Showing posts with label landlords. Show all posts
Showing posts with label landlords. Show all posts

Friday 17 January 2014

Being A Landlord


Being a landlord is easy if you know the rules and regulations.  Twenty years ago if you owned a rental property it was simple to let it.  The landlord checked the roof didn’t leak, that it had four solid walls and a floor, set the rent level and found a tenant for life.  Then sat back and watched the money roll in but today the world of the landlord is changing.  Successive UK and EU governments have introduced so much legislation the landlord doesn’t know from one day to the next if the let on his property is legal or illegal.  Fines can be hefty.  Prison is a possibility.  Landlords can even lose the right to evict a tenant.  Here we look at some of the important legislation a landlord needs to comply with

Energy Performance Certificates (EPC) – before any property can be advertised for rent it must have an EPC report.  The report must be shown in full to the prospective tenants before they make a decision about the property.  Fixed penalties of £200 are applied if the landlord fails to obtain one.

Gas Safety Certificates – All properties must have a current gas safety certificate which has to be updated every 12 months.  The Health and Safety Executive are able to prosecute or imprison any landlord found not having a valid certificate. 

Information Commissioners Office (ICO) – it seems reasonable enough that the landlord will want to know as much as possible about the person they will be letting the property to.  They will want to be sure the prospective tenant can afford to rent the property, will look after it and does not have a poor credit history.  But did you know as soon as the landlord starts asking this information under the data protection act they need to be registered with the ICO.  Fines can vary from 3000 euros to 500,000 euros for breaches of the data protection act.

Houses of Multiple Occupation (HMO) – if a landlord has a property that is classed as an HMO they will need to be licensed with the local council to be able to let the property.  Each council has it’s own licensing requirements and fees. Failure to register with the council can result in prosecution and fines up to £20,000.  If more people than the license approves live in the property another £20,000 fine, a further £5,000 fine for each breach of the license and the right to evict the tenant.  The landlord could also have to repay any rent collected.
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Landlord Accreditation – many councils in the UK require the landlord to be accredited if they want to rent a property.  Accreditation is a test that ensures the landlord is up to date with current rules and regulations and continues to keep themselves up to date through continuous learning.  In Wales landlords are required to attend a one day seminar and pass a test.  In England accreditation depends on the local council.  Landlord Associations also run their own accreditation schemes.

Health and Safety – every property needs to be assessed to ensure it complies with Health and Safety rules.  This is an assessment the landlord can do themselves.  It ensures tenants cannot come to any harm while they occupy the property.  Follow up checks should be done to ensure the tenant does not cause any potential harm while renting the property.

Green Deal – with effect from October 2012 (in England) and January 2013 (in Wales) landlords need to demonstrate they are continually improving the energy efficiency of the property they are letting.  Green Deal is a scheme aimed at helping landlords fund improvements to their properties.  From 2014 any property with an energy efficiency report of G will no longer be allowed to be let.  The plan is that over the coming years only properties with a rating of A to D will be able to be let.

The world of the landlord is continually changing.  Keeping up to date with current legislation has never been more important.  But, if you know your rules and regulations letting a property in the UK is easy.
 

Sunday 20 November 2011

Section 8 or Section 21 Notice to Evict

A frequently asked question about evicting tenants is whether to use Section 8 notice or Section 21 notice.

As a landlord for 11 years I used to say go with Section 8 for speed especially when dealing with rent arrears. But over recent years these types of evictions have become more frequently defended and can often cost the landlord large solicitor bills. I now recommend Section 21 in every instance.

Last year, I had a tenant who had totally wrecked a lovely five bedroom house. They were also not paying their rent and so for speed of eviction I decided on a Section 8 notice under grounds 8,10 and 11. On the day of the court hearing the tenants turned up with their lawyers who asked for additional time to put a defence together. The judge told them off for not entering a defence at the correct time but still gave them the extra time to put a defence together. A new hearing date was set a couple of months later.

At the next hearing they claimed the wrecked house was my fault. I was able to prove that the house had been in excellent condition when let to them (I had an independent inventory completed at the time of letting) but it was decided that the matter would need to go to trial. The trial set for several months later. I had to pay up front some court costs.( All the while, the tenant was not paying any rent.)  I was looking at legal costs of around £20,000 to go to trial and if I lost the case I would also have had to pay the tenants legal costs which would easily have taken my costs to £40,000 +. The tenant had legal aid to take this matter to court.



At the time of serving Section 8 notice on the tenants, I also served Section 21 notice. I immediately applied for an eviction order under Section 21. As a result of the eviction order I then had a bargining chip to get the tenants to withdraw their action in return for my withdrawing the eviction order thus saving me the costs of going to trial. I was back to stage one with still no rent coming in and I was now out of pocket nearly £3,000 in legal fees.

I then served another Section 21 notice on the tenant and applied for their eviction. It was granted.

Following this experience, I would recommend to any landlord to use Section 21 notice everytime to evict a tenant. Provided it has been served correctly you must be given possession of the property. The judge normally gives possession within 14 days of the order being granted. If a defence is entered the judge can decided to give the tenant extra time of around 28 days to leave the property.

Your can get a solicitor to do the paperwork for you and serve the notice. To save costs and because Solicitors can be slow and don't always get the paperwork right, I tend to do all the work myself.

It should be remember that under Section 21 you do not give a reason for evicting the tenant. You are only applying to the court for an order asking the court to give you back possession of the property.

If you have outstanding rent you can make a claim through MCOL and if payment isn't received you can get a CCJ and apply for attachment of earnings.

A step-by-step guide to evicting tenants under Section 21 is available for £5.99.  Please contact the writer at rknpublishing@uwclub.net.