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Sneinton Landlord Prosecuted For Aggressive Behaviour

A Sneinton rogue landlord has been prosecuted by Nottingham Magistrates Court for acting aggressively towards his tenant.

Landlord Sahfaqat Ali Sadiq threatened to throw his tenant’s belongings onto the street. Nottingham City Council became aware of his behavior following a complaint from a tenant who claimed to have been ‘forcibly removed’ from a house despite paying rent and not causing any damage to the property.

The council discovered that the tenant had not received any paperwork from Sadiq, of Vicarage Avenue, Derby, after paying his deposit and rent in cash. It was also reported that the landlord had let himself into the Sneinton house on a number of occasions in pursuit of money that did not belong to him.

The tenant also claimed that Sadiq had acted aggressively towards him by shouting and threatening to throw his belongings into the street. The landlord then placed kitchen items into bin bags.

Upon inspection, it was discovered that the Sneinton house did not have the correct licensing for a house in multiple occupation (HMO).

Sadiq was found guilty of aggressive practices, failing to protect a tenancy deposit and operating a House of Multiple Occupation (HMO) without a licence at Nottingham Magistrates’ Court on Friday. He was fined £1,750.

Nottingham City Council stated that the three offences fell beneath the Housing Act 2004 and Consumer Protection from Unfair Trading Regulations.

Sadiq denied assaulting one of his tenants. He also stated that he had submitted an application for a HMO licence which he assumed was being processed as he had not heard of its progress.

Portfolio holder for housing and planning, Councillor Jane Urquhart, said: ‘Landlords are required to manage their property in accordance with the law. Failing to secure tenants’ deposits and acting aggressively towards them is not acceptable. This case shows that Nottingham City Council will take robust action through the courts to prosecute rogue landlords.’

Portfolio holder for community protection, Councillor Toby Neal, added: ‘This is a great result for the council, showing the importance of different teams working together and using consumer protection legislation to protect vulnerable tenants.’

Source: Residential Landlord

Portsmouth
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Portsmouth HMO Investors To Be Fined For Rubbish Failures

House in multiple occupation (HMO) landlords could face fines of up to £5,000 if they fail to put out their rubbish correctly in Portsmouth.

Portsmouth City Council has decided that landlords will be fined for failing to put out rubbish correctly. The move was approved in a meeting this week and will affect any landlord who manages a HMO. The fines will be increased by more than 8,000 per cent from the previous cost of £80.

If residents are found to be leaving waste in their front gardens, streets or neighbour’s front gardens landlords and tenants will be penalised.

The council’s housing boss, Councillor Darren Sanders, said: ‘We do not have the cleanest streets in the country. They are good but they are not the cleanest. We have to use every power we can to make it cleaner. This is one way in which we can do this. It’s clear from the residents’ complaints that something needs to be done. £60 is not a deterrent. We have to send the message that we are serious.’

However, local landlords do not agree with the new strategy.

Speaking at the meeting Southsea-based landlord and letting agent, Alwin Oliver, said: ‘I think we both agree on what we want. For many students waste management is pretty low on their list of priorities. I think the city council is not nearly clear enough to tenants about what is appropriate and what is required. What is needed is a really clear message on the website. Removal of the waste isn’t the issue, it’s who pays to get rid of it. It’s not always the landlord’s fault. If we put rules about waste removal on the tenancy agreement I think we’ve done enough. And just to say the issue we get most often is end-of-tenancy waste.’

Source: Residential Landlord

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County Durham landlords encouraged to check licences

Landlords with properties in County Durham are being encouraged to check whether they need a licence ahead of upcoming changes to legislation.

Rules around Houses in Multiple Occupation (HMOs) are set to extend to more properties from 1 October 2018 – and the changes may be particularly relevant for landlords of student houses.

From that date, a HMO licence will be required if a property is occupied by five people or more in two separate households, regardless of the number of storeys in the building. Previously, this only applied if the property was three storeys or more.

A single household means either an individual (including a student) or a family unit.

The rules apply to any HMO which is a building or a converted flat where householders share basic amenities like a toilet or cooking facilities, and purpose built flats where there are up to two flats in the block and one or both are occupied as a HMO.

Landlords whose property now requires a licence must apply before Monday 1 October and are being warned there is no grace period after this date.

However, those landlords who already have a current license under a local authority mandatory or additional licensing scheme, as well as landlords who have a selective licence, will not need to apply for a new license until their current license expires even if that is after 1 October 2018.

Joanne Waller, head of environment, health and consumer protection, said:

“This new legislation will bring many more properties under the HMO licensing regime and we would remind all landlords in the county to check whether they now need to be registered. 

“We take our duty to regulate HMOs very seriously as we know licensing leads to improved property conditions for residents living in this type of accommodation”

Source: Sun FM

HMO licensing
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HMO licensing – the potential pitfalls for landlords

The change to licensing closes off a major HMO classification loophole regarding the number of storeys a property owns.

An HMO is a property rented out by at least three people who are not from one household (for example, a family) and who share facilities, including the bathroom and kitchen.

Current guidelines state that a license is only required when the property has three or more storeys and five or more tenants from more than one household, collectively sharing the kitchen, toilet or bathroom.

Updates in HMO licensing

Worryingly, however, these criteria have led to some landlords skirting HMO licensing status, particularly evident in student accommodation where landlords squeeze more than five tenants into less than three storeys.

Under the new rules, a property home to five or more people from more than one household, regardless of the number of storeys, will be classified as an HMO.

Landlords will also have an obligation to adhere to rules regarding minimum room sizes.

Single rooms will be required to be a minimum of 6.51sqm and double-rooms a minimum of 10.22 sqm. An extra requirement has also been added for children under 10 years of age, with these rooms required to be at least 4.64 sqm.

Burden for landlords

The new licensing is part of the government’s ambition to encourage more responsible lettings and reduce the possibility of potentially unsafe living conditions for tenants.

However, it will unavoidably place further pressure on Britain’s already stressed landlords.

According to the Residential Landlords Association, 16% of landlords rent to people in HMOs.

It is predicted that once the changes come into effect later this year, a further 177,000 HMOs will be subject to licensing.

Not only will the new rules require these landlords to apply for a license, they’ll also likely lead to some costly upgrades putting their profit margins under pressure.

This could be a result of a reduction in rooms available to let, increased costs to meet regulatory hurdles in terms of room size and subsequent safety measures, or general checks that a property is fit for purpose under the new criteria.

However, forgoing an updated HMO license would result in even greater financial damage, with severe penalties set to be imposed on landlords who fail to adhere.

No grace period

These criteria changes come amid a wave of new legislations, including the updated energy performance certificate (EPC) requirements in April and the various tax and regulatory changes introduced last year.

It seems landlords are being challenged to remain more industry-aware than ever before.

The value of external advice and support through these changes cannot be underestimated, as landlords will have no grace period after the regulation comes into effect on 1st October.

For brokers, this is a chance for them to brush up on the essentials of the new HMO licensing.

It’s the perfect opportunity to build a strong reputation of expertise in regulatory compliance, ultimately creating more business down the line as more landlords look to them for advice.

Source: Mortgage Solutions

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Legislation change could catch out HMO landlords

New government rules mean thousands of buy-to-let investors will be forced to become licensed HMO landlords from 1 October.

The Residential Landlords Association claims that this will result in a further 177,000 landlords being subject to mandatory licensing. It will also affect all existing HMO landlords, who will have to ensure their properties meet new minimum standards.

Brokers are being urged to familiarise themselves with the new requirements, and contact clients who could be affected. Those that do not apply for the appropriate paperwork from their local council could be subject to unlimited fines and other legal action.

Many may also have to pay for property renovations to qualify for the licence.

Currently, a licence is only required for properties with three or more storeys that are occupied by five (or more) people from at least two households. From 1 October this will be extended to all properties that are occupied by five or more people from two or more households – regardless of the size of the property.

Licences are issued by the local council and are valid for five years. Landlords will have to demonstrate they are ‘fit and proper’, and that the property meets all relevant safety standards. Evidence of certain safety certificates will have to be updated on an annual basis.

At the same time, the government will introduce new minimum room sizes for licensed HMOs. At the moment some local authorities prescribe minimum room sizes, while others set out advisory standards.

Mortgages for Business chief executive David Whittaker says: “Many landlords will be unaware of these changes. They have been hit with a triple whammy of changes in recent years, so it is up to brokers to help explain how this latest regulatory change will affect them.”

He also pointed out that these minimum room standards may cause some problems for existing HMO landlords.

Mortgage Advice Bureau head of lending Brian Murphy says: “As an industry it is important that we have the right resources in place, with advisers equipped with the knowledge and experience necessary to help their customers.”

Coreco director Andrew Montlake says: “Whilst many of us understand why these changes have been instigated the quick timing between them means that landlords have had no respite in which to fully deal with them. We now need a period of calm to let this all bed in.”

Source: Mortgage Strategy

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Changes In Landlord Legislation For This Year

There are some years which seem to be dominated by changes in landlord legislation and 2018 seems to be one of those years. Some of these have been talked about for a long time and landlords have had time to prepare, but others seem to have been sneaked in. The main landlord legislation changes are listed below.

Energy Efficiency Standards                                                                                                                                        

From 1st April 2018 properties that are rented out in the private rented sector will need a minimum energy performance rating of E on an EPC certificate. The new rules cover all new lets from that date and will be extended to all tenancies from 1st April 2020.

HMO room size regulations

Research has found that 16 per cent of landlords rent to people in HMOs, and though some has been to a reasonable size standard, it is this portion of the sector that has been seen in the past to have the poorest size standards, so legislation that will improve this is to be welcomed.

From October 2018, a minimum space standard will be introduced for bedrooms in Houses in Multiple Occupation. Rooms to accommodate one person must be a minimum of 6.51 square metres; for 2 persons, it must be a minimum of 10.22 square metres; rooms to accommodate a child under 10 years old must be at least 4.64 square metres.

The HMO licence must specify the maximum number of people resident in the property. Landlords who do not comply with the new requirements could face a fine of £30,000, though landlords of existing properties will have 18 months to make any changes to allow compliance.

GDPR

From 25th May, General Data Protection Regulations will be introduced to replace the Data Protection Act. From that date, landlords will have to ensure that their businesses are GDPR compliant. A data protection policy is needed, together with a privacy notice for customers. A new change is that registering with the Information Commissioners Office will become a statutory requirement.

Extension of mandatory HMO licensing

An extension of mandatory HMO licensing will come into force from 1st October 2018. The reason will always be that this will raise standards, but the private landlord’s view will be that it is the revenue it raises that be of most concern to the local authority.

Banning Orders                                                                                                                                                              

Banning orders will be introduced on 6th April with the intention of tackling criminal landlords and agents. The Housing and Planning Act 2016 introduced banning orders; an individual convicted of certain offences can be barred from renting out properties for a minimum of one year. Could the penalties be avoided by transferring ownership to a partner? However, the changes will now impact all tenancies, including those that were established BEFORE 1st October 2015.

Extension of Section 21                                                                                                                                                    

October sees the extension of Section 21 which were implemented by the Deregulation Act. Section 21 was changed and applied to all tenancies or renewals that started on or after October 1st, 2015.

All landlords are legally required to supply their tenants with the ‘prescribed documents’ of gas safety certificate, tenancy deposit protection information, energy performance certificate, tenancy agreement and the government document ‘How to Rent’ before the start of the tenancy. As this has been required procedure for some time, it seems unnecessary to further legislate.

Gas Safety                                                                                                                                                             

There will be some flexibility for Landlords around dates of annual gas safety checks.

Landlords will be able to make compulsory checks any time in the two months leading up to the renewal date. This means that, if the check was due on May 31, the check could be carried out any time in April or May and still retains the 31st May renewal date for future renewals. This may be helpful for landlords who find it more convenient to have their full portfolio of property checked at the same time.

In summary, there is plenty of landlord legislation changes for private landlords to think about this year and some will struggle to keep out of trouble. Check with local authority accreditation schemes and landlord associations for any training that is available to ensure that you are able to implement any landlord legislation changes required, and your reputation as a landlord remains unblemished.

Source: Residential Landlord

hmo regulations
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What do the new HMO regulations mean for landlords?

Last year the UK government announced plans to review regulations surrounding Houses in Multiple Occupation (HMO) although this was delayed by the snap general election. However, on 23 February 2018 the government announced details of changes to HMO regulations which will come into effect on 1 October 2018. While many of the changes are subtle they will force many landlords to apply for HMO licences and potentially fund changes to their properties.

SUMMARY OF HMO REGULATORY CHANGES

As of 1 October 2018 the following changes to HMO regulations will apply:

Definition of an HMO property

At this moment in time an HMO property is defined as one which is occupied by five or more people, forming two or more separate households and comprises of three or more stories. The new definition is much simpler and any property occupied by five or more people forming two or more separate households will require an HMO licence.

Floor space requirements

While the vast majority of HMO landlords offer floor space which is more than adequate for single rooms and those sharing, there have been many cases of bad practice highlighted in the press. As a consequence, the new guidelines will recommend floor space of no less than 6.51 m² for a single tenant and 10.22 m² for two adults sharing. At this moment in time it is unclear when this guidance will become law.

Properties previously exempt from an HMO licence

There are many HMO properties in the UK which do not currently require a licence under the old HMO definition. Those that fall under the criteria for the new HMO definition from 1 October 2018 will need to apply for a licence from their local authority. It is also worth remembering that a licence is required for each individual property as opposed to individual landlords.

Impact on landlords

Until the new regulations are brought onto the statute books nothing is actually set in stone but the indications are that around 170,000 additional properties will be impacted by the new HMO regulations. This is on top of the existing 60,000 properties already under licence. Those who fail to comply with the new regulations will be open to potentially unlimited fines.

Additional funding requirements

There is some debate at this moment in time as to whether the minimum room requirements will be guidance or firm regulations when the changes come in on 1 October 2018. It is likely that many landlords will at some point need to make changes to the layout of their HMO properties. Depending upon the type of property this could have a serious impact upon long-term rental income as well as requiring additional capital to fund changes.

PLANNING FOR THE FUTURE

At this moment in time the HMO changes will only relate to England although it is highly likely that Scotland, Wales and Northern Ireland will adopt their own form of regulatory changes in due course. We know for a fact that the definition of HMOs which require a licence will change and at some point the minimum room size guidance will become law. There is still plenty of time for HMO landlords to review their own individual investments and consider how the changes will impact their assets and their income.

Source: Property Forum

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City landlord fined £2,000 for property condition failings

A property management company has been landed with a legal bill of almost £2,000 after admitting that it failed to keep a property in Nottingham in good repair.

Nottingham City Council`s Housing Licensing and Compliance team secured a successful prosecution against ADKAM CIC (Community Interest Company) resulting in a fine of £1000 with costs of £836 and a £100 victim surcharge at Nottingham Magistrates court.

The Council prosecuted ADKAM CIC for five separate Housing Act offences due to the licence holder failing to manage the property in line with the Management of Houses in Multiple Occupation (England) Regulations 2006.

ADKAM CIC pleaded guilty to five separate offences of failing to comply with the Management of Houses in Multiple Occupation (England) Regulations.

Nottingham City Council’s Housing Licensing and Compliance team licence landlords to operate HMOs. The council regularly undertakes risk-based compliance visits to ensure landlords are complying with the law, and on the 7th April 2017 council officers inspected a licensed house in multiple occupation (HMO) on Gregory Boulevard.

The licenced HMO was in a state of disrepair and the landlord ADKAM CIC was failing in its duties to manage the premises in accordance with the law. ADKAM CIC admitted in court that they had failed to keep the property in repair.

Portfolio Holder for Planning and Housing, Cllr Jane Urquhart, said: “Landlords are required to manage their property in accordance with the law. As this case shows, we will take robust action through the courts to prosecute landlords who put tenants’ safety at risk.

“We have powers to revoke the licence of anyone convicted of offences such as these, preventing them from operating premises in future, as well as to impose civil penalties of up to £30,000 against landlords who contravene the law, as an alternative to taking prosecutions through the Courts.”

From April 6th 2018 anyone committing a defined housing related offence such as this may receive a banning order preventing them from owning or operating rented housing.

Source: West Bridgford Wire

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More landlords will be caught in HMO licensing net

Updated government rules are set to draw thousands more buy-to-let landlords into the HMO licensing net and failure to comply could see them subjected to unlimited fines.

In early March, the Government introduced the Licensing of Houses in Multiple Occupation (Prescribed Description) (England) Order 2018 (2018/221) (LHMO 2018), which comes into effect from October 1, 2018.

Houses in multiple occupation (HMOs), are defined by the Government as “a property rented out by at least 3 people who are not from 1 ‘household’ (eg a family) but share facilities like the bathroom and kitchen. It’s sometimes called a ‘house share’.”

The Residential Landlords Association recently predicted that as many as an additional 177,000 homes could be subject to HMO licensing and 16% of landlords currently rent to people in HMOs.

Current rules

At present, landlords operating an HMO, are subject to the Licensing of Houses in Multiple Occupation (Prescribed Descriptions) (England) Order 2006 (2006/371), which is applied in certain regions of England and Wales.

Under the present rules, landlords must have a licence if renting out a large HMO. This is defined as five or more people who form more than one household, is at least three storeys high and tenants share toilet, bathroom or kitchen facilities.

However, some local councils still demand a licence even if the property is smaller and rented to fewer people.

At the moment, HMO licensing is limited to specific local authorities, so whether a landlord’s property is subject to one, depends on its location. Landlords can check whether their local council requires an HMO licence on a relevant property, by visiting the following page https://www.gov.uk/house-in-multiple-occupation-licence

The new rules

Under the new rules, licensing will apply to HMOs occupied by five or more people, irrespective of the number of storeys. Also, HMO licensing will apply to purpose-built flats where there are up to two flats in the block.

A licence is valid for five years and a separate licence must apply to each HMO property.

There will be transitional provisions for HMOs that are already licensed under the selective licensing provisions, which will last for six months, but which will be subject to mandatory licensing from 1 October 2018.

Licence requirements

In order to operate a licenced HMO, landlords must comply with a number of standards:

  • the house must be suitable for the number of occupants;
  • whoever manages the property – whether that is the landlord or an agent, must be considered ‘fit and proper’ and must have no criminal record or history of breaching landlord laws of code of practice;
  • the local council must be sent an updated gas safety certificate annually;
  • the landlord must install and maintain smoke alarms;
  • the landlord must provide safety certificates for all electrical appliances within the property when requested.

Comment

Jorden Abbs, director of operations at Commercial Trust Limited commented: “It is imperative that landlords check whether their property is classified as an HMO requiring a licence by October 1, or they risk falling foul of the updated laws.

“This extension of the HMO laws will place further pressure on landlords and local authorities, but can also be viewed as a further initiative aimed at raising standards within the private rental sector.

“We have not, as yet, received any comment from lenders as to whether this will affect existing borrowers, although realistically we can expect a couple of potential outcomes.

“Lenders who currently offer mortgages to HMOs that are not currently licensed, but will be under the new rules, can either change their criteria to accommodate these properties and continue to transact; or they will not and at renewal the borrower will have to look elsewhere.

Source: Mortgage Finance Gazette

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Bedford Landlord Fined For Unlicensed HMO

Bedford landlord has been prosecuted for operating an unlicensed House in Multiple Occupation (HMO).

Bedford Borough Council prosecuted Mr Fhalora of Ampthill Road, Bedford, in January for failing to obtain an Additional HMO Licence for the property that he manages on behalf of its owner. Mr Fhalora lets out the Brackley Road property to tenants.

The landlord was found guilty in his absence after entering a not guilty plea. As a result of this, he was fined £2,500 by Luton Magistrates Court. He was also told that he must pay the council’s full costs of £8,911.12 along with a victim surcharge of £170.

Bedford Borough Council introduced the Additional HMO Licensing scheme in 2013. It applies to properties rented out to three or more unrelated tenants who share facilities such as kitchens and bathrooms. These types of properties are subject to additional regulation to give greater protection to tenants who reside in them. The licences require landlords to invest in their properties, making them safer and improving their state of repair.

Mr Fhalora had been reminded by the council’s Community Regulation Team that he was required to license the property under the Housing Act 2004. However, the court heard that the rogue landlord had failed to act on the advice he was given by the council. He potentially risked the safety of his tenants and neglected his responsibilities as a landlord.

Portfolio Holder for Community Safety & Regulatory Services, Councillor Colleen Atkins, said: ‘Bedford Borough Council prioritises the safety of its residents by ensuring the Borough’s private rented sector is effectively regulated. An Additional HMO Licence is required for HMOs which are occupied by three or more unrelated people who share certain facilities in the household such as a kitchen or bathrooms. Anyone who owns or manages an HMO can check with the Council to see if they need to have a licence.’

Source: Residential Landlord