Abolishing Section 21!

ABOLISHING SECTION 21!

The Government’s levelling up Rental Reform white paper bill has included this in detail.

Section 21, often referred to as the ‘No Fault Eviction’, has been a security blanket for landlords. If you as a landlord wanted your property back, then a Section 21 will guarantee you your property back.

By abolishing the Section 21, this will no longer be the case. The tenant will be able to give 2 months’ notice at any time and the landlord must give a reason as to why they want the property back and that reason must be one of the grounds of a new updated Section 8 notice.

If I look at the occasions we have issued a section 21 over the last 30 odd years (and there really has not been that many), 95% of the time, it was because the tenants were in rent arrears, the landlord wanted to sell his property or the landlord wanted to move back in. The new Section 8 notice will have additional grounds to cover these reasons.

There are additional caveats to these. If you decide you want to sell the property and give the tenants notice, you must prove it was on a portal for sale and if your situation changes and you decide to put the property back up to rent, then there must be a gap of 3 months between the tenants.

If you are seeking possession because the tenant is in the minimum 2 months of arrears and they decide to pay a nominal amount that takes them under the 2-month threshold the day before court, then you will not regain the property (as it is now), however, if the tenant does this 3 times in 3 years, the court will give the property back.

Feeling deflated? Exhausted with all the changes? Then let us take care of your property needs. We promise to hold your hands throughout this process, giving you less stress and more free!

If yancy an informal chat any time, then email me sharon@moveon.biz with your phone number.

Sharon

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Rents Have Risen!

The past 18-24 months have seen a massive increase in rental prices throughout the Poole and Bournemouth area.

We are valuing rental stock, new and existing, with huge increases and properties are being successfully let at the new prices.

Prior to the last couple of years, rents had remained static, but when Covid came and we saw an increase of out-of-towners looking for properties with gardens, this caused a huge demand and saw the rental prices going up.

We are also seeing a lack of stock coming to the market, which again is increasing the rental prices.

As a tenant, this is not good news, as we now have an increase in energy prices, fuel prices and cost of living being added on.

Contrary to popular belief, many landlords are not making vast amounts of money on their rental properties and expect their investment to help them in their retirement years. Those landlords who are already retired, will also be impacted on the cost of living going up.

It is always a hard decision for landlords to increase rentals when they have had long-standing tenants, this is where Move On can help, by being the negotiator between all parties, in an amicable way.

At Move On, we make sure all our landlords can sleep at night, because this is what we do every day. We make sure we are always up to date with latest legislations, and we are often ahead of the deadline.

If you would like a free up to date rental appraisal or fresh eyes over your paperwork to ensure you are compliant, then please contact me 01202 711169 or email sharon@moveon.biz

Sharon

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Ground Rent Reform on Leasehold Flats

The Leasehold Reform (Ground Rent) Act 2022 received Royal Assent on 8^th February 2022 and formally entered the statute books.

The terms of the draft legislation are to tighten up the risk of unscrupulous landlords exploiting loopholes and finding new ways of getting more money out of tenants (leaseholders).

The government are looking to reduce grounds rents to be charged ‘peppercorn rents’ as they were historically. Anyone breaching the Act can see financial fines of up to £30,000.

Although this is great news for anyone buying a leasehold property, sadly, this will not include existing leases for the moment, but a second bill has been promised in the future to address the problems with current leases.

Timothy Douglas, head of policy and campaign at Propertymark, said: “This legislation is progress and whilst the unsuccessful amendment to remove ground rents from all existing leasehold properties would have strengthened the legislation, it is positive that ground rent charges will now be restricted on newly-created long leases of houses and flats to an annual rent of one peppercorn, a token of no financial value.’’

If you would like a free rental appraisal and fresh eyes over your paperwork, then please contact me 01202 711169 or email sharon@moveon.biz

Sharon

Tenant FAQs

Frequently Asked Questions for Tenants

Renting a property as a tenant, whether for the first time or not, can be confusing. The laws and legislations for tenants, landlords and agents are constantly changing, so it’s important to know your rights and responsibilities with each tenancy. In this section of frequently asked questions for tenants we hope to answer some of the most common questions we receive from applicants and tenants.

Got a question we didn’t cover? Let us know via email.

Applying for a Property

What are the requirements for tenants?

Income confirmed at 2.5x yearly rental amount (for example, if the asking rent on a property was £750PCM, tenants would have to confirm yearly income of £22,500 per annum (750.00 x 12 x 2.5) (OR can provide a homeowner guarantor with income 3x yearly rental amount)
No adverse credit (CCJs, IVAs, etc. (OR if minor adverse credit, can provide a homeowner guarantor with income 3x yearly rental amount)
Right to rent in the UK (find the UK Gov Right to Rent Guide here for more information)

Can I rent if I’m self-employed?

If you’re self-employed, our referencing company will be looking at your last year’s tax return information to prove your income, and this will need to be 2.5x the yearly rent as stated above. If you’ve been self-employed for less than a year, or fail to provide this information, you will most likely be asked to provide a homeowner guarantor for your application to be able to pass

Can I rent if I have adverse credit/debts?

No matter what your credit situation, it’s vital that you disclose any adverse credit BEFORE you apply for a rental property. You will usually be asked to disclose this when booking your viewing. Your credit profile WILL be checked when going through referencing. If you are untruthful and are found to have adverse credit that you did not disclose, this is usually an automatic 'Unacceptable' referencing result. Depending on the severity of your adverse credit (e.g. if you have an IVA or if you have satisfied any CCJS), you may be able to pass through referencing with or without a guarantor However, again it is vital you disclose this to us before continuing with an application so we can find the best option for you.

Can I pay rent upfront?

Paying rent upfront for the duration of a tenancy is certainly an option if there is another reason why you are not able to pay monthly This would have to be agreed between yourself, us as the agent, and the landlord before it is accepted For example, if your monthly rent was £750PCM and you wanted to pay upfront for a tenancy of 12 months, this would be a total of £9000 upfront. This does NOT include your deposit. Despite paying upfront, you will still be asked to go through a referencing process, which will include previous landlord references, income references and a credit/background check.

What does referencing involve?

Our referencing process is nothing to be worried about! It's used to ensure that applicants are able to afford the rent on a property and that they are a suitable tenant. Our referencing checks include use of banking data (which you can opt in or out of), credit and background checks, previous landlord references and income checks (employment status & salary).

What is a guarantor?

A guarantor is someone who agrees to be named on a tenancy agreement and is liable for the rent should a tenant be unable to pay.

What do guarantors have to do?

A guarantor would need to go through much of the same process as a tenant when going through an application. Guarantors would need to provide up-to-date photo I.D and proof of Right to Rent in the UK They would also need to complete a referencing process, proving their credit history, background check, previous landlord reference and employment/income. Guarantors need to prove their identity by bringing the original copy of their photo I.D into the office before keys can be handed over to a tenant Guarantors also need to read and sign the tenancy agreement before keys can be handed over

Can I rent if I have pets?

Each property that we rent, and each landlord, is different. This means that whether or not pets may be accepted is dependent on many things. It can depend on the lease the landlord has on the property, the size of the property, the type and breed of the pets in question, etc. When you find a property you're interested in, feel free to ask on your enquiry whether pets may be accepted. Some landlords may agree to have pets in the property but for a slightly higher rental amount, so it is always worth an ask!

How much is a deposit?

For all our rental properties, the deposit is calculated as 5 x the weekly rental amount. For example, if the rental amount was £750PCM, this would be calculated as 750.00 x 12 (yearly rent) divided by 52 (weekly rent) x 5 = deposit of £865.00

Why do I have to pay a deposit?

When you rent a property, your landlord and agent puts trust in you to keep the property in a good condition. A deposit is held to ensure that any damages (over and above fair wear and tear) can be corrected at the end of the tenancy.

What if I don’t have enough money for a deposit?

At Move On, we can offer a Nil Deposit Scheme that allows tenants to pay a lower 'check-in fee' rather than a full deposit to lower the costs of moving. For more information on this, please get in touch.

How quickly can I move in?

As a general rule, we like to allow at least two weeks between the signing of holding deposit documents (the first stage of an application) and a move in if a property is ready at that stage. This allows us and you plenty of time to complete the application and get everything ready. HOWEVER, this is dependent on the property itself and when it has been advertised as 'Available From' It may be the case that the property is not available until a specific future date, but your move in date will be agreed between yourself and our negotiators on your application.

Living in the Property

What happens with bills at a rental property? Are bills included?

Unless stated in the advert or at the initial stages of an application, bills are not included in the rental of a property However, usually bills are included in HMO rooms! The arrangement and payment of bills such as council tax, water, electric, gas and broadband are your responsibility as a tenant (unless otherwise stated in your rental agreement). You will be responsible for ensuring your bills are paid fully and on time. At Move On, we partner with a company called Just Move In. Just Move In provide free services for tenants and movers in that they will alert utilities providers (such as the council, etc.) that a new occupier has moved into the property, so you won't need to worry about this. Just Move In also offer a complimentary Home Setup Service which includes a setup call with yourself and they will assist you (for free!) to help set up your tariffs and bills. For more information on Just Move In and how it works, click here or email us on enquiries@moveon.biz with your questions.

Who's responsible for repairs at my rental property?

This depends on the type of repair. If damage was made by yourself, you will most likely be responsible for fixing the issue (but make sure you tell your letting agent and/or landlord if anything happens in the first instance before trying to repair anything yourself!) In general, the landlord is responsible for maintaining the property in a good state of repair. They will either take care of this directly, or do so via an agent like Move On. When you sign your tenancy agreement, make sure you know who to go to when there’s an issue throughout your tenancy.

Can I decorate or make changes to my rental property?

Please do not make any decorative or other changes to a property you are renting without express written permission from the landlord. You are welcome to ask this question of your landlord at any time, either to them directly, or through the managing agent such as Move On. If you do receive permission to make changes to a property, we recommend keeping a dated record of this (i.e. an email) in case there is a dispute at the end of the tenancy regarding the change made.

What if I want to end my tenancy?

If you are in a fixed term tenancy, you are liable for the rent on the property until the fixed term is over. If you are on a periodic (rolling) contract, your tenancy agreement will detail the steps you need to take and notice you need to give if you'd like to vacate the property.

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£30k FINE IF YOU DO NOT HAVE AN ELECTRICAL…

£30k FINE IF YOU DO NOT HAVE AN ELECTRICAL CERTIFICATE

LANDLORDS! If you are with an agent or self-managing, please, please, make sure you have an electrical certificate on your rental property. This became a legal requirement on the 31^st March 2021.

I was shocked to receive a call from a landlord whose property was being managed by another local agent (they will remain nameless). She was ringing me to ask if she could transfer over to me, as she was not happy with the service she was receiving. In these conversations, I also ask them to check their terms of business for giving notice and then go through details of their property. During our chat, she advised she had received an email that week (middle of April) to let her know an electrical certificate was due on the property, I nearly fell off my chair. Why was the agent notifying her mid-April when it should have been done by the end of March 2021? I then had to advise her that they had opened her up to a possible £30,000 fine by not having one in place. She was NOT aware of this!

Needless to say, we are taking over the management and ensuring she is legally compliant.

If you are not sure, (you should have received a copy of the certificate) please email/phone your agent today and make sure it is in place and if you are self-managing, please get it done IMMEDIATELY! If you have not been able to gain access because your tenant is shielding, then as long as you have a paper trail of this, you should be okay, but you do need to prove this if you get a knock on the door!

If you would like a friendly chat, then please email me on sharon@moveon.biz with your contact details and I will happily ring you back.

Remember a good agent is worth every penny when you know you can sleep peacefully at night.

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