Landlords – what are your suggestions to better the current chaos in the PRS?

Landlords – what are your suggestions to better the current chaos in the PRS?

14:03 PM, 28th November 2022, About 2 years ago 35

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Hello, Every landlord, big or small, must by now have felt the effects of repeated changes to legislation and taxation in regards to the PRS.

On any landlord forum you will find lists of landlords giving lists of what is wrong with the system, but I’ve yet to read anybody giving tangible solutions.

So, as a landlord, what are your suggestions to help fix this sh**storm that is the current PRS?

My starter for 1.) Government buys property from landlords who want to sell up at market price minus CGT and any refurb costs. Landlord pays no CGT on the sale, but have the option to refurb (if necessary) to a set habitable condition before sale. Tenants don’t lose their homes, landlords don’t lose money for selling with tenants “in situ”, more housing stock moves back to government ownership, and the revenues lost from the CGT are offset by local council not having to bear the longer-term costs of “rehoming” tenants in hotels/hostels who’ve been evicted by property sales.

2. (This one is bound to be contentious but hear me out)…
Make non-payment of rent a CRIMINAL offence. However altruistic we may wish to be, at the end of the day, in any other sector, if you take something (be it an object or a service) and don’t pay for it that would be classed as THEFT! Most long-term landlords will at some point have to deal with the a**e-tightening ordeal that comes when a tenant stops paying rent. While there will be some genuine cases where circumstances have contrived to put tenants in a desperate hole, in the majority of cases tenants stop paying rent because they know they can get away with it – with little or no comeback. If a tenant owns nothing, doesn’t work, and has no guarantor to answer to, then what do they have of value to lose apart from their liberty? If there is actually a serious consequence (other than 9 months rent-free and moving onto the next sucker) when rent goes into arrears, would this not be more incentive for tenants to pay and landlords not be forced to evict as a consequence? Aside from being fairer to the good tenants who now don’t face eviction (because their landlord has had enough and is selling up), a criminal conviction for rent arrears is a fair reason for automatic eviction (and also future reason for refusal to rent) that could easily be flagged up on a credit check without the costly expense of a “rogue tenant” database. This in turn saves landlords the expenses of s21/s8, and baliffs fees, saves court fees spent on the chancers and time-wasters, and frees up courts for geniune cases where there’s been a valid reason for non-payment.

3. In those cases where tenants believe they have a genuine case against disrepairs/a rogue landlord then rent should still be paid into a holding account with a tenancy dispute company (similar to the deposit companies) until the case is heard. Then if the case is found to be invalid the landlord gets his money due, or money can be taken from the accrued account to pay for necessary repairs etc. None of this unnecessary “rogue landlord” database b****cks, or “no win- no fee” ambulance-chasing lawyers that are springing up.

There’s bound to be holes in my arguments, but what else would you, as a landlord, suggest to make the system better?

Thank you,

Raz


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Rich Robson

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14:06 PM, 29th November 2022, About 2 years ago

Why dont we make BTL into serviced accomodation, they book it 6mth in advance at say £20/ night and at the end of 6mth its up to landlord if they get another 6mths as they have no rights under SA.

Mick Roberts

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14:10 PM, 29th November 2022, About 2 years ago

Reply to the comment left by Hamish McBloggs at 29/11/2022 - 14:02
Fantastic Hamish,

We run round like a blue arse fly every time Govt & Council's bring something in new. I coped fine before all these latest rules.
When I couldn't do all Licensing forms in one month, nor would the Credit cards allow for so much in one month-£57,000 in one month Aug 2023-Nottingham Council Licensing said to me 'Well you shun't have so many houses Mick'.
I said I DIDN'T buy all my houses in one month-It would have been impossible.
I don't get all my boilers break in ONE month.
All roof's don't break in one month.
You are now asking me to do something impossible.

Ross Tulloch

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14:26 PM, 29th November 2022, About 2 years ago

If the silly minimum room sizes in HMO's were abolished, that would release hundreds, maybe thousands of rooms in London. We sold two properties, evicting 8 tenants because one room was too small, less than 6.51m

Hamish McBloggs

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16:07 PM, 29th November 2022, About 2 years ago

Reply to the comment left by Mick Roberts at 29/11/2022 - 14:10It could eliminate the need for an LA to contemplate licensing.
Instead an LA could propose of the portal addresses that should be considered as candidates for licensing.
A proper two way consultation process captured by the portal.
Licensing costs centrally structured.
Money not directly going to the LA but the portal. Disinentivise local money grabs and department building.
Any judges' time saved = lower cost and/or increasing quality of decision.
Less stick and big fine and more ushering, convincing, building, partnership.
Eventually make it a requirement to use the portal if you want to be a landlord.
LA's incentivised to chase real rogues as LL's using the portal by definition cannot be rogues
I will freely admit that this could be seen as a 'national landlord register' and may rub some up the wrong way.
But I could have anxiety free sleep if I wasn't worrying about having missed something e.g. According to a recent s21 I recently filed, this question appeared :
Has the gas safety cert been prominently displayed in the property throughout the tenancy?
I'm assuming it's simply not enough for both me and British Gas to post these to the tenant and guarantor, for me to email and WhatsApp them to the tenant and the guarantor and for me to make them available to download 24/7 from a GDPR compliant file sharing site.
A rules based system with all accessibility considerations in place would stop the need for Great Aunt Maude's portrait above the fireplace being displaced by a Gas Safety Certificate.
I would pay a fee towards this as any modest cost would be cheaper than paying for the (laughably termed) fast track in the local court where I am eventually told I can't charge interest or expenses to travel.
Hamish

Mick Roberts

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16:24 PM, 29th November 2022, About 2 years ago

Reply to the comment left by Hamish McBloggs at 29/11/2022 - 16:07
U talking common sense & joined up thinking-Which we know the Govt departments & Council departments don't do.

Claire Smith

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16:27 PM, 29th November 2022, About 2 years ago

It would be great for councils to buy up houses from landlords, in fact I think that this can be done in London but it's about 10% below market value so not likely to be popular. Market less agency costs would make more sense.

Arrears should be treated as theft after 1 month and 1 day (as rent is payable in advance, this is the equivalent of leaving a shop with goods that haven't been paid for). It wouldn't help though as theft just leads to numerous warnings before an official caution and even after repeated offences they are set free.

The thing that would make sense to me is specialist property courts. These could have well trained judges and also employ their own surveyors who could distinguish between tenant damage/lifestyle and a need for repairs. These court should act quickly and have the power to rapidly respond where a tenant doesn't leave on the eviction date. Access to the courts should be allowed at 2 months arrears even if the tenant repays later, but with the judge willing to listen to the mitigating circumstances. They should also have the power to penalise the rogue landlords and have all their properties inspected.

Smiffy

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17:52 PM, 29th November 2022, About 2 years ago

Reply to the comment left by Raz at 29/11/2022 - 09:02
To put 10,700 properties into perspective, that won't even house the rubber boat migrants that arrive each year. You need to stick at least one zero on the end of that!

AnthonyG

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18:38 PM, 29th November 2022, About 2 years ago

Reply to the comment left by The Forever Tenant at 28/11/2022 - 15:52
1) Good idea to save councils money by not spending so much on hotels. If I were a council, I wouldn't want to pay market prices, but a distressed sale price similar to companies who buy landlord portfolios.

2) Unworkable. First, a criminal trial could take ages to arrange. Second non-payment of debts is really a contract law issue and there are plenty of tools available to get the money back if the non-payer has any money. Third, a criminal judge is unlikely to award sufficient compensation to cover the lost rent etc. The civil courts are more appropriate. Instead, I would like to see rent payments added to a tenant's credit record whenever they are collected by an agency on a landlord's behalf, so the tenant has an interest in keeping a good record.

3) Sounds sensible.

Raz

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19:15 PM, 29th November 2022, About 2 years ago

Reply to the comment left by Smiffy at 29/11/2022 - 17:52
THEY got the 20,000 odd homes that the government actually DID build last year.

Hamish McBloggs

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7:49 AM, 30th November 2022, About 2 years ago

Reply to the comment left by Mick Roberts at 29/11/2022 - 16:24
Michael Gove's property portal proposals are not the same as mine.

He seems to be proposing a repository of information that can be viewed & used. I am defining processes which require as a minimum this repository of well maintained information for which central government take responsibility. A LL, tenant, agent, represeentative can never be liable if incorrect.

What I'm proposing means licensing becomes irrelevant from a LL point of view unless there are specific LA requirements for an area that would mean additional actions by a LL. An LA would have to define these actions but would not receive money from a LL for these additional tasks.

Licensing is meant to 'bring up standards'. If a LL is on the portal then the minimum standards are met. LL's can be 'struck off' via the portal. Authorities can proactively 'decend upon' struck off LL's to make sure they haven't gone and rented another hovel.

Equally, tenants can also be 'struck off' and struck off tenants must become wards of the state.

To bring up standards, actions outside of a LL's control need to take place. E.g. Policing, care in the community, mental health, condition of a park or street, properties that will never be EPC 'C' or above. These are firmly LA and central government and (other than lobbying an MP) cannot be influenced by a LL.

'Licensing' then becomes a cooperative contract between LL and LA where the additional costs incurred by both are openly recognised and central government are forced to appropriately fund it rather than asking LL's to pay which is effectively what's happeing now.

Treat the whole problem more as a national health issue.

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