getting harder to evict rogue tenants?

Reputable

Jagota went on to say: ‘Usually the answer is a reputable letting agent, but they aren’t necessarily legal experts and the rising number of failed Section 21 applications implies that what landlords really need to invest in is good insurance. That way when the worst happens they can get the experts in rapidly and affordably.’[1]

‘It’s clear at the moment that both agents and landlords are getting it wrong. If you’re a landlord and you don’t have the sophisticated insurance you need, you’re leaving yourself wide open. There’s also the matter of the impact on the wider community. It only takes one family to ruin a street or village, and most landlords want to be able to take action, not just to protect their investment but on the community’s behalf. This situation could leave them powerless to help because they forgot to give those tenants a leaflet they probably wouldn’t have read anyway.’[1]

Concluding, Mr Jagota observed: ‘The saddest thing is that deposits are a relic of a bygone age. There is absolutely no need for landlords or letting agents to be using them at all when there are significantly more effective insurance-based solutions available.’[1]

[1] http://www.propertyreporter.co.uk/landlords/why-is-it-getting-harder-to-get-rid-of-nightmare-tenants.html

 

Landlords warned over legislation change deadline

Published On: June 23, 2015 at 12:11 pm

Author:

Categories: Landlord News

Tags: ,,

Concerning statistics have revealed that 48% of landlords admit to struggling with changes in legislation relating to letting property. This is certainly concerning given that today marks the deadline that could leave many facing substantial fines.

New laws

As part of amendments to the Deregulation Act, landlords and agents in England and Wales that still hold a tenancy deposit on an agreement that started before 6 April 2007 are now permitted to protect the deposit in an accredited scheme. Previously, deposits taken before this date have not been required to be protected in this way.

Research from the National Landlords Association and mydeposits, a secure government approved tenancy deposit protection scheme highlighted that many are unsure on how to adhere to the new rules.

‘It’s important that landlords and letting agents are aware of the legislation changes and how it affects them. They must act now and check whether they need to protect any deposits and avoid a fine,’ said Eddie Hooker, CEO of mydeposits.’ Our advice is simple: if you still have a deposit that was taken before April 6 2007 then the belt and braces approach is to protect it and provide your tenant with all the relevant information as soon as possible. That way you can avoid a hefty penalty and regain possession if needed,’ he added.[1]

Landlords warned over legislation change deadline

Landlords warned over legislation change deadline

Relieved

Richard Lambert, CEO at the National Landlords Association, commented that, ‘everyone will be relieved the Deregulation Act has sorted out the uncertainty created by the Superstrike and Charalambous judgements.’ He warns that, ‘now the onus is on those landlords still holding a deposit they haven’t yet protected to make sure they do so before the deadline.’[2]

 

[1] http://www.chichester.co.uk/news/county-news-sussex-landlords-struggle-to-keep-up-with-changes-in-law-1-6809294

 

 

 

Landlords warned to register old deposits

Published On: June 5, 2015 at 11:49 am

Author:

Categories: Landlord News

Tags: ,,

Landlords across the UK are being warned that they have less than one month to register old deposits to comply with upcoming legislation.

Deregulation Act

From June 23rd, any residential deposit predating April 6th 2007 must be registered with an accredited scheme, such as the Deposit Protection Service, MyDeposits or the Tenancy Deposit Scheme.

Ever since 2007, landlords have been given 30 days from the start of a new shorthold tenancy agreement to register deposit details. However, changes to the Deregulation Act which will apply to historical tenancies could see many landlords left unaware, and facing the prospect of incurring large fines.

Landlords warned to register old deposits

Landlords warned to register old deposits

Warning

Justin Parker, lawyer, property expert and partner at Midland based law firm MFG Solicitors warns landlords that they could be at risk from the new amendments. Parker said that, ‘the fines for landlords and letting agents not registering are unlimited and they’re worked out at three times the initial deposit. So with a typical deposit of around £1,000, that’s potentially £3,000 for every deposit that was not registered.’[1]

He went on to warn that, ’it is not just fines either. Landlords and indeed agents, who fail to register historical deposits will find it is difficult to remove tenants when the time comes because they will have failed in their obligations.’ Mr Parker suggests that, ‘the landlords most likely to be at risk are those who have had tenants for several years and the agreement has just rolled over. They may not have been aware of the need to register.’[1]

 

[1] http://www.propertyreporter.co.uk/landlords/landlords-urged-to-register-old-deposits-or-risk-fines.html