Posts with tag: landlord law

Thousands of Landlords Face Unlimited Fines for Heat Network Negligence

Published On: September 28, 2017 at 9:35 am

Categories: Law News

Tens of thousands of landlords and developers could face unlimited fines because of a lack of awareness of the regulations surrounding heat networks, a leading compliance expert has warned.

Thousands of Landlords Face Unlimited Fines for Heat Network Negligence

Around 17,000 heat networks have gone through the process of registering sites with multiple tenants, but Michael Gallucci, the Managing Director of MPGQS, says that many more individuals and organisations have missed the deadline for notification.

“It is pretty clear that people are perplexed by the requirements for metering,” says Gallucci, whose company advises major residential property owners and managers on notification and boiler/MEP issues. “I would urge people to seek professional advice.”

He adds: “Although regulations are an administrative headache for agents and an unwelcome cost burden for landlords, managing the process well could help reduce energy bills and develop more efficient buildings.”

Gallucci warns that shifting deadlines, which create a “moving target” for compliance, did not help confusion in the sector.

He explains: “Managing agents must ensure their clients comply by reporting information about properties where residents are supplied with heating, cooling or hot water. They may also be required to install meters at occupier level, an obligation that’s set to roll out more widely in 2017, spreading the net of those who can be caught out. It’s complex but cannot be ignored. Non-compliance with any of the requirements to notify, meter and bill is a criminal offence that can lead to civil and criminal sanctions, including unlimited fines, not to mention damage to reputation.”

Driven by an EU target to cut greenhouse gas emissions from their 1990 levels by a fifth by 2020 and to raise standards in heat networks, the Government hopes that giving end users data should encourage them to reduce energy consumption.

Under the Heat Network (Metering and Billing) Regulations 2014, even a building owner or manager with a small sub-let is classed as a heating supplier if the tenant is charged for heating, cooling or hot water, whether it’s billed separately or included in the rent.

Such suppliers were required to notify the National Measurement and Regulation Office (NMRO) by the end of 2015. NMRO can impose civil sanctions for non-compliance with the notification requirements, including compliance notices or enforcement undertakings and financial penalties.

Gallucci warns that you could face substantial fines if:

You haven’t already completed the notification
You are involved in a new development or a major refurbishment and haven’t installed meters at occupier level
You haven’t installed meters at building level on all existing properties that you manage or own

Landlords, make sure to check whether you have complied with these regulations!

Gas Safety Week May be Coming to an End, but it Still Matters

Published On: September 22, 2017 at 8:13 am

Author: Em Morley

Categories: Landlord News

Tags: gas safety,gas safety week,Health and safety,landlord law

Gas Safety Week May be Coming to an End, but it Still Matters

This weekend may mark the end of 2017’s Gas Safety Week, but landlords must remember that gas safety still matters going forward.

Earlier this week, when Gas Safe Register’s Gas Safety Week 2017 began, we reminded all landlords of their legal obligations regarding gas safety, to ensure that you keep your tenants safe when they’re living in your properties.

Although gas safety is important all year round, Gas Safety Week is the perfect opportunity to raise awareness amongst homeowners, landlords and tenants of their responsibilities concerning gas safety.

Our partner Just Landlords has also highlighted this week how costly failing to comply with your legal duties can be – watch out!

To help all landlords keep their properties gas safe and protect their tenants’ health and safety, we have created a comprehensive guide to your responsibilities. Read it for free here: /landlords-guide-gas-safety/

Although Gas Safety Week comes to a close on Sunday, we are calling on all landlords to stick to the law and comply with all of the regulations regarding gas safety.

The Chief Executive of ARLA Propertymark (the Association of Residential Letting Agents), David Cox, reiterates the organisation’s support for gas safety awareness: “As Gas Safety Week draws to a close, ARLA Propertymark highlights the campaign and the importance of gas safety. Agents and landlords are legally responsible for the safety of their tenants, so it’s important they ensure that maintenance and annual safety checks on gas appliances are carried out by a Gas Safe registered engineer. In the last three years, there have been 22 deaths and nearly 1,000 gas-related injuries, and Gas Safety Week gives us an opportunity to reiterate the need for better safety measures in rental properties.

“Providing a Gas Safety Certificate to tenants is already a legal requirement for landlords, and provides peace of mind for tenants that the property and its appliances are safe. Renters shouldn’t be afraid to demand this document if they aren’t given it at the start of an agreement. It’s now time for the Government to make best practice legal, and enforce compulsory carbon monoxide alarms in every rented property. At the moment, they only need to be in rooms with solid fuel burning, but we should be doing all we can to protect tenants.”

Don’t forget to keep up with your gas safety requirements when Gas Safety Week finishes for another year!

Free Seminar Series Launched for Landlords and Letting Agents

Published On: September 18, 2017 at 9:37 am

Author: Em Morley

Categories: Landlord News

Tags: evictions,landlord law,legislation

A free seminar series for landlords and letting agents will launch this month, with an advisory session on how to evict tenants in a way that is both effective and legally sound.

The Landlord Seminar Series, hosted by leading law firm Kirwans, will see legal specialists exploring a wide range of crucial issues for the sector, ranging from rent recovery to the consequences of failing to undertake Right to Rent checks.

Free Seminar Series Launched for Landlords and Letting Agents

The free seminar series will also feature guest speakers from non-legal sectors of the property industry, providing useful tips and analysis on topics affecting landlords and the rental market.

The initial event will focus on legally sound ways of evicting tenants; an area that some find particularly confusing, following recent legislative amendments.

A panel of experts will discuss how to tackle the eviction process, with a focus on Section 21 notices, the new additional regulatory requirements and the accelerated possession procedure.

They will also advise on the legal responsibilities that landlords and letting agents now carry, following the updated legislation, what to do if court proceedings unfold and how to deal with so-called retaliatory evictions.

Danielle Hughes, an associate solicitor and landlord legal expert at Kirwans, who will lead the series, says: “Evicting a tenant can be a tricky process. For landlords, protection is key if they are to avoid expensive errors and difficulties securing possession.

“The aim of these seminars is to educate landlords and agents on the correct way to launch eviction proceedings to ensure they don’t face complications further down the line. Many landlords come to us at the stage where they are ready to issue a claim and find that they have not complied with a simple requirement, which sets them back to square one of having to re-issue a notice. This can lead to unnecessary delays and lost rental income.”

She continues: “We have seen numerous cases in which minor errors have led to claims being struck out of court, and landlords often only seek advice when it is too late. Hopefully, our seminar series will set them on the right track and prevent these problems from occurring.

“In addition, we will explore the range of new grounds on which tenants can now seek to defend claims and challenge the eviction procedure, with tips and advice on how best to avoid these issues by taking a proactive approach from the outset.”

Attendees will also hear from Mark Wrigglesworth, the Director of ERC Accountants, who will examine and advise on the changes and impact of landlord taxes following the recent and ongoing reduction in mortgage interest tax relief, which began on 6^th April this year.

Hughes adds: “The rental sector has undergone significant change over the past two years, and our first landlord seminar series event will see us reflecting on what has changed and how to deal with new challenges which are still to come.”

The first in the free seminar series will take place at Avenue HQ, Mann Island, Liverpool on Wednesday 27^th September 2017 between 8-10am. For more information and to book tickets, visit: https://www.eventbrite.co.uk/e/landlord-legal-update-tenant-evictions-tickets-36952085683

Hundreds of Landlords Fined over Failure to Comply with Right to Rent

Published On: September 1, 2017 at 9:03 am

Author: Em Morley

Categories: Landlord News

Tags: immigration,landlord law,Right to Rent,tenants

Hundreds of landlords have been fined thousands of pounds for failing to comply with the Government’s controversial Right to Rent scheme.

Penalties totalling £163,000 were handed out after the Right to Rent scheme was rolled out across England, official data reveals.

Fines were issued to 236 property owners between the start of February 2016 and June this year – a rate of around one every two days.

The scheme requires landlords to establish whether a tenant has a right to live in the UK, by taking copies of documents, such as passports or identity cards.

Hundreds of Landlords Fined over Failure to Comply with Right to Rent

Failure to comply with the scheme can lead to fines of up to £3,000 per tenant, while those that knowingly let to people with no right to rent in the UK can face up to five years in prison.

Ministers introduced the measures to create a “hostile environment” for those with no right to be in the UK. Illegal immigrants are also banned from opening bank accounts, while driving licences can be refused or revoked.

Figures published by the Home Office show that the number of landlords that have been fined for failing to comply with the scheme has more than tripled in just over a year.

Between April and June 2017 – the latest statistics available – 76 penalties worth £47,700 were issued. This compares with just 14 fines worth a total of £13,800 in the first three months of 2016.

The Immigration Minister, Brandon Lewis, says: “We believe in creating an immigration system which is fair to people here legally, but firm with those who break the rules or who enable others to do so.

“The Right to Rent scheme deters people from staying in the UK when they have no right to be here.”

He continues: “We regularly meet with representatives from the private rented sector, local authorities and housing charities, to discuss and monitor the scheme.

“Landlords can avoid the risk of a civil penalty by conducting simple and straightforward checks on tenants’ documents, in accordance with Home Office regulations.”

To help landlords comply with the rules, we have created a guide with the Home Office’s help. Read it for free here: /home-office-reinforces-landlord-responsibilities-right-rent/

Campaigners claim, however, that the scheme fuels discrimination and argue that there is little evidence of it having an impact on the crackdown on immigration.

Chris Norris, the Head of Policy at the National Landlords Association (NLA), believes: “A growing but small number of landlords have been penalised as a result of the scheme so far, with an average fine of around £600 handed out in conjunction with these cases.

“This suggests that landlords are more likely to be accidentally falling foul of the law, rather than deliberately or maliciously breaking the rules.”

He adds: “It’s important to remember that landlords are neither immigration experts nor border agents, so, with time, education and the right support, we’d hope that these kinds of cases begin to diminish.

“However, ultimately, this scheme should be judged on whether it tackles or prevents those who knowingly ignore the law and let to people who are in the UK illegally, but, so far, there’s little evidence to suggest it is having the desired effect.”

The Joint Council for the Welfare of Immigrants insists that the Government “has provided no evidence that this policy actually encourages undocumented migrants to leave the UK”.

The charity’s Legal and Policy Director, Chai Patel, concludes: “It is likely that, instead, the policy is driving vulnerable migrants into the hands of rogue landlords.”

Whatever your thoughts on the scheme, it is essential that you avoid fines and imprisonment by complying with the rules.

Five Ways to Comply with Energy Efficiency Legislation

Published On: August 3, 2017 at 8:19 am

Author: Em Morley

Categories: Landlord News

Tags: energy efficiency,EPCs,landlord law,MEES

Martyn Reed, Managing Director of the UK’s largest energy assessor scheme, Elmhurst Energy, looks at energy efficiency legislation affecting landlords.

Since 1st April 2016, all domestic tenants have had the right to request consent for energy efficiency improvements. This applies to all privately rented domestic properties let under an assured tenancy and a regulated tenancy. This will be widened to cover an assured agricultural occupancy, protected tenancy and statutory tenancy.

Five Ways to Comply with Energy Efficiency Legislation

There are some exceptions. If the building is exempt from having an Energy Performance Certificate (EPC), then a landlord is not required to provide consent. Your tenant must also show that the measures could be installed with no upfront cost to the landlord.

In January 2017, the Government announced that the Green Deal Finance Company (GDFC) had been sold to Greenstone Finance and Aurium Capital Markets, and money was available to invest. Under the law, residential private landlords cannot unreasonably refuse consent to a tenant’s request for energy efficiency improvements if the various criteria are met. It’s imperative therefore that landlords are aware of their obligations and do not get caught out by these changes.

Coupled with this legislation, from 1st April 2018, the minimum EPC rating for private rental properties will be set at a band E. The regulations will initially only apply upon the granting of a new tenancy to a new tenant and a new tenancy to an existing tenant. However, from 1st April 2020, the regulations will apply to all privately rented property within scope, which are those that have an EPC or are required to have an EPC as per existing EPC legislation. While some exemptions apply (including where improvement measures would devalue the property by more than 5%, or where properties are unsuitable for wall insulation), there are penalties if regulations are not met, with fines up to a maximum of £5,000.

Green Deal financing has the potential to help landlords and letting agents requested by tenants to install energy efficiency improvements or, as of April 2018, landlords who own properties that fall below the new minimum energy efficiency (EPC) rating of E. The loans are more easily managed, as they are repaid as part of a customer’s energy bill, which will normally be reduced by the energy savings generated from the measure the loan has financed – a pay-as-you-save scheme. Furthermore, the loan remains with the property and is paid by the energy bill payer, ensuring the payments are made by the person who benefits from the energy saving.

Landlords and letting agents should not see the energy efficiency measures as punitive. Remember, energy efficiency measures do require some initial outlay, but will save your tenants money, make their home more comfortable and add to the value of your property in the long run. Think of them as an investment in your business.

Hints and tips

Use an Elmhurst-accredited energy assessor to produce an EPC. It is recommended that you only rely on a recent EPC, as changes in the building, technology and fuel prices can all impact the EPC recommendations. You can find an energy assessor in your area via a search facility here: elmhurstenergy.co.uk.
Register your interest for Green Deal financing at: http://gdfc.co.uk/
Don’t get caught out by the Deregulation Act, as EPCs are central to this legislation too. As a landlord entering a short-term tenancy, you risk losing your right to issue an eviction notice under Section 21 if you have not complied with all your legal obligations, including the provision of an EPC.
If your property does not reach energy efficiency rating band E, plan for energy saving measures, such as cavity wall, loft insulation, hot water, cylinder insulation or double-glazing. Your EPC will indicate options including estimates of cost, payback and the predicted improvement in your rating.
Landlords with multiple properties may consider using energy efficiency software such as Elmhurst’s Streamline EPC, which can help you to calculate the effect of improvements over your portfolio of properties.

Calls for Unregulated Eviction Firms to Join a Redress Scheme

Published On: July 25, 2017 at 9:31 am

Author: Em Morley

Categories: Landlord News

Tags: evicting a tenant,Eviction,landlord law

Landlords simply cannot afford to restart the eviction process after an unregulated firm has failed to offer the correct service, insists Landlord Action, which is calling for unregulated eviction firms to join a redress scheme.

Over the years, Landlord Action has been instructed to take on several cases following the malpractice of another firm. With repossessions for landlords now taking an average of 43 weeks, Landlord Action insists that landlords simply cannot afford to restart the process due to compliance errors.

Calls for Unregulated Eviction Firms to Join a Redress Scheme

It is calling for unregulated eviction firms to become part of a redress scheme to help clean up the industry and protect landlords and letting agents from further unnecessary expense.

As the private rental sector has grown, so too has the eviction industry and, with it, the number of unregulated eviction firms cutting corners and not using legally qualified personnel to facilitate the process correctly.

One landlord, Ms. Romeena Hadwal – who, like many people, turned to the internet for advice when her tenant fell into rent arrears – found herself battling the very company she had instructed to help her.

She explains: “I found a company on the internet which was offering what appeared to be a very good deal – £99 to get started and a money-back guarantee. I spoke to them on the phone; they seemed perfectly legitimate, explained the process to me, took payment and filed notice, which my tenant received.

“However, problems started when it transpired they had put the wrong address on the court forms, which delayed the entire process. Under the impression it had been resolved, the case went to court, but, four weeks after the hearing, I was told I was unable to apply for the N325 Request for Warrant of Possession because the address was still incorrect. I wish I had gone to a regulated law firm.”

Communication between Hadwal and her eviction company became increasing hostile, until the firm stopped responding altogether. Six months on, she was still no closer to getting her property back and had paid a total of £855 to a company that had not helped her to evict her tenant.

Commenting on unregulated eviction firms, David Smith, a Partner and Head of Operations at Anthony Gold Solicitors, says: “Unregulated providers of advice to landlords look like a good deal at first blush. However, they can provide advice which is misleading or plain wrong, and the lack of insurance or a complaints process leaves landlords with nowhere to turn when things go wrong. A robust complaints mechanism is a key component of giving landlords confidence in the reliability of such services.”

With nowhere to take her complaint and mounting rent arrears, Hadwal was desperate to get her property back. Her only choice was to instruct another eviction company. She contacted Landlord Action, which took the case over, and Hadwal now has an eviction date set for 1^st August 2017.

Paul Shamplina, the Founder of Landlord Action, comments on the success of his firm: “When we set up as the UK’s original three-step fixed-fee eviction company, the aim was to provide simplicity to a previously costly and complicated burden for landlords and letting agents. As other operators have entered the marketplace, we’ve found ourselves working with more and more landlords who have not only been let down by their tenant or letting agent, but subsequently their unregulated eviction firm.

“To improve standards and provide a better service, we acquired status as an Alternative Business Structure (ABS) in landlord and tenant law, authorised and regulated by the Solicitors Regulation Authority (SRA). This means if a landlord has a complaint, they can report it. But not all companies are regulated, so landlords have nowhere to turn if they have a complaint, and this needs to change. Belonging to a redress scheme would be the first step to making improvements and ensuring consumer confidence.”

The Head of Redress at the Property Redress Scheme, Sean Hooker, adds: “Eviction is a highly technical skill that should be conducted professionally and sensitively. It is also an area where practitioners should be very aware of the service they provide to their customers. This is where access to redress comes in, allowing landlords and their agents to have their service complaints determined by an independent and impartial third party and things to be put right. The introduction of such a provision will raise standards in the eviction world, provide customers peace of mind and confidence in the sector, and increase the reputation and standing of those specialists that provide a necessary and valuable service.”

Landlords, remember that Rent Guarantee Insurance is the best way to protect your rental income against tenant rent default. The policy from Just Landlords will also cover your legal expenses incurred when evicting a tenant: https://www.justlandlords.co.uk/rentguaranteeinsurance

Always remember to use a regulated eviction firm to avoid costly mistakes!