Landlord Blog

Hopefully you are all aware of the new regulations regarding protection of tenancy deposits – a quick reminder – any deposit taken must be protected within 30 days of receipt and the prescribed information given to the tenant.

The new regulations came into force on 6 April 2012, it gave all landlords who had not protected their deposit before this date a 30 day period in which to protect the deposit – this time expires on 5 May 2012.  If you haven’t already done so protect your deposit now.

If you fail to comply your tenant can bring a claim against you for protection which will result in you also having to pay the tenant compensation up to a maximum of 3 times the amount of the deposit.  Also you would not be able to use a section 21 notice.   

After 5 May 2012 the only way to rectify the situation would be to return the deposit to the tenant.

If you would like any advice on tenancy deposits or any other landlord issues please email me at rbrough@fidler.co.uk.

Rebecca

Over the many years that I have advised Landlords on their tenancies I have heard many excuses from tenants about non-payment of rent, but the one I read this morning was a new one.

Tenants in New Jersey, USA are suing their landlord as they claim that they have been forced to leave the property by a poltergeist.   They claimed that they experienced slamming doors, flickering lights and eerie voices whispering ‘let it burn’.   Their claim is for return of their deposit and rent paid. 

It may be that the house was haunted – who knows!, but I will wait to see if I come across similar excuses for non-payment of rent!

If you do require any advice on non-payment of rent or any other problems with tenants please email me at rbrough@fidler.co.uk

Rebecca

Well the new changes are upon us, with effect from 6 April 2012 the requirements regarding protection of tenancy deposits changed.

Savills, an international property firm, are predicting an increase of 20% in buy to lets over the next five years.  If you are thinking about buying a property to let you need to be aware of the law surrounding tenancies.

 Here are few points you need to consider:-

 1.         obtain an Energy Performance Certificate      

2.         obtain a Gas Safety Certificate

3.         have a written tenancy agreement

4.         any deposit taken must be protected in a tenancy deposit scheme

5.         you can not end the tenancy during any fixed period unless the tenant breaches the agreement

6.         you can only end the tenancy if you have served the correct notice on the tenant

7.         if the tenant remains in the property after the notice expires you will need to obtain a possession order from the Court.

 If you require any further advice regarding the legal aspects of entering into a tenancy agreement please email me at rbrough@fidler.co.uk

Rebecca

I often get landlords asking if they can  change the locks of the property because their tenant has not paid rent – the answer to this is no.  If you require possession you must follow the correct procedure of serving Notice and obtaining a possession order through the Court.

Changing the locks is both a criminal and civil offence under the Protection from Eviction Act 1977.  Through the Civil Courts the tenant could claim an injunction against the landlord for immediate access to the property, alternatively they can claim compensation to cover their costs in paying for emergency accommodation and distress and inconvenience.  The Court could also make a special award to the tenant which is the difference between the value of the property if it was sold with vacant possession or sold with a tenant in occupation.   The landlord would also have to pay both their own and the tenant’s legal costs, if the matter went to a full hearing you could be looking at £8000 per party.

In the Criminal Courts you could either be given a fine or a custodial sentence, Landlord Mohammed Khubaib was fined £400 for illegally evicting his tenant and ordered to pay costs of £1265.  He was also ordered to pay compensation to the tenant in the sum  of £2890.

Although the process of serving Notice and going through the Court process seems long and costly, it is cheaper than a claim for illegal eviction.

If you would like any advice on obtaining possession of your property please email me at rbrough@fidler.co.uk

Rebecca

From 6 April 2012 there will be a streamlined energy performance certificate scheme.   All properties that are being marketed for let  require a valid EPC certificate.  The Certificate must be in place prior to letting the property and your prospective tenants are entitled to see this when viewing the property.

The new style certificates are quite different to the certificates already in place and will provide clearer information about the property’s energy efficiency and includes the top three tips for energy-saving improvements.

If you have an old style certificate this is still valid, and if you are using it solely for rental purposes the certificate is valid for 10 years.

Failure to comply with the new regulations could result in you being fined up to £200.

If you require any assistance with EPC Certificates or any other landlord issues please email me at rbrough@fidler.co.uk

Rebecca

I have previously detailed the new requirements regarding tenancy deposits, however as the time is getting nearer it is a good opportunity to remind you.  An exact date hasn’t been given for the implementation of the new requirements although we expect it to be April 2012.

The new requirements are that the deposit must be protected within 30 days of receipt of the deposit.  The tenant must also be given the Prescribed Information within 30 days.

Failure to protect the deposit within 30 days of receipt gives the tenant the right to apply to the court for an order that the deposit is protected.  In making this order the court will also order that the landlord pay the tenant compensation, the amount will be decided by the court, but will be equivalent to 1-3 times the amount of the deposit.

Further you would not be able to serve a Section 21 Notice until the deposit has been protected following a court hearing.

If you currently have a deposit that is not protected you should protect it immediately.

If you require any advice about tenancy deposits or any other landlord issues please email me at rbrough@fidler.co.uk

Rebecca

I recently published a blog regarding the obligations of landlords under the Gas Safety (Installation and Use) Regulations 1994.  To re-cap a landlord is obliged to have all gas appliances checked annually and provide the tenant with a copy of the Gas Safety Certificate.

There are various penalties for failing to comply and following more cases going through the courts it would appear that the Courts are taking non-compliance seriously.     In two recent cases one landlord was fined £8500 and ordered to pay £1500 costs and another landlord was fined £2000 and ordered to pay costs of £2000 for failure to comply - a huge penalty when you consider that the checks cost less than £100.

Also you may not be aware, but if your tenant is injured as a result of a faulty gas appliance, they can bring a claim against you for personal injury, which could in itself cost several thousand pounds in compensation and a possible £6000-£8000 in legal costs.

If you would like any advice on your obligations as a landlord please email me at rbrough@fidler.co.uk

Rebecca

Many landlords are finding that when they try and claim money from the tenant’s deposit that they are having difficulty with the claim.

A good inventory can help in supporting your claim for a payment from the deposit, or if necessary a claim through the Court to recover money over and above the deposit. 

It doesn’t help you a lot if you are claiming that a tenant has damaged the carpet for example, but have no evidence of its condition at the start of the tenancy.

At the start of the tenancy you should prepare a written inventory dealing with each room in turn, noting any fittings and fixtures, and furniture if applicable, also note if the carpet/walls are undamaged, or if there is any damage record this.  This can be supported by a photograph showing the general condition of the room and any damage already present.  It is a good idea to get your tenant to sign a copy of the inventory.

At the end of the tenancy you should carry out a similar process, again noting any problems and taking photographs to support your case.  Again if you can get the tenant to sign the document that would assist, however, this isn’t always possible.

If you do wish to make a claim against the deposit you will also need to obtain quotes/receipts for work and submit these along with your inventory.

If you carry out the work yourself keep receipts of all the supplies you purchase and a written note of what worked was required and how long it took you to do the work.   This can then be put forward as evidence.

Remember the deposit belongs to the tenant – it is your duty to ensure that you are entitled to make a claim against it, the better set out your claim the better chance of success.

If you would like any further advise on inventories or any other legal issue regarding tenancies please email me at rbrough@fidler.co.uk

Rebecca

Hi there, I’m Alex Smith of diynewbie.org and I thought I’d do a guest blog on some of the Landlord Issues I’ve encountered

If you’re a landlord it’s important to take out landlord insurance cover and familiarise yourself with tenants’ rights. The people in your property are protected by law so you must know what’s what.

Tenants’ rights include:

Freedom to live in the property undisturbed

If you decide to rent your property, you give up the right to come and go as you please. You should give your tenants 24 hours’ notice before visiting and must make sure everyone’s happy for you to enter. This gives people time to prepare for your visit – and your tenants might even clean the house.

The right to live in a property in a good state of repair

Broken doors, leaking roofs and damaged windows are simply unacceptable, so make sure your house is in a good state of repair. Seal up drafts, fix broken glass and ensure you provide a comfortable environment for your tenants. Damp areas can cause health problems, so it’s wise to deal with condensation urgently. Wipe down walls with a fungicidal wash and ask your tenants not to dry clothes on the radiator.

The right to access information about their tenancy at any time

Tenants have the right to access information about their tenancy at any time, so never withhold information. Always leave a copy of the contract at the rented property and make sure everyone knows where it is. If a tenant calls you up asking for information, try to help them out as best you can as this will improve the landlord-tenant relationship.

Protection for unfair eviction

The law protects tenants from unfair eviction, so you can’t just kick them out onto the street. If someone breaks the tenancy agreement you can usually serve them an eviction notice, but a court case will usually follow. To avoid problems with tenants always ask for references and ask to see payslips – as this will prove they are employed and can afford to keep up the rent. Take out cheap landlord insurance (just in case) and make sure you get every tenant to sign a contract (as this will make legal issues easier).

Return of deposit when the tenancy ends

Landlords must return deposits to tenants unless they’ve missed rent or have damaged property. If repairs need to be carried out, the landlord is usually able to use the deposit money, but must return any extra money to the tenant.

Tenants have more rights that you might think, so make sure you read up on the law.

Thanks for reading

Alex

Alex Smith is a writer and editor from Manchester, England and avid DIY fan. Currently writes blogs for  diynewbie