Commentary RF

Can I evict using a section 21 notice if I have used a license agreement for my rented HMO property?

If you have a licensor and a licensee agreement, then you cannot evict using a section 21 notice, those are only useful for short hold tenants. But, don’t think that just because you both signed a piece of paper that this is a licensor and a licensee agreement, it might not be, and you might be able to get away with the eviction. If you aren’t sure what to do and the tenant won’t leave then you can ask someone who specializes in this like this.

Key Takeaways:

You can utilize a section 21 notice to evict shorthold tenants only, but not for licenses.
As a landlord, you are not allowed to make a license by having the occupiers sign a document that says “license agreement” at the top.
Be aware that if you attempt to issue a sham license, you are subject to legal prosecution.

“However, your tenants probably have an assured short hold tenancy as this is the type of letting which will normally be created when someone rents a property.”

Renters to get three-year tenancy agreements under Government plans

The rental sector is changing for the better because it benefits both the landlord and the tenant as well. When you have a short term lease, it doesn’t give the tenant the opportunity to lay roots down and feel that their house in their home. This can lead to insecurity within the entire community. When people rent for a longer period of time, they are more willing to take good care and have concern over the community that they live in.

Key Takeaways:

The Government is proposing allowing people who rent in the private sector to opt for three-year tenancy terms to give them more stability and enable them to put down roots.
Both landlords and tenants would have a six-month break clause, enabling either party to back out of the agreement.
The move could lead to small-scale landlords, such as those with only one property, exiting the buy-to-let sector.

“Tenants could be given minimum three-year letting agreements to increase security for those who rent a home.”

Shock results as 30 lettings agencies probed by undercover teams

Many different rentals are being shown to people even though they have a mold problem. it’s not uncommon for mold to be present in the flats in the area, but the people showing the flat have an obligation to address it or fix the problem, most can’t even answer the questions that tenants had. We had a few people go undercover as someone showing the place and discovered that none of the letting agencies knew answers to any questions regarding dampness.

Key Takeaways:

Which? sent undercover researchers on 30 property viewings across England and Scotland to assess the conditions of properties.
The report claims that letting agents are showing potential tenants around mouldy properties and not informing them about important safety details.
None of the agents showing the properties were able to commit to fixing the problem, with little knowledge about what would be done about it.

“On eight of the 30 undercover visits, agents received a ‘poor’ rating for their explanation of holding deposits.”

Shock results as 30 lettings agencies probed by undercover teams

Researches in the UK went undercover to check out some rental properties to see how they were treating prospective tenants and how well the process was going. When the researchers were inside the property with the agents, they found that questions about the condition of the property weren’t answered directly or they were just brushed aside, because they weren’t experts in that particular field. When smoke alarms were asked about, they were okay answering that, and disclosing all the fees that went with renting out a piece of property.

Key Takeaways:

Some of the properties visited had problems with damp. None of the agents showing the properties were able to satisfactorily commit to fixing the problem.
Many of the viewings were rated ‘poor’ for answers to questions on property maintenance and repairs.
Agents brushed off questions about maintenance, stating that work would be carried out before the tenant moved in, or would need to be dealt with by the landlord.

“A consumer group which conducted 30 undercover viewings in five different UK cities claims letting agents are showing potential tenants around mouldy properties and not informing them about important safety details.”

Almost one in five landlords say they are in the business for the long term

In the face of recent regulatory and tax changes, just under 20% of landlords say they expect to remain a landlord indefinitely. According to research, the level is similar among those owning at least four properties, as well as across the 35-54 and 55+ age ranges. Just 6% of all landlords anticipate staying in for only one or two more years. One expert says there have been “ripples of concern” about a large exodus of landlords due to the changes introduced, but that view is an exaggeration.

Key Takeaways:

About a quarter of landlords from the commuter belt in the East of England said they planned to remain landlords.
Younger landlords were somewhat less inclined to stay in long term than older ones.
Roughly a fifth of portfolio landlords have at least 16 years of experience in that sector.

“Almost one in five landlords intend to remain in the buy to let market in the UK indefinitely, with the same number of portfolio landlords having a similar outlook.”

Renters to get three-year tenancy agreements under Government plans

A new law is giving those who choose to rent a nice way to take root in the community by extending a lease to 3 years. This gives families much more stability when it comes to settling and being rooted in their community rather then having to be forced out after only a year when children have already made friends and made their house a true home. There is a 6 month back out clause built in for special circumstances. This option will be available after August 26.

Key Takeaways:

Both landlords and tenants would have a six-month break clause, enabling either party to back out of the agreement.
The move could lead to small-scale landlords, such as those with only one property, exiting the buy-to-let sector.
It is likely there will be exceptions made for certain types of tenants, such as students.

“The Government is proposing allowing people who rent in the private sector to opt for three-year tenancy terms to give them more stability and enable them to put down roots.”

The busy world of HM Land Registry

If you were to walk through the doors years ago you would have been met with a bunch of plans that outlined the entire city as well as some farm territory. There was a children’s book author that managed to illustrate an entire city with a lot of little critters within it. Some were working, some were roaming, either way, they all had plans. There is a lot of farm land in England and in Wales, nearly 85 percent of it is farmland as a matter of fact.

Key Takeaways:

Knowing who owns what and if the ownership is secure breeds confidence in property.
Only 9% of England and Wales is built on, and most of the land is farmland.
The HM land registry is responsible for most of the economic activity regarding land running smoothly.

“Commercial property (offices, factories, shops etc.) is worth around £900 billion in the UK as a whole. Last calendar year, we dealt with around 115,000 non-residential transactions.”

More than half of UK landlords are optimistic about outlook for buy to let – PropertyWire

A lot of people aren’t sure of a landlord in the current political and economic climate because this is something that often changes, and is difficult to predict. The buy to let market is looked upon by landlords as a positive thing in the current climate, and only a small percentage of them see as something negative. The rest fall somewhere in between. Some landlords aren’t sure of the future and don’t do well in the face of change so it’s hard to decide if something that is good now will remain good.

Key Takeaways:

While some polling suggests that about half of the UK’s landlords have positive feelings about the current buy to let market, about 16% feel unenthusiastic about it.
Moreover, about a third of those landlords polled feel entirely indifferent about the state of the buy to let market and being a landlord in the current economy.
The polling revealed specific factors that went into creating the !andlord’s various viewpoints, such as upkeep costs.

“Over half of landlords in the UK fell optimistic about the current buy to let sector despite a raft of regulatory and tax changes which have had an impact on their business, a new survey has found.”

What are the penalties for landlords who break the law?

Recent laws have demanded that landlords ensure that buildings are safe. Most landlords have adopted the standards, absorbed the higher costs have complying with the standards and implemented changes to ensure the safety of tenants. However, some landlords continue to break the law. England has decided to increase the financial penalty of landlords who don’t comply with regulations, potentially ban them from letting, and share their information and negative reviews across a database. The most common offenses are violating the housing act of 2004, letting to people who aren’t supposed to be in the UK, failure to protect a deposit, health and safety violations, failing to apply for a license, and failing to register with the local council. It is important for a landlord to find a firm that is part of a self-regulating industry organization such as ARLA Propertymark, UKALA or RICS. At Your Move can help landlords comply with the law and are apart of ARLA.

Key Takeaways:

Legally letting a property requires understanding over 150 different laws aimed at keeping tenants safe
For England, monetary fines are now not the only punishment for landlords that fail to adhere to the law
Landlords must apply and upkeep a license to officially operate rental properties

“Good landlords – and that’s the vast majority – have taken on board all the legislation and absorbed the ever-increasing cost of letting a property legally.”

Breaking down the “financial freedom” dream

In order to have financial independence, you have to figure out what it means. Once you figure out what you need, break down the end result into small goals that are easy to make. Conquer each small goal and you will reach your big goal of being financially independent. The first step is to figure out how much you are bringing home each day after-tax. Every time you save that much, that will give you one full day of retirement. You can save your money towards retirement and even invest in getting passive income to help your goals.

Key Takeaways:

Calculate how much you earn per day, subtracting taxes and work-related expenses.
If you’d prefer a four-day work week, you need to make up the lost income through investments or reduced spending.
Breaking down the concept of financial freedom into manageable chunks makes it more accessible.

“That’s why it’s worth focusing on passive income, and worth focusing on how you spend your money, even if you’re only working with small amounts to start with.”