Another week and another Newsround, let’s see what the team has seen in the news this week.
Warning to landlords looking to sell up
Lots of landlords are taking the decision to exit the private rented sector.
Often they will be looking to sell their property with vacant possession – which means evicting the tenants if they fail to leave voluntarily.
However, if you do this – take care. If you are looking to use section 21, this option may not be available for long, and so using solicitors is recommended. So you don’t miss the boat due to unintended errors.
However, do not confuse ‘eviction experts’ with proper solicitors’ firms.
‘Eviction experts’ who charge cheaper fees are usually cheaper because they’re uninsured, have not joined a redress scheme, and their staff are untrained and unqualified.
In some cases, this may not matter – but when things go wrong, you will have little redress. As discussed here.
Take a look at this post and this post which discuss the problems which can occur.
What is happening on pets and the Renters Rights Bill?
The bill as originally drafted included the right for landlords to require tenants to take out insurance. However the government then removed this, mainly because they were told that suitable insurance products did not exist.
The House of Lords has now voted for an amendment to allow landlords to take an additional three weeks rent as a deposit where a landlord accepts a pet. Which most people, apart from those in government, consider to be a sensible solution. But be warned, this may not survive the final stages of the bill.
As commented by solicitor David Smith here:
The existing five-week cap on deposits was never designed to account for the additional risks pets can introduce. Replacing the now-abandoned insurance requirement with a modest, refundable pet deposit strikes a fair compromise, offering landlords reassurance while still supporting responsible pet ownership. Sadly, this amendment while a pragmatic recognition of the realities of property management, is not supported by the government and, like others pushed through by the Lords is extremely unlikely to survive into the final Bill.
Should you consider renting to the Council?
With the Renters Rights Bill set to make life more difficult for self-managing landlords, many Local Authorities are looking to take advantage of this.
Most Local Authorities have a desperate need for properties to rehouse tenants who have been made homeless. Local Authorties have a statutory duty to rehouse many tenants but often do not have properties to put them in. Many are setting up schemes to rent properties from landlords for use in rehousing the homeless.
If you do not want to sell your property you may want to consider this. The Council will pay a guaranteed rent, and many have ‘landlord welcome’ payments for landlords when they join the scheme. For example,
- Dorset Council will pay landlords up to £4,250 under their ‘Key4Me’ scheme.
- Enfield Council offers a Landlord Incentive Scheme with a cash incentive of up to £6,000, depending on the property and tenancy length.
- Sutton Council provides a free renting service with a cash incentive of up to £3,600.
Some Councils will help you with the cost of renovation to bring your property up to standard. Once the property has been let you are also protected from Local Authority enforcement action and fines – if the organisation managing your property is the Local Authority itself.
So if you are tired of managing your property and worried about what the Renters Rights Bill will bring, this can be an option.
However check it out carefully before signing on the dotted line, and ideally take legal advice. Some Local Authority schemes are great but not all landlords have had a happy experience.
Snippets
Black people in England four times as likely to face homelessness, study finds
Lords cut re-letting ban from 12 to six months in narrow vote
Council’s poll reveals deep dislike of HMOs among voters
The life swap dream – or a marketing gimmick? The Italian towns selling houses for €1
Big student accommodation provider warns of impact of RRB
See also our Quick News Updates on Landlord Law
Newsround will be back again next week
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