Are some tenants using Covid-19 as an excuse not to pay their rent?

Some Landlords are arguing that their tenants (knowing that they cannot be evicted for some time) are stopping their rental payments and waiting the 'long wait' to be evicted.

Clearly this is a real concern for landlords who are themselves struggling to meet repayments on their mortgages; some landlords are even finding that by applying and obtaining a 'rent repayment holiday' it is adversely effecting their abilities to re-mortgage.

This is something that ARLA have been raising with the ministry of housing.

In Wales a tenant can apply for an interest free loan to pay rent; but in England, it is right to say that some Landlords are facing financial ruin.  With all the latest regulations being placed upon them, resulting in fines and Court orders, it is easy to see why some landlords are selling their rental properties rather than investing in the property market.

The country needs more housing, the County needs more private sector housing to help with the homelessness situation; so this is something that the minister for housing should be addressing 'how to help landlord during the Covid-19 pandemic'.

Although the Courts are now prioritising Court hearings where the tenant is more than 9 months in arrears, there must be more than can be done.

This is meant to be a generic blog and not specific, the law changes rapidly and with Covid-19 it is a fluid situation; in order to rely upon anything contained in this blog you should  speak to our team of solicitors who will happily provide more up to date and specific advice on your particular matter and any changes involved.

Electrical Wiring Safety Standards Regulations 2020 (England)

what you need to know before you hand over those keys......

A Landlord from England has been ordered to repay £260,000.00 to their tenants because they were living in an overcrowded and unsuitable accommodation.

Some of the rooms did not have heating and were not properly ventilated.

There were electrical issues at the property and some tenants were sleeping on bunk beds in a room too small.

The new Electrical Safety Standards came into force in April 2020 (18th edition of the wiring & electrical installations Regulations (Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020).  This places a duty on landlords to ensure that the electrics in the rental property are inspected by an accredited electrical engineer and the report should be served on the Tenants within 28 days of receipt.  If you fail to obtain this report, then there is a fine of up to £30,000.00.  If the Landlord does not deal with the electrics, then the Local Authority can remedy any defects and then charge the landlord.

In this particular case, the Landlord was found guilty of a number of important regulatory breaches at the property and this resulted in a rent repayment order being awarded.

If you are a Landlord worried about your obligations then please call our Newbold Team who will happily provide you with free initial advice, just to put your mind at rest in nothing else.  The amount of fines that you could be liable for would cause most Landlords financial hardship, or may even result in financial ruin.

If you are a tenant who feels your Landlord is breaching any regulations then please speak to our tenant team; we may be able to handle the matter on a NO WIN NO fee arrangement and our disrepair team handlers will help you through the process.  You may have a claim under S11 of the Landlord & Tenant Act 1985 which states that the structure of the property must be in good working order, including essential services (gas/heating/water and not least electrical wiring).

If you are a Landlord, then if you have already been served with a improvement notice, then please ring our Landlord team who will be able to advise you if you have breached the regulations, how to remedy the issues and if you have been fined, how to appeal the fine.

CORONA VIRUS AND TENANTS

Many of us are seeing images of a perfect lock down scenario; celebrities playing with their children in perfect gardens, or baking in their contemporary expensive kitchens, but this is sadly not the norm.

Most tenants are living in cramp, overcrowded and unsuitable accommodation; they do not have gardens, they do not have the space to enjoy cooking.  3.6 million tenants are living in overcrowding situations and 1.4 million in disrepair.  a quarter of houses in the West Midlands were found unfit for human habitation, yet the Midlands and the North are in the new UK Corona Virus epicentre.

Many Local Authorities are continuing to ignore their responsibilities as Landlords and allowing this to continue.  It does not stop due to a lock down.

If you are a tenant, you must continue to pay rent, but there is financial and legal help and support available to you; Landlords should offer you solutions during this pandemic.  They should be working with you to resolve your rental problems.  They cannot apply for an eviction order until this pandemic is over, or at least, under control.

If you live in cramped, unsuitable, Local Authority Properties, then you do not have to continue to put up with it, you deserve a safe and healthy place to live.

If you do not have a housing lawyer who can help tenants with advice and support, then please email housing@newboldsolicitors.com and we may be able to take on your matter under a NO WIN NO FEE policy, offering free telephone advice to give you some guidance and support during this most challenging time.

Take the decision to stop living like this and take action.

The Government has brought in emergency legislation for all Landlords and Tenants in England and Wales.

The changes include an extension to the notice period that Landlords must provide to Tenants, an extension to the pre-action protocol rules that a Landlord must adhere to before he/she serves a notice for rent arrears, and additional financial support for both Landlords (with mortgage holidays) and Tenants (with additional benefit allowances).

Tenants must continue to pay their rent during the corona pandemic, but Landlords are asked to be flexible during this time.  If a Tenant can evidence that they are waiting for a reply from the benefits agency on an application for financial support, then it is unlikely that the Court will grant the Landlord a possession order.

There is currently a moratorium for possession hearings, and once this challenging time has passed, it is likely there will  be a delay with eviction claims being placed before a Court.

Due to the change in legislation and this fast moving and fluid situation, it is suggested that you contact an experienced housing, landlord and Tenant

Some of you may have read the article in the Mirror regarding a landlord from Bridgend in Wales who was left almost in tears because a tenant had trashed his immaculate home. If you haven't had read it yet, you can here.

This is a very sad, but not unusual story.  We have heard of many landlords suffering similar issues. For example, one tenant in Cardiff took off all the internal doors for firewood, and took up the wooden floor for the same reason. Another landlord in London had their immaculate home trashed because the tenants used it to grow cannabis.

How can landlords prevent tentants ruining their homes?

The first thing a landlord should do, is obtain references from previous landlords, and if possible employers. Obtain bank statements to check that the tenant has the means of paying the rent.  If a tenant asks to pay 6 months upfront, it can be tempting, but sometimes it is because they want to be 'left alone'.

You should always ask "why"?

After confirming the tenants' means to pay, make sure your agent is chosen well. Ask yourself; are they agents who will take the commission, but fail to keep you up to date on rental payments, or fail to attend and complete inspections.

If you are holding a license and you may not have an agent representing you, then ensure that you attend the property for inspections, that you keep an eye on the rental income and when the tenant falls into arrears, you take immediate steps (this could be an initial telephone call, or a letter, establishing the reason for the arrears). Just please do not let the situation deteriorate.

If you find there are any issues, then attend a housing Solicitor (Landlord and Tenant Lawyer) and they will explain what steps you should take to ensure you are not dealing with nightmare tenants for more than one day more than you need too.

We always believe that most 'nightmare tenants' can be avoided.  It is all to do with preparing the tenancy, managing the property and then getting the right advice at the outset.  The longer you allow the problem to go on for, the bigger the issue will be.  If you require advice, then please ring our team, they will  be happy to direct you with initial FREE advice.