UK Landlord Forum / Life

Can be seen here... https://www.gov.uk/government/publications/guide-to-the-renters-rights-bill/82ffc7fb-64b0-4af5-a72e-c24701a5f12a

End to Section 21, as expected, but a bunch of other measures... the most worrying to me is this Database... I prefer to not have my information held in the hands of Government, who I typically consider IT-inept. Pets are OK by me, Rent rises are not a problem (I do modest regular increases), the application of the Decent Homes Standard and 'Awaab's Law' could be a stick for slum Landlords, I hope... and shouldn't affect most Landlords with good properties, banning rental bidding is no issue either. How they intend to "strengthen local authority enforcement" when so many Councils are on the breadline is beyond me - unless Landlords are to pay a very nice amount to enter this Database and the funds are apportioned-out.

Only some initial thoughts.

QuoteThe Renters' Rights Bill will remove fixed-term assured tenancies...  Instead, all tenancies will be periodic, with tenants able to stay in their home until they decide to end the tenancy by giving 2 months' notice.

I can hear agents up and down the land wailing: "But what about our contract renewal fees?"

Upon reflection, I fear the introduction of these measures - intended to give Renters more security - will actually cause at least one Tenant to lose her home.

I may sound mercenary, but I have one Tenant in a older terrace in Sheffield who is somewhat feckless, odd, can't handle money, is a bit of recluse - almost a hermit... not a hoarder or anything like that. The people at UC have been paying me direct for about five years, so at least I'm getting the rent in from all you lovely people (before that was very hit and miss as her money went on... various things more important than rent). Every year when I have to do a GSC and I chaperone the Engineer from property to property, I nearly always seem to find that there's no credit on the meter, and even though she's given plenty of notice, she has to nip to the post office to get a top-up, and I think there'll be a problem with the roof, and the appliances will likely need refreshing in year or two. She's been there since 2014 and we have reached a cordial place where we, basically, leave each other be. The last time I visited was in the afternoon of some Saturday, I told her, in advance, I was coming and I knocked for a little while, then thought she wasn't in, but she eventually woke-up and came down looking like death-warmed-up!

I think a Section 21 would serve its final purpose here; I must check any deadlines. I am not a social Landlord and never signed-up to be one (she transitioned at some point), the Council can deal with the oddities of society. Unintended consequences I predict from this legislation include a number of "take-a-chance" rent increases, why not? There seems grey areas in the information here thus far. While "unfair" is a great term, I don't - yet - see how it's objectively measurable, that may come later. As I say, it doesn't really matter to me - but Landlords would not have their eye on the ball if it was ignored.

All the new legislation will do is make things even more difficult for tenants.

Decent landlords already have decent properties - they already DEMAND decent tenants via tight application requirements, strict referencing and higher rents which lead the market rates.

Those landlords can easily bypass those on benefits, with kids or with pets.

The new build-to-rent commercial entrants to the housing market wont be targeting benefit tenants with low priced semi-detached units - theirs will be high concentration flats with gyms and communal lounges targeting the high end of the singles/couples market.

It's those landlords who innocently act like social landlords by not keeping up with market rents who will struggle going forward.

Those who have a "laid back" approach to repairs and maintenance in exchange for lesser rents will become a massive target at their tenants whim. And with fresh demands to meet EPC grades many of those units will be offloaded - probably at the time landlords have the S21 route removed.

Lots of those below average properties will be snapped up by ex renting, first-time buyers willing to accept an EPC-F, leaking gutters and next doors barking dog.

Any landlord with an EPC-D property of decent standard should take this limited opportunity to evaluate existing tenants and change them if necessary - the strange ones, sometimes late paying ones and even remotely questionable ones need to go as soon as. Rents need to reach full market for similar properties as soon as.

As stated, the high-end landlords can sleep easy.

Anyone else needs to act fast and sell up or replace tenants and raise rents within the next 6 months.
 

I am a bit concerned about Awaab' s Law.  What is a landlord supposed to do about tenants who don' t heat, ventillate or use the fans provided?   I had one such couple who went to the council without even informing me. They were total slobs. I was given a couple of recommendations by the council woman. I upgraded a bathroom fan, gave them a dehumidifier and changed the heater ( a studio flat)  I also spent an afternoon cleaning the mould and left them with special products.

They did not use any of these. When the council called again they reported that it was down to the tenants lifestyle, and I was free to evict. I found out later that this happened before with them, and indeed again at the place they moved to after I got rid.

How would this play out under the new laws?

Quote from: heavykarma on September 13, 2024, 12:26:06 PMI am a bit concerned about Awaab' s Law.  What is a landlord supposed to do about tenants who don' t heat, ventillate or use the fans provided?

I recently had a tenant contact me to say his clothes were covered in mold inside his wardrobe and on investigating he found the wardrobe was covered in mold too.

I went down that day, and moved the wardrobe away from the external wall expecting to find it riddled with damp --- only to find the wall completely clean and dry BUT the back of the wardrobe covered in mold.

I explained to the Tenant that he was putting damp clothes in the wardrobe and that had caused the damage.

I did buy some expensive mold remover and helped him to clean the wardrobe ON CONDITION that he opened the windows to draw the moist air out and he purchased a dehumidifier for when he wanted to dry clothes fully indoors.

He was happy, I was happy. He still got a 5% rent increase this month which he was fine with.

Personally, I still maintain it's all about sourcing the "correct type" of tenant in the first place.

I do not disagree with this commentary... obviously a Tenant can change in their circumstances as time goes by. My feckless Tenant has pretty much always been that way... disorganised, uncommunicative, lacking any get-up-and-go, but I didn't take her on as a Tenant in receipt of Housing Allowance (and then UC) - that all happened during the very long-term tenancy.

Out of the properties I let out, I am somewhat embarrassed to take a tradesperson into this property, because of two things that are likely linked which amount to the state of the property. The first is the state of fittings - kitchen looking very tired, worn carpet, hard-to-close back door, very unkempt garden. The second is how she herself chooses to live - half-done bad painting, telly constantly on, clothes all over, no credit on her prepayment gas meter. It's hard to not objectively link those, but I often wonder what is the chicken and what is the egg.

All I know is that this tenancy and this property have, and will, cause me headaches... and the new measures will exacerbate those.

I also know...

QuoteThis property's energy rating is D. It has the potential to be D.

And if they decide to tighten that up as well, this property could get really expensive (I wonder how credible it would be that it might ever become - "Properties can be let if they have an energy rating from A to C."

This...

QuoteAnyone else needs to act fast and sell up or replace tenants and raise rents within the next 6 months.

...is where my mind is at for this single outlier property, but I predict many challenges. My desire to protect myself could result in an unintended consequence for this... vulnerable? (I don't know!) ...Tenant.

Hippogriff, you have mentioned this tenant before.  As with your other properties I know you go the extra mile to be a good landlord.  I guess you will feel conflicted to some extent, but there are limits.  She may well be eligible for some sheltered housing.  In my town for example there are alms houses that are specifically for vulnerable women.  I know of one woman living there who was very like your tenant by the sound of it.

You will need to turn the volume down on your conscience when she starts the waterworks.  I know I' m all bitter and twisted,  but I have found some " vulnerable"  people can be quite skilled at survival when it comes down to it. 

   

That is exactly it! Any time I have even mooted the notion of a tenancy-related conversation I am on the receiving-end of tears, snotty-blubbing and hyperventilating. That said, I do hardly ever hear from her nowadays and, as UC is paying me direct, there are no rent arrears, it's the house I'd want shot of, rather than the Tenant herself. She is bearable nowadays (it's the past where she herself was problematic each month). Over the years I guess we have reached an accommodation (sic).

I am going to have to steel myself. This property has not exactly been ignored (it had a brand new boiler installed a short while back) but I see the jobs becoming more numerous, getting bigger, more intrusive and more expensive. Selling this property to someone with the mettle for a proper full-on renovation, and moving my investment closer to home with another solid little terrace will have numerous benefits. It's in a condition where - for the buyer who is willing to take it on - there's an obvious profit to be made.

I would have let sleeping dogs lie if this new legislation was not heading our way. She has my approval to get smaller jobs done and to bill me as-and-when if they improve her life (and she is being very sensible with that blanket approval). The question I have to give some really serious consideration to is whether it all forces me to take some action due to a wariness of getting caught in some unspecified trap I can, as yet, only imagine. This 2025-due legislation could be only the first salvo.

Making contact with her on Friday the 13th would be so memorable I'm tempted to go for it, but I'll refrain and contemplate further.

I would be inclined to write a friendly letter/ text first, arranging a time to visit and stating that you will must discuss the serving of notice in the near future.

I was advised when I had to have very awkward conversations to speak slowly, not get sidetracked, keep to the topic.  If she gets upset I would offer a hankie,  fetch a glass of water or cup of tea. Don' t speak until she calms,  say you will be in touch about the  proposed dates when she has had a chance to digest the situation. Don' t hang around.
 
I know it must be hard, but you know it could actually turn out that you are doing her a favour.  Her life sounds pretty miserable, whether self- inflicted or not,  and it could be a chance to get out of this rut. I made the mistake a few times of ending up as social worker,  to my own detriment.
















my own detriment.   

QuoteAnyone else needs to act fast and sell up or replace tenants and raise rents within the next 6 months.

...is where my mind is at for this single outlier property, but I predict many challenges. My desire to protect myself could result in an unintended consequence for this... vulnerable? (I don't know!) ...Tenant.

Your potentially vulnerable tenant WILL become far more "vulnerable" in the eyes of the local authority and courts system as these new Laws develop - you need to act very fast IMHO

If you don't act this month you will be labelled "an evil landlord evicting a poor vulnerable tenant just before Christmas" - even though we all know it will likely be next May by the time your eviction process concludes.

I agree with the consensus here:

There will be lots of people in similar pickles to fair hippopotogriff.

Moreover for those who don't act soon it may become much more difficult to evict as unless you want to sell (which you genuinely sound like you might want to do HPG), or move in to said property, this new legislation means you will almost have to go through the courts (with valid grounds).

I can't help but feel the courts will be swamped (at least initially) and subject to huge delays. Not to mention the new ombudsman, to whom tenants can appeal and achieve a delayed fair rent increment that cannot be backdated (should they be so inclined). How well will the ombudsman be staffed, how long will decisions take and how will we pay for that? Maybe as a little fee when signing up to my second register (as I already have to register locally)?

I also note that whilst a tenant cannot be served notice within a year of a tenancy starting, and (if you want to sell or move in) then has a four month notice period, there wasn't any minimum occupancy time. Whilst I don't suspect most tenants will be moving after just two months this may impact certain areas and demographics and has the potential to significantly increase landlord fees and work. I mean why not rent a nice place as you start your new job in probation? If it doesn't work out just give your two month notice to work and for the rental?

Overall this will make me select my tenants extra carefully (like selecting my holiday flights to avoid Boeing aircraft) I'd take a longer void and wait for 'goldy tenant'. I will also now be making sure my rents are always 'fair market value'. In the past I had never increased the rent more than once a year and most rental increases came during tenant turnover. I can't help but think this will push rental prices up?

I wish there was still an element of 'fixed term' prior to moving onto a periodic tenancy.

Do many people think it might change much prior to coming in?

When will we see it kick in? April next year???

Quote from: hadventure on September 23, 2024, 12:53:10 PMIn the past I had never increased the rent more than once a year...

Wouldn't it be illegal if you did (unless something more frequent was expressly written into the AST)?

As it's currently drafted, every rental increase has to use the section 13 process. If a tenant appeals to a rent tribunal about the rent increase, any increase is deferred to the point at which the tribunal approve it. The appeal is free.

There's a massive incentive, therefore, for every rent increase to be referred by the tenant to a tribunal in every instance, with no downside for doing that. That's a massive workload created out of nothing - currently there are very few appeals. So I'd I suspect that that will change either while the bill passes or shortly afterwards (when the tribunal are drowning) so that either a tenant has to pay, or that they have to appear at the tribunal. There needs to be a reduction in the tenant's incentives.

There is an obvious incentive for the landlord to push the increase to the limit (and possibly a little beyond). There's no downside for a landlord who has the rent set to a lower level, it's not as if the increase is rejected, the rent is just set to a lower level.  Again, a changes is probably needed. If a rent increase is rejected by the tribunal the "sensible"/tenant friendls process is for the landlord to have to start the section 13 process again. That changes the landlord's incentives.

The "market rent" is driven by the demands made by landlords and other changes in the bill incentivise landlords to advertise as high a rent as possible. So the tribunal's job is going to be more difficult at the outset than when things settle down (and the tribunal has visibility of all the local rental rates). So the initial implementation is likely to be a perfect storm.

Anyone that's not already scared by the RRB should watch the David Smith presentation to letting agents. It's been posted on Propertytribes but might also be available elsewhere.

Exactly JPKeats - that was my thought.

As for increasing the rent I was trying to say it's uncommon for most to raise rent more frequently anyway.

Hopefully changes will be made before it's law / brought in. Given it's so predictable we shouldn't need to 'wait and see'.

DPT is this the video?

https://youtu.be/J7d-xMn-E-8?si=yvy538hhGDDPhyia

I watched the linked video. I wouldn't say that I'm - yet - scared by the RRB.

I'm concerned about any change - because, well, who likes change? The changes around Section 21 and rent increases are a non-issue for me, but I do not like the idea of registering on some paid-for Government-owned database and redress schemes. Tenants have my contact details along with my home address. I wonder what else will be gathered and presented. I don't especially want a Tenant to know how many properties I let out, or how many I happen to have mortgages on, or the payment amount of any mortgage, or who they're with. The uncertainty - and any concern - is all about a) how invasive this is, b) how much it will cost - flat fee / per property, one-time or annually and c) who can then see what is gathered. I was also concerned about the comments about new tenancy agreements, I'll look into that aspect more. The angle of local authority investigatory powers was the part that was scary.

I plan to openly pass on any costs to the Tenants in the form of a rent increase, I'm now done with absorbing costs of legislation.

If Landlords are canny, they could ride a spike pretty effectively as properties on the market will be priced higher.

Apart from having proof that their salary is sufficient to cover the rent I have no right -or desire -to pry into the financial circumstances of tenants. Why should they have access to this information about me?  I am sure our local authority will seize on any opportunity to make up for the ways they have mispent our taxes.   

I understand your worries about the new database and the government managing our info. It's unclear how the Decent Homes Standard and 'Awaab's Law' will impact good landlords, and I'm not sure how councils will enforce the rules with their limited budgets. With your tenant, it's tough to balance being understanding and keeping up with property standards, so a Section 21 notice might be needed if things don't improve. Overall, the new rules could make it confusing to know what "unfair" really means, so we should be careful.

On the positive side, I think allowing pets in rental properties is a great idea, and regular modest rent increases are fair. The enforcement of the Decent Homes Standard and Awaab's Law could indeed help hold slum landlords accountable, which benefits tenants but the challenge of strengthening local authority enforcement is significant, especially with many councils facing budget constraints. If landlords have to pay to access the database, it raises questions about how those funds would be used and whether it would really lead to better enforcement.

Overall, it's essential that these measures strike a balance between protecting tenants and not overburdening responsible landlords

The legislation as it stands says that an organisation to create and maintain landlord data has to exist and that the information stored by it and made available to the public (and to government agencies) should be defined. That would mean it's likely to be some distance away from actually coming into existence.

It's hard to imagine what could be made available to the public that's beyond the level of the information available at the land registry or companies house - someone's name and address. Anything else is open to abuse without offering much additional benefit or would be impossible to keep up to date.

No one's mortgage or other financial data is going to be available.

The rent increase thing feels challenging, but will very much depend on what kind of people your Tenants are.

You can no longer simply agree a rent increase - this will be history, in the future you have to serve a Section 13. I've never had to do this even once in my time, and I've never forced a rent increase anywhere... people are generally understanding and accept the modest increase with a small chat about it. That flexibility is gone.

So, Landlords will have to put the rent increase on the Section 13. Only then can they agree an increase - possibly a lower level. If the Tenant isn't happy with any increase at all then they can send it for appeal - at no cost to them - where others will decide on the level - can be the same as what's in the Section 13, or lower, but not higher.

The rent increase does not come into effect until after the Tribunal comes back. No-one seems aware if they can handle the workload or if there is an notion of an SLA, but expect a flurry of cost-free appeals going in, an understaffed and overworked Tribunal, and months and months before any decision comes back.

Pushing you into the following year very easily, if your Tenants are not of the correct calibre. In the video it was touted as "rent suppression" as opposed to "rent control".

Again, it doesn't worry me because I've always stuck with regular and modest increases - that will become even more important in the future, and I'm almost 100% positive Tenants would prefer an email, or a quick phone call, rather than a formal Section 13.

So, as a Landlord - you serve a Section 13 saying you want a £200 per month increase in rent (high-rolling it as that's how you've been trained by the new system).

The Tenant has a heart-attack.

When they eventually return from hospital you explain that you intended to contact them straight after saying you wanted £200 but you're actually willing to accept £20 per month.

They agree in a heartbeat (sic) with a psychologically-loaded feeling of relief and positive emotion all over.

You get the rent increase you wanted from the outset, but the one you couldn't be public with.

What a giant waste of time.

Quote from: jpkeates on September 25, 2024, 11:30:13 AM...the information stored by it and made available to the public (and to government agencies) should be defined.

Quote from: jpkeates on September 25, 2024, 11:30:13 AMNo one's mortgage or other financial data is going to be available.

Maybe in this dystopia we could imagine some overreach whereby Government is able to justify how it would be useful for a Tenant to be fully aware if their home has a mortgage attached to it.

It's usually possible to tell if a property has a mortgage and who with by checking the deeds available for £3 online. Obviously you have to know that to look.

Quite, but the kinds of Tenants who would balk at paying that £3 will be the same ones most interested in this free-to-access database, I'm sure.

As far as I can tell, if you and your tenant are in agreement about a rental increase, you could informally agree a new rent and start a new tenancy agreement with that rent without using a s13 notice. There won't be any fixed terms in tenancies, so there doesn't appear to be a downside to that (other than a possible faff with the How to Rent guide).

I might have missed something, but otherwise, that seems realistic.

I've not contemplated any Deposit in that scenario yet. I guess that all changes too... I wonder now if they're going to force us all to unprotect and reprotect just for the sake of it... even if they're SPTs today.