Client Money Protection (CMP) becomes a legal requirement for all letting agents in the private rented sector in England from Monday 1^st April 2019 (TODAY!).

CMP protects Landlords and tenants money should an agent go bust or misuse rent, deposits or other funds an agent holds. Every year unprotected Landlords and tenants loose money when funds are misappropriated. The best way to ensure it is kept safe is CMP.

At M&M we can proudly confirm that we are an ARLA Propertymark Protected Agent. This means we are members of the Propertymark CMP, we hold our Landlords and Tenants money in a separate account and have this account independently inspected on an annual basis, therefore our Landlords and tenants have nothing to worry about and have the peace of mind that their money is always protected.

It might surprise you to know that there are over 150 pieces of legislation that currently govern the lettings industry and with new legislation being introduced all the time being a self-managed landlord is becoming harder and harder. Following James Brokenshires, Secretary of State for Housing’s, announcement that all UK Landlords will have to be a member of a redress scheme many Landlords will want to rethink this decision.

Many landlords think property management is simply collecting the rent and sorting out maintenance on the property, but it is so much more far reaching than this. It only takes one gap in knowledge to land you in trouble.

We understand the desire to ensure your investment is as profitable as possible however one fine for non-compliance would change that profitability. So, can you afford not to get up to speed and understand all the legislation? Have you got the time to do so?

Over the past 2 years there have been several big changes in legislation for the lettings industry that have changed the way in which we manage properties and tenants. Scarily in some cases unless you are looking for them you would not always know that changes have taken place. An example of this would be the government’s ‘How to Rent’ guide. Your tenant must have seen the latest version of this guide and you need to have proof that they have been given it. ‘Helpfully’ the government changes the guide on a regular basis but does not tell you it has done so, it is up to you to check. But when should you check? Everyday? Every week? Every Month? At the time of writing, the current version is dated July 2018. It’s well worth checking that your tenants have been issued with the most recent version.

Other examples of legislation you should be aware of include;

GDPR

General Data Protection Regulations came into force on 25^th May 2018. It is there to protect us all from data misuse. Its relevant to all companies that process personal data on behalf of individuals (i.e. names, addresses, email addresses) As a landlord you must consider how you deal with your tenants information, what you do with it and how you store it – you also need to consider who you pass it on to (contractors) and why – do you have your tenants permission to do so?

MEES

From April 2018 the Minimum Energy Efficiency Standards came into effect. This means that all private rented sector homes must have a minimum Energy Performance certificate rating of E, or renting will be prohibited. Failure to comply could leave you with a fine of up to £5,000!

Right to Rent Legislation

As of 1st February 2016 landlords must check that a tenant can legally rent residential property in England. Under Section 22 of the Immigration Act 2014 a Landlord should not authorise an adult to occupy property as their only or main home under a residential tenancy agreement unless the adult is a British citizen, or EEA or Swiss National, or has a ‘right to rent’ in the UK.  How much do you know about your tenants? Are you aware of any changes to occupation? Under the Immigration Act Landlords have to regularly check all of their tenants have the right to rent in the UK. Failure to do so could lead to large fines and even imprisonment.

Smoke Alarms

From the 1^st October 2015 it is a legal requirement that a working smoke alarm be present at every storey where there is at least 1 useable room and a carbon monoxide alarm in every room where solid fuel is used. Each Alarm must be in working order on the day a tenancy begins and recorded.

The Homes (Fitness for Human Habitation) Act

The latest piece of legislation..read our last blog to find out more; click here. 

These are just a few of the issues you will need to deal with on a day to day basis as a self-managed Landlord…keeping up to date with legislation is almost becoming a full time job! If we manage your properties then you do not need to worry as all of this stress has been taken care of, if you are self-managing then please make sure you do your research and keep up to date with changes to legislation. If you aren’t sure about any of the above, I think now is the time to consider changing to a managed service. If this is the case then please contact the office – we’d love to take this stress from you.

Sarah Driscoll. Director

It’s a New Year, which means…. New Rental Legislation! The latest Bill to receive Royal Assent, so passed into Law is The Homes (Fitness for Human Habitation) Act (HFFHH).

So, what does this mean to Landlords? 

Landlords have a duty to ensure that their properties are fit for human habitation not only at the beginning of the tenancy but throughout. Tenants will now have the right to take legal action through the courts for breach of contract if landlords fail to keep their properties in a state which is fit for human habitation.

The Act uses the 29 Hazards listed in the Housing Health & Safety Rating System (HHSRS) to help define if a property is fit for human habitation. Each of the 29 Hazards need to be assessed separately and will be classed as either Category 1 (immediate risk) or Category 2 (less urgent).

An example of some of the hazards listed would be; damp and cold, lighting, falls and electrical hazards – to read the governments guidance that includes the full list of hazards click here.

As a Landlord you must be able to prove you are compliant with the law, having a photographic inventory/condition report at the beginning of a new tenancy and then thorough routine inspection reports throughout the tenancy, along with a documented audit trail of any maintenance issues that have arisen.

This is yet another example of issues that Landlords are dealing with every day. If you have opted to have a fully managed service from ourselves, then all of this stress has been taken from you, but if you are managing your own properties and tenants you need to make sure you do your homework and keep up to date with changes to legislation of this kind.

Should you have any queries on the above or any of the other resent legislation changes please do not hesitate to contact the office.

If you own properties that you currently manage yourself and are worried if you are compliant, we can help. We are experienced in taking over the management of properties and would be happy to arrange a meeting at a convenient time to discuss our management service and how we can help unburden you.

We look forward to hearing from you. 

How much does it cost to move house? When deciding whether to move house the first step for everyone should be to make sure the numbers work out, but if you're already a homeowner how much is your current home worth?  Do you have any redemption figures due to your lender if you move now?  And when is the best time to sell?

A good estate agent doesn't just sell houses, they should be a property expert too and able to offer valuable advice on the whole of the moving process including the cost, whether its the right time for you to sell and a timeline of what you can expect to happen and when. So don't be scared to use an Estate Agent for exactly that purpose; a cost of moving appointment in your own home, perfect!  At M&M we're all property experts so would gladly take the time to come and give you some no pressure advice without the "hard sell".  If you're a little unsure (you don't know what you don't know!) and you need some idea of what questions you should ask, then perhaps the below is a good place to start.

There are three main expenses when it comes to selling and buying; Estate Agency Fees, Conveyancing Fees and Stamp Duty Land Tax. The estate agency fee is paid to the agent to "introduce a buyer" but what else do you get for that fee, what's included in the service and what you have to pay extra for will all vary from agent to agent but they should always be clear and transparent.

Conveyancing fees are what you pay to a solicitor or conveyancer to transfer the ownership of the property from one party to another ensuing your best interests are taken care of and you know exactly what you're buying.....and selling.  But what is the difference between a solicitor and a conveyancer and who is best to use?  The Law Society has some advice of what you should expect and what to look for in a solicitor; https://www.lawsociety.org.uk/for-the-public/using-a-solicitor/quality-marks/conveyancing/  They say that the best advice will always come from your local estate agent who has been progressing sales in your area and has experienced their clients highs and lows when it comes to the conveyancing process, so make sure you instruct an agent with that experience!

Stamp Duty Land Tax is paid on the purchase of your new home and not on the one that you are selling.  This tax is staggered according to the value of the property that you are purchasing and how many other properties you may own.  At Gov.uk they have a good page setting out in clear, non-jargon fashion who pays what and when, https://www.gov.uk/stamp-duty-land-tax

Other expenditure to be wary of relates to your finances and again the best person to give you advise here would be an expert Financial Advisor.  Most estate agents can put you in touch with a Mortgage Advisor but what you really need is a Financial Advisor who can look at all of your finances including your insurances, pensions and investments to make sure you're maximising your financial opportunities and covering your liabilities. Just as a starting point, you may want to consider if your current mortgage is a "portable" product, can you take it with you when you move?  Do you have any penalty charges to pay for repaying your mortgage early?  How much can you afford to borrow for your new home?  Our expert Financial Advisor Rob Winter offers free no obligation advice over the phone and in person if you need a hand negotiating the financial minefield!  

So in short an Estate Agent isn't just a pretty face, make use of our expertise and find out the cost of your dream move; I look forward to hearing from you!

https://www.mandmprop.co.uk/valuation-request