A recent case in Merton, London, serves as a stark reminder of the importance of regular home inspections and detailed property inventory reports. Merton Council took unprecedented action by seizing control of 18 private properties after the landlord repeatedly ignored tenants’ complaints about poor living conditions. This move, facilitated by powers under the Housing Act 2004, is one of the first of its kind in the UK and underscores the critical need for landlords to maintain their properties and comply with legal standards.
What Happened in Merton?
The properties in question were located in the Graveney ward of Merton, an area under the council’s Selective Licensing Scheme. This scheme, introduced to tackle poor property conditions and antisocial behaviour, requires all privately rented homes in specific areas to be licensed. Despite multiple notices from the council, the landlord failed to address issues such as inadequate repair services, leading to tenants living in substandard conditions for over a year.
As a result, the council intervened by appointing agents to manage the properties and redirecting rental income to fund the necessary repairs. This action ensures the properties are brought up to a safe and decent standard, protecting the tenants’ well-being and enforcing the landlord’s responsibilities.
The Role of Home Inspections and Property Inventory Reports
This case highlights the importance of regular home inspections and maintaining accurate property inventory reports. These checks are not just about meeting legal obligations; they are essential for ensuring that properties remain in good condition and that tenants are living in safe environments.
Home Inspections: Regular home inspections allow landlords to identify and address maintenance issues before they escalate. These inspections are vital for ensuring that all aspects of the property, including structural integrity, safety features, and living conditions, meet the required standards. In the Merton case, a lack of regular inspections contributed to the prolonged neglect of the properties, ultimately leading to the council’s intervention.
Property Inventory Reports: A thorough property inventory report provides a detailed record of the property’s condition at the start and end of each tenancy. This documentation is crucial for resolving disputes over damages, ensuring transparency between landlords and tenants, and protecting the landlord’s investment. Without such records, landlords risk facing legal challenges and financial losses, as seen in the Merton case where the council took control of rental income to fund repairs.
Why Use a Property Inventory Specialist?
Managing these responsibilities can be daunting, particularly with the increasing complexity of property regulations. This is where property inventory specialists, like No Letting Go, can make a difference. By outsourcing home inspections and inventory reporting to experts, landlords can ensure that their properties are well-maintained and legally compliant. These services help address tenant complaints promptly, avoiding the kind of severe consequences seen in Merton.
By partnering with a professional property inventory management specialist, landlords gain peace of mind knowing their properties are protected from neglect and legal penalties. No Letting Go specialises in conducting thorough inspections and creating accurate reports that safeguard both the property and the landlord’s interests.
Conclusion
The Merton Council’s actions serve as a powerful reminder of the importance of regular home inspections and accurate property inventory reports. For landlords, these checks are not optional; they are essential for maintaining property standards, ensuring tenant safety, and avoiding legal repercussions. By working with a property inventory management specialist, landlords can protect their investments, comply with regulations, and provide safe, comfortable homes for their tenants.
As a landlord or property manager, ensuring that your property is safe, compliant, and appealing to potential tenants is paramount. Essential property assessments not only help in maintaining the property’s value but also ensure the safety and satisfaction of tenants. Here’s a complete guide to the key assessments every landlord should prioritise, from Energy Performance Certificates (EPCs) to Carbon Monoxide (CO) alarms.
1. Energy Performance Certificates (EPCs)
What is an EPC? An Energy Performance Certificate (EPC) provides a rating of a property’s energy efficiency and environmental impact, ranging from A (most efficient) to G (least efficient). It also includes recommendations on how to improve the property’s energy efficiency.
Why is it Important? EPCs are legally required whenever a property is built, sold, or rented. They help prospective tenants understand the energy costs associated with the property and provide landlords with guidelines for making improvements.
How to Obtain an EPC:
- Hire a certified Domestic Energy Assessor (DEA).
- The assessor will visit the property, evaluate its energy efficiency, and produce the EPC.
- Implement the recommended improvements to enhance the property’s rating and appeal.
2. Gas Safety Checks
What is a Gas Safety Check? A gas safety check involves inspecting all gas appliances, fittings, and flues in a property to ensure they are safe and functioning properly. This must be done by a Gas Safe registered engineer.
Why is it Important? Gas safety checks are legally required annually. They prevent gas leaks, carbon monoxide poisoning, and other gas-related hazards, ensuring tenant safety and compliance with the law.
How to Conduct a Gas Safety Check:
- Schedule an annual check with a Gas Safe registered engineer.
- Ensure all appliances are checked, including boilers, gas cookers, and heaters.
- Keep a record of the Gas Safety Certificate and provide a copy to your tenants.
3. Electrical Safety Inspections
What is an Electrical Safety Inspection? An electrical safety inspection involves checking the condition of all electrical installations and equipment in the property to ensure they are safe and comply with current standards.
Why is it Important? Electrical safety inspections help prevent electrical fires, shocks, and other hazards. Landlords must ensure the property’s electrical system is safe at the start of each tenancy and maintained throughout.
How to Conduct an Electrical Safety Inspection:
- Hire a qualified electrician to perform the inspection.
- Ensure the inspection includes wiring, outlets, switches, and appliances.
- Obtain an Electrical Installation Condition Report (EICR) and address any issues identified.
4. Fire Safety and Smoke Alarms
What is Fire Safety Assessment? A fire safety assessment evaluates the property’s fire risks and ensures that all necessary precautions are in place to prevent fires and protect tenants.
Why is it Important? Fire safety assessments are crucial for preventing fires and ensuring a quick response if one occurs. Regulations require landlords to install smoke alarms on every floor and ensure they are functioning at the start of each tenancy.
How to Ensure Fire Safety:
- Install smoke alarms on every floor of the property.
- Regularly test and maintain smoke alarms to ensure they are operational.
- Provide fire extinguishers and fire blankets as needed, especially in kitchens.
5. Carbon Monoxide (CO) Alarms
What is a CO Alarm? A carbon monoxide alarm detects the presence of carbon monoxide gas, which is colourless, odourless, and potentially deadly if inhaled in large quantities.
Why is it Important? CO alarms are legally required in any room with a solid fuel-burning appliance. They protect tenants from carbon monoxide poisoning, which can result from faulty heating systems or blocked chimneys.
How to Install and Maintain CO Alarms:
- Install CO alarms in all rooms with solid fuel appliances.
- Follow manufacturer instructions for installation and maintenance.
- Regularly test the alarms to ensure they are functioning correctly.
6. Legionella Risk Assessments
What is a Legionella Risk Assessment? A Legionella risk assessment identifies and manages the risk of Legionella bacteria in water systems, which can cause Legionnaires’ disease, a severe form of pneumonia.
Why is it Important? Landlords are legally required to assess and manage the risk of Legionella. This ensures the safety of tenants and prevents potential outbreaks of the disease.
How to Conduct a Legionella Risk Assessment:
- Hire a qualified professional to perform the assessment.
- Inspect water systems, including tanks, taps, and showers.
- Implement control measures, such as regular cleaning and temperature control.
7. Housing Health and Safety Rating System (HHSRS)
What is HHSRS? The Housing Health and Safety Rating System (HHSRS) is a risk-based evaluation tool used to assess potential hazards in residential properties that could affect the health and safety of tenants.
Why is it Important? HHSRS assessments ensure that properties are safe and habitable, identifying risks such as damp, mould, and structural issues. It helps landlords maintain high standards of living conditions for tenants.
How to Conduct an HHSRS Assessment:
- Familiarise yourself with the HHSRS guidelines.
- Regularly inspect the property for hazards.
- Address any identified issues promptly to ensure the property remains safe and compliant.
Conclusion
Essential property assessments, from EPCs to CO alarms, are critical for ensuring the safety, compliance, and attractiveness of rental properties. By staying on top of these assessments, landlords can protect their investments, provide safe living environments for tenants, and avoid legal issues. Regular inspections and proactive maintenance are key to successful property management and tenant satisfaction. Stay informed, stay compliant, and your property will thrive in the competitive rental market.
The Housing Health and Safety Rating System (HHSRS) is a critical tool for landlords and property managers in the UK, designed to ensure that all residential properties meet essential health and safety standards. With recent updates, including regulations that allow tenants to request home inspections, understanding HHSRS has never been more important. This blog explores the nuances of HHSRS, the implications of new regulations, and how landlords can stay compliant while ensuring their properties remain safe and healthy for tenants.
Understanding the HHSRS
The HHSRS, introduced under the Housing Act 2004, is a risk-based evaluation tool used by local authorities to determine potential health and safety hazards in residential properties. Instead of prescribing minimum standards, the HHSRS assesses the risk posed by specific hazards, including dampness, excess cold, fire risks, and structural collapses.
Key Components of the HHSRS
Hazard Categories: The system includes 29 potential hazards, each rated according to the severity and likelihood of harm they might cause.
Risk Assessment: Inspectors evaluate how likely each hazard is to occur and the range of possible outcomes, calculating a score that determines whether the hazard is a Category 1 (serious) or Category 2 risk.
Enforcement: Local authorities have the power to enforce remedial action for any Category 1 hazards and can choose to address Category 2 hazards as well.
Recent Regulation Updates: Tenant-Requested Inspections
One of the significant updates to the HHSRS regulations is the empowerment of tenants to request a home inspection. This change aims to enhance tenant safety and ensure that any potential risks are addressed promptly, without solely relying on routine checks by landlords or property managers. Here’s what landlords need to know:
Tenant Requests: Tenants can now formally request an HHSRS inspection if they believe their living conditions might pose health and safety risks.
Landlord Response: Upon receiving a request, landlords are expected to respond and address the concerns. Failure to do so can lead to local authority intervention.
Increased Scrutiny: This new regulation increases the scrutiny on rental properties, making compliance a top priority for landlords.
Compliance Tips for Landlords
Proactive Inspections: Don’t wait for tenants to request inspections. Regularly assess your property for potential hazards and address them before they become serious issues.
Maintain Documentation: Keep detailed records of all inspections, maintenance, and repairs. This documentation can be crucial in demonstrating compliance should disputes arise.
Educate Tenants: Inform tenants about their rights under the HHSRS and how they can report potential hazards. Clear communication can lead to quicker resolutions and better relationships.
Professional Assistance: Consider hiring professionals to conduct HHSRS assessments. Expert evaluations can help ensure that nothing is overlooked and that your property remains in compliance with all health and safety regulations.
The Role of Landlords in Promoting Safe Housing
Landlords play a crucial role in ensuring that rental properties are safe and healthy. By staying informed about HHSRS requirements and responding proactively to potential hazards, landlords not only comply with the law but also enhance the well-being of their tenants. This commitment to safety can lead to longer tenancies, fewer legal issues, and a more reputable rental business.
Conclusion
The HHSRS is an essential framework for evaluating the health and safety risks associated with residential properties. With the introduction of tenant-requested inspections, the onus is on landlords more than ever to ensure their properties meet the required standards. By embracing these responsibilities and adopting a proactive approach to property maintenance, landlords can ensure their properties are not just compliant, but are also safe, healthy environments for their tenants.
No Letting Go offers specialised services that significantly streamline the compliance process for landlords and property managers, particularly in adhering to the Housing Health and Safety Rating System (HHSRS) standards. By utilising No Letting Go’s comprehensive property inspection services, landlords can ensure that their properties are evaluated thoroughly for any health and safety risks, aligning with current regulations. Our detailed reports provide clear, actionable insights that help in addressing potential hazards proactively, reducing the likelihood of tenant complaints and local authority interventions. Moreover, No Letting Go’s digital documentation systems keep all records organised and easily accessible, simplifying management tasks and ensuring that properties remain in compliance with evolving housing laws. This not only enhances the safety and satisfaction of tenants but also fortifies the reputation of landlords as diligent and responsible property managers.
In the realm of property management, maintaining a balance between tenant safety and regulatory compliance is paramount. The Housing Health and Safety Rating System (HHSRS), introduced under the Housing Act 2004 in England and Wales, plays a critical role in this process. This risk-based evaluation tool helps landlords and property managers identify and mitigate potential hazards that can affect the health and safety of tenants. Understanding the intricacies of HHSRS inspections is essential for ensuring properties are not only safe but also legally compliant.
What is HHSRS?
The HHSRS provides a framework for assessing health and safety risks in residential properties. Rather than prescribing specific standards or conditions, it evaluates the potential risks posed by deficiencies in a property. These risks are assessed against 29 potential hazards, ranging from damp and mold growth to electrical safety. Each hazard is scored to determine whether it poses a serious risk to the health or safety of tenants, with required actions prioritised based on the level of risk.
Importance of HHSRS Inspections
Identifying Hidden Risks
Many hazards that compromise tenant safety are not immediately obvious. Regular HHSRS inspections help uncover these hidden risks before they escalate into serious issues. For example, an unnoticed water leak might lead to structural damage or mold growth, both of which are hazardous to health.
Preventing Legal Repercussions
Failure to comply with health and safety obligations can lead to significant legal consequences for landlords, including fines and enforcement actions. HHSRS inspections provide the necessary documentation and evidence to demonstrate compliance with safety standards, protecting property owners from potential legal challenges.
Enhancing Tenant Relationships
Proactively addressing safety concerns through regular inspections demonstrates a commitment to tenant welfare. This can enhance landlord-tenant relationships, reduce tenant turnover, and build a positive reputation among potential renters.
Conducting Effective HHSRS Inspections
Engage Professionals
Due to the complexity of the HHSRS and its broad range of hazards, engaging with professionals who specialise in property inspections is advisable. These experts are trained to identify and evaluate risks accurately, ensuring comprehensive assessments that cover all potential hazards.
Use of Technology
Leveraging technology can streamline the HHSRS inspection process. Digital tools and software solutions allow for thorough data collection and management, ensuring that all information is accurately recorded and easily accessible for future reviews or evidence in case of disputes.
Regular Updates
Property conditions change over time, and what was safe a year ago might not be safe today. Regular HHSRS inspections, ideally annually or biennially, ensure that properties continue to meet safety standards and adapt to any changes in legislation or tenant usage patterns.
The Role of No Letting Go
No Letting Go provides a suite of services that can significantly aid landlords and property managers in conducting HHSRS inspections. With a team of experienced professionals, No Letting Go offers:
Detailed Inspection Reports
Our experts conduct thorough inspections and produce detailed reports that highlight any areas of concern, providing actionable advice on how to remedy identified hazards.
Customised Service
Understanding that each property is unique, No Letting Go tailors its services to meet specific needs, ensuring compliance with the HHSRS while addressing the particular characteristics of each property.
Technology Integration
Utilizing the latest in inspection technology, No Letting Go ensures that all data collected is precise and securely stored, facilitating easy access for maintenance records and legal documentation.
Conclusion
HHSRS inspections are a cornerstone of effective property management, ensuring that properties are safe for tenants and compliant with legal standards. By engaging with professionals like No Letting Go, landlords and property managers can navigate the complexities of property safety inspections with confidence, ensuring their properties remain safe, compliant, and appealing in a competitive rental market.
The Decent Homes Standard is a benchmark for housing quality in the UK, ensuring that all homes meet specific criteria for safety, comfort, and livability. This standard is crucial for landlords and housing associations, who must ensure their properties provide tenants a safe and decent environment. No Letting Go is pivotal in helping property owners and managers meet and maintain these standards through comprehensive property reporting and inventory services.
Understanding the Decent Homes Standard
The government introduced the Decent Homes Standard to improve the conditions of homes, particularly those within the social sector. To meet the Decent Homes Standard, a property must:
Be free of serious health and safety hazards: Assessed under the Housing Health and Safety Rating System (HHSRS).
Be in a reasonable state of repair: Major components (such as kitchens and roofs) should not be old or in disrepair.
Have reasonably modern facilities and services: For example, kitchens no older than 20 years and bathrooms no older than 30 years.
Provide effective heating and insulation: Ensuring efficient heating systems and effective insulation keeps the home warm and energy-efficient.
The Challenges of Compliance
For landlords and property managers, consistently meeting these standards can be challenging without systematic inspections and detailed reporting. Regular property assessments are necessary to identify issues that might compromise the standard, from outdated facilities to potential hazards that could impact tenant health and safety.
How No Letting Go Supports Decent Homes Standards
Expert Assessments and Detailed Reporting
No Letting Go provides professional property inventory and inspection services, including detailed assessments of the property’s condition against the Decent Homes criteria. Our experts are trained to identify compliance issues, helping landlords prioritise repairs and updates that impact their property’s decency status.
Customised Inventory Management
With tailored solutions designed to address the specific needs of each property, No Letting Go ensures that all elements—from heating systems to structural integrity—are thoroughly inspected and documented. This level of detail supports ongoing maintenance and quick responses to any issues that could detract from the Decent Homes Standard.
Mitigating Risks with HHSRS
Our inventory reports include an evaluation based on the Housing Health and Safety Rating System, identifying any risks that could pose serious hazards to tenants. This proactive approach helps maintain compliance and ensures that the property remains a safe environment for residents, thus aligning with the first and perhaps most critical criterion of the Decent Homes Standard.
Documentation and Evidence for Compliance
No Letting Go’s reports provide robust documentation that can be crucial during inspections by local authorities or in dealings with tenants. This documentation serves as evidence of compliance and can significantly streamline the resolution process in the event of disputes or claims.
Conclusion: Partnering with No Letting Go
Maintaining compliance with the Decent Homes Standard is not just about avoiding penalties; it’s about providing quality living conditions that tenants can call home. No Letting Go’s services empower landlords and property managers to achieve and maintain these standards effortlessly, ensuring that properties are compliant, comfortable, safe, and appealing to tenants.
By partnering with No Letting Go, you gain access to a team of experts dedicated to helping you navigate the complexities of property management while ensuring each property meets crucial housing standards. Whether you’re managing a single rental unit or an extensive portfolio, No Letting Go is your partner in maintaining excellence and compliance in housing.
Compliance in property management is a dynamic and ongoing process. With ever-changing legislation, landlords and property managers must stay vigilant to remain compliant, particularly regarding property inventory. This blog takes a deep dive into property inventory legislation, highlighting the pivotal role of No Letting Go in navigating the complex landscape of legal compliance.
Understanding Property Inventory Legislation
The Significance of Inventory Management
Property inventory management isn’t just a formality; it’s a legal and logistical necessity. It involves creating a detailed report that lists the contents and condition of the property at the start and end of a tenancy. The importance of property inventory stems from various laws and regulations that aim to protect the rights and obligations of both landlords and tenants.
Key Legal Frameworks Affecting Inventory
• Housing Act 2004: This act introduced the Tenancy Deposit Scheme (TDS), which requires detailed inventory records to solve any disputes regarding deposit deductions.
• Landlord and Tenant Act 1985: This act mandates that properties must be fit for habitation, which implies a need for a thorough inventory to establish the initial condition of the property.
• Deregulation Act 2015: This legislation further emphasizes the need for proper inventory checks to provide evidence should a landlord need to serve a Section 21 eviction notice.
The Role of Property Inventories in Dispute Resolution
Disputes over property conditions are not uncommon at the end of tenancy agreements. A comprehensive inventory provides an unbiased baseline that helps resolve these disputes amicably. Without a proper inventory, landlords may find themselves unable to claim for damages or losses that occur during a tenancy.
Staying Ahead of Compliance
Regular Updates and Training
Legislation can evolve quickly, and staying compliant means staying informed. Regular training and updates are necessary to ensure property inventories meet the latest standards.
Incorporating Technological Advances
Utilising technology, like the services offered by No Letting Go, can simplify compliance. Digital inventory systems ensure accuracy, facilitate updates, and make it easier to store and retrieve information when needed.
No Letting Go’s Contribution to Compliance
Expert Inventory Services
No Letting Go specialises in providing inventory services that comply with current legislation. Our team of experts understands the intricacies of property law and can help landlords and property managers ensure their inventories are legally sound.
Technology-Driven Solutions
With No Letting Go’s inventory software, property managers can automate much of the inventory process, reducing the risk of human error and ensuring each inventory is thorough and up-to-date.
Support Through Legislative Changes
As legislation changes, No Letting Go’s services evolve to stay compliant, offering peace of mind to property managers and landlords. Our commitment to legislative compliance means that clients are always ahead of the curve.
Final Thoughts
Comprehensive property inventory management is an essential aspect of property rental compliance. It serves as a protective measure for landlords and a guarantee of fairness for tenants. As the legal landscape continues to evolve, the services provided by No Letting Go become increasingly valuable, offering expert guidance and cutting-edge solutions to ensure that property inventories are not only compliant but also serve as a robust foundation for tenancy agreements.
In the journey of rental property compliance, consider No Letting Go not just as a service provider but as a partner, one that is fully equipped to navigate the complex waters of property inventory legislation with you.
In the dynamic landscape of UK property rental, the Renters’ Reform Bill is set to introduce significant changes. With a focus on improving renters’ security and overhauling the lettings sector, landlords and letting agents must adapt to these reforms. No Letting Go is poised to assist in this transition, ensuring that properties are compliant and the rights of both tenants and landlords are upheld.
Understanding Renters’ Reform
The Renters’ Reform Bill proposes substantial adjustments to tenancy agreements, security of tenure, and the quality of rental accommodation. Key aspects include the abolition of ‘no-fault’ evictions under Section 21, an introduction of a lifetime deposit system, and a new property portal for landlords, helping to enforce higher standards.
The Role of No Letting Go
Ensuring Compliance with Updated Regulations
No Letting Go’s services are vital in helping landlords navigate these legislative changes. With professional inventory management and regular property inspections, we ensure that landlords meet their obligations under the new laws.
Professional Inventory Reports
Comprehensive inventory reports are more crucial than ever. These documents provide an evidence-based approach to managing tenancies, which will be vital in the case of disputes, especially with the anticipated removal of ‘no-fault’ evictions.
Regular and Thorough Property Inspections
With the government’s emphasis on the quality of rented homes, regular property inspections are key. No Letting Go’s meticulous inspections can identify maintenance issues early, ensuring properties meet the required standards and helping landlords avoid penalties.
Lifetime Deposit Scheme Readiness
The lifetime deposit system aims to make moving between properties more manageable for tenants. No Letting Go can facilitate the management of these deposits, ensuring proper documentation and transfer between tenancies, reducing administrative burdens for landlords.
Educating Landlords and Agents
Education will be a cornerstone of adapting to the Renters’ Reform Bill. No Letting Go provides guidance and advice, keeping clients informed of their new responsibilities and helping to implement best practices in property management.
Dispute Resolution
Our detailed inventory reports and evidence of property conditions serve as critical tools in resolving end-of-tenancy disputes, which may increase due to the abolition of Section 21. Our services provide landlords with the documentation needed to fairly settle any disagreements.
Embracing Technology
No Letting Go’s technology-driven services, like the DigiSign Automated Check-In, will streamline compliance with the new digital property portal, ensuring landlords can easily provide the necessary information and maintain records.
The Renters’ Reform Bill represents a paradigm shift in the UK’s rental sector. No Letting Go stands ready to support landlords and letting agents through this change, with a suite of services designed to maintain property standards, simplify compliance, and support the well-being of tenants. As the rental landscape evolves, partnering with No Letting Go means staying ahead in providing safe, compliant, and well-managed rental properties.
The national news is obsessed with the UK property market!
There is no doubt it is a favourite headliner for most media outlets, and let’s face it, the UK public is obsessed with it too! However, it is specifically the residential rental sector that has been under the media microscope over the last 18 months because it has been booming – it literally burst back into life post-pandemic and hasn’t stopped.
Over the last 20 years, demand for rental homes has seen strong, steady growth. The number of households privately renting has more than doubled over the past two decades, according to the 2021 Census, to just over 5 million. However, the current surge in demand started in 2021 with no signs of slowing, hence the intense media interest.
Much media reporting is often akin to storytelling with a determination to have a “goodie” and a “badie”, and as such, there have been many press headlines with opposing views on who are the winners and losers of the current boom, most commonly with landlords in one corner and tenants in the other. Of course, the truth is seldom this polarised, and in reality, these stakeholders have both experienced advantages and disadvantages in the current climate based on individual circumstances. However, rather than delve into this, I want to examine what is causing this current boom and how long it might last.
1. Firstly, the lack of decent, affordable social homes has pushed people into private renting, contributing to the long-term growth in demand. Added to this is the more recent house price inflation making it harder for first-time buyers and those on lower incomes to transition from renting to home ownership.
Of course, the sudden increases in the cost of living has further exasperated this.
2. Even though owning a property outright is the goal for 80% of people, renting is the best option for many ranging from students to digital nomads to those with adverse credit and single living.
Renting is also a relatively short-term commitment for tenants, providing the flexibility to change locations, increase/decrease property size, and have a garden/no garden as circumstances change or evolve.
3. Another key driver for the recent demand is the strength of the jobs market (over 1 million vacancies, according to the latest ONS data). In 2021 the UK government conducted a major shakeup of visa rules to attract skilled workers and more students from abroad. The UK has seen record-high immigration, further boosted by support schemes for Ukraine and a specific visa scheme for British citizens looking to leave Hong Kong.
4. While tenant demand has increased, the number of privately rented homes remains largely static. In 2021, there were 5.5m private rented homes in Great Britain – only slightly more than the 5.4m total in 2016. This demand has enabled rental prices to increase in line with the additional cost of mortgages for landlords, which, in turn, has increased competition amongst tenants seeking rental homes.
(Graph supplied by property portal Zoopla)
The future outlook
While the availability of privately rented homes remains fairly static, ongoing completions of Build to Rent schemes in the corporate sector will add supply in the mid to upper part of the market, which will assist with the recent imbalance between demand and supply with rental properties. Some extra supply, combined with the increase in the cost of living, is expected to see the pace of rent increases slow over the next few years but will still remain above the 5-year growth average.
The long-term growth fundamentals, however, remain unchanged with less social housing, more challenging criteria to obtain a mortgage and a greater desire for more flexible living in the short to medium term.
What does this mean for No Letting Go Franchisees into the future
No Letting Go is a specialist inventory management supplier to the lettings market, servicing property managers, social housing, landlords and institutional investors. We have experienced record levels of growth in sales over the last two years, and the outlook remains strong for our network of franchisees.
It is unlikely the dynamics driving the current boom for rental homes will recede in the coming years.
Although we do anticipate the pace of rental growth will slow in some locations to more sustainable levels in the face of cost-of-living increases and affordability.
This represents a great economic forecast for anyone considering buying a franchise in the residential rental sector.
Justine Tomlinson
Head of Operations No Letting Go
Every landlord wants to complete the end-of-tenancy process as smoothly and efficiently as possible. However, it’s common for disputes to arise surrounding the property’s condition after tenants move out. As well as causing stress for both parties, such disagreements can lead to unfair financial losses. So, can landlords protect themselves and mitigate the chances of a dispute arising?
As readers are probably well aware, landlords and letting agents must hold tenants’ deposits in a government-approved tenancy deposit protection scheme. Such deposits may be used to cover costs for damage or maintenance issues at the end of a tenancy, provided landlords can prove their tenants have caused the damage or failed to live up to their maintenance obligations. This is where property inventories come in handy.
How do property inventories protect landlords (and tenants)?
Property inventories provide detailed and concrete evidence of a rental property’s condition. By providing tenants with an inventory at the beginning of their lease, landlords offer clear guidelines detailing how the property should be returned when they move out. As well as increasing the chances that tenants leave the property how they found it, an inventory will decrease the risk of disputes, saving both parties time and money.
Property inventories typically include high-resolution, digitally dated photographs and detailed written reports that log the state of your rental property. If the actions of your tenants have caused financial losses, these reports make it relatively easy to evidence your reasons for withholding some or all of their deposit. Some of the most common reasons for withholding funds include:
- Cleaning expenses: Many landlords ensure their properties are professionally cleaned before tenants move in. If tenants fail to return the property as they found it, landlords may deduct professional cleaning costs from the deposit.
- Rental arrears and unpaid bills: Landlords may withhold the costs of unpaid rent or bills related to the property (e.g., gas and electricity bills).
- Missing items: Landlords may deduct the costs of unreturned inventory items.
- Damage: Landlords may withhold the cover of damages that amount to more than normal wear and tear. Examples of damage could include holes in walls, large carpet stains, broken appliances, or broken chairs.
- Lack of upkeep: Some contracts require tenants to maintain a garden or another element of the property. If they do not live up to these responsibilities, landlords may withhold some of their deposit to cover costs.Of course, as well as providing your tenants with an inventory, you should remember to provide clear guidelines about returning the property at the end of the tenancy. As well as improving your relationship with tenants, such clarity will mitigate the chances of unpleasant disputes.
Keen to avoid a security deposit dispute? Choose No Letting Go to handle your property inventory!
As you can see, producing a detailed property inventory will help to protect your finances and nurture better relationships with tenants. Of course, producing such an inventory can be time-consuming and a little confusing, particularly given the amount of complex legislation landlords must follow. Fortunately, No Letting Go is here to help. We offer detailed pre-, mid-, and end-of-tenancy inventory reports to make your job as easy as possible. Get in touch today to find out more!
If you are involved in leasing commercial properties, it’s essential to be aware of recent changes in Energy Performance Certificate (EPC) regulations. On 1st April 2023, the government introduced requirements for landlords to produce EPC ratings of band ‘E’ or better for their commercial properties. Such standards are designed to help the country achieve net zero emissions by 2050, with failure to comply potentially costing you up to £150,000 in fines.
To help you navigate the world of EPC assessments and avoid nasty surprises, we’ve compiled a quick guide to ensuring your property meets the latest requirements.
First things first: Establish a list of actions.
If you still need to get around to assessing the new EPC regulations, don’t fret. Here are a few steps to follow before you take any actions:
- Review your commercial property portfolio: What are the current EPC ratings for your properties? If they’re better than ‘E’, you don’t have to take any immediate action. If any properties fall below standard, check whether you have the right to access and undertake any remedial work according to your lease. You should also check whether the building is exempt from the new rules (see below for more details).
- If necessary, book an EPC assessment: If you haven’t ordered an EPC assessment in some time, you should book an inspection. As well as providing an up-to-date evaluation of the property’s energy efficiency, an assessor will provide recommendations about the kinds of work that will improve your property’s rating.
- Address necessary works: Once you’ve established what changes you need to make, check your lease(s) carefully to establish whether you or the tenant(s) are responsible for covering the cost of the works. Then, you can start conversations with tenants about when and how you will undertake the work.
- Consider future-proofing other properties: If your properties are rated ‘E’ or only slightly higher, it’s worth noting that there are proposals in the works to raise minimum standards to band ‘C’ by 2027 and ‘B’ by 2030. You could save time, effort, and money by making adjustments now.
Are there any exemptions for the new requirements?
Yes! While the rules are relevant for all rented commercial premises, there are limitations surrounding the practicality and cost of work. Here are legitimate exemptions to note:
- Consent issues – i.e., if you’re unable to obtain consent to carry out the works from a tenant or third party.
- Wall installation problems – you may be exempt if wall installations would threaten the structural integrity of the property.
- You’re a new landlord – new landlords may be granted six-month exemptions in certain circumstances.
- The property remains below ‘E’ despite remedial work – i.e. if you’ve made recommended changes, but the property remains below standards.
- Seven-year payback rules – i.e., if the cost of recommended improvements would be higher than the savings made on energy bills over seven years.
- Changes would devalue the property – if works would damage your property or devalue it by 5% or more, you can apply for an exemption.
Please note that exemptions are not automatically applied, so you must register your exemption with the PRS exemptions register before starting a new tenancy. Approved exemptions are valid for five years and cannot be transferred to new property landlords.
Need help with inventory management due to EPC rating regulations? No Letting Go is here to help.
If you’re feeling a little disoriented by new rules and regulations, we don’t blame you. Navigating the commercial property sector can be confusing and stressful. Fortunately, No Letting Go is here to handle the complexities of inventory management. Get in touch today to find out more.