Posts with tag: tenants

‘Riskier’ tenants being avoided by landlords

Published On: May 27, 2016 at 8:46 am

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A new report has indicated that buy-to-let landlords are looking for tenants less likely to fall into rent arrears, following the introduction of the tax changes affecting the Private Rented Sector.

An investigation by the National Landlords Association (NLA) suggests that some tenants on benefits are therefore being overlooked by some landlords.

‘Riskier’ tenants

Around 60% of residential landlords surveyed by the NLA said that Chancellor Osborne’s actions on restricting buy-to-let mortgage lending and increasing stamp duty will reduce their profitability.

In order to cover costs, 20% of landlords who will be affected by the changes informed the NLA they will prioritise other groups ahead of ‘riskier’ tenants, such as those on benefits.

During the last twelve months, 64% of landlords with tenants in receipt of housing benefit said that they had experienced rent arrears.

What’s more, the report claims that 20% of landlords let to tenants in receipt of benefits in the first quarter of 2016. This was down from 36% in the first quarter of 2012.

'Riskier' tenants being avoided by landlords

‘Riskier’ tenants being avoided by landlords

Competition

Richard Lambert, chief executive of the NLA, said, ‘many of those who once would have expected to live in social housing now have to compete for private homes with other types of tenants.’[1]

‘It’s a real concern because a significant proportion of landlords already choose not to let to tenants who receive benefits because the perception is they are too risky. Rightly or wrongly, young professionals or working families are seen as more likely to be better payers and less hassle to manage,’ Lambert added.[1]

Mr Lambert also warns that increasing tax changes and the falling availability of social housing means that some tenants could struggle to find any housing whatsoever.

Landlords should always look to protect themselves and their investment by taking out rent guarantee insurance, which will cover them against tenants defaulting on rent.

[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/5/landlords-avoiding-benefits-tenants-due-to-osbornes-tax-changes

Council wins landmark illegal sub-letting and eviction case

Published On: May 26, 2016 at 11:37 am

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In a landmark case, a buy-to-let landlord has been prosecuted for both illegal sub-letting and illegally evicting at the same time!

Mr Rami Nazzal, 35 and from Sheffield, pleaded guilty at his hearing at Sheffield Magistrates Court last week.

Illegal sub-letting

After illegally sub-letting his council home, Mr Nazzal then evicted his tenant using excessive force. As such, the Court delivered a guilty verdict upon prosecution.

Nazzal allowed the tenant to rent his property for six months before forcing his tenant to leave after an argument.

Mr Nazzal was fined a total of £1,923, including £250 compensation and a victim surcharge of £15.

The victim, student Ata Allah Alalawi, who had moved to the Steel City in order to complete his studies, said, ‘he (Nazzal) told me it was his own property. He lied to me. I didn’t know he was a council tenant.’[1]

Threatening

After informing Mr Nazzal of his intentions to leave, Alalawi claims the landlord began to demand extra rent and became threatening.

Alalawi also claims that Nazzal grabbed him, forced him to leave the property and threatened to withhold his personal belongings should he call the police.

Sheffield City Council’s housing team is now undertaking legal proceedings in order to evict Nazzal from his council house.

Council wins landmark illegal sub-letting and eviction case

Council wins landmark illegal sub-letting and eviction case

Criminal Offences

Councillor Jayne Dunn, a cabinet member for housing at Sheffield City Council, observed: ‘this person was breaking the law on two accounts-by illegally sub-letting his rented home and by forcing an eviction. This has been recognised by the courts and I hope it sends a strong message that rogue landlords will not be tolerated.’[1]

‘We want people to be able to live in good, safe housing, where their rights are respected. Thankfully most letting agents and landlords in Sheffield are very good. But we will take firm action on the minority that are not,’ Dunn pledged.[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/5/sub-letting-council-wins-landmark-case-against-landlord

 

Landlords seeing more dirty properties at checkout

Published On: May 25, 2016 at 10:45 am

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A concerning new report has revealed that buy-to-let landlords are facing increasing problems with dirty properties at the conclusion of tenancy agreements.

The investigation, conducted by online letting agent PropertyLetByUs, has uncovered the items most frequently left in a poor condition by outgoing tenants.

Dirty properties

Mucky ovens were discovered to be extremely common, with 56% of agents reporting that they had faced this issue. Next came dirty carpets and flooring (25%), grimy showers (21%), smelly sinks (19%), full fridges and freezers (18%) and grubby baths (14%).

Shockingly, 70% of landlords said that their rental properties were returned to them in a poor condition after their tenants had moved out.

Over half of cases dealt with by the Tenancy Deposit Scheme are associated with cleaning. In fact, disputes over cleaning are now at their greatest level since the beginning of the scheme. This in turn means many investors are claiming more on their landlord insurance.

Lack of respect

PropertyLetByUs.com suggests that tenants have little or no respect for their rental home.

Jane Morris, the firm’s managing director, said: ‘unfortunately tenants fail to treat a rented property like they would if it was their own home. Many tenants fail to leave their property in the same condition as when they moved into the property and we have seen many properties left in a filthy state.’[1]

‘The main problems are dirty ovens and fridges; stains and marks on carpeting and flooring; bathrooms which have not been cleaned for months; and pet hair and excrement on floors, furniture and soft furnishings. At a recent check out, the property was left in a very poor condition. No cleaning had taken place during the tenancy and the ovens, carpets and the bathrooms were filthy. Unwanted furniture was the left in the house and strewn across the garden,’ she continued.[1]

Landlords seeing more dirty properties at checkout

Landlords seeing more dirty properties at checkout

Costly

Morris went on to claim that, ‘some tenants claim that cleaning issues are just normal wear and tear and are shocked when they find out that it will cost around £50-£70 to have the oven professionally cleaned and anything between £100-£150 to clean carpets and floorcoverings. The simple answer is that if an area or item was clean at check-in it should be left clean at check-out. If any dust or crumbs are present then this is clearly not clean.’[1]

‘It’s vital that landlords carry out mid-term inspections so they can flag up any cleaning issues, as well as a thorough check-in and check-out, so they have the right proof of condition at the start and end of a new tenancy agreement. At the check-out, the tenants should be made aware of the areas requiring cleaning and the potential costs involved,’ Morris concluded.[1]

Importance of inventories

The rise in landlords being left with dirty properties come check-out time underlines the importance of inventories. Landlords must produce a detailed inventory at the beginning of all new tenancy agreements, with photographs of all rooms in the house.

This will not only let landlords cross-examine during regular inspections, but will also be imperative should any dispute occur. Buy-to-let landlords should ensure that their tenants are given a copy of an inventory, which they have signed, before entering into an agreement.

[1] http://www.propertyreporter.co.uk/landlords/landlords-face-big-clean-up-at-check-out.html

Rogue leaseholders of HMO fined £120,000

Published On: May 20, 2016 at 1:49 pm

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The leaseholders and landlords of a 10-flat property in north London have been fined £120,000 after complete disregard of their responsibilities.

Idris Raza, TISHK Limited and Hanasa Limited were found guilty at Willesden Magistrates Court of ignoring a Prohibition Order. Despite this notice, there were still tenants living in the 10 studio flats located in the Golders Green area of the capital.

Complaints

After a complaint from a tenant in one of the flats, Barnet council found the accommodation to be in an inadequate condition and poorly managed.

The magistrates said that Raza had shown reckless behaviour as an individual and as a director of both TISHK and Hanasa Ltd. It was uncovered that very serious harm would have been extremely likely should a fire have broken out in the property, with up to 20 people potentially losing their lives.

In addition, the magistrates said that the tenants’ financial situation had left them vulnerable.

Rogue leaseholders of HMO fined £120,000

Rogue leaseholders of HMO fined £120,000

Risks

Risks reported to the court included inadequate fire separation between rooms, four studios with no external windows, broken ceiling panels and faulty locks on studio doors.

Alongside failing to comply with the Prohibition Order, the leaseholders and landlords were found to have breached the Houses in Multiple Occupation Regulations 2007.

All three defendants were found guilty and fined a total of £120,000, with costs of £21,660 and a surcharge of £360.

Will Any Landlord Take this Zookeeper Tenant?

Published On: May 19, 2016 at 10:31 am

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If you are a landlord or letting agent in the Cardiff area, you may have recently received a letter from a zookeeper tenant looking for a rental property.

Will Any Landlord Take this Zookeeper Tenant?

Will Any Landlord Take this Zookeeper Tenant?

The problem is that the Bristol Zoo employee is not just seeking accommodation for himself; he also looks after some animals that have now retired from the zoo.

Stressing that the landlord must accept pets, he says: “I’ll need a large bathtub as I’m looking after the zoo’s famous Willy the Walrus now he’s in retirement.

“Also will need a large bird cage for my flamingo, preferably a room with good light exposure due to him needing African climate.

“Please do let me know of any properties you have.”

Responding to the bizarre request in an equally jovial tone, Keylet in Bristol suggests a seven-bedroom property with all en suites, so that Willy the Walrus can spend as much time in the bathroom as he needs.

The agent also notes that Willy can enjoy a short walk to a nearby lake to cool off on a hot day.

In the kitchen, there are two fridges and two ovens – perfect for keeping human and animal meals separate. And in the lounge is a large plasma TV – ideal for watching nature documentaries.

We wonder whether the tenant will book a viewing!

However, there may be a more suitable property for the zookeeper to take a look at. A little further into Wales, near Aberystwyth, is a real zoo for sale.

The property, complete with animals, is on the market for £650,000 (although it is listed with Rightmove, not Zoopla).

Are there any letting agents or landlords that have received an equally peculiar request from a prospective tenant? Let us know!

If you are considering allowing pets in your rental property, here are four things you need to know: https://www.justlandlords.co.uk/news/four-things-you-need-to-know-about-allowing-pets-in-your-properties/

RLA calls for delay in energy efficiency targets

Published On: May 18, 2016 at 11:46 am

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The Residential Landlords Association has moved to urge to Government to delay new energy efficiency targets scheduled for 2018.

Calls for the postponement come with a warning that if the changes go ahead as planned, rents will rise substantially.

Delays

In response to the Public Accounts Committee inquiry into the Green Deal and ECO scheme, the RLA believes that the timescale is too soon for many landlords.

The Green Deal, which promoted loans and grants to fund improvements, was abolished last year due to low demand. Now, a new ECO programme, where people on benefits obtain cash for improvements to their property, is being devised, with the intention of starting next year.

New energy efficiency targets require all rental properties to be brought up to a minimum energy performance certificate (EPG) rating of E or above by April 2018.

RLA calls for delay in energy efficiency targets

RLA calls for delay in energy efficiency targets

Warnings

Though landlords are not required to carry out energy efficiency improvements to any expense, the RLA is concerned about the possible impact on tenants.

A statement from the association said, ‘in our response to the Government, we at the RLA have warned costs incurred by landlords in carrying out improvements are likely to be passed to the tenants via rent rises.’[1]

In addition, the firm also points out that 18% of homes were built before the introduction of cavity walls in 1919.

‘Solid wall insulation is also an issue. This is necessary if we are to make older, harder to treat properties energy efficient. However we believe that it is out of reach of the vast majority of landlords financially without some form of public subsidy,’ the statement continues.[1]

‘The Government has already delayed the introduction of the register of exemptions to the legislation. We believe that the implementation of the minimum standards themselves should also be put back,’ it concludes.[1]

[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/5/trade-body-wants-lettings-energy-efficiency-deadlines-to-be-delayed