Landlords believe deposit schemes are tipped in favour of tenants

Landlords believe deposit schemes are designed to favour tenants, according to a new survey released today by digital inventory platform, Imfuna.

Just over half (54 percent) said that they thought current schemes favoured tenants, and 35 percent claimed that neither party benefitted from the schemes.

Letting agents also largely mirrored that sentiment. 20 per cent said that the schemes, in their current format at least, favoured landlords and 52 percent said the balance has been tipped in favour of tenants. A further 22 percent felt that the schemes didn’t benefit either landlord or tenant.

Click here to read the full story Landlords believe deposit schemes are tipped in favour of tenants

Deposit protection law changes

As changes to tenancy deposit protection laws come into force, Shelter is calling on landlords to ensure they are protecting their tenants’ deposits, to protect themselves from penalties.

From Friday 6 April 2012, landlords will have up to 30 days from the start of a tenancy to place their tenant’s deposit in one of the three official protection schemes, up from the previous 14 days.

The fine for failing to do this will now be up to a judge to decide, rather than a fixed penalty, and will range from one to three times the value of the deposit, which will be awarded to the tenant.

Read the full story by clicking here Deposit protection law changes

Tenants: how to get your deposit back

An interesting article by Neil Faulkner which lists the most common reasons why a tenant may not get either some or all of their deposit back - and importantly how to avoid the situation arising in the first place.

Neil's article covers cleaning, wear and tear, the inventory, checking out, deposits and communication.

Well worth a read whether you're a tenant or a landlord.

Click here to read the full article Tenants: how to get your deposit back

Fears Supreme Court ruling will set 'precedent' for tenant evictions

Landlords in the private rented sector face the possibility of being unable to evict tenants who fail to pay their rent or commit anti-social behaviour as a result of a ruling by the Supreme Court, the Residential Landlords Association (RLA) has warned.

Having begun legal proceedings to evict her, the council was prevented from doing so after Ms Powell lodged an appeal claiming that the move breached her right under Article 8 of the European Convention of Human Rights to have respect for a person’s home.

Read the full story here Fears Supreme Court ruling will set 'precedent' for tenant evictions

Buy-to-let landlords are sitting on a 'tax timebomb’

Never mind how Budget 2012 might affect a relatively small number of millionaires using offshore companies to avoid Stamp Duty. Here and now, accountants say thousands of buy-to-let landlords are sitting on a “tax timebomb”.

Many will have to pay two years’ tax liabilities during the next six months, creating a cashflow crisis after years of lightly-taxed income and gains. The explanation of how this works is complex – but ignorance is no defence when HM Revenue & Customs (HMRC) demands its share.

Click here to read the full story Buy-to-let landlords are sitting on a 'tax timebomb’

Click here if you're looking for an Accountant

Click here for The Landlord Resource Centre

Seven benefits of using a really good letting agent

Seven reasons why landlords should consider using a good letting agent from the online Landlord-Law Blog website.

Click here to read the full article Seven benefits of using a really good letting agent

Click here to find a Letting Agent ot Estate Agent

Landlord sentenced for failing to arrange annual gas safety check

A landlord in Lancaster has been sentenced for putting the lives of a family at risk by failing to arrange an annual gas safety check.

Carole McMillan, 57, was prosecuted by the Health and Safety Executive (HSE) after she failed to arrange for a registered engineer to visit a property on Birkdale Close in Scalehill.

Lancaster Magistrates' Court heard McMillan had been renting the house out to a couple and their two young children, aged five years and nine months old. An investigation was launched on 27 April 2010 when it was discovered that gas appliances at the house had not been checked since 6 February 2009.

Click here to read the full story Landlord sentenced for failing to arrange annual gas safety check

For a list of plumbers throughout the country who carry out Gas Safety Checks please click here The NetRent Business Directory

Important changes to tenancy deposit rules

The Government has revised the penalty rules which apply if you fail to comply with the statutory requirements when you take a deposit from a tenant. The new rules are to come into force on 6 April 2012. They will affect deposits which you are already holding if you have not already complied with the existing requirements. They apply to all new deposits as well.

The new rules mean:

1.       Deposits under assured shorthold tenancies must be protected within 30 days of receipt (14 days at present).

2.       The tenant/s (and anyone else paying towards the deposit e.g. a parent) must be given the prescribed information within 30 days of you receiving the deposit. N.B. This is not just a copy of the official receipt that you will receive from the scheme administrator – see below.  You must give the tenant/s (and anyone else paying towards the deposit) a copy of the relevant schemes tenants leaflet as well.

3.       Failure to comply within the new 30 day time limit means that you could have to pay a penalty of between one and three times the amount of the deposit. There is no provision allowing any extension of time.

4.       If you fail to protect the deposit within the 30 day time limit once it applies you cannot use a Section 21 notice to evict the tenant so long as you are holding the deposit, unless there has been a Court Order dealing with the penalty or the deposit has been returned. You can get your Section 21 rights back by returning the deposit in full. Alternatively, you can return it with deductions so long as the tenant/s agree these deductions.

5.       Assuming that you have protected the deposit within 30 days but have not given the prescribed information within the 30 days allowed, you cannot serve a Section 21 notice to end the tenancy until the prescribed information has been given.

6.       Even if you get your Section 21 rights back as outlined above, you are still liable to pay a penalty if one is claimed.

7.       Penalties for non-compliance can now be claimed even once tenancies have ended so that former tenants can claim up to six years and a claim can be made even if the deposit has been refunded (unless the tenancy has already come to an end no later than the start date in April 2012).

8.       The 30 day period starts on the day of receipt of the deposit. This day is included in working out the 30 day period (even if the tenancy starts later). The day the scheme notifies you that the protection is effective is the key date and, in the case of prescribed information, it is the date that it has actually given to the tenant/s (and any third party paying towards the deposit) which is crucial.

9.       Cleared funds may be needed in order to effectively protect the deposit whether to pay over the deposit itself or any fee required to protect it (depending on which scheme you use) so allow long enough for this and do not leave things to the last minute.

10.   The new rules will apply to deposits which you are already holding when they come into force. You will be allowed 30 day period of grace from the start date to protect these deposits and /or give the prescribed information if you have not done so already. Failure to comply will mean that the new penalty/Section 21 rules will apply in the same way as they do to new deposits.

With acknowledgement and thanks to the Residential Landlords Association and Flintshire County Council

Trend of long-distance landlords set to increase

A new survey of landlords shows that long-distance lettings dominate parts of the Private Rented Sector (PRS) in the UK.

Research from the Association of Residential Letting Agents (ARLA) suggests that in Central London, there are almost twice as many properties in the PRS than landlords who reside in the capital, with a ration of 1:1.98 (landlords to properties in the PRS). Long-distance landlords are also prevalent in Scotland where ARLA's data shows a ration of 1:1.74 (resident landlords to properties in the PRS).

In contrast, the South East and South West of England showed the least prevalence of long-distance landlords, with the ratio of resident landlords to properties in the PRS standing at 1:1.13 (South East) and 1:1.18 (South West).

Click here to read the whole article Trend of long-distance landlords set to increase

Landlord confusion exposing electrical dangers

Confusion between landlords and tenants over safety is exposing electrical dangers, according to research from the Electrical Safety Council (ESC).

The Council identified misunderstandings between landlords and tenants over responsibilities for safety are exposing millions of people to life-threatening electrical dangers.

Click here to read the full article Landlord confusion exposing electrical dangers