Posts with tag: right to rent checks

Forthcoming Changes to the PRS

Published On: August 19, 2015 at 10:56 am

Author:

Categories: Landlord News

Tags: ,,,,,

The private rental sector in England is experiencing great change at present and landlords must be aware of all of their responsibilities.

The following measures are due to be implemented in the lettings industry imminently. Ensure you understand your duties.

  1. Section 21 changes

Section 21 notices will be soon be changing. Here’s what you need to know:

  • Anti-retaliatory eviction measures – These will restrict a landlord’s ability to serve a valid section 21 notice if the tenant has complained about the condition of the rental property and if the local authority has already served an improvement or similar notice to the landlord.

Property lawyer, Tessa Shepperson, comments: “This measure should not affect landlords who respond promptly to tenants and who keep properties in good condition. Local authority EHOs [Environmental Health Officers] are mostly overworked and do not have enough staff to deal properly with their case load, so are not going to want to waste resources on anything other than clear cases of bad practice.”

  • A new section 21 notice – Shepperson explains: “I have seen a draft of this, but no doubt it will be amended before the final version is released. This is really good news for landlords, as most of the problems in the past with section 21 evictions have been about the correct drafting of the notice.”
  • Forthcoming Changes to the PRS

    Forthcoming Changes to the PRS

    Additional preconditions for serving a section 21 notice – Currently, these requirements are compliance with tenancy deposit rules and having a license on a licensable House in Multiple Occupation (HMO). The new conditions are: Installing smoke and carbon monoxide alarms, and serving the tenant a gas safety certificate, an Energy Performance Certificate (EPC) and a copy of the Department for Communities and Local Government’s How to Rent guide.

  • Time limits – Landlords will not be able to serve a section 21 notice within the first four months of a tenancy and will not be able to issue proceedings regarding a notice more than six months after it was served.

The new section 21 measures are set to be implemented on 1st October 2015, but the preconditions and time limits will only apply to new tenancies created after this date.

  1. New health and safety rules

Landlords are required to fit smoke and carbon monoxide alarms. Local fire and rescue services have been given free alarms to offer to landlords, so it is worthwhile speaking to your local service.

  1. Right to rent checks

The right to rent checks were included in the Immigration Act 2014 and have been piloted in the West Midlands over the last six months.

It is believed that they will be rolled out nationwide, “as fast as the Government can manage it.” Shepperson adds: “New measures are also being planned for a new immigration act, which will involve harsher penalties for landlords who fail to carry out the checks, including imprisonment, and also the power to evict tenants without getting a court order first.”

  1. HMO licensing

“The Government has indicated that it is going to revisit mandatory licensing and widen the definition so more properties will come within it,” states Shepperson. “So if you manage a property that is an HMO but not a licensable one, this may change in the not too distant future.”1

  1. Penalties for rogue landlords

The Government has suggested that it will crack down on rogue landlords by introducing new penalties. The best thing to do to avoid these penalties is to act within the law and follow our advice.

1 http://www.propertyindustryeye.com/important-changes-are-imminent-for-private-rented-sector/

Firm Launches App that Checks Immigration Status in 2 Seconds

Published On: August 6, 2015 at 10:47 am

Author:

Categories: Landlord News

Tags: ,,,

A lettings industry supplier is launching an app that checks the immigration status of tenants in just two seconds.

The app will be available on smartphones and tablets, and uses optical recognition software as it scans documentation.

The managing director of UKtenantdata, Tony Williams, says that the system will make checking immigration statuses as easy as sending a text.

Firm Launches App that Checks Immigration Status in 2 Seconds

Firm Launches App that Checks Immigration Status in 2 Seconds

The service will be free to agents that already use UKtenantdata’s tenant screening plan and as a stand-alone option for other agents.

The date of the nationwide roll out of the right to rent scheme is yet to be confirmed, as well as other details.

However, Williams states: “It is a fact. Letting agents and landlords are now unpaid immigration officers.

“We thought: If you have to do the job, we may as well make it an easy one.”

The app will be launched ahead of the national roll out and can read worldwide passports, EU ID cards, UK visas and UK drivers’ licenses, extracting the relevant information.

The data is then passed onto servers for validation and is then placed in the prospective tenant’s reference file.

The software will highlight any visas that are about to expire, allowing the agent time to update the system with new documents. If a hopeful tenant does not provide the new documentation, the app gives an option to report to border control.

If the agent is subject to an audit, the app confirms that checks have been made.

UKtenantdata has made a £250,000 investment in the optical recognition software.

Williams says that the app will initially be available on iOS, but will be developed for Android users and other platforms later this year.

He continues: “Current beta testing for the new system has exceeded our expectations and we believe letting specialists will be astounded at what it can do for their business.

“Back in 1998, the overseas landlord scheme came into play; no one really paid that much attention until the audit letters started to come in from HMRC. The result – fines all round!

“Non-compliance of Immigration Act 2014 won’t be any different and will, if ignored, potentially put agencies out of business, or worse, the principals in prison.”1 

Visit the firm’s website here: https://www.uktenantdata.com

1 http://www.propertyindustryeye.com/software-firm-introduces-new-app-that-will-check-migrant-status-in-two-seconds/

Law Firm Believes that Right to Rent Checks Could be Rolled Out This Autumn

Published On: July 16, 2015 at 3:45 pm

Author:

Categories: Landlord News

Tags: ,,,

A law firm has claimed that right to rent checks could be rolled out nationally from this autumn.

Right to rent requires a landlord or their letting agent to conduct immigration status checks on all prospective tenants.

Law Firm Believes that Right to Rent Checks Could be Rolled Out This Autumn

Law Firm Believes that Right to Rent Checks Could be Rolled Out This Autumn

Paragon Law, which uses Right2Rent as a trading name, states that the Home Office is bringing forward its analysis of the right to rent pilot that has been trialled in the West Midlands since December 2014.

Right2Rent was launched to aid landlords, agents and tenants with the complexities of immigration law.

In a post on its site, the law firm says: “At present, new rules for landlords to check the immigration status of their tenants are currently being piloted in the areas of Birmingham, Walsall, Sandwell, Dudley and Wolverhampton.

“Landlords within these areas are currently under a duty to undertake checks of the immigration status of their tenants.

“If they do not carry out checks, they can be fined up to £3,000 per tenant that is renting a property if they do not have a right to rent.”

It continues: “The pilot has been running from 1st December 2014 and landlords in the above areas have been getting to grips with the new system of rules, or delegating the responsibility for carrying out checks to agents to carry out checks on their behalf.

“The Government has not yet confirmed when the new rules will be rolled out nationwide.

“However, contrary to previous indications, the Home Office’s evaluation of the pilot period is being brought forward so that a report can be published earlier, with the indication being that the right to rent rules will be rolled out nationwide from autumn 2015.

“This would mean that the requirements for landlords to check the immigration status will take effect for all landlords, regardless of where they are in the UK.”

It adds: “If the roll out does go ahead as planned, landlords and letting agents across the country will need to put in place procedures to ensure that they do not get caught out by the new requirements.

“Given the large number of different documents that can prove a person’s permission to be in the UK, there are concerns over whether landlords or letting agents will have the expertise to carry out the checks properly.

“There are also concerns that landlords or letting agents will become subject to discrimination claims if they wrongly refuse to rent a property to tenants on immigration grounds.”1

However, Managing Director of the Association of Residential Letting Agents (ARLA), David Cox, says that no decisions have been made regarding a roll out.

1 http://www.propertyindustryeye.com/immigration-checks-could-be-rolled-out-from-this-autumn-claim/

 

Right to Rent Pilot Leads to Only One Fine

Published On: June 29, 2015 at 2:59 pm

Author:

Categories: Landlord News

Tags: ,,,

The right to rent immigration checks on tenants by letting agents and landlords implemented in the West Midlands since early December has lead to only one fine, revealed a report from the Daily Telegraph.

Right to Rent Pilot Leads to Only One Fine

Right to Rent Pilot Leads to Only One FineDaily Telegraph.

The newspaper says that the penalty was “issued to a landlord, who is appealing the near £2,000 sum, according to sources.”1 

The Telegraph, alongside many in the property industry, expect the right to rent checks to be rolled out nationwide this year, however, the Government is awaiting a full assessment of the pilot.

Last week, property consultancy Daniel Watney LLP said that the checks are “unworkable, ludicrous and disproportionate”.1

An immigration charity, the Joint Council for the Welfare of Immigrants, also revealed that it is working with other organisations to evaluate the pilot scheme when it ends formally this week.

The pilot has been in operation in Birmingham, Wolverhampton, Dudley, Sandwell and Walsall. Since its introduction, landlords and agents in these parts of the West Midlands have been required to check the immigration status of all new adult tenants, sub-tenants and lodgers entering new tenancies.

Sections 20-37 of the Immigration Act 2014 state that landlords or their agents must check the immigration status of all new adult tenants.

Failure to comply with the rules or provide accommodation to illegal immigrants could result in a fine of £1,000 per tenant and £80 per lodger. These penalties could increase to £3,000 and £500 respectively for repeated offences by landlords and agents.

1 https://www.lettingagenttoday.co.uk/breaking-news/2015/6/immigration-check-pilot-project-produces-…-just-one-fine

Important Information Regarding Landlord Licensing

Published On: June 4, 2015 at 10:24 am

Author:

Categories: Landlord News

Tags: ,,,

The Prime Minister recently announced that a national compulsory licensing scheme for private landlords would be introduced. There has now been some clarity on the matter.

The licenses will apply to Houses in Multiple Occupation (HMOs); however, the definition of this property type will change.

The Department for Communities and Local Government has provided clarification after a request for further information from the National Landlords Association (NLA).

Important Information Regarding Landlord Licensing

Important Information Regarding Landlord Licensing

The new scheme will be an extension of the existing mandatory HMO system, which concerns homes that are three or more storeys high and occupied by five individuals or more that make up two or more households.

The Government are yet to consult on the changes.

Some alterations could be that the three storeys rule is reduced to one or the amount of sharers could be lowered.

For landlords, this could cause problems. They may believe that they have a typically normal rental property, but could be forced to license under HMO definition changes.

Additionally, there may be situations where a property is a licensable HMO at some points but not others, depending on who lives there.

There is not yet information available on when the Government will consult on the matter.

Landlords and letting agents will be thankful for this clarification, but there are still worries.

Many rental properties are not currently covered by licensing schemes, as many local authorities do not operate them. If all of a sudden large amounts of properties require licenses, this will create a problem for councils, which are generally under-resourced.

Furthermore, concerns have been raised over the small print of the Queen’s Speech, which has now been published.

This indicates that the Government “will build on the national roll out of the landlord scheme established in the Immigration Act 2014 and make it easier to evict illegal migrants.”1

There is no answer to when this roll out will occur and no information is yet available on how effective the pilot right to rent checks were in the West Midlands.

Landlords and agents should be prepared for the responsibility of checking the immigration status of all prospective tenants.

It is also unclear how the Government will make it easier for landlords to evict illegal migrants. Lawyers warn that it could be a legal ordeal.

1 http://www.propertyindustryeye.com/camerons-landlord-licensing-scheme-important-clarification/

 

Will Right to Rent Checks Roll Out?

Published On: May 12, 2015 at 9:00 am

Author:

Categories: Landlord News

Tags: ,,

Will Right to Rent Checks Roll Out?

Will Right to Rent Checks Roll Out?

Now that we know the Conservatives have formed a majority government, those in the private rental sector are questioning whether right to rent checks will roll out across the country.

Pilot immigration checks were introduced in the West Midlands and oblige landlords and letting agents to conduct document checks on potential tenants to determine if they have the right to rent in the UK.

If an agent manages a property on behalf of a landlord, the agent is liable under the Immigration Act 2014.

The previous coalition government launched the regulations into the region last December, proposing a roll out across the country in 2015. It is thought that this could happen as soon as this summer.

The rules of the pilot in the West Midlands included landlords or agents checking the immigration status of hopeful tenants for all new tenancy agreements. Usually, this would just mean checking a tenant’s passport. They must then keep records of these checks for 12 months after the tenancy ends.

Agents and landlords can use an online form to request a check, receiving results within two working days.

The rules also apply to those taking in lodgers and tenants who sub-let their rental property. Failure to comply with the regulations can lead to a £3,000 fine.

The UK Association of Letting Agents (UKALA) compiled a checklist for those in the West Midlands, which would apply to landlords and agents around the country if the rules roll out.

The points are as follows:

  1. Check if your property is affected by using the Home Office online tool, found here: https://eforms.homeoffice.gov.uk/outreach/lcs-application.ofml.
  2. Read the Home Office Code of Practice, found here: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/376788/Code_of_Practice_on_illegal_immigrants_and_private_rented_accommodation__web_.pdf.
  3. Review your letting agent terms, conditions and contracts to ensure the landlord’s, tenant’s and agent’s responsibilities are clear.
  4. Review your working procedures so that you have enough time to conduct the checks and that records are kept and actions taken if necessary.
  5. Review the wording of tenancy agreements.
  6. Confirm responsibilities in writing between landlord and letting agent.
  7. Call the Home Office advice line on 0300 069 9799 for advice and information.