Posts with tag: tenants

Huge Rise in Property Viewings Requests from Potential Buyers and Tenants

Published On: February 16, 2016 at 12:52 pm

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Phone calls to estate agents and letting agents to request property viewings surged in January, up by almost 71% on December.

The huge increase was recorded by specialist phone-answering company Moneypenny, which handles more than 1.2m calls per year on behalf of estate and letting agents in the UK.

Huge Rise in Viewings Requests from Potential Buyers and Tenants

Huge Rise in Property Viewings Requests from Potential Buyers and Tenants

Comparatively, last year, there was a 32.5% rise in January.

At the start of this year, there was a greater increase in calls requesting viewings from potential buyers than those from prospective tenants. Calls from purchasers rose by 77.6% compared with a 57% increase in renters.

Moneypenny’s Samantha Jones explains the figures: “We typically see a rise in viewing requests in January, but this year we anticipated that figure would increase.

“With major advertising campaigns run by portals like Rightmove and Zoopla over the Christmas period, as well as the April 1st Stamp Duty deadline looming, there have been a number of factors that could have acted as a catalyst for those looking to buy.”

From 1st April, buy-to-let landlords and second homebuyers will be charged an extra 3% in Stamp Duty on properties worth over £40,000. It is believed that this forthcoming tax change is leading to a rush of investors in the market, which is fuelling house price growth.

Moneypenny also analysed calls for Monday 4th January, which is labelled Divorce Day. On this day in 2016, there was a 53.9% increase in calls regarding rental properties, compared with the average on the three Mondays in December.

Jones comments: “There are of course a number of reasons why people could have been calling their estate or letting agent on this specific day.

“However, we do know from speaking to agents that many received a higher level of calls prompted by relationship breakdowns than they would normally receive on a typical Monday.

“This was echoed by our legal team, who saw a 106% rise in family law calls on the same day.”1 

1 http://www.propertyindustryeye.com/ring-ring-major-rise-in-phone-calls-to-both-sales-and-letting-agents/

Cambridge letting agent prosecuted for unlawful eviction

Published On: February 16, 2016 at 10:13 am

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A letting agent who unlawfully evicted one of his tenants from a property has been ordered to pay a substantial fine by Cambridge Magistrates Court.

Alan Croft, director of BestLet Property Management and Lettings, pleaded guilty to unlawfully removing the resident of the premises under Section 1(2) of the Protection from Eviction Act 1977.

Mr Croft was told to pay a total of £4,315 as a result of his negligence.

Case for concern

The case revolved around a tenant who rented a room in shared accommodation which was managed by BestLet. The tenant contacted the council for assistance after the agent from BestLet entered his rooms without giving him the requisite 24 hrs notice.

Council officers contacted BestLet and told the agency of the legal procedure that must be followed to access rooms. The correct process of evicting a tenant was also provided.

Despite this, Croft nor his agency served the necessary legal notice to gain possession, nor was an application given to the court for an eviction order. What actually happened was that Croft gave instructions to an employee to change the locks on the property. In addition, Croft instructed the employee to put the tenant’s possessions into bin bags in the front garden!

The court also heard that BestLet had not protected the tenants’ deposit, another breach of law. This deposit had also not been returned.

Cambridge letting agent prosecuted for unlawful eviction

Cambridge letting agent prosecuted for unlawful eviction

Prosecution

Mr Croft and BestLet were prosecuted and fined a total of £1,370, told to pay council’s costs of £2,408 and a victim surcharge of £137. Additionally, the tenant was given £400 in compensation for their hardship and damage to their possessions.

Kevin Price, executive councillor for housing at Cambridge City Council, noted, ‘council officers work with tenants, landlords and agents to ensure that the correct legal processes are followed and if there is a dispute we help all parties move forward.’[1]

‘Unfortunately, despite being advised by council officers as to the correct procedures, BestLet instead chose to evict the tenant by unlawfully changing the locks and removing the tenants’ property and leaving it in the garden,’ he continued. [1]

Concluding, Mr Price said, ‘we take matters such as this very seriously and aim to tackle poor standards in the private rented sector and focus our enforcement action on the minority of unscrupulous landlords and agents who do not comply with the law.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/2/local-letting-agent-guilty-of-unlawful-eviction

 

Do Your Tenants Receive Housing Benefit?

Published On: February 15, 2016 at 12:49 pm

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If you rent a property to tenants on housing benefit, you may be aware of the new welfare system that sees six benefits rolled into one monthly payment.

This is called Universal Credit, and the scheme is being rolled out across the country. As well as combining housing benefit with other payments, landlords will no longer receive housing benefit directly. Instead, tenants will be responsible for paying their rent to their landlord.

Do Your Tenants Receive Housing Benefit?

Do Your Tenants Receive Housing Benefit?

Additionally, there is sometimes a long crossover period between the traditional welfare system and Universal Credit, which is seeing some claimants land in debt.

As a landlord, you should protect your investment by communicating with your tenants about any changes to their finances and consider rent guarantee insurance, which will ensure you still get paid if your tenant defaults on the rent.

Since January, we have been informing landlords of where Universal Credit is now live. You can find previous areas, and links to earlier roll outs, here: /more-housing-benefit-tenants-subject-to-universal-credit/

If you have rental properties in the following areas and your tenants are on housing benefit, be aware of the changes in place from today:

  • CM13 3 and CM14 5 in Chelmsford.
  • CR3 5, CR3 6, CR3 7, CR5 1, CR5 3, CR6 and CR8 5 of Croydon.
  • DE74 in Derby.
  • The E3 2, E3 3, E6, E7, E11 1, E11 2, E11 3, E12, E13, E15, E16, E18, E20 1, E20 1 and E20 2 parts of east London.
  • G44 3, G46, G53 7, G76, G77 and G78 in Glasgow.
  • GU1, GU2, GU3 1, GU3 2, GU4 8, GU5, GU6, GU7, GU8, GU9, GU10, GU12 6, GU26 and GU27 of Guildford.
  • IG1, IG2, IG3, IG4, IG5, IG6, IG7, IG8, IG9, IG11 0, IG11 8 and IG11 9 in Ilford.
  • KA1, KA2, KA3, KA4, KA5, KA6 6, KA6 7, KA13 7, KA16, KA17, KA18 and KA19 7 in Kilmarnock.
  • KT4 7, KT17, KT18, KT19, KT20, KT21, KT22 2, KT22 7, KT22 8, KT22 9, KT23 and KT24 of Kingston upon Thames.
  • LE12 5, LE12 6, LE14 3 in Leicester.
  • NG1, NG2, NG3, NG4, NG5 1, NG5 2, NG5 3, NG5 4, NG5 5, NG5 6, NG5 8, NG5 9, NG6, NG7, NG8, NG9 2, NG11, NG12, NG13, NG14 5, NG14 6, NG15 5, NG15 6, NG15 7, NG15 8 and NG23 5 in Nottingham.
  • PA2 8 of Paisley.
  • RH1, RH2, RH3, RH4, RH5, RH6, RH7, RH8, RH9, RH10 3, RH12 3, RH12 4, RH14 0, RH19 2 and RH19 3 in Redhill.
  • RM1, RM2, RM3, RM4, RM5, RM6 4, RM6 5, RM7, RM8 1, RM9 6, RM11, RM12, RM13, RM14 and RM15 4 in Romford.
  • SM7 1, SM7 2 and SM7 9 of Sutton.
  • TN8 AND TN16 2 in Tonbridge.

Keep up-to-date with all changes to landlord finances at LandlordNews.co.uk.

Housing benefit changes to drive young out of market?

Published On: February 15, 2016 at 11:38 am

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Categories: Finance News

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A recent investigation has indicated that landlords feel Government changes to cut housing benefit from 18-21 year olds will make it far more difficult for them to get into rented accommodation.

The survey of over 1,000 landlords conducted by the Residential Landlords Association found that 76% of landlords would be reluctant to let to this age group. This is due to concerns over their ability to pay rents.

Negative Effects

In addition, data from the investigation shows the potential negative effects of the proposed benefit cap. 65% of landlords were reluctant to let their properties to tenants of working age on benefits, as the changes could alter their cash flow.

Those under 35 also face issues accessing rental accommodation. Since 2012, people in this age group have only been able to claim benefit for a room in a shared home. 53% said that they would not renew such tenancies, again over fears of missed or delayed payments.

Government statistics reveal that in 2013/14, 48% of all households aged between 25-34 were in the private rented sector.

Housing benefit changes to drive young out of market?

Housing benefit changes to drive young out of market?

‘Risky’

Vice-chairman of the RLA, Chris Town, noted, ‘the results confirm that reforms to housing benefit are making it increasingly risky for landlords to rent to those receiving it. Rented housing is crucial to enabling young people to quickly access work opportunities wherever they might be. By making it more difficult for them to secure rental properties Ministers are making work prospects increasingly difficult for them.’[1]

‘A simple solution would be to give tenants the option of having payments of the housing element of Universal Credit paid directly to the landlords. This would give all tenants and landlords the security of knowing the rent has been paid,’ Town added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/2/young-will-be-pushed-out-of-rented-housing

 

Many landlords unaware of Right To Rent obligations

Published On: February 15, 2016 at 10:08 am

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Categories: Landlord News

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Landlords are once again being warned that they must comply with the regulations of the Right to Rent scheme, with a shocking new survey suggesting that the majority are unaware of the changes.

An investigation carried out by the Residential Landlords Association (RLA) revealed that 72% of landlords do not understand their duties under the policy. More alarmingly, 90% said they had received no information about the new law before it was rolled out nationally on 1st February.

Concern

There is tangible concern in the buy-to-let sector that many landlords are at risk of a £3,000 fine, as a result of not carrying out the correct checks.

Maynard Burton, a partner at law firm MFG solicitors, said that he was becoming increasingly concerned that landlords will be caught out. He noted that, ‘landlords who do not act face fines of up to £3,000. That’s potentially ruinous for someone who is self-employed and I’m concerned, as are other specialists, at just how few landlords have grasped not only their obligations, but the implications for them.’[1]

Many landlords unaware of Right To Rent obligations

Many landlords unaware of Right To Rent obligations

‘They really need to get advice immediately on the checks they should be making and the records they should be keeping,’ he added.[1]

Right To Rent Duties

Designed to make it more challenging for illegal immigrants to rent and ultimately stay in Britain. However, critics say that that the scheme makes landlords carry out duties to carry out checks normally conducted by trained immigration officers.

Burton went on to say, ‘it’s easy to sympathise with landlords who feel that these new rules are effectively turning them into unpaid immigration officials. Equally, it’s easy to feel frustrated at the lack of information that has been given out by the authorities. But the law is here and it’s in force. Landlords have to act now.’[1]

[1] http://www.propertyreporter.co.uk/landlords/landlords-warned-over-immigration-check-fines.html

 

How to Fall in Love with Your Rental Home

Published On: February 13, 2016 at 2:27 pm

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Categories: Tenant News

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It’s unlikely that many of us will find our dream home in the private rental sector, but that doesn’t mean we can’t fall in love with a rental property.

If you don’t own a house, you don’t have free reign to decorate the place exactly as you’d like it and you’ll probably be moving on at some point in the near-ish future. So what can you do to give your rental property a personal touch?

Bring your things

How to Fall in Love with Your Rental Home

How to Fall in Love with Your Rental Home

First thing’s first, bring all of your furniture and ornaments with you. You may not think a vintage armchair will fit in in a modern flat, but having your favourite things around you will inject your personality into any property. Don’t buy new things simply to suit the place you’re renting – your home should reflect you. Being surrounded with some special possessions will help you feel more comfortable in a new environment.

Display your memories

Putting things up in your home isn’t restricted to hanging a few photos on the walls… Print out some special pictures of family and friends and buy new frames to display your loved ones. Do you have any cute cards that you’ve been sent recently? Put these out to cheer you up when you need it. And don’t leave keepsakes hidden away – any reminders of holidays you’ve been on or special occasions will keep a smile on your face.

Accessorise

You probably won’t be able to change the fixtures and fittings in your rental property, but don’t let this stop you; think about what you can alter. Choose a theme for each area of the home and find new items that will make the place feel like it’s been freshly decorated – this could be a new set of towels for the bathroom or some pretty candles to transform the atmosphere.

Make the most of the space

Your furniture will make all the difference in rental accommodation – they’re usually decorated with neutral colours, so some standout items will add interest and difference. Remember to consider the size of the rooms and choose appropriately sized pieces; you don’t want to feel crammed in if your furniture is too big. Making the most of the space you have will create a clear, calm feel throughout the property.

Don’t get in trouble

Fancy making a photo wall but don’t want to get in trouble with your landlord? You need to get your hands on Command Strips – they affix pretty much anything to the wall and don’t leave any residue when you leave the property. Perfect for tenants!

If you’re living in a private rental property, follow these tips to create a home you can really fall in love with.