Posts with tag: advice for landlords

New Legal Advice Service Launched for Private Landlords

Published On: July 6, 2016 at 9:19 am

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Forbes Solicitors has set up a new legal advice service to help private landlords with a wide range of issues.

New Legal Advice Service Launched for Private Landlords

New Legal Advice Service Launched for Private Landlords

The new team will offer advice on various topics affecting landlords, from drafting tailored tenancy agreements and recovering possession of a property, to defending disrepair claims and other types of action brought by tenants. The service will launch with a series of advice events starting today (Wednesday 6th July), operating from Forbes’ Housing and Regeneration department in Preston.

An associate in the department, Sam Gorrell, comments: “Our team are very experienced in this area of work, and we are now expanding into the private rental market. We have the expertise to offer a quality service and will act exclusively for landlords, giving them the help and advice they need.”

For private landlords not operating in and around the Preston area, Forbes plans to launch a new online service for landlords, which should be available in the near future.

To mark the creation of the new team, Forbes is hosting a series of events for private landlords and letting agents. The first session will look at a landlord’s ability to recover possession and recent changes to legislation in this area.

The full schedule of seminars is as follows:

  • How to get possession of your property – the new regime – Wednesday 6th July
  • Tenancy deposits and other common pitfalls – what you need to know – Wednesday 7th September
  • Landlords’ health and safety obligations – what are the risks? – Wednesday 2nd November
  • Unlawful eviction and abandonment – minimising your risk – Wednesday 1st February, 2017

Remember that you can receive daily updates on the buy-to-let sector and property market on LandlordNews.co.uk. For a monthly round up of the most important changes in the private rental sector, remember to sign up to our Landlord NewsLetter.

Wherever you live in the UK, we are dedicated to bringing you the latest in finance, law and property updates.

A Landlord’s Guide to Gas Safety

Published On: June 4, 2016 at 8:34 am

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As a landlord, you have legal responsibilities to your tenants regarding gas safety.

Gas Safe Register has put together a guide for helping you understand the law for rental accommodation.

While you may rent out a standard buy-to-let property, be aware that landlords’ duties apply to a wide range of accommodation, including, but not exclusively:

  • Residential premises provided for rent by local authorities, housing associations, private sector landlords, housing co-operatives and hostels.
  • Rooms to rent in bed-sit accommodation, private households, bed and breakfast accommodation and hotels.
  • Rental holiday accommodation, such as chalets, cottages, flats, caravans and narrow boats on inland waterways.

Landlords’ responsibilities regarding gas safety are included in the Gas Safety (Installation and Use) Regulations 1998. The law aims to ensure that gas appliances, fittings and flues provided for tenants are safe.

If you rent out a property equipped with gas appliances, you have three main responsibilities:

Maintenance

A Landlord's Guide to Gas Safety

A Landlord’s Guide to Gas Safety

Pipework, appliances and flues must be maintained in a safe condition. Gas appliances should be serviced in accordance with the manufacturer’s instructions. If these are not available to you, it is recommended that they are serviced annually, unless you are advised otherwise by a Gas Safe registered engineer.

Gas safety checks

A 12-monthly gas safety check must be carried out on every gas appliance and flue. These checks make sure that gas fittings and appliances are safe to use.

Record

You must provide your tenant with a record of the annual gas safety check within 28 days of the check being completed, or to new tenants before they move in. You must keep copies of the gas safety record for two years. The Gas Safety Record must contain the following:

  • A description and location of each appliance and/or flue that have been checked.
  • The name, registration number and signature of the engineer that carried out the check.
  • The date on which the appliance and/or flue was checked.
  • The address of the property at which the appliance and/or flue is installed.
  • The name and address of the landlord (or their agent where appropriate).
  • Any defect identified and any action required or taken to fix it.
  • Confirmation of the results of operational safety checks carried out on the appliances.

An example of a landlords Gas Safety Record can be viewed here: http://www.gassaferegister.co.uk/images/Landlords_gas_safety_record_large.jpg

You must also note that all installation, maintenance and safety checks need to be conducted by a Gas Safe registered engineer. These engineers have been checked to ensure they are competent and qualified to work safely and legally with gas.

To find a Gas Safe registered engineer in your area, you can use an online search or call 0800 408 5500.

Gas engineers often have a range of qualifications that allow them to carry out specific types of gas work. You must check that they are qualified to do the job you are requesting. Gas Safe Register has a check an engineer service, or you could look on the back of the engineer’s Gas Safe Register ID card to confirm they are qualified for the work you need doing. All gas engineers carry these cards, which have a unique license number. Always ask to see this card.

If a tenant has their own gas appliance that you did not provide, you are only responsible for the maintenance of the gas pipework, not for the actual appliance.

It is also your responsibility to ensure your tenants know where to turn off the gas and what to do in the event of a gas emergency.

If you are worried about your tenants denying you access to the property to make checks or complete maintenance, you should make sure that a clause is included in your tenancy agreement that allows you access. It is your duty to take all reasonable steps to ensure that work is carried out, so this may involve giving written notice to a tenant requesting access and explaining the reason. It is a good idea to keep a record of any action, in case a tenant refuses access.

Also, remember that regardless of how short your lease term may be, you are still a landlord and still have legal responsibilities for gas safety.

More information on gas safety can be found on the Gas Safe Register website: www.GasSafeRegister.co.uk

A Landlord’s Guide to the Mortgage Interest Tax Relief Changes

Published On: May 30, 2016 at 8:03 am

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Many buy-to-let landlords are set to see their profits decline after Chancellor George Osborne revealed plans to reduce mortgage interest tax relief in the summer Budget.

At present, landlords can reduce their taxable income by deducting the cost of certain expenses from their rental income. Until now, these allowable expenses have included costs such as repairs, letting agent fees and mortgage interest.

Under the new rules, landlords will still be able to deduct repairs and other legitimate expenses from their taxable income, but will only be able to offset a portion of their mortgage interests costs against tax, if they are a higher rate taxpayer.

Example

To demonstrate exactly how this will work, London estate agent Portico has calculated the impact of the change for a higher rate taxpayer. The firm assumes that they purchased the property for £500,000, are renting it out for £400 per week, and have a 75% loan-to-value (LTV) mortgage with a 3.5% interest rate.

A Landlord's Guide to Mortgage Interest Tax Relief Changes

A Landlord’s Guide to the Mortgage Interest Tax Relief Changes

Under the new rules, this landlord would end up being £2,625 worse off, with their profits falling from £4,000 to little over £1,000.

Although there is no doubt that this change will make things more difficult for landlords, the majority of buy-to-let investors will not be affected quite as severely as this example, explains Portico.

To begin with, landlords that are still classed as basic rate taxpayers after the changes are introduced will not be affected at all.

Secondly, most landlords have a lower LTV than 75%. Additionally, landlords in London have enjoyed substantial capital and rent price growth in the past decade. This means that interest payments represent a much smaller proportion of rental income than shown in the example above. Therefore, landlords with lower mortgage costs will lose less under the change.

Another bit of good news is that the change will be phased in gradually. In the current tax year (15/16), there will be no change at all. The tax change will begin with four equal increases over the next four years. For the example above, this means that the landlord will be unaffected this financial year, around £650 worse off next year, £1,300 the year after, £2,000 the year after that, and finally £2,625 by the time they pay their tax bill at the end of 2021.

Putting it simply, the current rules give most landlords a 40% discount on their interest costs. Under the new system, this drops to 20%.

Portico advises landlords to cut their interest costs by remortgaging.

With buy-to-let mortgage interest rates falling significantly since the financial crisis, current deals are substantially better than those arranged a few years ago.

Portico also suggests having your rental property re-valued to take house price growth into account. This would make your mortgage lender recalculate your LTV, and a lower LTV means a better interest rate.

Ahead of the tax change, ensure that you protect your rental income with Rent Guarantee Insurance, which covers rent payments if your tenants fall into arrears.

Legal Expert Offers Advice for Landlords on Section 21 Notices

Published On: April 19, 2016 at 1:56 pm

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When the Deregulation Act 2015 was introduced on 1st October, it brought with it many complications for landlords. Legal expert Francessca Tremeer has advice for landlords on what you must do to avoid a section 21 notice becoming invalid.

Under the Deregulation Act, there are new rules for landlords to adhere to when serving a section 21 notice on tenants for Assured Shorthold Tenancies (ASTs) that started on or after 1st October 2015.

Tremeer, of QualitySolicitors Burroughs Day, explains that to ensure best practice, you must “get it right at the start” by complying with all of the rules and regulations that govern the private rental sector. This includes keeping consistent and correct documentation, conducting the required safety checks, complying with

Francessca Tremeer

Francessca Tremeer

deposit legislation and keeping records of all correspondence with your tenants.

“Section 21 notices are easy to get right, but many people get them wrong,” says Tremeer.

If you are serving a section 21 notice to evict a tenant, you do not need to give reasons for asking them to leave. However, be aware that you cannot serve a section 21 notice within the first four months of a tenancy, or within six months of receiving an improvement notice from the local authority. Also, be aware that you must use the word ‘after’ in your notice and specify a calendar date for the tenant to leave. There is a prescribed form of section 21 notice that landlords should use.

“When serving the section 21 notice, you must allow enough time for service of the notice,” says Tremeer. She explains that you must stick to what is written in the tenancy agreement about serving eviction notices and choose the relevant method of service.

“If there is no mention of serving by post, for example, then don’t post it,” adds Tremeer.

You must also keep a proof of service, so if you are serving the notice in person, you should take a witness with you and make a note of the date and time of service. Additionally, you must ensure that the tenant has physically received the notice, either by putting it into their hand, through the letterbox, or under the door.

If your tenant stays in the property after the section 21 notice has expired, what can you do? “You can then use the accelerated possession procedure,” says Tremeer.

There is usually no need for a hearing in these cases, you will simply need to complete a claim form for possession, sign the document and post the form, tenancy agreement and other required documents to the court. However, this comes with a cost of £355. If you let out a House in Multiple Occupation (HMO), you may also be required to send your license.

If your tenant still doesn’t leave after a possession date has expired, you can send a bailiff to the property. This typically costs £110, but can take six weeks or more. “If you do need to go down this route, it is useful to have a clause in the tenancy agreement that tells tenants not to leave their possessions in the property, and what you will do if anything is left behind,” advises Tremeer.

As the process of evicting a tenant can take a long time, and if they haven’t been paying the rent already, your finances may suffer. You should consider taking out landlords insurance.

Follow this advice and stick to the law!

QualitySolicitors offers a fixed fee possession service for landlords. If you have further questions relating to problem tenants and how to gain possession, QualitySolicitors Burroughs Day provides a free first advice service and you can also sign up to their regular legal bulletin for landlords.

New initiative offers advice for landlords and tenants

Published On: March 8, 2016 at 11:51 am

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A new initiative has promised to offer charities and other organisations free training to pass on to both landlords and tenants, advising them ‘how to rent.’

The partnership is between the Residential Landlords Association (RLA) and the Tenancy Deposit Scheme Charitable Foundation. Entitled train2rent, the initiative will see groups such as housing associations, trusts and residents’ groups offered access to features such as training packs and learning material. In turn, this will allow them to pass on information about renting a property.

Details

There is to be a separate information pack offering advice for landlords and tenants. These will include the course presentation and workbook, plus a timetable for training and practical exercises.

Included in the information for landlords resource pack will be details of their legal responsibilities, including:

  • how to conduct Right to Rent checks
  • protecting deposits
  • making gas, fire and electrical safety assessments
  • starting and ending a tenancy
New initiative offers advice for landlords and tenants

New initiative offers advice for landlords and tenants

The tenant resource will cover topics including:

  • their legal rights and responsibilities
  • how to find the correct property
  • different types of tenancy agreements

Positive outcome

Chair of the Tenancy Deposit Scheme Charitable Foundation, Martin Partington, said, ‘it’s been a common theme in the bids we have received that small organisations have wanted funding to produce educational materials or host a workshop. The trustees felt that our money was better spent commissioning a set of materials that these groups could use, free of charge, to deliver the same outcome.’[1]

These courses will apply to properties located in England, with the licence to use the resources lasting for a period of 30 days.

[1] https://www.lettingagenttoday.co.uk/breaking-news/2016/3/industry-groups-push-training-for-landlords-and-tenants-on-how-to-rent

 

 

Radio Station Launches New Property Show for Landlords

Published On: March 7, 2016 at 3:45 pm

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A radio station has launched a new property show with a focus on private landlords.

The Property Hour will be broadcast on LBC (Leading Britain’s Conversation) in association with Direct Line Landlord Insurance. The programme will be co-hosted by LBC presenter Clive Bull and Landlord Action’s Paul Shamplina.

Radio Station Launches New Property Show for Landlords

Radio Station Launches New Property Show for Landlords

The show will initially run every Thursday evening from 9pm-10pm for 13 weeks, starting this Thursday, 10th March.

The programme will include interviews with leading property experts, news and views from the week, and a chance for listeners to phone in with any questions and opinions. Listeners are encouraged to join the online debate using #LBCPropertyHour.

The show will also include a weekly three-minute sponsored feature that will focus on certain issues affecting landlords.

The Head of Direct Line for Business, Nick Breton, comments on the partnership: “We are delighted to partner with LBC for its first weekly property programme. Given Britain’s passion with all things property-related, we believe the show will prove compulsive listening.

“As a leading provider of landlord insurance, we are delighted to be able to support a programme that will discuss key issues facing this audience. From homeowners, single property accidental landlords, right up to serious investors with large portfolios, this show will offer something for everyone.”

Paul Shamplina, the Founder of Landlord Action, says: “Having worked at the sharp end of the property industry for more than 25 years helping landlords with problem tenants, I’d like to think I’ve nearly seen it all, but still some cases surprise me.

“Education is key, particularly for amateur landlords entering the world of buy-to-let for the first time, which is why I’m thrilled to be co-hosting The Property Hour.”

LBC is available on 97.3FM in London and across the UK on DAB digital radio, online at lbc.co.uk, through the LBC app and on digital television.

The station reaches 1.4m listeners every week across the UK, with the average listener tuning in for over ten hours.

For your daily landlord updates, visit LandlordNews.co.uk, where you will find the latest information and advice for landlords.