From the 1^st October 2018 the law is changing with regards to HMO’s.

You may be reading this and not know what the letters HMO mean or you may ‘know it all’, either way I’ll start with what the acronym ‘HMO’ stands for … ‘Houses in Multiple Occupation’

Whilst the legislation surrounding HMO’s can be extremely complex, the most important thing to understand is the definition of a HMO to determine if it applies to you, then you can determine if your property needs to be licensed and the implications.

A property is a HMO if;

‘There are three or more persons that form two or more households occupying the property as their only or main residence and share any of a toilet, washing facility or cooking facility and pay rent or other consideration (i.e staff accommodation reflected in wages or salary)’

Not all HMO’s currently require licensing. In order to be licensed Gravesham Borough Council must be satisfied that the rental property meets a prescribed amenity standard, is managed by a fit and proper person and that there are suitable management arrangements in place. 

In terms of amenity standards GBC supply a booklet with guidance, to view the guide click here.

At present a mandatory HMO license is required if a property;

• ·       Is 3 or more stories high
• ·       Contains four or more people in two or more households; and
• ·       Contains shared facilities such as a kitchen, bathroom or toilet

From the 1^st October 2018 the rules are changing – The mandatory HMO licensing scheme is being extended.

The news rules from 1^st October 2018 mean mandatory licensing will be required if a property;

• ·       Contains five or more people in two or more households; and
• ·       Contains shared facilities such as a kitchen, bathroom or toilet.

If your property now needs licensing you need to;

• ·       Submit a license application to the Private Sector Housing Team. They may also require supporting documents
• ·       Pay the application fee

You can download an application form or apply on line, simply click here. 

Landlords that fail to apply for a license by 1^st October will be committing a criminal offence and could face enforcement action.

If you have any specific queries you can also talk to GBC on 01474 337466,  currently Maureen Laney or Lisa Hills are the contacts.

Good luck everyone – I hope this isn’t effecting too many of you!

Sarah

There are a number of commonly used lettings terms that as agents we throw into conversation thinking people know what we are talking about... but this isn’t always the case.

As a tenant you may have just started to think about renting your first place, you may be arranging your moving in date or perhaps you have been living in rented properties for years. As a Landlord you may have just bought your first investment or own 20, either way whatever your situation the language of rental can sometimes be foreign and difficult to understand ... that's where we come in.

Here at M&M we do our very best to make sure your move runs as smoothly as possible and that the contract along with various move in documentation is explained in full to all parties involved.

In our effort to educate and inform we have put together our Jargon-busting list

AST – Assured Shorthold Tenancy

This is the most common type of rental agreement; this document sets out the rights and obligations between the landlord and tenant.

Arrears

Money that is unpaid by a tenant in whole or in part after the date specified in the tenancy agreement that it is due.

Check - in

The process of settling a tenant into a property.

Check - out

The process of moving a tenant out of the property and making sure the property is being returned in the same condition as it was originally let. 

Contents insurance 

Insurance that protects the contents of the property.

Deposit

This is an amount of money that the tenant pays to protect the Landlord in case they cause dilapidations.  

DPS – Deposit Protection Service

In 2007 new legislation was introduced to protect tenants deposits. The tenant pays the deposit to us at the commencement of the tenancy. Within 21 days of receipt of the deposit we will register this with the governments Deposit Protection Service. At the end of the tenancy, we will advise the DPS if any deductions are to be made if agreed with the tenant. Where a deduction is defended the DPS will provide a free arbitration service.  Since it is evidence based it is clear that a party who cannot produce evidence has a poor chance of winning the argument (hence the importance of an inventory!).

Dilapidations

Dilapidations are any decay, damage, or disrepair in a property.

EPC – Energy Performance Certificate

As from the 1^st October 2008 it is a legal requirement that all rented properties have an Energy Performance Certificate available for all prospective tenants to inspect at the point of marketing. This not only applies to all new properties being offered but also where an existing tenant renews their tenancy. The certificate once issued has been deemed to have a life of 10 years so its not one that you have to think about too often.

From April 2018, the Minimum Energy Efficiency Standards (MEES) 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.  Whilst the rule initially applies to new tenancies and renewals, eventually by April 2020, it will be extended to existing tenancies.

Guarantor

A Guarantor agrees to pay the tenants rent if they are unale to.

Inventory

A written document that would normally include photographs that detail the condition of a property at the commencement of a tenancy. Both the tenant and the landlord or the managing agent will sign the Inventory on the commencement of a tenancy. When the tenant moves out the property will be assessed using the inventory.

Managing Agent – US!

As an agent we are acting on behalf of the landlord and can be involved in the letting, rent collection, maintenance and management of the property.

NRL – Non-Resident Landlord

This is anybody who is earning an income and living abroad.  This now includes members of the Armed Forces and Crown Servants.  However, “backpackers” and others anticipating a “long” holiday are not generally included as long as your main residence is within the UK and you are not intending to be abroad for longer than six months. If you are a non-resident you will require certification from HMRC.

Ombudsman

An independent organization that investigates professionals such as estate agents, or solicitors when complaints are made by their customers. We are members of The Property Ombudsman.

Prescribed Information

The tenancy deposit protection legislation requires the landlord not only to protect the deposit but also to provide the prescribed information to the tenant explaining how the deposit has been protected. Prescribed Information is a specific set of information relating to a tenancy, which we as agents are legally obliged to provide to tenants. It must be served to tenants within 30 days of receiving the deposit. Details include; The amount of the deposit. The address of the rented property, the name, address and contact details of the administrator of the tenancy deposit scheme with which the deposit is held and the name, address and contact details of the landlord and tenants and any third parties who have contributed to the deposit

Referencing

This is the process by which we check that tenants are who they say they are, work where they say they work and are able to pay their rent. We currently use a company called Rent4Sure who check all of these details on our behalf to ensure we are finding our Landlords the best tenants.

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.  We obtain, check and keep all the legal documentation to fulfil these obligations.

Tenancy agreement

The Tenancy agreement legally identifies the rights of both tenants and landlords by detailing all the terms and conditions of the rental arrangements.

Tenant

The Tenant is the party legally entitled to temporary possess a property.

Utilities

Normally electricity, gas and water and may be referred to as ‘services’. In most circumstances the tenant is responsible for paying for all utilities.

FOr FURTHER INFORMATION click on the links below or give us a call. We are here to help!

Find out more about our letting services.

Find a property to rent.

Sarah 

It’s scary to think about but your home could be fraudulently sold or the deeds could be transferred without your knowledge -  this is an example of Property Fraud!

You are most at risk of property fraud when:

·       your identity has been stolen

·       you rent out your property

·       you have paid off your mortgage as no additional authority is needed by a lender to confirm the change of ownership

·       you live overseas

·       the property is empty

·       the property isn’t registered with Land Registry - Properties most likely to be unregistered are those that haven’t been mortgaged or sold since 1990. You can check the register here.

How to protect yourself against property fraud:

·       Make sure your property is registered with Land Registry Land Registry offer a free Land Registry Property Alert service. Alerts are sent to you via email when official searches and applications are received against the property you want monitored. So for example, if someone tries to make changes to a property you have registered – such as applying to change the registered owner of your property – a notification is sent to you via email. It won’t automatically block any changes to the register but it will tell you what is happening so you can take appropriate action if necessary. You can monitor up to 10 properties free of charge so its a great service for Landlords too. More than one person can monitor a property at the same time, which is useful if you and your siblings are looking after a property for parents in care, however its important to make sure your contact details are up to date. 

·       You can safeguard your property further by applying to put a restriction on title deeds of your property. This stops the Land Registry from registering a sale or mortgage on your property unless a conveyancer or solicitor certifies the application was made by you. A fee for this service may apply. 

·       Shred or destroy your old documents so that nothing showing your name, address or other personal details can be taken.

·       Store any documents carrying personal information – such as your driving licence, passport, bank statements, utility bills or credit card transaction receipts – in a safe and secure place

·       Do not disclose any sensitive security or bank details over the phone. A bank will never ask you to confirm your PIN or password if you receive a call claiming to be from your bank, call them back on their publicly listed number

·       Monitor your credit report and regularly check your credit card and bank statements for suspicious activity

·       Think before you buy online – use a secure website which displays the company’s contact details, look for a golden padlock symbol and a clear privacy and returns policy. Check the web address begins with https

·       When you move house, contact your bank, credit and store card providers, mobile phone provider, utility providers, TV licensing, your doctor and dentist etc, and give them your new address – you don’t want the new tenants to have access to letters containing your personal information. You can also redirect your mail by contacting Royal Mail

I hope no one reading this is ever a victim of property fraud, however if you think you may have been, contact the Land Registry property fraud line on 0300 006 7030 or send an e-mail to reportafraud@landregistry.gov.uk.

If you would like to read more information with relation to property fraud visit the Gov.uk website by clicking here. 

As an individual I know I don't give enough to charity!

I give a nominal amount to cancer research every month and the RSPB, and I randomly sponsor the odd friend running the marathon and that's it - nothing else! 

It will be unlawful to let residential or commercial properties with an Energy Performance Certificate (EPC) rating of ‘F’ or ‘G’ (i.e. the lowest 2 grades of energy efficiency) from 1st April 2018. This means Landlords will be prohibited from letting substandard properties which could result in rent loss or fines for noncompliance.

Before an EPC is carried out there are various simple alterations you can make that would have a significant effect on the rating. 

So what can you do to increase the energy performance rating of your home?

• Replace the insulation in your loft

Making sure that your loft insulation is at least 270mm thick

• Insulate any cavity walls

If the property was built before or around 1920, it most likely has solid walls. Solid wall insulation can be installed from either the inside or the outside. If the property was built after 1920 it’s likely to have cavity walls. These have a double external wall with a small gap between which can be filled with insulation.

• Change lightbulbs

Switch old fashioned light bulbs to new energy efficient ones

• Replacing the boiler

Replacing an old, inefficient boiler with a new energy efficient one will have a significant impact on any property's EPC rating.

• Double Glazing

Double glazed windows make a big difference when it comes to lowering energy bills as well as reducing condensation and noise. Instead of double glazing you could install secondary glazing which involves fitting a pane of plastic or glass inside the existing window recess to create an insulating layer of air.

• Heating controls

Even if you have an old boiler, the introduction of modern controls such as a room thermostat, individual Thermostatic Radiator Valves (TRVs) and Boiler Programmer will have a positive bearing on the EPC results.

Whilst some of these suggestions will be more expensive than others, try not to think of improving energy efficiency as something you must do to comply with regulations, instead consider it as a commercial decision too. Given most tenants are responsible for paying energy bills, some may be willing to pay more for properties that are energy efficient or simply choose your property over another one. So make sure you’re making the most of this as a selling point.

As you will no longer be able to rent out your property if the EPC rating is below E you need to start acting NOW. It is also worth noting that there is a high likelihood that the minimum energy standards will be raised in the future….. Watch this space!!

Do you need a new EPC? Contact the office for more information. 

If you aren't sure what the EPC rating is for your property the full report can be found on the Governments' EPC Register.

Sarah